Market Update & Trade Ideas 08/07/2013

[Natalia]

Happy Thursday Everyone,

There is something I want to bring it up ~ That even though we are uptrend underpressure, I'd like you  to see that we are not in a bad market state yet. Though my opinion can change within hours from now.

Sure we have 7 distribution, most of the down days (with the exception of one) are in below average, no institutional sell signal there.

Leading stocks are behaving alright, I have more stocks that meet the watchlist criteria more than before.

In conclusion, don't get overly to bearish on the market just yet. Look at the leading stock first then indices. That is why they called leading stocks, they'll lead us out of the correction into uptrend, and they'll lead us into the correction state.

The statistic says, whenever market is underpressure, most of the time only took 6 days before it resume to uptrend or changed to correction.... since we are closer to new high than making a lower low... I am getting my watchlist ready and you should too...

I attached 2 snapshot of the stocks that interest me... by all mean they are not recommendation to buy, sell, or sell short... they're just ideas that hopefully get you started...

[Aman Sahai]

I was checking the chart for VRX, Saw that the sponsorship rating is "C". How exactly does the sponsorship rating work. Does it effect the stocks potential. What can we infer from it.

Regards

Aman

[Natalia Natalia]

Sorry for taking longer to answer ~ i hope this does answer the question though :)

Sponsorship rating is not something that IBD is focusing anymore... about a year or two, I heard Time Reazor was saying that they try to get rid of it, unfortunately they may not be able to do it because many fund manager who subscribe to O'Neil service may still use it

Sponsorship rating is 3 year period (pasted from IBD website)

I think the most important factor on determining which leading stocks to buy for me is Accumulation Rating, RS rating and EPS Rating

Sponsorship Rating

Unique Investor's Business Daily rating that helps investors know if a company's stock is owned by the better performing mutual funds. Its calculation averages 3-year performance of all mutual funds owning the stock. The rating scale ranges from "A" to "E" (A=Best, E=Worst). An "N/A" appears if not enough data is available to calculate a rating.

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