Symbol Sector Current Resistance/ Stop Rationale
Robert Half Int'l
(short) This stock has moved into oversold territory, and with the market indicators at low levels, would need to rally substantially to present an attractive risk-reward for new exposure. Okay to trim, or simply wait for a move toward $35 before placing new orders.
Follow-Up Comments: [DHR] Danaher Corporation R ($76.470) - Machinery and Tools - DHR broke a double bottom at $73 on Thursday, but this was hardly a critical breakdown with notable support in sight at 70-71, and considering the market conditions that led to such a breakdown. The stock remains a 3 for 5'er and remains one to consider as a shopping list candidate here. Despite the double bottom break, the stock continues to hold up pretty well, stops remain 69.
[PSYS] Psychiatric Solutions, Inc. R ($37.290) - Healthcare - PSYS formed a second higher bottom on Friday, setting up a potential bullish catapult breakout at $40. The reversal does two things, it allows traders to tighten first alert levels to $34, which would be a first sell signal, while it also allows those not already long to still consider new exposure here with a sound risk-reward. PSYS maintains a bullish price objective of $52, and stops may be kept at $34 and $31 (a more significant violation of all near-term support.
DWA Spotlight Stocks:
Today we also wanted to provide you with a list of long ideas to consider, in addition to those outlined below. Over the next week or so, we will provide you with a more extensive list of ideas, with specific themes in mind. More on that as the week unfolds.