May 11th 2011 Market Recap with Silver, WatchList

Heavier volume distribution gave back all of yesterday’s gains for the market. We are still trending sideways at the moment but the distribution days are starting to stack up which favors bears more than bulls.

To navigate this environment I have exited any weak positions (via tight stops) and have raised stops on my remaining positions. These stocks (which are also my best holdings) are set to automatically lock in profits if this this market breaks lower. Alternatively if we move back up, I am already vested in great stocks that should add on further gains. For further strategy see my post on StockTradingToGo, 6 Great Tips for Investing in an Uncertain Market.

Some sectors that are standing out on my watch list with individual stocks are below:
Healthcare – AGP, HS
Retail – (Internet) AMZN, SFLY, MELI (Restaurants) CMG, DIN, BJRI, RHI, PNRA, BWLD (Clothing) ANF, LULU (Jewelry) TIF, FOSL

Trend Table
Trend Nasdaq S&P 500 Russell 2000
Long-Term (-) Down (-) Down Up
Intermediate Up Up Up
Short-term Down Down Down

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.