
Current Market Outlook
Last week had some promising moments, but by week’s end, the sellers had pushed the major indexes back down on the week. At this point, the bears are running wild, as most of the major indexes remain in wide trading ranges. At the very least, the intermediate-term trend is sideways-to-down, and the broad market is in poor health, with hundreds of stocks hitting new lows on a daily basis. It’s OK to hold some resilient performers, but we urge a cautious stance, with plenty of cash on the sideline and limiting new buying to just small positions of resilient stocks.
This week’s list has some solid ideas, though there are no broad trends apparent—mainly company-specific situations that have attracted some buyers. Our Top Pick is
Alkermes (ALKS), a speculative biotech that could swim against the tide thanks to the FDA’s recent approval for one of its high-potential drugs.
| Stock Name | Price | Buy Range | Loss Limit |
|---|
| Red Hat (RHT) | 0.00 | 79-81 | 74-75 |
| Pure Storage (PSTG) | 25.64 | 15-16.5 | 13.5-14 |
| NetEase, Inc. (NTES) | 0.00 | 170-176 | 160-162 |
| Ligand Pharmaceuticals (LGND) | 267.14 | 103-107 | 96-97 |
| Intra-Cellular Therapies (ITCI) | 0.00 | 50-55 | 44-46 |
| FLSR (FLSR) | 0.00 | 62-65 | 56-58 |
| Extra Space Storage (EXR) | 0.00 | 84-87 | 80-81 |
| Amazon.com (AMZN) | 2.00 | 650-667 | 618-622 |
| Alkermes (ALKS) | 0.00 | 75-78 | 68-69 |
| Adobe Inc. (ADBE) | 315.23 | 89-92 | 85-86 |