Preparing to “Buy Low” (August 27th update with “Buy” list.)


It looks like we’re seeing a double-bottom pattern on the S&P, followed by a shakeout pattern.  The shakeout would be bullish, indicating a near-term completion of the market correction and a resumption in the bull market.  (08-27-13)

S&P 08-27-13

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On August 21, I called the bottom of the market correction.  I stand by that call.  Here’s a quick recap of the buy list from August 20 (below), based on August 23 closing prices:

Stocks with bullish, climbing chart patterns:  PCLN, UA.

Stocks that have begun their breakout, which I would buy immediately:  FDX, WHR.

Stocks which appear to be completing a trading range, on the verge of breakout: LYB.

Stocks which are low in their trading ranges, at buy prices:  APC, AVY, CAKE, EBAY, IAC, URI.

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Today appears, to me, to be the bottom of the current stock market correction, with the S&P showing more strength than the Dow.  (08/21/13)

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The stock market has not completed a bottom pattern, but there are always people who want to buy low.  Here’s a list of our buy-recommended stocks which look attractive at current prices, with better chart patterns than most other stocks.  

Anadarko Petroleum Corp. (APC, $89.79) — The stock’s on an uptrend with a very bullish chart, recently trading between $88 – $93.  Try to buy under $90, but any price in that range is fair.

Avery Dennison Corp.  (AVY, $44.35) — The stock broke past medium term resistance at $43 in May, but has not had a huge run-up.  It’s currently trading between $43.50 – $46.00.  Buy under $45.

The Cheesecake Factory Inc. (CAKE, $43.41) — The stock broke past long-term resistance at $39 in late April.  It’s currently trading $40 – $45.  I’d buy it outright rather than quibbling over price, because it appears as if it could climb again at any moment.

eBay Inc. (EBAY, $51.99) — The stock is preparing to break past long-term resistance; trading between $49 – $58 since November.  Buy below $54.50.

FedEx Corp. (FDX, $109.21) — FedEx is a “screaming buy”.  There’s some resistance at $121.  Buy it immediately.

IAC/InterActive Corp. (IACI, $50.84) — The stock appears ready to break past resistance at $54/$55 in the near-term.  Buy now.

LyondellBasell Industries NV (LYB, $68.24) — The stock is on an uptrend, and has been trading between $66 – $71.50 for six weeks.  Buy now. Inc. (PCLN, $932.77) — is on an uptrend.  Investors can probably buy shares below $930 in the next few days.

Under Armour Inc. (UA, $71.51) — The stock is on a long-term uptrend; recently trading $67 – $74.  It might not fall much below $69 before it begins climbing again.

United Rentals (URI, $55.77) — The stock is in a longer-term uptrend; currently trading between $54 – $60. Investors can likely buy below $57 in the next few days.

Whirlpool Corp. (WHR, $134.25) — Whirlpool broke past long-term resistance in March.  It’s currently trading between $132 – $138, and might break out to new highs again quickly.  We would buy at any price within that range.


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The stock market correction still appears very normal, small, apparently bouncing at support levels.  If so, it’s not done bottoming, and there’s time to watch and wait without missing the opportunity to buy low.  (08/16/13)

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The stock market is experiencing a normal correction right now.  You are probably seeing yourself get stopped out of various long positions.  Hold onto your cash.  Invariably, the bottom comes quickly, and then it’s time to go shopping.

I’ll be publishing a list of stocks to “buy low” after monitoring the technical charts for a few days.  (08/15/13)

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Send questions to

S&P 08-15-13

Crista Huff


Goodfellow LLC





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