IBD has the Market Under Pressure. In a study I have seen regarding growth stock breakouts since 2003 the best opportunities came with the market in correction and the worst times came when the market was under pressure. The first part may seem counter intuitive but by the time stocks start breaking out in a correction the Follow Through Day usually comes along and the early breakouts do okay. So it seems we are currently in the worst of times.

The Market School position is 30% invested on the long side with buy switch on, waiting (hoping) for a FTD to reset the distribution count which is now high at 7 days. These distribution resetting FTDs are a bit different from normal FTDs when the buy switch is off and are part of a complicated advanced technique. The earliest we could see a legal FTD is Tuesday (day-4 of an advance off of a low).

With the USD index still riding high at 97.6 I expect companies with big exposure to international sales to miss profits in the upcoming earnings releases. This would equate to many large cap companies. Thus I am suspecting that we could see a real correction develop in the coming months. I don't know how this would impact the FED but I doubt it would hasten their move to tighten.

Watch lists in the High Growth section are updated.