In addition to our popular, daily research for swing traders (3-5 days), we also provide research that is more long-term in nature.  Designed for a time horizon of 3-8 weeks, our Stock Buy of the Week and Stock Sell of the Week are offered to our subscribers using the same selection process as our daily research.  This top-down/bottom-up strategy is sector driven, meaning that our focus is narrowed by the monthly outlook for each of 33 industry groups.

Each Monday our weekly stock picks are made available to our subscribers, complete with an initial price target and a corresponding stop loss.

The NASDAQ has seen its weekly momentum crossover to negative, implying that this market index has a negative bias for the next few weeks. This development allows us the opportunity to lighten up on some of the longer-term buy signals that have reached their upper trading limits.  The following Long-Term Buy ratings have been removed, as of the close of business today:

On the sell side, the sharp drop in the price of Lincare Holdings allows us to remove the sell signal on that stock.  The details on that Long-Term Sell rating are as follows:

Long-term technical indicators such as the CBOE Volatility Index (VIX) still point to a historically overbought stock market, one that is ripe for a pullback from current levels.  Consistent with that outlook, we are seizing the opportunity to take more profits among our longer term, weekly research features.  Specifically, the following Long-Term Buy ratings have been removed, as of the close of business today:

With the markets tumbling from overbought levels, it is time once again to remove selected buy signals from stocks previously featured as the Stock Buy of the Week.  Each of these buy ratings is being removed due to the stock's reaching its initial price target or to a near-term peak on its daily or weekly price chart.  The following Long-Term Buy ratings have been removed:

The latest beneficiaries of the market rally are a group of former Stock Buys of the Week that are at or near their target prices.  This affords us the opportunity for another round of selective profit taking.  The following Long-Term Buy ratings have been removed:

On the short side, the pronounced weakness in the Energy sectors may be coming to an end, and it affords us the occasion to remove one of the stocks featured as the Stock Sell of the Week.  The following Long-Term Sell rating is being removed:

The continuation of the rally that began in March has afforded the opportunity to take additional profits off the table.  A number of long-term buys ratings are being removed, even though a few of the stocks are below their recent highs.  The deterioration in several, long-term technical indicators indicates that the market is in a very vulnerable position at the present time.  In addition to the five Buys that were dropped in early May, the following Long-Term Buy ratings are now being removed:

Nearly all of the remaining Sell ratings are being maintained with the expectation that a softer market will allow sufficient opportunities to cover those positions at much lower prices within the next 3-4 weeks.  The one exception is an Energy stock that has reached its short-selling target price, so the following Long-Term Sell rating is being removed:

With our increasing concern about the vitality of the current market rally, we have decided to review our recent picks and to make appropriate changes.  These changes involve taking profits in a number of "Buys of the Week" that are seen as vulnerable to a market downturn, as well as "Sells of the Week" that are likely to begin to rise in a more difficult climate for stocks.  In general, we see a need to lighten up on recent long positions in technology-related companies, and a similar need to remove short positions in commodity-related companies such as Energy and Gold.

Buy ratings are being removed from the following stocks, which were featured on the dates listed:

Likewise, Sell ratings have been removed from the following short positions:

Additional ratings changes will be made in the days and weeks ahead as those opportunities arise.  Until then, thanks for your continued support of our research, and...

Best of Luck in Your Active Trading!

J. Scott Rader
President & CEO
Active-Investor, Inc.
scott@active-investor.com
http://www.active-investor.com

Disclaimer: Active-Investor.com is not a broker/dealer.  No references to any investments are to be considered an offer to buy or sell any securities.  As always, investors are encouraged to weigh all research against their need to satisfy their own investment objectives.

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