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Be Wary of a Secondary Rally

When a rally is halted at a broken uptrend line instead of being able to recapture it, that is not a bullish sign.

The latest edition of Top Stocks is now available.

This issue of the newsletter warns to be suspicious of a secondary rally after a pullback because of the currently low equity put/call ratio combined with the resistance on the major averages. In addition, a discussion of several stocks, updates on previous picks, today's indicator and reader feedback on three names.