Baidu Buckles; Other Top Issues Weather Uncertainty By VICTOR REKLAITIS, INVESTOR'S BUSINESS DAILY Posted 12/17/2010 06:47 PM ET Featured Stocks BIDU Baidu Inc Ads (Added 07/06/2009) CMG * Chipotle Mexican Grill CTSH * Cognizant Tech Sol Cl A (Added 09/11/2009) PCLN * Priceline.Com Inc (Added 07/06/2009) TIBX * Tibco Software Inc (Added 09/24/2010) * Top-Rated Company 1" 2" As 2010's second-to-last week gets under way, IBD's market outlook stands at "uptrend under pressure." That outlook reflects the recent uncertainty in the market, which went from a mild correction to resuming its uptrend on Dec. 3, but then came under pressure last Wednesday. It's not unusual to see some hesitation at the end of the year. View Enlarged Image But even if this back-and-forth action is somewhat typical, it's still tricky for IBD-style investors pondering their next move. If you're holding stocks, you need to be monitoring the broader market's behavior. After all, the "M" in IBD's CAN SLIM investing strategy stands for "market direction." You don't want to be swimming against the current. However, you also want to decide what to do with your stocks based on those stocks' own merits. While it's smart in many cases to lock in gains once you have a 20% profit, the big money often comes from being patient and realizing when your stock is still telling you to hold on. Among IBD 100 issues, not many are raising red flags. One exception is longtime leader Baidu (BIDU). China's Web search king sliced through its 10-week moving average in fast trade Wednesday, and it ended the past week below that support level. Contrast that with the action displayed by another longtime IBD 100 member, Chipotle Mexican Grill (CMG). The burrito chain also pulled back to its 10-week line during the past week. But it then rebounded off that line, achieving an upside reversal for the week. Chipotle is one of four boxed stocks in the IBD 100. Issues get a border around their chart when they have solid fundamentals and are trading in a sound base or near a buy point. The other boxed stocks are Cognizant Technology Solutions (CTSH) , Priceline.com (PCLN) and Tibco Software (TIBX). Cognizant has cleared a 71.39 buy point from a cup with high handle. The tech services outsourcer is just 1% past that trigger, so it remains in a buying range. Priceline has formed a flat base with a potential buy point at 428.20. The online travel broker is also finding support at its 10-week average. Database software maker Tibco is boxed because it's still in a buy zone after bouncing off support near its 10-week line. For the week, the IBD 100 lost 1.3%. The Dow rose 0.7%, while the S&P 500 added 0.3%. The Nasdaq and NYSE composites gained 0.2% each.
