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Stock Traders Daily has selected Intuit (INTU) as the Stock of the Week this week. According to Stock Traders Daily, the increase in the stock last week after positive announcements from the company propelled the stock to levels at which inflection points exist.

Although the announcements from the company were not negative, and instead the earnings and revenue projections have positive connotations, those announcements were not enough to propel the stock to much higher levels immediately (not higher than already seen). In fact, on Friday clear selling pressure was visible after the stock reached its intraday highs.

According to the real time trading report for INTU offered by Stock Traders Daily, the stock is at important inflection levels now and the ability or the inability of the stock to hold inflection will be the determining factor in the performance of the stock from here. The Stock of the Week selection is not to buy Intuit, but instead the Stock of the Week selection is to short Intuit if the stock remains below this longer-term inflection level.

In summary, the positive news that propelled the stock last week, primarily concerning the online subscription rates for TurboTax and QuickBooks, is not enough for us to consider the stock to be a buy at current levels. To the contrary, unless the stock is capable of increasing beyond the important inflection levels it is testing, the stock is instead a short.

This Stock of the Week selection is based on price, with a fundamental kicker. The news simply was not good enough in our opinion to warrant higher levels.

The Stock of the Week is a Strategy that has been in place since December, 2007, the beginning of the credit crisis, and it is designed to trade one stock every week proactively, with integrated risk controls.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: By Thomas H. Kee Jr. for Stock Traders Daily and neither receives compensation from the publicly traded companies listed herein for writing this article. INTU has been recommended as a short to clients of Stock Traders Daily if INTU can hold resistance.