Editor's Note:

The U.S. market's major indices are in breakout mode with new two-year highs or better for the entire lot of the Dow Industrials, S&P 500, NASDAQ composite, and the Russell 2000 small cap index. The Dow transports, railroads, and healthcare indices are also at all-time highs. The bulls are definitely in control. It would seem that the "don't fight the Fed" strategy is still working.

The market's strength last week is very encouraging and we're adding new candidates to the watch list. Stocks now look a little bit overbought so we want to see a dip before initiating new long-term trades, so no new trades tonight, although Boeing (BA) did graduate to the play list last week.

One stock you might want to look at is FormFactor, Inc. (FORM). This is a semiconductor company and the chip stocks have seen significant improvement in the last week. FORM doesn't have LEAPS but I would still be tempted to buy calls on it if shares can breakout and close over resistance near the $11.00 level. After several months of building a base in the $8.50-11.00 zone, a close over $11.00 could signal a new leg higher.