The U.S. stock market continues to climb. Stocks in general still look overbought but you could argue that the major indices just spent the last several days consolidating sideways, albeit with lots of volatility.
We are now facing the much hyped and hard to predict EU summit. Actually EU leaders are holding six days of talks as they discuss how to let Greece default without sparking widespread contagion, how to protect the EU banking system, and how to bolster the EFSF rescue fund. The big days for these meetings are Sunday and Wednesday. They just announced there will be no major decisions on Sunday.
These meetings in Europe could be a significant turning point for the market. Headlines out of Europe will either kill the rally and send us lower or pour fuel on the fire and launch us into the next leg higher into the fourth quarter.
As it stands now I'm not eager to chase the big move off the October low. We're not adding any new trades tonight. However, we did add six new candidates to the watch list this evening (they are: BZH, CSC, EBAY, GLW, MDR, and RAI). Plus, last week I listed several potential trades here in the new plays section. I still like NVDA if it can close over $16.00 or dip back to $12.00. The earnings report from MCD was bullish but I wouldn't chase it here. Look for a dip or a bounce from $90 as a possible entry point in MCD. ATVI is showing relative strength and the breakout past resistance at $13.00 is very bullish but I would not chase it.