Editor's Note:

These are very volatile markets. The S&P 500 saw a two-week drop of -8.3% only to bounce back +7.4% in one week. While the rebound is encouraging the major indices have seen the rally stall right at resistance. The markets are facing significant event risk with a handful of key meetings in Europe over the next week or two. I am somewhat reluctant to chase this big bounce in stocks without more follow through. Thus we're not adding any new trades tonight but we did reload the watch list with new candidates much more likely to get triggered if the rally continues.

In addition to the new watch list candidates tonight, investors might want to keep their eye on ARG and YUM as potential candidates. ARG has surged to new highs so I would wait for shares to consolidate. I'm looking at the $72-70 zone as a possible area to consider new bullish positions for ARG. YUM has seen a rally back to its 2011 highs. A breakout past the $57-58 zone would be very bullish. I'm a little concerned that YUM is short-term overbought.

Two more stocks that caught my eye are GPRO and HRL. Unfortunately neither stocks have LEAPS options available but readers may want to consider shorter-term trades (weeks, not months). I would be tempted to buy calls on GPRO if it can close over $66.00. On HRL I would want to see a close over $30.50 before considering bullish positions.

-James