Editor's Note:

The U.S. market has continued to rally and many of the major indices hit new five-month highs last week. While the trend is up I am concerned that the combination of the S&P downgrades in Europe and the first full week of the Q4 earnings season could be just the excuse investors need to sell and try and lock in gains.

We are looking at a pivotal week for the market. Will corporate earnings guidance fuel bullish investor sentiment? Can the S&P 500 rally past round-number resistance at the 1300 level? How will the Standard & Poor's credit downgrade impact debt auctions in Europe this week?

I suspect this is the key week where the market either breaks out higher or reverses lower. Thus I am a bit hesitant to launch new long-term positions here, especially with stocks arguably short-term overbought after a four-week rally.

No new positions tonight. I will share what is on my radar screen:

JEC, MAKO, JPM, SCCO, and CIEN

These stocks all look bullish but I don't see a bullish entry point quite yet. The exception might SCCO, which looks tempting given this past week's breakout higher but I am cautious on the metal and mining stocks with the dollar in rally mode.