Last week I talked about the "wall of worry" that bull markets like to climb. Well... it looks like the wall is currently winning. The S&P 500 has broken down under key support levels and finally hit a -10% correction from its 2012 highs.
There is growing concern over a breakup of the Eurozone. Economic activity in Europe, China, and the U.S. is all slowing down. The recent jobs report in America was another disaster.
We could be in for a very volatile summer with big moves both directions as traders react to headlines from Europe.
I looked at over 1,200 stocks this weekend searching for trading ideas. We did add two new candidates to the watch list tonight. Overall it looks pretty ugly out there. Investors do not want to be in stocks right now. You can see that money is flowing into the safety of bonds with yields on the U.S. ten-year note at a record, all-time low of 1.46%.
We are not adding any new trades this evening.
Here is a list of stocks currently on my radar screen as potential candidates to keep an eye on:
DIS, STX, DPS, and TGT