Editor's Note:

I am concerned about the market and how vulnerable it might be to negative headlines. The euphoria from the latest EU summit has already worn off. The labor market in the U.S. continues to weaken. Economic data from around the globe continues to slow down. The situation in Europe is far from solved. The market's focus is about to turn to the Q2 earnings season.

There is a very good chance that corporate guidance will be too weak and too conservative. If companies start lowering guidance it's going to push stock prices lower. Thus I would not be in a rush to launch new long-term bullish positions if we might get a better entry point three or four weeks from now. If you forced me to predict the future then I would look for the market to drop toward its June lows sometime over the next four to eight weeks. The wildcard would be the FOMC meeting at the end of July. If the Fed surprises with some new form of stimulus then stocks could rally.

This past week we did have three watch list candidates graduate to our active trade list. I just added two new watch list candidates tonight.

Here is a list of stocks currently on my radar screen as potential candidates to keep an eye on:

GS, MS, DLTR, TSO, OXY, CCJ, MDR, WFM, PHM, DHI, CIEN, SCHW,