Editor's Note:

(August 25th, 2012)

The stock market's upward momentum has stalled a bit. Both the S&P 500 and the Dow Jones Industrial Average have pulled back after testing their 2012 highs. We don't know if the rally is going to reverse here or if stocks have paused to merely catch their breath before moving higher.

Fed chairman Bernanke is due to speak on Friday. ECB President speaks on Saturday. There are also several key events in the first two weeks of September that could spark a sell-off in stocks. I suspect that short-term the stock market will consolidate sideways as investors wait to hear Bernanke's and Drahgi's speeches.

Therefore with the major indices pulling back from resistance at their 2012 highs and potentially market-moving events just days away, I don't see this as an opportune time to load up on new bullish LEAPS trades. As a matter of fact, I just added a bearish candidate to the watch list tonight.

Here's a list of stocks on my radar screen. These have potential to be LEAPS trades if the right entry point presents itself:

OMX, OSK, ERSX, STX, HSY, SLV, ADP, RHT, FSLR, FTR, WMT, GLD, VOD, CVX,