(January 05, 2012)
The U.S. market is off to a rip-roaring start to our brand new year. Now the S&P 500 is hovering just below major resistance at its 2012 highs but the small cap Russell 2000 index has broken out to new all-time highs. Will the rally continue or will stocks see profit taking on earnings news?
We are about to enter the Q4 earnings reporting season. Disappointing results or guidance could be a spark for profit taking. On the other hand, better than expected earnings news could definitely push the market to new relative highs. A major concern is the upcoming debt ceiling fight in Washington that will happen in February.
The trend is up but earnings and the debt ceiling issue could be major landmines. I am not adding new trades tonight. Our watch list was very successful and had four candidates graduate to our active play list this past week.
I've added one new watch list candidate and updated our radar screen below.
NOTE: ANR actually met our entry point requirement at Friday's close so our trade will open on Monday morning.
Here is a list of stocks on my radar screen. These have potential to be LEAPS trades down the road if the right entry point presents itself:
SYK, LSTR, X, EA, AMD, MU, CRR, BTU, GS, KMB, JNJ, AXP, OMX, KO, FLR, CAT, DE, OPEN, ORCL, WSM, PFE, T, WAG, PHM, RS, RCL, HSY, JBHT