- New Trades -
(January 26, 2013)
No new trades tonight. I'm not adding any new watch list candidates either. Most of the market is up four weeks in a row. A lot of stocks and many of the major indices are overbought and due for a pullback. Since the pullback hasn't happened yet we don't know if it's going to be a minor bout of profit taking that merely lets the rally pause and catch its breath before resuming the up trend or if the pullback turns into something more painful - like a full-fledged correction.
Another reason I am not adding anything tonight is that we have a couple of key events this week. The Federal Reserve's comments when they release their FOMC statement on Wednesday this week could be a market mover. Plus there is both the Q4 GDP estimate and the jobs report, either of which could be a catalyst to hit the sell button if the market doesn't like the result.
Bigger picture the trend is up. That means we can look for the pullback, which will probably show up sooner rather than later, as a new bullish entry point to buy the dip. Map out strong stocks that pique your interest and wait for them to dip toward support.
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:
BMC, DTE, WLT, SHOO, FLIR, TRMB, TIF, HD, CLB, BAC, SLB, MHP, XOM, NAV,
CHE, MYL, DE, QCOM, TJX, RS, AMD, EA, GS, KMB, FLR, CAT, CMI, WFM, PHM, TOL, BZH, RCL,