- New Trades -
(March 02, 2013)
The stock market has not changed much in the last week. Bears tried to take it down following the Italian elections a week ago but there was no follow through. Traders bought the dip but stocks failed to rally back toward their highs, at least for the S&P 500. The market could breakout either direction.
I remain cautious. Even with the recent dip stocks remain overbought. There are a lot of potential obstacles for the market as well, discussed in the wrap tonight. That doesn't mean there are not some pockets of strength.
If you're looking for a bullish candidate you may want to look at some of the oil refiners. Stocks like HFC, TSO, and WNR all look bullish and poised to rally. Another stock I would keep an eye on is LULU. Shares of LULU are testing a long-term trend line of support. A close above $70.00 or $71.00 in LULU could be a new bullish entry point.
I am not adding any new trades tonight. This past week we saw DLTR jump from the watch list to the active trade list. Tonight we're adding TIF and ZNGA to the watch list.