- New Trades -
(April 20, 2013)
I am running the risk of repeating myself but we've been warning investors that the market might peak in mid April through early May for a while now. Sure enough the S&P 500 has rolled over, under round-number resistance at 1600, and is now in jeopardy of breaking the bullish up trend.
Stocks are overdue for a correction. We would rather wait for the -5% to -10% correction to happen and then buy calls than suffer through the sell-off. Of course there is no guarantee the pullback would stop at -10%. We are seeing a parade of disappointing economic data and worries over a global economic slowdown are growing.
I am not adding any new candidates tonight. We've been trying to take profits on our current, active play list. So far it's working well. This week I am suggesting we take profits in our CL trade soon (see update for details).
We are adding three new watch list candidates that could be triggered soon (F, INTC, and VOD).
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:
UNP, FSLR, ROST, V, DIS, CS, NVDA, EL, REGN, PNRA, TGT, KMB, SYY, PFE, AXP, WSM, GLD, CLX, GM, TAP, UA, SOHU, HSY, SJM, HFC,