- New Trades -
(August 18, 2013)
No new trades tonight.
The stock market's short-term momentum has turned bearish. Concerns over if and when the Fed might taper their QE program persists. Meanwhile we are in the worst two months of the year (August and September) and so far seasonal weakness has been right on cue. Given the big events coming up in September the next few weeks could be volatile. Investors might choose to sell now and move to the sidelines while they wait for the dust to settle in Washington.
We're bullish between now and the end of the year but that doesn't mean stocks can't see a painful correction between now and mid October first. I suggest investors preserve their capital now since we will likely see a better (lower) entry point over the next few weeks.
We are adding four new candidates to our watch list tonight (HAL, KORS, NVDA, VRSN).