- New Trades -
(February 16, 2014)
The U.S. market's big rebound is both encouraging and somewhat frightening at the same time. Stocks remain overbought. We did not see a normal correction of -10% (actually the average is -13%). It has been almost 850 days since the last official correction. That's way too long.
Investors seem to be ignoring disappointing economic news. Previously the market ignored slowing economic data because the Fed was there to provide stimulus but right now the Fed is reducing stimulus.
If the S&P 500 can breakout past 1850 then we could be off to the races again. However, if the S&P 500 fails at 1850 then the situation turns a lot more dangerous. I am not adding any new trades tonight. We did add three new candidates to the watch list. Plus I am updating my list of radar screen trading ideas.
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. In no particular order:
radar: KMB, NVDA, MA, CSCO, UPS, FDX, DD, FLR, ADBE, FLS, ROVI, MTW, ANV, SCCO, FB, ZNGA, P, SWI, DNKN, ALK, UA, NKE, PFE, LLY, BCR, PCAR, EOG, FLWS,