- New Trades -
(June 01, 2014)
The equity markets continue to push higher as stocks ignore disappointing economic data here in the U.S. and around the world. This blissful ignorance can't last forever. Either stocks will correct or economic activity needs to improve.
I am seeing a lot more bullish candidates. However, investors should be concerned that the S&P 500 is nearing potential resistance while the volatility index (vix) remains dangerous low.
This coming week will also have potential market moving events with the ECB decision and the U.S. jobs report. Everyone expects the ECB to announce some sort of stimulus and the markets could actually see a sell the news event. If job growth in the U.S. doesn't improve it's going to be a wet blanket on the Q2 snap back growth expectations.
We did have a successful week with the watch list as DOW and TPX graduated to our active plays section of the newsletter. Tonight we're adding DVA and EXPE as new watch list candidates.
I would also keep my eye on WAG and HTZ as potential candidates. HTZ has earnings coming up on June 9th so we'll wait until after they report earnings and then re-evaluate. WAG looks good now but my broader market concerns are overshadowing any bullishness I have for WAG.
No new plays tonight.