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Editor's Note:

(August 03, 2014)

Hopefully readers were not too surprised that the market is pulling back. I've been cautioning investors that stocks were at an inflection point and likely to see some volatility. A barrage of negative headlines finally solidified enough to spark some profit taking last week.

I do want to point out that for the S&P 500 and the NASDAQ composite the longer-term trend is still higher. If we see the S&P 500 break down below 1900 and the NASDAQ under 4200 then we'll start to worry about a real correction. Until then we're merely experiencing a pullback within the larger up trend.

I am a little bit surprised at the violence of the pullback this past week. I looked at more than one thousand stocks this weekend and it was shocking to see how many had been crushed in the last several days.

I remain cautious on adding new plays. The combination of factors I mention in tonight's LEAPS trader market commentary are not going away any time soon. Now that the Q2 earnings season is about over investors could be lost looking for a new catalyst to drive stocks higher.

We're not adding any new plays tonight. I did post two new candidates to the watch list and I've combed through my radar screen symbols again.

Radar Screen:
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:

FSLR, TMO, COST, V, MA, NKE, GILD, NOC, LMT, SLXP, FB, AA, DAL, WLL,