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Editor's Note:

(August 10, 2014)

Dip buying is not dead. Investors bought the dip on Friday after headlines suggested Russia will pull back from the brink on out right war with Ukraine. Whether or not you believe Russian media or trust President Putin is another question but stocks rallied anyway. We'll have to wait and see if U.S. satellites confirm that Russian troops are indeed retreating from the Ukraine border.

Positive economic data in the U.S. was offset by negative data from Europe. While the situation between Ukraine and Russia is hopefully cooling off it's being replaced with an escalation with Sunni terrorists in Iraq.

Lack of follow through lower on the prior week's sell-off is encouraging but that doesn't mean we want to back up the truck on new bullish positions. This is a challenging time of year for stocks. Fortunately we do see opportunities. Tonight we're adding three new candidates to the watch list (CMI, CSX, and TMO). We are not adding any immediate trades tonight. I'd like to see some follow through on Friday's rebound.