- New Trades -


Editor's Note:

(September 21, 2014)

Last we added VFC as a new play from our watch list. We also saw AKAM graduate from our watch list to our active play section (updates).

Tonight we're adding FSLR as a new watch list candidate as it looks ready to resume the long-term up trend.

I wanted to add more stocks to our watch list because I am bullish on the stock market, especially through the end of 2014. Yet nearly all of the candidates I looked into either needed a breakout or they needed a pullback after recent gains. Another challenge was earnings. The Q3 earnings season is fast approaching. Some had earnings coming up and holding over earnings announcements can be hazardous.

Another challenge was the market internals. It's true that the S&P 500 ended the week near new all-time highs. The S&P 500 is also up six out of the last seven weeks. Yet market internals look challenging. The advance/decline line, which measures how many stocks are advancing versus declining has turned bearish for a large portion of the market (that would be the small caps, mid caps, and the NASDAQ composite. Only the S&P 500 A/D line is holding up.

You can view these A/D lines below:

Advance/Decline chart of the S&P Small Cap index:

Advance/Decline chart of the S&P Mid Cap index:

Advance/Decline chart of the NASDAQ index:

And now the

Advance/Decline chart of the S&P Large Cap index:

I'm not adding any new trades tonight but I have updated my radar screen below.

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:

SNDK, PRU, ITW, A, WHR, TGT, ALL, BAC, HPQ, GPC, FISV, JPM, GS, GILD, AAPL, UNP, AMGN, HBI, CVS, FDX, NSC, FB, XRT, SWKS, ARII, GBX, STZ