- New Trades -
(December 14, 2014)
The S&P 500 delivered its worst weekly performance since 2012 and snapped a seven-week winning streak.
The market was overbought and due for a pullback. Many blamed the sell-off in crude oil as the catalyst for the market's decline. Oil definitely affects energy stocks, which make up nearly 10% of S&P 500 components.
The question now is whether or not investors will buy the dip again. The S&P 500 settled right now round-number, psychological support at the 2,000 mark.
In last week's market commentary I suggested the market would most likely drift higher through year end. The sharp sell-off was a surprise. Jeffrey Hirsch with the Stock Trader's Almanac suggested that a mid-December pullback is not that uncommon and stocks normally rebound higher into year end. Let's hope he is right.
I am not adding any new trades tonight. Last week we saw both Apple (AAPL) and Goldman Sachs (GS) graduate from our watch list to our active play list. Tonight I've added ASML and WMT with buy-the-dip triggers to our watch list.
Below I've trimmed my radar screen for potential candidates to keep an eye on.
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:
BG, TJX, CVS, WAG, COST, NKE, FB,