- New Trades -
(March 1, 2015)
The tone of the U.S. stock market has changed from breakout mode to tired and due for a pullback. That's normal. Equities delivered big returns in February and not just in the U.S. but in Europe and Japan as well. It's probably time for a consolidation lower.
I am not adding any new trades tonight. Our watch list continues to generate new entry points. Last week our Textron (TXT) and Under Armour (UA) candidates met our entry points and graduated to the active play list.
Tonight I am adding Skyworks Solutions (SWKS) and Walgreens Boots Alliance (WBA) as new candidates.
If stocks are poised for a pullback it would be a good time to review candidates you would like to buy and determine what level of support is an attractive entry point.
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:
MLNX, UHS, BRCM, CVS, AKAM, GILD, NKE
Keep an eye on the Japan ETF (EWJ). A breakout past $12.50 could be a bullish entry point.
I would also watch the U.S. airline stocks. A lot of these look poised to breakdown. However, oil prices are likely headed lower and that should be bullish for airlines. Further weakness in the airlines could be a bullish entry point but I would definitely be patient and wait for signs of a bottom.