I am not adding any new watch list candidates tonight.
We can't deny that the trend is up, at least for large cap stock indices like the S&P 500 and the Dow Industrials. Yet the small cap Russell 2000 index has failed to break out higher. The lack of participation in the Russell could be a warning signal. Plus there has been a surge of money into the U.S. bond market, which could also be a warning signal. Money goes into bonds when investors are looking for safety. That is definitely a risk off sort of move. Rising stocks are a risk on move.
We are also about to hit our first full week of Q1 earnings season. Corporate guidance could have a big impact on market direction.
I am suggesting we wait and see where stocks are a week from now before making any decisions on new positions (the exception being our new play tonight on the USO). Odds are good that the stock market could hit a top in the next two or three weeks. Thus I'm not in a rush to open new bullish positions.
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:
K, TJX, V, DIS, IBM, CSCO, SODA, SYK, CSX, LOW, NVDA, GLW, MON, TXN, EL, SKX,
New Watch List Entries
None, no new watch list candidates
Active Watch List Candidates
CY - Cypress Semiconductor
Dropped Watch List Entries
GLD has been removed.
USO has been moved to the new plays section
Active Watch List Candidates:
Cypress Semiconductor - CY - close: 11.23
CY followed the semiconductor sector higher this past week. Although shares of CY stalled at resistance near $11.50. That's not too surprising. We are still waiting on a bullish breakout higher.
FYI: CY is due to report earnings on April 18th.
More aggressive traders might want to consider bullish positions on a breakout past the $11.50 mark. I am suggesting we wait for CY to close above $12.00 and then buy calls the next day. If triggered our target is $16.00.
Breakout trigger: Wait for CY to close above $12.00,
then buy calls the next day, stop loss @ 10.45
BUY the 2014 Jan $13 call (CY1418a13)
BUY the 2015 Jan $15 call (CY1517a15)
Originally listed on the Watch List: 03/16/13
SPDR Gold ETF - GLD - close: 143.95
It was an ugly week for gold and the GLD gold ETF. The bearish trend of lower highs remains in place. Then the floor collapsed on Friday and the GLD broke down below key support near the $150 level. Traders were blaming news that the EU wants Cyprus to sell its 13.9 metric tons of gold to help pay for the country's recent bail out. One metric ton is 35,274 ounces of gold. Whatever the reason Friday's breakdown in gold is bearish with the commodity falling to 15-month lows.
It is very unlikely that GLD will hit our suggested entry point (a close over $156.50) any time soon so we are removing GLD as a watch list candidate.
trade did not open.
04/13/13 removed from the watch list
Originally listed on the Watch List: 04/06/13