Traders continue to buy the dips in spite of growing concerns for Greece and lackluster economic data here in the U.S. I'm writing this ahead of the economic data due out Friday morning. We don't know yet how the market will react to the GDP revision or the ISM data expected before the opening bell.
I am growing cautiously bullish on stocks, especially given the big intraday bounce on Thursday but we need to see confirmation of the move with some follow through higher. Since we haven't seen the market reaction to Friday's economic data I'm not adding any new trades at this time, although we did add a couple of new candidates to the watch list.
I did find one more candidate readers may want to look at. It's Tractor Supply (TSCO). Shares of TSCO have broken out to new 52-week highs but they seem like they're struggling with the $55.00 level. I also see some resistance in the $57.50-58.00 zone on its long-term weekly chart but that doesn't mean shares can't keep climbing. Aggressive traders may want to consider bullish positions now or above $55.60. I think TSCO has the potential to challenge its highs in the $66-67 zone. We'll take a look at it again in the next newsletter.