Energy Stocks Have Potential
The U.S. stock market continues to rally. While I am still expecting a correction in the next week or two it may not happen. Stocks will see a pull back eventually but for now the trend remains higher. We still don't want to chase stocks at these levels but with momentum clearly in favor of the bulls we've added a few more watch list candidates. However, this time our new candidates only need a dip to hit our entry point triggers instead of a healthy correction. I do consider our new watch list candidates more aggressive but we need to trade the market we see in front of us and not what we want to happen.
Aside from today's new watch list candidates (CLR, LMT, and WLL) I would also take another look at OXY. Last week we cut OXY from the play list. The stock's rally appeared to be in jeopardy. Here it is a week later and OXY is ready to rally again. Investors will want to reconsider this stock as a potential bullish candidate.