The market just delivered its best September performance in seventy years. Yet the momentum has stalled and the S&P 500 index is struggling with major resistance near 1150. After a +10% gain the market is overbought and due for a pull back. We do not want to chase stocks at these levels. The Q3 earnings season is about to begin and odds are very good we'll see some profit taking in the market but we can use a pull back in strong stocks as an entry point for a fourth-quarter rally.
I'm not listing any new plays tonight. Our watch list is doing a good job at triggering new positions for us through the week. I just added three new candidates to the watch list tonight.