Editor's Note:

I struggled to find any worthy candidates for our LEAPS newsletter this weekend. There were plenty of short-term bullish candidates but nothing matched up with our nine-month to twelve-month or longer time frame. Potential candidates had either moved too much this past week, or didn't move enough. Or they had earnings coming up in just a few days or they had options but they didn't have LEAPS or the option spreads were too wide. Whatever the case I couldn't find anything worthy of the newsletter tonight in spite of looking at nearly 1,000 stocks.

With the S&P 500 still trading under resistance at its 2011 highs I remain cautious. New highs in the DJIA are nice. The bullish pattern of higher lows and higher highs in the small cap Russell 2000 is very encouraging. If we can get past this week, with another huge number of earnings releases and the FOMC meeting, without any significant declines then I might take a less cautious stance on potential trades.