(August 11th, 2012)
The U.S. markets churned sideways all week but managed to stretch its string of gains to five weeks in a row. Overall little has changed for us. Economic data continues to come in worse than expected. The data out of China recently is very alarming. The only reason stocks have not sold off yet is expectation for further stimulus from major central banks, especially China's.
I am still expecting a correction lower into mid September but there is no guarantee that will happen. Until then we'll try to take advantage of any entry points we see but I would suggest investors stay cautious and keep their position size small to limit risk. Sometimes the best trade is no trade.
We did see two more of our watch list candidates graduate to our portfolio (CAT & QCOM). I have added three new candidates tonight.
In addition to the watch list, here is a list of stocks on my radar screen as possibles to keep an eye on. Some of these need to see a correction. Others need to see a breakout past resistance.
FSLR, ARLP, ANR, NFX, GM, XHB, SIRI, MMM, FTR, AGU, CVX, RIG, TGT, ROST, CP, SCHW, VOD, XOM