(December 22, 2012)
The stock market has been relatively resilient in spite of Washington's inability to reach a fiscal cliff agreement. We're down to the last few days of 2012. Once everyone gets back from their Christmas holiday the spotlight on Washington and the fiscal cliff is going to intensify. This could make stocks a lot more volatile as the markets react to each headline that crosses the news.
While the overall trend for the market seems to be up I am hesitant to launch new positions with so much uncertainty surrounding the cliff and what could be a very volatile few days. I will admit that I was tempted to launch new bullish positions in Akamai (AKAM) given the stock's bullish breakout past resistance at $40.00 this past week. More aggressive traders may want to go ahead and buy calls on AKAM. I've updated our radar screen as well and added three new candidates to the watch list.
Here is a list of stocks on my radar screen. These have potential to be LEAPS trades down the road if the right entry point presents itself:
ETN, DE, CLB, HFC, RJF, GS, SCHW, BAC, PHM, EMN, WAG, HP, RYL,