- New Trades -
(March 30, 2013)
I remain cautious on the market. The S&P 500's breakout to a new all-time closing high is certainly a bullish development. Technically, after a two-week consolidation sideways, the S&P 500 and the small cap Russell 2000 index, both look poised to rally further. I am concerned that stocks are overbought and Q1 earnings season could be the perfect excuse for investors to sell stocks. After such an impressive Q1 performance the profit taking could be painful.
My long-term bias is bullish but short-term I am expecting a correction in the next two to four weeks. Thus I am reluctant to launch new bullish positions now at current levels. However, there is no guarantee the market is poised for an imminent correction lower. It will correction eventually but that could be next week or next quarter.
I am not adding new plays tonight but we did add two new bullish candidates to the watch list.