- New Trades -
(May 18, 2013)
Bullish momentum in the U.S. stock market continues but it's starting to hit extremes. On a short-term basis the market is very overbought and due for some profit taking to help alleviate its overbought condition.
Why put new money into the market when it could see a -3% correction any day now. The high-beta names will see an even bigger pullback. Fortunately I do think any weakness will be a short-term pullback. There are too many investors on the sidelines just praying for a pullback so they can buy the dip.
I can't say that a market pullback is imminent but odds of a retracement get bigger every day. The S&P 500 index just closed near its multi-month trend line of higher highs. The Russell 2000 index just closed below potential round-number resistance at the 1,000 mark. These events don't guarantee a market reversal but the indices are at levels that should make savvy traders pause.
The LEAPStrader newsletter did see two of our watch list candidates graduate to active trades this past week. I'm adding two more watch list candidates tonight. Plus, I've added a few more symbols to my radar screen.
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:
CY, NKE, WFR, C, AIG, CSCO, NAV, M, UTX, WFC, CS, GS, JPM, KSU, SODA, ODFL, WSM, UNP, RRC, UPS, GRPN, JNJ, ORLY, TSCO, LVS, HOG, CAT, RF, SOHU, NVDA, FSLR, DIS, TGT, PNRA, KMB, CL, SBUX, WFM, CLX, UA, SJM, K, TJX, GLW, COST, DNKN, PAYX, LULU, BHI, CBI, SIRI, EA