- New Trades -
(December 29, 2013)
The U.S. market continues to march higher with the major indices hitting new all-time highs and the NASDAQ hitting new 13-year highs (again). The upward momentum is certainly encouraging but the market now looks short-term overbought. Do stocks retreat now or will new yearend and quarter end inflows into mutual funds lift the market higher from here?
The market will see a pullback eventually. It's only a matter of time. After +30% gains in 2013 I am a little hesitant to chase new highs. That's why I am not adding any new plays tonight. It is also why our three new watch list candidates all have a buy-the-dip entry point strategy. We did have another successful week for the LEAPStrader watch list with GE, HD, MSI and WFC all graduate to our active play list.
Look for a fresh list of radar screen candidates next weekend.