- New Trades -
(July 27, 2014)
Last week I cautioned investors that the market may be at an inflection point. Our situation hasn't changed much.
Overall the Q2 earnings season has been better than expected. That's the good news. Unfortunately we are still seeing growth forecasts being revised lower for the U.S. and the world. At the same time the situation between Ukraine and Russia seems to be escalating and the sanctions are starting to impact Europe, not just Russia.
Goldman Sachs just warned investors on Friday that they expect the next three months to be a struggle for stocks. Goldman remains bullish on stocks over the next 12 months but suspect the next three months could be challenging. I'm sure it's just a coincidence that August and September are historically the worst two months of the year. Plus we have midterm elections n the U.S. just three months away.
I do see a growing number of candidates I'd like to add to the newsletter. Several of them are scheduled to report earnings soon. Instead of risking a post-earnings meltdown I've published some of them on my radar screen below. I'm suggesting we be patient and see how the market performs after next week's parade of economic data including an FOMC meeting and the June jobs report.
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. In no particular order:
BWA, USB, BAC, THC, MRO, FLS, FSLR, HP, CTAS, WAB, TMO, IMOS, FISV, TRN, COST, CSCO, CVS, AKAM, AAPL
Watch for THC to retest the $50 area as support.
I'd like to see AKAM close above resistance at $63.00.
Keep an eye on AAPL, which has resistance in the $100.00-100.50 zone.