- New Trades -
(January 04, 2015)
We are not adding any new trades tonight.
The market's recent weakness could be a warning signal. Normally the Santa Claus rally carries stocks higher from Christmas into the New Year but this year the rally faded.
The most logical answer is simple profit taking after a strong year. Selling last year's winners now that we're into January 2015 locks in gains and postpones your tax issue into 2016.
That also means the profit taking may not be over yet since a lot of market participants have been away on vacation.
I am still bullish on stocks for 2015 (as discussed in the market wrap). We should still be patient when it comes to entry points.
Last week we saw our AAL watch list candidate graduate to the active play list. Tonight I am adding MAR and NXPI as new watch list candidates.
I looked at a lot of stocks this weekend and was a little bit surprised with how many looked short-term bearish.
The next couple of weeks might be challenging for the bulls.
I've trimmed my list of stocks on my radar screen below.
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:
IR, M, ATHN, FDS, LMT