- New Trades -
(January 25, 2015)
The market volatility continues. The only difference last week was the volatility saw stocks surge higher. The S&P 500 saw a four-day bounce before slipping lower on Friday. The NASDAQ produced a streak of five gains in a row.
One thing we can say about 2015 is that it hasn't been boring. Every week delivers a parade of potential market moving headlines.
This past week was the ECB meeting and its new $1.2 trillion QE program. This week will start with the political upheaval in Greece and the radical left-wing Syriza party with a significant win. S&P futures are already down sharply in response to their apparent win. We still do not know if they won an outright majority of 151 seats or more (out of 300 parliament seats) or if they got less than 151 and will need to form a coalition government.
I have been suggesting a market neutral stance the last couple of weeks. I'm still longer-term bullish while short-term neutral tonight. We could see another rocky week and thus it's not the best environment to be launching new long-term trades.
Last week we did see AET graduate from our watch list to our active play list. Tonight I have added LOW as a new watch list candidate since shares were relatively resilient to the market's recent swings.
I tried looking for stocks to buy on a market decline but it's not the right moment to try and pick a bottom (which is always a hazardous challenge to begin with).
No new plays tonight. I have updated my radar screen below. Many of these radar screen candidates will report earnings this week so they could be volatile.
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:
GLW, NKE, UA, STZ, AMBA, MSFT, COH, MU, PANW, BUD, IR, ATHN, FDS, COL, HD, ILMN, CELG, AVGO