- New Trades -
(March 8, 2015)
I cautioned readers last week that stocks were overbought after February's big rally and due for a dip. Equities produced a one-day spike on Monday, March 2nd but that proved to be a top. I have been warning investors for weeks that the 5,000 level could be tough resistance for the NASDAQ.
Stocks experienced profit taking most of the week that only accelerated as investors panicked over a potential hike in interest rates sooner than expected. The next FOMC meeting is less than two weeks away. Stocks might remain weak until we see the Fed's next policy statement on March 18th.
I am not adding any new trades tonight. Last week saw watch list candidate LVLT graduate to our active play list. We also took profits on our DIS trade. Tonight I'm suggesting we close our NXPI trade to lock in potential gains.
If stocks continue to sink we want to use it to our advantage. Our longer-term bias is still higher. Thus tonight I am listing two new watch list candidates AKAM and AMBA to buy calls on a dip.
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:
DWRE, ADBE, MNST, GWPH, SNA, JWN, HAIN, MA, JBHT, FB,