- New Trades -

Editor's Note:

(April 26, 2015)

Earnings season can always produce surprises. The last several weeks saw the market grow more and more concerned about an earnings slowdown during the first quarter. There was a lot of worry about how the strong dollar would hurt big cap results.

The dollar is an issue. Just about everyone is seeing a negative impact due to currency headwinds. However, investors seem to be looking past this handicap.

I previously suggested that Q1 earnings expectations were so low that there was a decent chance results might actually come in better than expected. For the most part, that seems to be the case, but we are only two weeks into the Q1 earnings season.

The S&P 500 is on the verge of a new high. The NASDAQ just hit a new all-time closing high. The small cap Russell 2000 index is only a few points away from another record. It's hard to be bearish and yet investor sentiment is still somewhat sour. Any talk of a bubble in stocks is premature. Bubbles happen when everyone is bullish. More than 45% of investors polled are actually neutral on the market. Only 31.5% are bullish.

I'm not adding any new candidates tonight. However, I have added three new candidates to our watch list ( DATA, JCI, and SBUX). All three have a good chance of being triggered this week.

Radar Screen:
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:


Nearly all of these companies on my radar screen have earnings coming up in the next week.