- New Trades -

Editor's Note:

(July 26, 2015)

A week ago the S&P 500 looked poised to breakout to new all-time highs. Five trading days later and the market looks a lot weaker. It's amazing the difference a week can make in the market.

The percentage of companies beating earnings estimates has been better than the long-term average but that's mainly due to cost cutting and massive stock buybacks. The number of companies beating analysts' revenue estimates is below normal. Investors are starting to price slower earnings growth for 2015.

The week ahead could be pivotal with almost 1,300 companies reporting earnings.

I am concerned this pullback is not over. The market is way overdue for a correction and we're nearing August and September, traditionally two of the worst months of the year for stocks.

I am not adding any new trades tonight. As longer-term investors we will be better off to just stay patient and wait out this volatility. Save our investment capital now and wait for a better entry point down the road. If the S&P 500 bounces off support in the 2,040 area then maybe we can reconsider and buy the dip.

Last week our watch list was successful with both ATVI and LGF graduating to the active play list.