- New Trades -

Editor's Note:

(January 03, 2016)

Good bye, 2015!

The traditional Santa Claus rally was a bit of a bust. Stocks ended the year with selling and the S&P 500, the Dow Industrials, and the small cap Russell 2000 index all posted losses for 2015. The FANG* stocks were strong enough to keep the NASDAQ composite in positive territory for the year.

The week ahead should be interesting. Will investors come back in a buying mood? Will crude oil continue to drive market momentum? Right now there are new headlines that Saudi Arabia has cut diplomatic ties with its arch rival Iran. That sounds like the first steps toward a potential military conflict, which would drive crude oil prices significantly higher. Geopolitical events will likely be a running theme in 2016.

At the moment I am market neutral. I looked at hundreds of charts again this weekend. Honestly a lot of stocks just look terrible. Q4 earnings season is right around the corner and expectations are not very high.

I am not adding any new trades tonight. Last week we had both NOC and RHT graduate from our watch list to our active play list. Tonight I am adding EQR and TRV as new watch list candidates.

No radar screen tonight.

* FANG stocks:

Facebook (FB)
Amazon.com (AMZN)
Netflix (NFLX)
Alphabet, a.k.a. Google (GOOGL)