Look at the last four days in the market. Aside from the spike higher on Monday morning stocks have gone nowhere. Investors are waiting for the results from the July jobs report. It will take a better than expected jobs report to keep this rally alive and even that won't guarantee we won't see some sell-the-news reaction. On the other hand a disappointing report could easily spark some major profit taking after a +7% rally in July. Since the report comes out Friday morning before the opening bell I am not adding any new plays tonight. Odds are extremely high the market (and most stocks) will gap open one way or the other on Friday.
Just because we're not adding new positions tonight doesn't mean we can't prepare for tomorrow. I'm listing several stocks on my watch list. These might be potential trades soon.
VMED: This stock looks way too overbought with the rally from $18 to $22 but if the market corrects we might see an entry point if shares dip or bounce near the $20.00-19.00 zone.
MXWL: Shares of this electronics company have been roaring higher. The stock broke through some significant resistance. Short-term it's overbought and I would not chase it. If MXWL sees a correction I would look for a possible entry point near $12.00 or its 50-dma.
BAX: It looks like BAX has found a bottom over the last couple of months. I would look for another bounce from $43.00 or a rally past $45.50 as a possible entry point.
LRCX: Semiconductor stocks have been underperforming lately but LRCX is still trading relatively close to its one-year highs. A breakout over $44.00 could signal a new leg higher. The challenge will be stop loss placement given all the volatility over the last few months.
BWA: This stock continues to show relative strength. I would not chase it here but if the market sees a correction look for a possible entry point near $43-42.
RINO: This stock caught my eye with its huge volume spike today. Normal volume is 445,000 shares. Today RINO traded 2.14 million and rallied +9.4%. It looks like there was a rumor going around that RINO might be a takeover target. If you step back and look at the last few weeks RINO has been consolidating sideways with a bullish trend of higher lows. A close over $16.00 might be a bullish entry point. I would consider this a higher-risk trade. Nimble traders could try buying a dip or bounce near $14.00a gain (with a tight stop).
If you're looking for a bearish trade check out LANC. Shares broke down to new relative lows again on Thursday. Traders may want to wait for the next lower high to open positions but if the jobs report disappoints LANC may not get the chance to bounce. Be aware that the $50.00 mark might offer some round-number, psychological support, even if it's just temporary.