Editor's Note:

The S&P 500 index is up +10.7% off its intraday August low (1101). Yet in spite of the big bounce the market posted its worst August in years. This index is up +8% in just the last seven days. We're short-term overbought here. We don't want to chase the move higher. I am concerned that stocks could see a sell-off on the jobs data this coming Friday morning.

Here are a few stocks on our watch list:

RIMM - has broken out past resistance at $30.00. Nimble traders could try and buy a dip near the $30.00 level, which should be new support.

AN - this stock is still hovering near its recent highs. The $40 level should be short-term support. I'd rather buy a bounce from $38.00 or its 10-dma (with a tight stop loss).

TREX - shares look like a buy right now but readers may want to wait for a close above $18.50 first. An alternative entry point would be a dip or a bounce from $17.00 with a tight stop loss.

WFR - a breakout past the 50-dma could be a new bullish entry point.

BCE - we are still watching for a breakout past the $40.50 level.

CHD - don't chase it here. Wait for a dip back to what should be support near $42.00.

On our radar screen:


- James