The U.S. stock market retreated lower today following disappointing earnings news and word that the EU finance ministers had canceled their meeting tomorrow. The 27 leaders of the EU nations will still meet tomorrow but without their finance ministers no one expects there to be any significant resolutions. The natural reaction was to take profits after the market's recent rally.
Unfortunately there was a lot of expectation for tomorrow's EU summit meeting. Those expectations are likely to sour. Now add some disappointing earnings news like Amazon.com's (AMZN) tonight, and tomorrow morning could be a bearish one for stocks.
We want to see how the markets react to tomorrow's meetings in Europe and wait to see if there are any significant headlines out of the EU before adding any new trades to the newsletter. Thus, there will be no new additions tonight.
Potential bullish candidates:
THOR looks like a buy if it can rally past $37.75
CSCO and JNPR, both networking stocks, were showing relative strength today.
RRGB could be a buy on a rally past $25.50
PHM, a homebuilder, is retreating but broken resistance near $4.50 should offer new support.