Stocks are correcting thanks to growing worries over the EU periphery.
Tomorrow Fed Chairman Bernanke speaks before congress. Stocks may not move much as they wait for any market-moving comments. Meanwhile the next major earnings release is not until Thursday.
Considering the current correction in stocks and today's breakdown below support in the S&P 500 it looks like this index is headed for round-number, psychological support near 1300.
I haven't given up on buy-the-dip bullish strategies but we need to be patient. Here are a list of stocks I am watching for potential buy-the-dip trades (FCX, CLB, SIAL, ORLY, MCD, IBM, and V). Plus, a couple of stocks that might be bearish trades are GMCR and GS. GMCR seems to be sinking on worries it will lose market share to growing competition in the K-cup business. GS has been stuck in a down trend for months and looks poised to once again break support near $130. The GMCR trade would be very high risk since shares have a habit of crushing the shorts.
No new candidates tonight.