Watch List Update

The SPY finished today at 131.97, just above sma50 at 131.92. That’s too close for comfort for me. After this week’s move from the 126 range to almost 132, I can’t help but wonder if we’ve run too far, too fast.. and the timing bothers me: end of the quarter, end of QE, Greece calms, and a great desire for funds to window dress to finish out the month. Maybe I’m just being pessimistic – I’ll just call it cautious.

As you know, I spend a lot of time looking at the IBD50 list and other compilations of ‘top rate’ stocks and from I can tell, most of them are overbought or past attractive entries (measurable upside compared to risk to the downside). What all of this means is that I would love to see some consolidation for a little while.. hell, all next week would be great. We’ll see.

For now, let’s focus on what we do know – by lunch tomorrow, we will have a lot of data to absorb:

  • Michigan Consumer Sentiment Index
  • Michigan Inflation Expectations
  • ISM Manufacturing Index
  • ISM Manufacturing Prices
  • Total Vehicle Sales

Translation – I won’t trade much in the morning unless there are some quick runners.

Stocks on Watch List Currently Swinging – tomorrow morning’s news will stop em out or keep many going. It’s that simple





Leave a Comment