Stock Watch-List for January 12, 2010

Sometimes I can’t help but think that this market has become so bullish that we are like the blind guy below who will swing at anything that has a bell on it! Regardless, the trend continues to march upwards, and we are foolish to ignore the opportunity before us. However that doesn’t mean that we get haphazard with our trading decisions in the process – now more than ever is a time which we need to be careful with how we trade, because the euphoria is all around us, and when it ends, we need to make sure we are not swept  up by the onslaught of traders running for the exits.

As we head towards the open, futures are decisively bearish. Much of which has to do with the earnings miss by Alcoa (AA). Currently the Dow is down 72 points, the Nasdaq is down 15 points, and the S&P is down 9.5 points. We haven’t seen red like in quite sometime – so if this holds, should be helpful to help alleviate the overbought conditions we are seeing in the market right now.

On the economic front, we have the ICSC Goldman Store Sales at 7:45am ET, followed by International Trade at 8:30am, and the Redbook at 8:55am.

In the portfolio, I have yet again, raised my stop-loss in OSG to 45.31. Be sure to check out last night’s portfolio update.

Here are Today’s Trading Ideas…

Potential Swing Trades (Long): CVG, SVNT, XLU, LHCG, ARRS, UGI

Potential Swing Trades (Short): MELI (confirmed double-top – wait for a rally), AM, IBKR

Stocks Ready to Bounce: NVE 

Stocks Ready to Pullback: TC, QCOM, SNDA, JOYG, OSIS, CBI, BA, BG, INWK, BHI, AXL, KOL, SFSF, KSP

Breakout Stocks: XIDE, LTD, IDXX, VRNM, RDC

Breakdown Stocks: LZB, FMC