Watchlist Saturday

My weekly watchlist this week is not rated in any way because of the current market conditions, other than the bolded stocks are what I'm most interested in. For the Market Posture I have abbreviated Intermediate Term (IT), and Short Term (ST).

Dow: IT Bearish and ST Neutral. Last week I was ST Neutral on the Dow. The close a week ago Friday was 11,346 and the close last Thursday was 11,288, so you can see why I was ST Neutral. I also wrote that there was short-term support in the region of 11,200 - 11,300, which the Dow held during the week. If we do get a bounce this week, look for 11,635 - 11,750 as resistance. If the Dow maintains it's ST downtrend, then look for 11,000 for the next support, however a ST bounce is more likely. The next critical support below is 10,750, which is the 50% retracement of the 5-year Bull Market.

SPX: IT Bearish and ST Neutral. The SPX dumped down into an area close to the 2008 lows set in March at 1,257. If we get a bounce, look for 1,300 to be resistance, with a chance of moving as far as 1,310 - 1,320. The SPX could still roll down a little and test the 1,255 -1,257 area. The next support below that is in the 1,220 - 1,240 area, and perhaps as low as 1,200. However, the most likely move next week is a ST bounce.

Naz: IT Bearish and ST Neutral to Bearish. The Naz is hovering in no man's land, hanging around the 2,240 - 2,250 area. The more I look at the long term charts, the more I wonder if the Naz is going to roll down to 2,150 - 2,200. However, the first move next week is probably some sort of ST relief bounce. It's hard to imagine a scenario where the Naz bounces back as high as 2,350, which is a more critical resistance, so I will look for 2,325 as the first area of potential resistance.

I just don't see any catalyst for the market to go IT bullish anytime for the rest of the summer other than a major government announcement to drill for more oil and build new refineries. On the short term we have Earnings Season starting to kick into gear next week. We also have the end of Earnings Warning Season next week. Early next week, if we see either a lot of Earnings Warnings or if oil prices start going into the $155 - $160 area, then it's possible that we get a climactic sell-off before Earning Season goes full throttle in a week and a half.

Here is my Weekly Watchlist. Make sure to check the option spreads before paper trading. Ideally, I want spreads of .10-.20 cents on options for stocks between 20-200 dollars.

Bullish:

PX, ENER, WYE, APOL, DNA, CELG, FLIR, ILMN, AEM, NEM, ATW, HERO, HK, GDP, WLL

Note: MOS, TRA, COST, SII, NOV, OXY, AGU

Bearish:

ACI, SPWR, UPS, X, HON, LMT, NUE, MEE, NKE, HIG, TRV, ALL, IBM, VZ, MET, CMI, CNX, TROW, PRU, WLT, ANR, FDG, SCHN, CLF, FCL, JRCC, AET, AKS

Note: SOHU, RIMM, AGN