Editor's Note:

FXI and LVS are both watch list candidates that met our entry point requirements at Friday's closing bell. These plays will open on Monday morning.


- New Trades -


iShares China 25 Index ETF - FXI - close: 40.49

Comments:
02/04/12 update: The U.S. stock market's rally has been impressive and it's helping fuel gains overseas. The FXI rebounded off support near $38 and its exponential 200-dma on Monday. It's been up every day since. Friday saw the FXI breakout past resistance near $40.00 and close over our trigger at $40.25.

The plan is to open bullish positions on Monday morning. However, investors should note that the Chinese markets will likely rally on Monday in response to the big move higher in the U.S. on Friday. That will push the FXI to gap open higher more than normal this Monday. Readers may want to wait for a pullback near the $40 area or its simple 10-dma before initiating positions.

We will start this trade with a stop loss at $35.95, under the 50-dma.

Earlier Comments:
There is a growing expectation that the Chinese government will start to fuel growth in an effort to avoid a hard landing. The most recent data listed GDP growth at under 9%, the lowest reading in 10 quarters.

Our target is $49.50.

- Suggested Positions -
Feb 06, 2012 - entry price on FXI @ --.--, option @ -.--
symbol: FXI1319A45 2013 JAN $45 call - current bid/ask $ 1.97/ 2.03

02/04/12 FXI met our entry point requirement at the close on Friday. Open positions on Monday, Feb. 6th.

Chart of FXI:

Current Target: $49.50
Current Stop loss: 35.95
Play Entered on: 02/06/12

Originally listed on the Watch List: 01/21/12


Las Vegas Sands - LVS - close: 51.91

Comments:
02/04/12 update: The rally in LVS continues. Shares broke out past major resistance in the $50-51 zone last week. After almost a year of consolidating sideways LVS should be ready to run. The Point & Figure chart is bullish and has seen its target rise from $69 to $72.

Our plan was to wait for LVS to close over $51.25 and open positions the next day. LVS met that entry point requirement on Friday. The play will open on Monday morning. You could argue LVS is overbought with its four-week rally. More conservative traders might want to wait for a dip back toward $50.00 or its simple 10-dma as an alternative entry point. We're starting this trade with a stop loss at $47.45. Our long-term target is $69.00.

- Suggested Positions -
Feb 06, 2012 - entry price on LVS @ --.--, option @ -.--
symbol: LVS1319A60 2013 JAN $60 call - current bid/ask $ 4.30/ 4.40

02/04/12 LVS met our entry point requirement at the close on Friday. Open positions on Monday, Feb. 6th.

Chart of LVS:

Current Target: $69.00
Current Stop loss: 47.45
Play Entered on: 02/06/12

Originally listed on the Watch List: 01/28/12