After having a lot of entries massacred in the prior week I did not add any entries to the watch list last week. We escaped without having a lot of new entries on the drop. With energy earnings due out this coming week I am going to duplicate that pause and not add any this week either.
It would be very possible for some big names to disappoint this week and knock us down another notch. I would rather wait until after the carnage to pick up the bargains. I am saying that optimistically since what will probably happen is that the ones we like will explode and run for a dozen points.
This is life in the investing world. If you are not ready to take $10 losses then you have to pass on $10 gains. The gap down scenario prevents us from exiting early on bad news so it is better to wait for the news to be digested before deciding what to play.
I would like to enter the stocks below on any post earnings weakness but in a timely fashion with oil trending upward again. Until both events occur we are better off waiting on the sidelines.
These are just suggestions, not hard plays.
COP - Conoco Phillips. Earnings Oct-26th and a very strong possibility of a negative surprise. Buy the dip if you are a gunslinger. Support at $55 and $50.
AHC - Amerada Hess - good trading stock. Buy under $110 or over $122.
APA - Apache - Target $55 on any post earnings dip.
TSO - Tesoro - Target $50 on any post earnings dip.
VLO - Valero - Target $90 on any post earnings dip.
Be careful of entering new positions ahead of energy earnings beginning the week of Oct-24th.
Current Watch List