Saturday, June 20, 2009 10:21:04 PM EDT Watch list for Saturday, June 20th, 2009 by James Brown Click here to email James Brown

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New Watch List Entries

CELG - Celgene Corp

MICC - Millicom Intl. Cellular

VOD - Vodafone Group

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Active Watch List Candidates

BEAV - BE Aerospace Inc.

DBC - PowerShares Commodity Index

DO - Diamond Offshore

FCX - Freeport McMoran

JOYG - Joy Global Inc.

RIG - Transocean Ltd.

SGY - Stone Energy Corp.

WFR - MEMC Electronic Materials Inc.

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Dropped Watch List Entries

CRS, MT, and UNG were all triggered and graduated to the active play list.

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New Watch List Candidates:

CELG $46.94 +0.73 -- Celgene Corp.

Biotech stocks have been showing relative strength and shares of CELG have broken out. The stock built a two-month base in April and May. Now CELG is pushing past multiple levels of resistance. I'm suggesting readers buy LEAPS on a dip to $43.00. We'll use a stop loss at $39.00. Our target is $59.50. (FYI: CELG is a reader-submitted candidate)

Company Info:
Celgene is a multinational biopharmaceutical company committed to improving the lives of patients worldwide. At Celgene, we seek to deliver truly innovative and life-changing drugs for our patients. Our mission as a company is to build a major global biopharmaceutical corporation while focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions. (source: company press release or website)

Buy-the-Dip trigger: $43.00

BUY the 2010 January $50 call (symbol: LQH-AJ)

Chart of CELG:

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MICC $56.05 +0.97 -- Millicom Intl. Cellular

As the global economy slowly recovers from a recession consumer demand will pick up for mobile phone service. I am suggesting readers buy LEAPS on a pull back into the $50.50-45.00 zone. We'll use a stop loss at $44.80. Our target is the $75-80 zone.

Company Info:
Millicom provides affordable, widely accessible and readily available prepaid cellular telephony services to more than 30 million customers in 16 emerging markets in Latin America, Africa and Asia, where the basic telephone service is often inadequate and where economic development and rising personal income levels are creating increasing demand for communication services. (source: company press release or website)

Buy-the-Dip trigger: $50.50

BUY the 2010 January $60 call (symbol: CQD-AL)

Chart of MICC:

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VOD $19.72 -0.16 -- Vodafone Group

VOD is another international mobile phone service provider. The stock has produced a big double bottom over the last year and is slowly consolidating higher. I'm listing two different entry points. Our first entry point is a breakout over resistance. Our second entry point is a dip back toward support. We'll use a stop loss at $16.90. Our target is the $27.50 region.

Company Info:
Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. (source: company press release or website)

Buy-the-Dip trigger: $18.25 -or- Buy-the-breakout trigger: 20.75

BUY the 2010 January $20.00 call (symbol: VOD-AD)

Chart of VOD:

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Active Watch List Candidates:

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BEAV $15.34 +0.04 -- BE Aerospace Inc.

The correction in BEAV has begun but traders were buying the dip near $15.00 last week. Currently we're aiming for a dip at $12.50 but shares might find support around the $14.00 level with its rising 50-dma and flattening 200-ema. I'm sticking to our $12.50 trigger for now. Our stop loss is $9.45.

Buy-the-Dip trigger: $12.50

BUY the 2010 January $15.00 calls (symbol: BQV-AC)

Note: At $12.50 you could just buy the stock instead but the $15 calls will allow you more leverage on your investment.

Chart of BEAV:

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DBC $23.20 -0.20 -- PowerShares DB Commodity Index (ETF)

The rally in the DBC has definitely stalled and shares are poised to breakdown under short-term support at $23.00 soon. Our plan is to buy long-term LEAPS (January 2011) on a dip at $21.50. However, please note that we're changing the strike price from the $30 strike to the $25 strike. Our long-term target is $30.00.

Buy-the-Dip trigger: $21.50

BUY the 2011 January $20 (VCZ-AT)
-or-
BUY the 2011 January $25 (VCZ-AY)

Chart of DBC:

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DO $87.67 +0.23 -- Diamond Offshore

The oil service stocks were hit hard by profit taking last week yet DO's correction wasn't that bad. More aggressive traders may want to adjust their trigger toward $82.50. We'll stick with our entry at $81.00. Our stop is $69.95. We want to sell half our position at $99.00 and half at $114.90.

Buy The Dip trigger: $81.00

BUY 2010 JANUARY $90 CALL (symbol: KWJ-AR)
-or-
BUY 2010 JANUARY $100 CALL (symbol: KWJ-AT)

Chart of DO:

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FCX $50.93 +0.43 - Freeport McMoran

The profit taking in FCX last week shaved off 20% from its highs. Bulls started buying the dip near $50.00 and its rising 50-dma. More aggressive traders may want to consider new positions here. I'm willing to wait. A normal 38.2% Fibonacci retracement would be a pull back toward the $45-44 zone. If triggered our stop loss will be $35.95. Our long-term target is $69.00. FYI: The P&F chart is bullish with an $84 target.

Buy-the-Dip trigger: $46.00

BUY the 2010 Jan. $55 call (symbol: FCX-AK)
-or-
BUY the 2011 Jan. $60 call (symbol: OBQ-AL)

Chart of FCX:

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JOYG $36.60 +0.49 -- Joy Global Inc.

The nice bounce from $34.00 last week is tempting but we want to wait for our dip. The plan is to buy LEAPS on a pull back into the $33.00-30.00 zone. Please note we've adjusted the 2011 strike price. We'll up the stop loss to $24.75. Our first target is $48.50.

Buy-the-Dip trigger: $33.00-30.00 zone

BUY the 2010 January $40.00 call (symbol: JQY-AH)
-or-
BUY the 2011 January $40.00 call (symbol: ZMC-AH)

Chart of JOYG:

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RIG $77.01 -0.26 -- Transocean Ltd.

I believe the correction in oil and oil service stocks will continue. I'm adjusting our entry point to buy LEAPS on RIG to $70.50. For now the stop loss, if triggered, is at $62.40. Target is $98.50.

Buy-the-Dip trigger: $70.50 (new)

BUY the 2010 January $80.00 call (symbol: RIG-AP)
-or-
BUY the 2010 January $85.00 call (symbol: RIG-AZ)

Chart of RIG:

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SGY $7.48 +0.05 -- Stone Energy Corp.

SGY has started to correct. We're looking for a pull back toward $6.00. Currently our plan is to buy shares of SGY or the LEAPS at $6.35. Our stop loss is $4.90. Our target is $14.75.

Buy-the-Dip trigger: $6.35

BUY the 2010 January $10 calls (symbol: YLO-AB)
-or-
BUY the stock itself at $6.35.

Chart of SGY:

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WFR $19.14 +0.44 -- MEMC Electronic Materials Inc.

Solar energy stocks followed the rest of the energy complex lower. Our plan is to buy LEAPS on a dip into the $17.50-15.00 zone. Stop loss at $14.95. Target is the $30.

Buy-the-Dip trigger: $17.50-15.00 zone

BUY the 2010 January $20 LEAP (symbol: CJC-AD)
-or-
BUY the 2011 January $25 LEAP (symbol: ZET-AE) *new strike*

Chart of WFR:

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