New Watch List Entries
PEP - PEPSICO Inc.
Active Watch List Candidates
BEAV - BE Aerospace Inc.
CELG - Celgene Corp
DBC - PowerShares Commodity Index
DO - Diamond Offshore
MICC - Millicom Intl. Cellular
RIG - Transocean Ltd.
VOD - Vodafone Group
Dropped Watch List Entries
FCX, JOYG, SGY, and WFR were all triggered and graduated to the active play list.
New Watch List Candidates:
PEP $54.70 +0.71 -- PEPSICO Inc.
PEP has been building what could be a long-term base over the last several months. The stock has been building up steam for another breakout higher during its June consolidation under the 200-dma. If the global economy is truly recovering and consumers start to feel more confident then sales could certainly improve. I see resistance near $57.00. I'm suggesting investors buy LEAPS on a breakout at $57.05. Nimble traders may want to try and buy a dip near $52.00 or its 30-dma but officially our trigger is $57.05. Our long-term target is the $65-70 zone. We'll use a stop loss at $51.50. This is an 18-month bet.
PepsiCo is one of the world's largest food and beverage companies, with 2008 annual revenues of more than $43 billion. The company employs approximately 198,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales.
(source: company press release or website)
Breakout trigger: $57.05
BUY 2011 JAN $60 CALL (symbol: VP-AL)
Chart of PEP:
Active Watch List Candidates:
BEAV $14.21 +0.05 -- BE Aerospace Inc.
BEAV is testing support at its 38.2% Fibonacci retracement and its rising 50-dma. I could see aggressive traders launching positions here. We're going to hold out for a dip to $12.50.
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:
CELG $48.03 +0.06 -- Celgene Corp.
Biotech stocks continue to perform well. Shares of CELG have been slowly drifting higher and look poised to breakout over $48.00. We don't want to chase this move, not with additional resistance near $50.00 and its 200-dma. The plan is to wait for a dip. 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.
Buy-the-Dip trigger: $43.00
BUY the 2010 January $50 call (symbol: LQH-AJ)
Chart of CELG:
DBC $22.81 -0.19 -- PowerShares DB Commodity Index (ETF)
The short-term trend for commodities is still down. If we're lucky the DBC will hit $21.50 before the dollar's decline picks up any speed. More aggressive traders may want to jump in near $22.00 instead.
Our long-term target is $30.00.
Buy-the-Dip trigger: $21.50
BUY the 2011 January $20 (VCZ-AT)
BUY the 2011 January $25 (VCZ-AY)
Chart of DBC:
DO $84.58 -3.06 -- Diamond Offshore
Shares of DO came very close to hitting our trigger at $81.00 last week. The Tuesday low was $81.23. I suspect that shares will still pull back and tag the $80.00 level with technical support at its 50-dma and the exponential 200-dma. 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)
BUY 2010 JANUARY $100 CALL (symbol: KWJ-AT)
Chart of DO:
MICC $56.64 +0.27 -- Millicom Intl. Cellular
Traders bought the dip in MICC at its rising 50-dma. The bounce looks pretty good but volume has been fading away. I don't want to chase this rebound. We will stick to our plan and wait for a dip to $50.50 (actually the 50.50-45.00 zone). We'll use a stop loss at $44.80. Our target is the $75-80 zone.
Buy-the-Dip trigger: $50.50
BUY the 2010 January $60 call (symbol: CQD-AL)
Chart of MICC:
RIG $75.88 -0.15 -- Transocean Ltd.
RIG is our perpetual watch list candidate. The stock almost hit our trigger during last week's sell-off. The stock has bounced off its lows but it's encountering some resistance. We're going to hold out and wait for a dip into the $70.50-67.50 zone. We'll use a stop at $62.40. Target is $98.50.
Buy-the-Dip trigger: $70.50 (new)
BUY the 2010 January $80.00 call (symbol: RIG-AP)
BUY the 2010 January $85.00 call (symbol: RIG-AZ)
Chart of RIG:
VOD $19.30 -0.11 -- Vodafone Group
Shares of VOD are still churning sideways. The stock has an $18.00-20.00 trading range. 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.
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: