New Watch List Entries
Active Watch List Candidates
BEAV - BE Aerospace Inc.
CELG - Celgene Corp
MICC - Millicom Intl. Cellular
Dropped Watch List Entries
DBC, PEP and VOD have all hit our triggers and graduated to the play list.
New Watch List Candidates:
Sadly I could not find any new watch list candidates this weekend. The S&P 500 looks poised to move lower and confirm the breakdown under support and its bearish head-and-shoulders pattern. The market could easily see a 5% to 10% correction in the next few weeks. The good news is that should we get that kind of correction it could end up being a great entry point for a wide number of new bullish opportunities.
This newsletter is not about short-term trading but longer-term LEAPS investments. Yet readers may still want to consider buying some SPY puts or calls on the SDS for a correction that could last several weeks. My target would be 835 or 805 on the S&P 500.
FYI: A few stocks on my private watch list are... IBM might be a buy near $90.00, I'd love to get into AAPL but do we buy LEAPS at $120 (maybe), or $100 (absolutely). Question is will AAPL ever see those levels again? Gaps tend to get filled. We should be patient and look for RIMM to fill the gap down to $50. Goldman Sachs upgraded the hardware sector last week. HPQ will be a beneficiary of any new upgrade cycle by corporate America but we don't want to buy LEAPS now with the stock looking weak following its failed rally under $40.00. I believe Tata Motors (TTM) represents an opportunity to capture any growth in the Indian economy but I would prefer to buy the stock in the $5.00-4.00 range. I'm not saying it's heading that low but it might. That is just a few of the dozens of stocks on my personal watch list but they're not even close to being ready for our newsletter watch list with action points and suggested LEAPS.
Active Watch List Candidates:
BEAV $11.96 +0.01 -- BE Aerospace Inc.
BEAV continues to slip. With the S&P and NASDAQ both poised to move lower we have a good shot at BEAV hitting our trigger in the next week or two. If triggered we'll use a stop at $8.85.
Buy-the-Dip trigger: $10.50
BUY the 2010 January $15.00 calls (symbol: BQV-AC)
Note: At $10.50 you could just buy the stock instead but the $15 calls will allow you more leverage on your investment.
Chart of BEAV:
CELG $46.10 -0.39 -- Celgene Corp.
CELG continues to hold up very well, especially when compared to the decline in the BTK biotech index. Nothing has changed for us. We are still waiting for a dip to $43.00. I wouldn't be surprised to see CELG actually correct into the $42.00-40.00 zone. 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:
MICC $57.13 -0.25 -- Millicom Intl. Cellular
The consolidation in MICC is narrowing. If you look at the 30-minute chart shares have been churning sideways in the $56-58 zone for a couple of weeks now. The daily chart shows a bullish trend of higher lows with support at the 50-dma. In spite of this trend I still expect MICC to correct when the market declines.
I'm suggesting readers buy LEAPS at $50.50 but you could wait and launch positions anywhere in the 50.50-45.00 zone and in this environment I'd definitely wait for signs of a bounce first.
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: