New Watch List Entries
DISH - Dish Network Corp.
X - United States Steel Corp.
Active Watch List Candidates
BEAV - BE Aerospace Inc.
BG - Bunge Limited
CNX - Consol Energy Inc.
ERJ - EMBRAER - Empresa Brasileira de AeronÃ¡utica
IGT - Intl. Game Technology
MEE - Massey Energy Corp.
MICC - Millicom Intl. Cellular
WLT - Walter Energy Inc.
Dropped Watch List Entries
LNN hit our breakout trigger and graduated to the play list.
New Watch List Candidates:
DISH $18.42 +1.00 -- Dish Network Corp.
It appears that DISH has produced a long-term bottom with the lows in November 2008 and March 2009. Shares retested broken resistance near $14.00 as support in June and July. The overall pattern has definitely turned more positive. Meanwhile DISH is currently winning in the patent-infringement lawsuit with Tivo. Considering the tough economic times and consumer's tendency to stay home and cocoon the company should be holding up pretty well. We'll find out soon when DISH reports earnings on August 10th. Results will be out Monday morning before the bell. Keep your fingers crossed that traders do some profit taking.
We want to buy LEAPS on a dip into the $16.00-15.00 zone. The official trigger will be $16.25 and we'll use a stop loss at $13.85. Our long-term target is the $25-30 zone.
DISH Network Corporation (NASDAQ: DISH - News), the nationâ€™s HD leader, provides approximately 13.584 million satellite TV customers as of March 31, 2009 with the highest quality programming and technology at the best value, including the lowest all-digital price nationwide. Customers have access to hundreds of video and audio channels, the most HD channels, the most international channels, state-of-the-art interactive TV applications, and award-winning HD and DVR technology including 1080p Video on Demand and the ViPÂ® 722 DVR, a CNET and PC Magazine â€œEditorsâ€™ Choice.â€ DISH Network is included in the Nasdaq-100 Index (NDX) and is a Fortune 250 company. Visit www.dishnetwork.com.
(source: company press release or website)
Buy-the-Dip trigger: $16.25
BUY the 2010 January $15.00 calls (symbol: HSW-AC)
(or consider the 2011 Jan. $20 calls)
Chart of DISH:
X $44.94 +1.54 United States Steel Corp.
Shares of X have shrugged off their recent earnings miss and the stock has rallied to new 2009 highs. Now that rally is running low on steam. If investors are buying stocks on the belief that a recovery is on the way then X will continue to be a target for appreciation. We want to jump on board with a trigger to buy LEAPS at $37.50. Traders can use the $37.50-35.00 zone to launch positions. We'll start with a stop loss at $32.40. Our target is the $60-70 zone. Currently the Point & Figure chart is bullish with a $64 target.
United States Steel Corporation, headquartered in Pittsburgh, Pa., is an integrated steel producer with major production operations in the United States, Canada and Central Europe and an annual raw steelmaking capability of 31.7 million net tons. The company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries.
(source: company press release or website)
Buy-the-Dip trigger: $37.50
BUY the 2010 January $40 calls (symbol: FBJ-AH)
Chart of X:
Active Watch List Candidates:
BEAV $17.61 +0.65 -- BE Aerospace Inc.
Shares of BEAV have now rallied to their June 2009 highs near $18.00. This is the logical place for the up trend to stall. I am raising our entry point to buy LEAPS (or the stock) from $13.00 to $14.00.
Buy-the-Dip trigger: $14.00
BUY the 2010 January $15.00 calls (symbol: BQV-AC)
BUY the stock at $14.00
Note: At $14.00 you could just buy the stock instead but the $15 calls will allow you more leverage on your investment.
Chart of BEAV:
BG $71.87 -0.54 -- Bunge Limited
The upward momentum in BG is definitely slowing down. It might take a few weeks but we want to open positions near the longer-term bullish trendline. If triggered we're going to aim for the $85-90 zone. Currently the Point & Figure chart is bullish with a $94 target.
Buy-the-Dip trigger: $61.00
BUY the 2010 January 70 calls (BGW-AN)
Chart of BG:
CNX $85133 +1.18 -- Consol Energy Inc.
CNX is up more than 30% from its July lows. While I'm long-term bullish on coal stocks we don't want to chase this move. Right now the plan is to buy LEAPS on a dip near $30.00 but we might want to consider raising that trigger towards the $32.50 region. If triggered our long-term is the $48.50 level. We'll use a stop loss at $24.40.
Buy-the-Dip trigger: $30.50
BUY the 2010 January 35.00 calls (symbol: CNX-AG)
Chart of CNX:
ERJ $22.09 +0.48 -- EMBRAER - Empresa Brasileira de AeronÃ¡utica S.A.
Last Monday's rally in ERJ was certainly unexpected. The stock soared to new 2009 highs on strong volume and then spent the rest of the week consolidating sideways. I am upping our trigger to buy LEAPS from $17.50 to $18.50. Our target is the $29-30 zone. Set your stop at $15.45.
Buy-the-Dip trigger: $18.50
BUY the 2010 January $20.00 call (symbol: ERJ-AD)
Chart of ERJ:
IGT $19.92 +0.31 --- Intl. Game Technology
IGT hit new 2009 highs last week but shares have begun to reverse. Momentum indicators are suggesting the rally is out of gas, which is good news since we want to buy a pull back. I am suggesting that readers buy LEAPS on a dip into the $17.50-16.00 zone.
Our long-term target is the $25.00-30.00 zone.
Buy-the-Dip trigger: $17.50 (17.50-16.00 zone)
BUY the 2010 January $17.50 call (IGT-AW) -or-
BUY the 2010 January $20.00 call (IGT-AD) -or-
BUY the 2011 January $20.00 call (VGG-AD)
Chart of IGT:
MEE $28.55 +1.14 -- Massey Energy Corp.
MEE posted strong gains on Friday but shares spent the week drifting sideways. The stock remains extremely overbought with the rally from its July lows near $16.00. We might want to raise our entry point to the $22.50-22.00 zone but for now the plan is to buy LEAPS at $20.50.
We'll use a stop at $15.75. Our long-term target is the $35.00-40.00 range. The P&F chart agrees and points to a $37.50 target.
Buy-the-Dip trigger: $20.50
BUY the 2010 January $25.00 call (MEE-AE)
BUY the 2011 January $30.00 call (VHK-AF)
Chart of MEE:
MICC $73.37 -0.45 -- Millicom Intl. Cellular
The rally in MICC has definitely stalled. The MACD on the daily chart is about to turn bearish. It might take a few weeks but we want to buy a dip near support around $60.00.
Buy-the-Dip trigger: $62.50
BUY the 2010 January $80 call (symbol: CQD-AP)
Chart of MICC:
WLT $55.26 +3.01 -- Walter Energy Inc.
WLT has not given up its leadership position in the coal sector. The stock is just screaming higher. It can't keep up this pace for much longer but I wouldn't want to short it. It might take a few weeks but we want to buy LEAPS on a dip near support, which should be the $40.00 level. We'll use a stop loss at $34.40. Our long-term target is $60.00.
Buy-the-Dip trigger: $41.00
BUY the 2010 January 50.00 call (WLT-AJ)
BUY the 2011 January 50.00 call (OZE-AJ)
Chart of WLT: