I'm hitting the "refresh" button on the watch list. We've replaced 50% of our list with new candidates. If that wasn't enough I'm providing an additional list of stocks that caught my attention. Check these out and consider adding them to your own personal watch list: LSTR, EXH, CMC, PTEN, KWK, ME, HLX, OSG, DVN, CRK, VISN, HP, HSC, and WGOV. New Watch List Entries
BUCY - Bucyrus Intl.
CR - Crane Co.
FST - Forest Oil Corp.
PCX - Patriot Coal Corp.
TRN - Trinity Industries
Active Watch List Candidates
AVY - Avery Dennison
CHK - Chesapeake Energy Corp.
ESV - ENSCO Intl. Inc.,
MTW - Manitowoc Inc.
TXT - Textron Inc.
Dropped Watch List EntriesBEAV, COST, ERJ, FWLT, IGT, MEE, and MTL.
New Watch List Candidates:BUCY $36.99 +0.35 -- Bucyrus Intl.The falling dollar is boosting commodities. This is lending strength to the miners. Thus a mining equipment provider like BUCY is getting some bullish attention. The stock looks bullish right here near $37.00 and if the dollar continues to fall, lifting commodities, BUCY may continue to rally from here. Yet I suspect BUCY could retrace back toward its 50-dma again. It may not be too but in the next few weeks. Let's use a dip at $34.10 as an entry point to buy LEAPS. We'll use a stop loss at $29.00. Our long-term target is $49.00. FYI: Earnings are expected on October 23rd. Company Info: Buy-the-Dip trigger: $34.10 BUY the 2010 April $35.00 call (HBU-DG) Chart of BUCY:
CR $26.96 +0.08 -- Crane Co.CR is another stock that looks like a tempting bullish candidate right now. Shares broke out to new 2009 highs after a three-week consolidation. Instead of chasing the rally I'm suggesting readers buy LEAPS on a dip at $25.00. Our long-term target is $34.75. We'll use a stop loss at $22.40. Company Info: Buy-the-Dip trigger: $25.00 BUY the 2010 March $25 calls (CR-CE) Chart of CR:
FST $20.71 -0.22 -- Forest Oil Corp.It looks like FST has found a bottom in spite of the bearish environment for natural gas prices. The stock has support near $18.00 and resistance near $22.00. I'm suggesting the following. Buy small positions on a dip at $18.25 or on a close above $22.50. Normally our triggers, targets and stops are all on an intraday basis but this time I'd rather see a close over $22.50. If triggered our long-term target is $37.50. Company Info: Buy-the-Dip trigger: $18.25
Breakout trigger: $22.50 (close above) BUY the 2011 January $20 LEAP call (OJG-AD) Chart of xxx:
PCX $13.07 +0.25 -- Patriot Coal Corp.Most of our coal candidates have been doing very well. PCX looks like it could out perform most of its peers. The breakout over $10 and its recent retest of that level as support is very bullish. I'm suggesting investors buy LEAPS on a dip at $11.00. The stock can be volatile so we'll use a stop loss at $8.75. Our long-term target is the $20-25 zone. Company Info: Buy-the-Dip trigger: $11.00 BUY the 2011 January $15 LEAP call (OKI-AC) Chart of PCX:
TRN $18.20 +0.85 -- Trinity IndustriesTRN is another stock that looks like a buy right now. Shares recently spent a few days consolidating and testing support near $16.00 and its 50-dma. Now we're seeing the stock rebound from this level. I am suggesting readers buy LEAPS on a dip at $17.05. Our target is the $25-30 zone. Stop loss at $13.90. More conservative traders may want to use a stop closer to $15.00. Company Info: Buy-the-Dip trigger: $17.05 BUY the 2011 January $20 LEAP call (XYT-AD) Chart of TRN:
Active Watch List Candidates:AVY $ 36.29 +0.54 -- Avery DennisonA week ago AVY looked ready to crash back toward support near $30.00. Now the stock has rallied back toward its 2009 highs. We certainly don't want to chase it here. We'll raise the trigger to buy LEAPS from $30.25 to $32.00. We'll raise the stop loss to $29.40. Our long-term target is $44.50. Buy-the-Dip trigger: $30.25 BUY the 2010 January $35 calls (symbol: AVY-AG) Chart of AVY:
BEAV $20.99 +0.43 -- BE Aerospace Inc.We've had BEAV on the watch list for a long time. The trend is up but we can't seem to find an acceptable entry point for a long-term position. Short-term traders may want to take another look at it. We're dropping it from the watch list for now.
CHK $28.66 +0.38 -- Chesapeake Energy Corp.CHK has been showing some impressive relative strength the past few days. I am raising our trigger to buy LEAPS from $23.50 to $25.00. We'll use a stop loss at $21.45. Our long-term target is $40.00. Buy-the-Dip trigger: $25.00 BUY the 2011 January $25 calls (symbol: VEC-AE)
Chart of CHK:
COST $58.64 +0.01 -- Costco WholesaleCOST looks way too extended and isn't showing any signs of correcting soon. I'm dropping it as a bullish candidate but I would keep an eye on it for an eventual correction.
ERJ $23.27 +0.04 -- EMBRAER - Empresa Brasileira de Aeronáutica S.A.We've been waiting a long time for an entry point in ERJ. I'm dropping it as a bullish candidate - at least for now.
ESV $45.06 -0.38 -- ENSCO Intl. Inc.Uh-oh! It looks like ESV is breaking out without us. More aggressive traders may want to consider bullish positions on a dip near $43.00 since that level is now broken resistance. I am raising our trigger from $38.00 to $40.00 (and our stop loss to $37.25). We're going to aim for the $55-60 zone. Buy-the-Dip trigger: $40.00
BUY the 2011 January $40 call (VKS-AH) Chart of ESV:
FWLT $31.76 -0.03 -- Foster Wheeler AGI believe that FWLT has a lot of potential but I wouldn't open positions now and if shares did end up filling the gap I'd still be cautious. I'm removing it from the watch list.
IGT $21.52 +0.25 --- Intl. Game TechnologyA week ago I was expecting a deeper correction in IGT. The stock bounced instead providing a perfect rebound off the bottom of its bullish channel. The stock has potential as a short-term trade but it looks too overbought right now for a long-term position. I'm dropping it from the watch list.
MEE $31.39 +0.00 -- Massey Energy Corp.MEE is another high-flying coal stock. Shares produced a huge bounce last week. Yet I wouldn't chase the move. The stock has been very volatile and if it rolls over from here the pattern will start to look like a bearish head-and-shoulders. We already have coal stocks in the newsletter. I'm dropping MEE as a candidate for now.
MTL $19.35 +0.66 -- MECHEL OAOThe relative strength in MTL is amazing but it's not very conducive for us with a longer-term view. The risk of a correction is rising with MTL up more than 100% in just the last several weeks. I still see a lot of potential but we're not going to chase it. I would definitely keep MTL on your personal watch list but I'm dropping it from this one.
MTW $10.26 +0.05 -- Manitowoc Inc.Wow! A week ago the stock was crashing. Shares have been very volatile the last few weeks. The recent action is bullish but we don't want to chase such a big bounce. I'm upping our trigger to $8.25 but it may take a few weeks for MTW to hit our entry point. Our long-term target is $17.00. Buy-the-Dip trigger: $8.25 BUY the 2011 January $10 calls (symbol: VMT-AB) or BUY the STOCK at $8.25 Chart of MTW:
TXT $19.49 +0.11 -- Textron Inc.The correction has been short circuited. TXT produced a new double-bottom near $17.40. More aggressive traders may want to consider buying bullish positions on a dip near $18.00. I'm raising our trigger from $15.25 to $16.25. I'm raising the stop loss to $13.75. ur long-term target is the $30 region. Buy-the-Dip trigger: $16.25 BUY the 2011 January 17.50 call (symbol: XUD-AW)
Chart of TXT:
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