The stock market looks a little dangerous here. The fiscal year end for many funds is now over. There is a lot less pressure to chase performance and managers could start dumping stocks they feel are weak or vulnerable.
I'm not adding any new watch list candidates tonight. The key will where the market finds support. Will the S&P be able to hold the 1,000 level or will it correct toward the 950 level. I'm adjusting several triggers lower in anticipation of a larger correction.
New Watch List Entries
No new candidates
Active Watch List Candidates
AVY - Avery Dennison
BQI - Oilsands Quest, Inc.
CR - Crane Co.
ESV - ENSCO Intl. Inc.,
PCX - Patriot Coal Corp.
TXT - Textron Inc.
Dropped Watch List Entries
CHK, GHM, and MTW all graduated to the play list last week.
We're dropping TRN.
New Watch List Candidates:
No new watch list candidates tonight.
Active Watch List Candidates:
AVY $ 37.79 -0.53 -- Avery Dennison
I am moving our trigger to buy LEAPS on AVY back down to $30.50. Previous resistance at $30.00 should be new support. Plus, this is where the stock should find its trendline of higher lows.
If triggered our stop loss is $27.40. Our long-term target is $44.50.
Buy-the-Dip trigger: $30.50
BUY the 2010 April $35 calls (symbol: AVY-DG)
Chart of AVY:
BQI $1.20 -0.13 -- Oilsands Quest Inc.
Oil and energy stocks have been getting hammered. A rising dollar is putting pressure on oil. I still think BQI has formed a significant bottom over the last several months but I'm lowering our entry point. The new trigger to buy the stock is $1.05. We'll lower our stop loss to $0.85. Please use wise judgment when it comes to your position size. Don't over do it just because the stock is "cheap".
I'm setting our long-term target at $2.90.
Buy-the-Dip trigger: $1.05
BUY the stock at $1.05
Chart of BQI:
CR $27.19 -0.38 -- Crane Co.
CR is reversing sharply after soaring to new highs last week. I'm adjusting our entry point lower. Our new trigger to buy LEAPS is $22.60, just above the 200-dma. We'll move our stop loss to $19.85.
If triggered our target is $34.75. (It could take a few weeks before CR hits our trigger).
Buy-the-Dip trigger: $22.60
BUY the 2010 JUNE $25 calls (CR-FE) *new month*
Chart of CR:
ESV $45.79 -2.39 -- ENSCO Intl. Inc.
We're going to ratchet our trigger down in ESV as well. The stock is correcting. Shares should find both round-number support and technical support near $40.00. I'm lowering our trigger to buy LEAPS to $40.50.
If triggered at $42.00 we'll use a stop at $37.25. We're going to aim for the $55-60 zone.
Buy-the-Dip trigger: $40.50
BUY the 2011 January $45 call (VKS-AI)
(More aggressive traders may want to trade January 2010 or March 2010 calls instead)
Chart of ESV:
PCX $11.30 -0.89 -- Patriot Coal Corp.
Coal stocks have been getting crushed lately. I think PCX's correction will be deeper than originally expected. I'm lowering our trigger significantly. We'll use an entry point at $8.50 and a stop loss at $7.75.
Buy-the-Dip trigger: $ 8.50
BUY the 2011 January $10 LEAP call (OKI-AB) *new strike*
Buy the stock @ 8.50.
Chart of PCX:
TRN $16.88 -0.55 -- Trinity Industries
The railroad and transport stocks have really been under performing lately. I am removing TRN as a bullish candidate. If the stock breaks $16.00 it will probably fall toward the $14-12 zone.
TXT $17.78 -1.23 -- Textron Inc.
TXT has formed a bearish double top. Nimble, short-term traders may want to use bearish strategies. Long-term I still think TXT has formed a significant bottom. I am lowering our trigger to buy LEAPS or the stock from $15.00 down to $13.00. We'll use a stop loss at $11.75.
Our long-term target is the $30 region.
Buy-the-Dip trigger: $13.00
BUY the 2011 January 15.00 call (symbol: XUD-AC) *new strike*
Chart of TXT: