New Watch List Entries
Active Watch List Candidates
BQI - Oilsands Quest, Inc.
DSX - Diana Shipping Inc.
ESV - ENSCO Intl. Inc.,
Dropped Watch List Entries
DE (Deere & Co) has graduated to our play list.
GNK is being promoted to the play list. Check the new play section.
New Watch List Candidates:
I am still concerned by the relative weakness in the small cap stocks (I mention them in tonight's commentary). We're also seeing lower highs in the semiconductor sector, which tends to lead the NASDAQ. Meanwhile the transportation sector failed to hit new highs last week.
We will want to wait for a new closing high on the S&P 500 or a hefty correction before we get serious about launching new LEAPS positions. I'm not adding any stocks to the watch list tonight.
Active Watch List Candidates:
BQI $1.11 -0.06 -- Oilsands Quest Inc.
Strength in the U.S. dollar and lackluster demand is dragging crude oil futures lower. This is pushing the energy sector lower as well. It looks like BQI is poised to hit our trigger at $1.05 soon. More conservative traders may want to adjust their trigger down to $1.00. I'm going to try and reduce our risk by edging our stop loss up to $0.89.
Use wise judgment when it comes to your position size. Don't overdo 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 (not options) at $1.05
Chart of BQI:
DSX $17.25 +0.56 - Diana Shipping Inc.
DSX is starting to correct after its astonishing November rally. You may have read some commentary about how the shipping sector could suffer as new ships come online and flood the market with "supply". I believe that's a late 2010-early 2011 challenge. The next six months could still be very positive for the shipping stocks.
I'm going to keep our trigger at $14.50 for now but more aggressive traders may want to consider opening bullish positions on a dip near $15.50 instead.
If we're triggered at $14.50 I'm setting our long-term target at $24.00. We'll use a stop loss at $11.85.
Buy-the-Dip trigger: $14.50
BUY the 2011 January $15.00 LEAPS (symbol: XDJ-AC)
Chart of xxx:
ESV $44.34 -1.22 -- ENSCO Intl. Inc.
The correction in ESV continues. The stock broke down under technical support at its 50-dma. Yet the long-term trend is still higher. ESV should find stronger support near $42.00, which is where you'll see the trendline from its 2009 lows and its rising 100-dma. We have a trigger at $42.50.
If triggered at $42.50 we'll use a stop at $37.25. Our target is the $55-60 zone.
Buy-the-Dip trigger: $42.50
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: