New Watch List Entries

HON - Honeywell Intl.

ORCL - Oracle Corp.


Active Watch List Candidates

DSX - Diana Shipping Inc.


Dropped Watch List Entries

ESV graduated to our play list.


New Watch List Candidates:

HON $40.14 change: +0.54 - Honeywell Intl. Inc.

Industrial names should do well as the economy improves. Shares of HON have rallied toward their 2009 highs and they're on the verge of a breakout. I am suggesting a trigger to buy LEAPS at $41.00. If triggered our first target to take profits is at $49.00. Our second target is at $54.00. We'll use a stop loss at $35.75 although more conservative traders may want to use a stop closer to $38.00.

Company Info:
Honeywell International is a diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. (source: company press release or website)

Breakout trigger: $41.00

BUY the 2011 January $45 LEAP call (VAD-AI)

Chart of HON:


ORCL $22.83 change: +0.19 Oracle Corp.

Evidently investors think business software is going to be a winner as the economy improves. Shares of ORCL have rallied toward their 2009 highs near $23.00 and look poised to breakout. The Point & Figure chart is bullish with a $32 target. I do see potential resistance in the $23.50 level dating back to August 2008 so I'm suggesting a trigger to buy LEAPS at $24.05. If triggered we'll use a stop loss at $21.75. Our long-term target is $29.75.

Shares of ORCL don't normally move very fast. Readers might want to consider turning this play into a calendar or diagonal spread to further maximize your gains.

Company Info:
Oracle (NASDAQ: ORCL) is the world's largest business software company (source: company press release or website)

Breakout trigger: $24.05

BUY the 2011 January $25 LEAP call (VOC-AE)

Chart of ORCL:


Active Watch List Candidates:


DSX $15.88 -0.11 - Diana Shipping Inc.

It looks like DSX has found support in the $15.50-15.30 zone. The Baltic Dry (goods) index is turning higher again and this could portend a new leg up for DSX. Instead of waiting for a dip near $14.50 I am adjusting our trigger. Use a move to $17.05 as a bullish entry point to buy LEAPS on DSX. We'll use the 2011 January $20 LEAP calls.

If we're triggered at $17.05 I'm setting our long-term target at $24.00. We'll use a stop loss at $13.85.

Buy-the-Dip trigger: $17.05 *new*

BUY the 2011 January $20.00 LEAPS (symbol: XDJ-AD)

Chart of DSX: