New Watch List Entries

None.


Active Watch List Candidates

DSX - Diana Shipping Inc.

PPDI - Pharmaceutical Product Development Inc.


Dropped Watch List Entries

None.


New Watch List Candidates:

Editor's Note:

I'm going to say the same thing here that I said in the new plays section. We're concerned that January could see a significant market correction of up to 10%. Right now is not the best place to be adding new long-term bullish positions. As we get deeper into January I plan on adding new candidates to the watch list to buy the dip. Currently we anticipate a bounce as earnings season begins but it will depend on earnings results and how investors choose to interpret the news.

Active Watch List Candidates:


DSX $14.48 -0.12 - Diana Shipping Inc.

The Baltic Dry Goods index continued to slide into yearend yet shares of DSX merely drifted sideways. Has the shipping sector found a new trading bottom? Aggressive and nimble traders may want to consider buying a breakout over $15.00 and its 50-dma. I'm suggesting we stick to our plan and use a trigger at $16.25. If triggered we'll use a stop loss at $14.25. Our long-term target is $24.00. Investors might want to use the 2011 January $17.50 calls instead.

Buy-the-Breakout trigger: $16.25

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

Chart of DSX:


PPDI $23.44 -0.12 -- Pharmaceutical Product Development Inc.

The rally in PPDI ran out of gas at its October highs. Shares look like they are poised to correct. Nimble traders may want to consider selling calls right here (an aggressive, higher-risk trade) or even short-term put positions. We're going to stick to our plan with a trigger to buy LEAPS at $24.25. If triggered we'll use a stop loss at $21.90. Our first target is $29.25.

Breakout trigger: $24.25

BUY the 2010 July $25.00 calls (symbol: PJQ-GE)

Chart of PPDI: