New Watch List Entries
CELG - Celgene Corp.
DLX - Deluxe Corp.
Active Watch List Candidates
AKAM - Akamai Technologies
FXB - CurrencyShares British Pound
MSFT - Microsoft Corp.
PETM - PETsMART
PNRA - Panera Bread Co.
WMT - Wal-Mart Stores Inc
Dropped Watch List Entries
MCD was removed from the watch list.
New Watch List Candidates:
Celgene Corp. - CELG - close: 59.29 change: -0.20
We are officially adding CELG to the watch list. The biotech sector continues to outshine most of the market. CELG could help power those gains. The stock has been consolidating sideways for months under resistance near $60.00. Now shares are flirting with a major breakout higher. The past two weeks has seen resistance near $60.50. I am suggesting we use a trigger to buy call LEAPS at $60.75. If triggered we'll use a stop at $54.75. There is some resistance near $66.00 but our long-term target is $74.00. (Readers might want to buy the 2012 LEAPS)
Celgene is a multinational biopharmaceutical company committed to improving the lives of patients worldwide. At Celgene, we seek to deliver truly innovative and life-changing drugs for our patients. Our mission as a company is to build a major global biopharmaceutical corporation while focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions. (source: company press release or website)
Breakout trigger: $60.75
BUY the 2011 January $65 calls (VCS1122A65)
Chart of CELG:
Deluxe Corp. - DLX - close: 18.29 change: +0.13
It's been a rocky road but the trend has definitely been higher since DLX reported earnings back on January 28th. The company raised their profit guidance for 2010 and shares exploded on the news. The stock is currently above prior resistance at $18.00 but I see additional resistance near $19.00.
Given the up trend I'm suggesting we open small bullish positions with a trigger at $19.10. If triggered we'll use a stop at $16.75. Our long-term target is $24.75. FYI: I would consider this an aggressive trade since DLX could still have resistance at the $20.00 level as well.
Deluxe Corporation is a growth engine for small businesses and financial institutions. Through its industry-leading businesses and brands, the Company helps small businesses and financial institutions attract and retain customers. The Company employs a multi-channel strategy to provide a suite of life-cycle driven solutions to its customers. In addition to its personalized printed products, the Company offers a growing suite of business services, including logo design, payroll, web design and hosting, business networking and other web-based services to help small business grow. In the financial services industry, Deluxe sells check programs and fraud prevention, customer loyalty and retention programs to help banks build lasting relationships and grow core deposits. The Company also sells personalized checks, accessories, stored value gift cards and other services directly to consumers (source: company press release or website)
Breakout trigger: $19.10
DLX doesn't have any LEAPS. The longest options available are Octobers.
BUY the 2010 October $20.00 calls (DLX1016J20)
Chart of DLX:
Active Watch List Candidates:
AKAMAI Tech. - AKAM - $25.66 -0.10
Shares of AKAM are still struggling with resistance near $26.00. I am suggesting we buy call LEAPS on a dip at $22.50, which is a small adjustment from our previous trigger (22.10). If triggered our long-term target is $29.50. We'll start with a stop loss at $19.75.
Buy-the-Dip trigger: $22.50
BUY the 2011 January $25.00 calls (OMU1122A25)
Chart of AKAM:
FXB - CurrencyShares British Pound Sterling $152.18 -1.28
The FXB continues to fall without us! It definitely looks like we missed the entry point the week after Valentines day. Now the FXB looks short-term oversold. I don't want to chase it. The $155-157 zone should be new resistance. I am adjusting our trigger to buy LEAP puts from $158.50 to $156.50. We'll move the stop loss down to $160.55. Our first target is $150.00. Our second target is $144.00.
Buy-the-Bounce trigger: $156.50
BUY the 2010 September $150 put (FWK1018U150)
Chart of FXB:
McDonald's Corp. - MCD - close: 64.38 change: -0.33
MCD isn't cooperating with us. Shares are showing too much relative strength. We wanted to buy a dip near $60.00. I'm temporarily removing it from the watch list. Wait a minute? Too much strength? Yes, the short-term trend looks good and MCD acts like it's ready to breakout from the range over the last few months but the stock has long-term resistance at $67.00. If we're going to enter a long-term trade we want to wait for the right entry point.
Microsoft - MSFT - close: $28.60 change: -0.03
I am adjusting our entry strategy on MSFT. The 200-dma will most likely be technical support and it just crossed over the $26.00 level. I am raising our trigger to buy call LEAPS on MSFT to $26.50. We'll move our stop loss to $23.75. Our long-term target is $35.00.
Buy-the-Dip trigger: $26.50
BUY the 2012 January $25 calls (WMF1221A25)
Chart of MSFT:
PETsMART Inc. - PETM - close: 27.49 change: +0.22
The three-week bounce in PETM looks pretty impressive. Yet shares have stalled under resistance at $27.50. Even if it does rally from here there is long-term resistance near $29.00. I would much rather buy a dip. We're adjusting our entry point to $24.50. It could take a few weeks before PETM corrects enough to hit our entry.
If triggered at $24.50 our stop loss will be $21.90. Our long-term target is the $34-35 zone but given the lack of LEAPS we'll aim for 29.00.
Buy-the-Dip trigger: $24.50
Readers may want to consider buying the stock. PETM doesn't have LEAPS. The longest-dated options are 2010 Octobers.
BUY the 2010 October $25 calls (QPT1016J25)
Chart of PETM:
Panera Bread Co. - PNRA - close: 72.76 change: -0.28
PNRA is still consolidating under resistance near $75.00. Shares remain longer-term overbought and due for a correction but the longer it trades sideways the less of a chance of a pull back. Right now the plan is to buy a dip at $65.50. However, more aggressive traders may want to consider small bullish positions if PNRA can close over the $75.00 level.
If triggered we'll use a stop loss at $59.50. Our long-term target is the $84.50 level.
Buy-the-Dip trigger: $65.50
BUY the 2011 January $70 calls (ZGM1122A70)
Chart of PNRA:
Wal-Mart Stores Inc. - WMT - close: 54.15 change: +0.23
I am starting to think that WMT just doesn't move fast enough for us to trade it. Currently shares are stuck in a $52.50-55.00 trading range. I suspect WMT is coiling for a breakout higher. At the moment our plan is to buy LEAPS on a dip near $50.00. We may alter our entry point strategy if WMT can close over resistance at the $55.00 level.
In the meantime if we're trigger at $50.50 we'll use a stop at $46.75.
Our first long-term target is $62.50. More aggressive traders may want to use the 2011 January calls (the $50 strike VWT-AJ).
Buy-the-Dip trigger: $50.50
BUY the 2012 January $50 calls (WWT1221A50)
Chart of WMT: