New Watch List Entries

None, no new watch list candidates tonight.


Active Watch List Candidates

BA - Boeing Co.

CRM - Salesforce.com

CRS - Carpenter Technology

HSY - Hershey Co.

RT - Ruby Tuesday, Inc.

WYNN - Wynn Resorts Ltd.


Dropped Watch List Entries

None.

Active Watch List Candidates:

Boeing Co. - BA - close: 64.18 change: -0.95

The bounce in BA has stalled in the $65 area. I still expect shares will roll over and test support near $60.00 and its 200-dma near $59.00. That's why our trigger to open positions is at $60.00. Remember, this is an aggressive trade in a dangerous market. We want to keep positions very small and instead of buying a dip to $60.00 readers may want to wait for the next bounce before initiating positions. If triggered we will use a stop loss at $54.75. More conservative traders may want to use a slightly tighter stop near the $57.50 area. Our long-term target is $79.00.

Buy-the-Dip trigger: $60.00 (small size 1/2 to 1/4 normal trade size)

BUY the 2011 January $70 call (BA 11A70.00)

Chart of BA:


Salesforce.com - CRM - close: 86.53 change: -0.47

I remain bullish on CRM. Shares have held up reasonably well and appear to be consolidating in what could be a bull-flag pattern (albeit an irregularly shaped one). I don't see any changes from my prior comments. Aggressive traders may want to consider bullish positions on a dip near $75.00 (or buy a bounce from $75). I am suggesting we use a dip at $70.50. If the market breaks down CRM could see some serious profit taking. If triggered our stop loss is $64.00. Our long-term target remains $99.00.

Buy-the-Dip trigger: $70.50

BUY the 2011 January $80 calls (CRM 11A80.00)
- or -
BUY the 2012 January $90 calls (CRM 12A90.00)

Chart of CRM:


Carpenter Technology - CRS - close: $38.91 change -0.91

CRS has produced a pretty good bounce off its May lows but I'm not convinced the correction is over yet. More aggressive traders could buy dips in the $34-33 zone. I'm suggesting we wait for a dip to $31.00 to open bullish positions. The $30.00 level and the 200-dma should be decent support. If triggered our stop is at $26.90. Our long-term target is $44.75. Maybe by the time CRS finally hits our trigger the January calls will become available.

Buy-the-Dip trigger: $31.00

BUY the 2010 December $35 calls (CRS 10L35.00)

Chart of CRS:


Hershey Co. - HSY - close: 46.80 change: -0.49

There is no change from my prior comments. HSY is still holding up. We are waiting for a correction and it could take a few weeks to occur. I am suggesting a trigger to buy call LEAPS a $42.50. If triggered we'll use a stop loss at $37.75. Our first target is $49.75. Our second, longer-term target is $57.00.

Buy-the-Dip trigger: $42.50

BUY the 2011 January $45.00 call (HSY 11A45.00)

- or -

BUY the 2012 January $50.00 call (HSY 12A50.00)

Chart of HSY:


Ruby Tuesday Inc. - RT - close: $10.76 change: -0.04

It's been three days and RT is still stuck in the $11-10 zone. I suspect shares will breakdown and trade toward $9.00. I'm suggesting a trigger to open bullish positions at $9.25. January 2011 options are the longest ones available so I prefer buying the stock over an option. If triggered we'll use a stop at $8.25. Our first long-term target is $12.00. Our longer-term target is $14.75.

Buy-the-Dip trigger: $9.25

BUY the stock at $9.25

- or -

BUY the 2011 January $10.00 calls (RT 11A10.00)

Chart of RT:


Wynn Resorts - WYNN - close: 83.88 change: -0.61

WYNN has produced a nice bounce from its May lows but I'm not convinced the correction is over. I'm still expecting a dip toward the 200-dma that's nearing $70. We want to use a trigger at $70.50 to open bullish positions but keep in mind this is a volatile stock in a dangerous market. Keep your position size very small. If trigger we'll use a stop loss at $63.75. Our long-term target is $99.00.

Note: Back in November 2009 WYNN declared a special cash dividend of $4.00 a share, that was payable in December 2009. They adjusted the option symbols to reflect this cash dividend. We want to use the normal call LEAPS with the VEG root symbol.

Buy-the-Dip trigger: $70.50

BUY the 2011 January $80.00 calls (WYNN 11A80.00)
Use the call LEAPS with the VEG symbol: VEG1122A80

- or

BUY the 2012 January $90.00 calls (WYNN 12A90.00)

Chart of WYNN: