In addition to our new candidates tonight I am keeping an eye on F, MTD, and IBM. I like F's breakout over the $12.00 level but shares look a little overbought given the rally from $10. MTD is breaking out over the $120 level after it reported much better than expected earnings but management lowered guidance for the third quarter. If MTD retests and bounces at the $116 level it might be a buy. IBM has been stuck under resistance in the $133-134 zone for months. I would wait for a close over $134-135 as a bullish entry point.
New Watch List Entries
BUCY - Bucyrus Intl.
NTAP - NetApp, Inc.
Active Watch List Candidates
BVN - Compania de Minas Buenaventura
CRM - Salesforce.com
GLD - SPDR Gold ETF
MA - Mastercard Inc.
New Watch List Candidates:
Bucyrus Intl. - BUCY - close: 61.68 change: +3.28
Copper inventories have been falling for nearly five months in a row. That hasn't happened since 2004. Strong demand for copper is a bullish sign for the global economy and it should also be bullish for the miners, which should boost BUCY. Keep in mind that a weak dollar should also be bullish for commodities. Now both copper and BUCY have already rallied sharply this past week. We do not want to chase them.
I am suggesting a trigger to open small bullish positions on BUCY at $56.00. If triggered we'll use a stop loss at $49.50. Our first target is $69.00, which coincides with the bullish point & figure chart target. FYI: I prefer the 2012 call LEAPS but the 2011s should work.
Bucyrus International, Inc. is a world leader in the design and manufacture of high productivity mining equipment for surface and underground mining. BUCYRUS surface equipment is used for mining coal, copper, iron ore, oil sands and other minerals, and underground equipment is used primarily for mining coal. In addition to machine manufacturing, Bucyrus manufactures high-quality OEM parts and provides world-class support services for its equipment. Bucyrus International, Inc. is headquartered in South Milwaukee, Wisconsin, USA (source: company press release or website)
Buy-the-Dip trigger: $56.00
BUY the 2011 Jan $65 calls (BUCY1122A65)
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BUY the 2012 Jan $70 calls (BUCY1221A70)
Chart of BUCY:
NetApp, Inc. - NTAP - close: 43.11 change: +1.14
NTAP is a software company, who's stock has continued to show relative strength. This past week NTAP broke out past significant resistance near $42.00 to close at new multi-year highs. This is a simple momentum play but we don't want to buy the breakout. Wait for a correction. I'm suggesting a trigger at $38.50. If triggered we'll use a stop loss at $34.75 (although we might want to put the stop under the 200-dma instead). If triggered our long-term target is $49.00. FYI: NTAP is due to report earnings on August 18th.
NetApp creates innovative storage and data management solutions that accelerate business breakthroughs and deliver outstanding cost efficiency. (NTAP makes enterprise storage and data management software and hardware) (source: company press release or website)
Buy-the-Dip trigger: $38.50
BUY the 2011 Jan $40.00 calls (NTAP1122A40)
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BUY the 2012 Jan $45.00 calls (NTAP1221A45)
Chart of NTAP:
Active Watch List Candidates:
Compania de Minas Buenaventura - BVN - close: 38.32 change: -1.03
Mining stocks have been showing strength thanks to strong earnings results and a rally in copper prices. If the market chooses to believe the EU stress tests are real then the euro should rally and the dollar could sink, which will also give commodities a boost. I am adjusting our trigger to open positions on BVN to $35.00 and we'll up the stop loss to $31.75. We might reconsider bullish positions if BVN can breakout over resistance near $42.50. Bear in mind that BVN is due to report earnings on July 30th, after the closing bell. Wall Street expects a profit of 67 cents a share.
If triggered at $35.00, our first target is $42.25. Our second, more aggressive target is $47.50.
Buy-the-Dip trigger: $35.00
BUY the 2011 March $40 calls (BVN1119C40)
Chart of BVN:
Salesforce.com - CRM - close: 99.77 change: +3.84
Aggressive traders may want to consider starting bullish positions on CRM if shares confirm this breakout over the $100 level. Personally, I would rather not chase it but the move to new highs is certainly positive. The stock will see another correction eventually. I am upping our trigger to $81.00 and our stop loss to $74.00. If triggered our first long-term target is $99.50. Our second target is $119.00.
Buy-the-Dip trigger: $81.00
BUY the 2012 January $90 calls (CRM 12A90.00)
Chart of CRM:
SPDR Gold ETF - GLD - close: 116.09 change: -0.77
The GLD is getting closer to our entry point. The GLD found some support near $115 and its 100-dma but the bounce has been pretty anemic. If gold rallies on any dollar weakness come Monday readers may want to initiate small positions in the GLD early instead of waiting for our trigger to be hit. Otherwise the plan is to launch positions at $112.50.
If triggered we'll use a stop loss at $107.40.
Our target is $140.
Buy-the-Dip trigger: $112.50
BUY the 2010 March $120 call (GLD 11C120.00)
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BUY the 2012 Jan. $130 call (GLD 12A130.00)
Weekly Chart of GLD:
Mastercard Inc. - MA - close: 212.94 change: + 4.54
Shares of MA continue to show a lot of volatility. The stock dipped toward $193.00 this past week before surging back toward its July highs. We are still on the sidelines. If MA closes above $220 I'll drop it as a bearish candidate. For now the bearish H&S pattern is still in play. More conservative traders may want to wait for a close under $192.00 before initiating positions. I'm suggesting an intraday trigger at $192.00 (it was $192.40) to launch small bearish PUT LEAP positions.
If triggered we'll use a wide stop loss at $213.00. Our first target is $161.00. FYI: MA is due to report earnings on August 3rd.
Break Down trigger: $192.00
I prefer the 2012 PUT LEAPS but the 2011 PUTS should also work well.
Keep your positions small. MA can be a very volatile stock!
BUY the 2011 Jan $180 PUT LEAPS (MA1122M180)
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BUY the 2012 Jan $160 PUT LEAPS (MA1221M160)
Chart of MA: