New Watch List Entries
TASR - TASER Intl
WLT - Walter Energy
Active Watch List Candidates
BUCY - Bucyrus Intl.
BVN - Compania de Minas Buenaventura
CHRW - CH Robinson Worldwide
MA - Mastercard Inc.
NTAP - NetApp, Inc.
Dropped Watch List Entries
BIDU and GLD graduated to the play list last week.
New Watch List Candidates:
TASER Intl. - TASR - close: 4.06 change: +0.05
The last several months have been pretty rough on TASR. The stock has fallen from $7.50 in February to almost $3.50 in early July. Sales have been disappointing as cash-strapped state budgets cut into sales and purchases overseas were also postponed. It would appear that the new, slower sales outlook has been factored into TASR's stock price. Shares have been consolidating sideways the last few weeks and we're seeing some technical indicators turn bullish.
I am suggesting we use a trigger to open small bullish positions if TASR hits $4.25. This is an aggressive trade and TASR can see big bouts of volatility. If triggered at $4.25 we'll use a stop loss at $3.79. There is some resistance near $5.00 but our first long-term target is $6.00. (Buy the stock, not the options!)
TASER International, Inc., is the global leader in the development of technologies that Protect Life. More than 15,000 public safety agencies protect and serve in more than 40 countries with TASER technology. TASER innovations benefit individuals and families too; providing personal protection and accountability while maintaining regard for life. TASER is committed to bringing advanced solutions to market, like TASER AXON and EVIDENCE.COM -- powerful evidence capturing and management platforms.
(source: company press release or website)
Breakout trigger: $4.25
BUY the stock (TASR) @ 4.25
Chart of TASR:
Walter Energy - WLT - close: 76.71 change: +0.99
I remain very wary of stocks right now but there is always a chance that the market surprises us with a continued rally. If that occurs a breakout in WLT above resistance near $80.00 could forecast a rally back toward its highs near $100. Short-term the stock is still bounce from its July lows but the rally has stalled at its 100-dma. The technical picture is mixed and I am actually expecting a pull back toward $70.00. However, I want to be ready if the market continues higher. Right now I'm suggesting a trigger to buy calls at $81.00 with a stop loss at $74.00. Our target is $99.00. Nimble traders will want to keep an eye on the $70.00 zone. A bounce near $70 could be an alternative entry point and we could use a much tighter stop loss (maybe near $68.40). FYI: I do want to point out that the coal sector has managed to rally over resistance and break the trend of lower highs. (check the KOL ETF)
Walter Energy is a leading U.S. producer and exporter of premium hard coking coal for the global steel industry and also produces steam coal and industrial coal, metallurgical coke and coal bed methane gas. The Company has revenues of approximately $1.0 billion and employs approximately 2,100 people. (source: company press release or website)
Breakout trigger: $81.00
BUY the 2011 Jan $90 calls (WLT1122A90)
- or -
BUY the 2012 Jan $100 calls (WLT1221A100)
Chart of WLT:
Active Watch List Candidates:
Bucyrus Intl. - BUCY - close: 63.32 change: +0.00
The rally in BUCY has stalled near $64.00. I am still expecting a correction back toward the $55.00 area. I am suggesting a trigger to buy a dip 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.
Buy-the-Dip trigger: $56.00
BUY the 2011 Jan $65 calls (BUCY1122A65)
- or -
BUY the 2012 Jan $70 calls (BUCY1221A70)
Chart of BUCY:
Compania de Minas Buenaventura - BVN - close: 36.44 change: +0.17
BVN underperformed the market this past week. Of course we have been expecting a pull back. The plan is to buy calls on a dip at $35.00. If triggered we'll use a stop loss at $31.95. 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:
CH Robinson Worldwide Inc. - CHRW - close: 66.89 change: -0.46
The rally in CHRW continues and has hit five weeks in a row. Shares closed near their 2008 highs and resistance near $67.50. Nimble and aggressive traders may want to consider some short-term put positions because I'm expecting a correction back toward $62.00. Once CHRW corrects the plan is to buy calls on the dip. I am adjusting our trigger to $62.50.
If triggered we will use a stop loss at $57.75. Our first long-term target is $67.50. Our second, long-term target is $72.50.
Buy-the-Dip trigger: $62.50
NOTE: I prefer the 2012 calls!
BUY the 2011 January $65.00 calls (CHRW1122A65)
- or -
BUY the 2012 January $70.00 calls (CHRW1221A70)
Chart of CHRW:
Mastercard Inc. - MA - close: 207.42 change: + 5.79
There is no change from my prior comments. We are still waiting for a breakdown. The trigger to open bearish positions is at $192.00. More conservative traders can wait for MA to actually close under $192.00.
If triggered we'll use a wide stop loss at $213.00. Our first target is $161.00.
- PUT PLAY -
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)
- or -
BUY the 2012 Jan $160 PUT LEAPS (MA1221M160)
Chart of MA:
NetApp, Inc. - NTAP - close: 43.11 change: -0.61
Nothing has changed from my prior comments on NTAP. The rally is running out of steam under $45.00. I am expecting a correction before NTAP resumes its climb. Please note I am adjusting our trigger down to $37.50.
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.
Buy-the-Dip trigger: $37.50
BUY the 2011 Jan $40.00 calls (NTAP1122A40)
- or -
BUY the 2012 Jan $45.00 calls (NTAP1221A45)
Chart of NTAP: