New Watch List Entries

CDE - Coeur d'Alene Mines Corp

CVX - Chevron Corp

NTES - NetEase.com, Inc.


Active Watch List Candidates

MCD - McDonald's Corp

NVDA - NVIDIA Corp


Dropped Watch List Entries



New Watch List Candidates:


Coeur d'Alene Mines Corp. - CDE - close: 28.39

Company Info

CDE is in the mining industry. They are best known for their silver mining but also generate gold, lead and zinc. The stock has been trading under resistance near $30.00 for several months. You could argue that CDE has built a huge, inverse head-and-shoulders (bullish) pattern. A breakout across the neckline could signal a run towards the $38-40 zone.

I am suggesting we wait for CDE to close over $30.25 and then buy calls the next day. More aggressive traders may want to buy an intraday rally past $30.25 since CDE could see some short covering on a breakout past resistance.

If our trade is opened we'll start with a stop loss at $26.75. Our long-term target is $37.00.

Breakout trigger: Wait for a close over $30.25 and buy calls the next day.

BUY the 2013 Jan $35 call (CDE1319A35)

Chart of CDE:

Originally listed on the Watch List: 02/25/12


Chevron Corp. - CVX - close: 109.08

Company Info

Crude oil is in breakout mode. The falling U.S. dollar and rising escalation with Iran are fueling gains for oil. We're also facing the summer driving season ahead when oil prices tend to see a seasonal rise. If this trend continues we could see CVX breakout past major resistance in the $110 area.

The early 2012 high was $110.99. I am suggesting we wait for CVX to close over $111.00 and then buy calls the next day with a stop loss at $105.75 (under the 50-dma). Our long-term target is $125.00. FYI: the Point & Figure chart for CVX is bullish with a $133 target.

Breakout trigger: Wait for CVX to close over $111.00 and buy calls the next day.

BUY the 2013 Jan $120 call (CVX1319A120)

- or -

BUY the 2014 Jan $120 call (CVX1418A120

Chart of CVX:

Originally listed on the Watch List: 02/25/12


NetEase.com - NTES - close: 49.99

Company Info

NTES is a Chinese Internet company. Shares have been pretty volatile the last several months but the larger trend is a bullish one. The recent consolidation over the last five weeks looks like a springboard for NTES to surge higher.

The February high so far is $51.04. I am suggesting we wait for NTES to close over $51.50 and then buy calls the next day with a stop loss at $46.50, which is just under the February low. If triggered our long-term target is $64.00. Currently the Point & Figure chart is bullish with a $68 target.

I want to remind readers that NTES can be volatile so we want to start with small positions (at least half your normal trade or smaller).

Breakout trigger: Wait for NTES to close over $51.50, then buy calls the next day (SMALL POSITIONS)

BUY the Jan $60 call (NTES1319A60)

Chart of NTES:

Originally listed on the Watch List: 02/25/12


Active Watch List Candidates:



McDonald's Corp. - MCD - close: 100.32

Comments:
02/25/12 update: MCD spent the week drifting higher but shares have yet to break the new trend of lower highs. We're still holding out for a correction lower. Right now the plan is to buy calls on a dip at $95.50. Nimble traders may want to focus on the simple 100-dma instead.

Our long-term target is $108.00.

Buy-the-Dip trigger: $95.50, stop 89.50

BUY the 2013 Jan $100 call (MCD1319A100)

12/24/11 adjusted entry point to $95.50, stop loss to $89.50
12/17/11 adjusted entry point to $91.50, stop loss to $87.25
11/26/11 adjusted stop loss to $86.45

Originally listed on the Watch List: 11/05/11


NVIDIA Corp. - NVDA - close: 15.79

Comments:
02/25/12 update: NVDA spent most of last week consolidating sideways in the $16.00-15.50 zone. Aggressive traders might want to consider buying calls on a dip or a bounce near short-term support at $15.00 and its 200-dma. I am suggesting we wait for a breakout.

Wait for NVDA to close over $17.05 before we initiate positions the next day with a stop loss at $15.40. Our long-term target is $21.75.

FYI: The Point & Figure chart is bullish with a long-term $23 target.

Wait for a close over: $17.05, buy calls the next day.
stop loss @ 15.40.

BUY the 2013 Jan $20 call (NVDA1319A20)

Originally listed on the Watch List: 02/18/12