New Watch List Entries

BRCM - Broadcom

KO - Coca-Cola Co.


Active Watch List Candidates

F - Ford Motor Co.

LTD - Limited Brands

MCD - McDonald's Corp

TIVO - TiVo Inc.


Dropped Watch List Entries

BRK.B, CL, and CVX have all made it to the active play list. I have removed CDE as a candidate.



New Watch List Candidates:


Broadcom Corp. - BRCM - close: 37.81

Company Info

BRCM has produced a major comeback off its 2011 lows. Now the stock is trying to breakout past major resistance in the $38.00 region. The company was getting some free press this past week as tech gurus tore apart the new Apple iPad to find some of BRCM's devices inside. That could help fuel gains as we know iPad sales will be strong.

I am suggesting we wait for BRCM to close over $39.00 and then we will buy calls the next day with a stop loss at $35.75. More conservative investors could wait for BRCM to close over $40.00 instead. Our long-term target is $47.00. FYI: A move over $39.00 will produce a brand new triple-top breakout buy signal on the P&F chart.

Breakout trigger: Wait for BRCM to close over $39.00, use a stop loss at $35.75

BUY the 2013 Jan $45 call (BRCM1319A45)

- or -

BUY the 2014 Jan $45 call (BRCM1418A45)

Chart of BRCM:

Originally listed on the Watch List: 03/17/12


Coca-Cola Company - KO - close: 70.16

Company Info

This is more of a defensive play. KO, the company with the best brand recognition in the world, is seeing its stock slowly drift higher. The bullish trend of higher lows is pushing KO toward its 2011 highs. I suspect that if KO can breakout past the $72 level the rally could accelerate and shares will be hitting levels not seen since the late 1990s.

I am suggesting we open small bullish positions when KO closes over $72.00. We'll open positions the next day with a stop at $67.75. Our long-term target is $87.00 but that might be a little optimistic and we may need to make adjustments.

Breakout trigger: Wait for KO to close over $72.00, buy calls the next day with a stop at $67.75. (Small Positions)

BUY the 2014 $75 call (KO1418A75)

Chart of KO:

Originally listed on the Watch List: 03/17/12


Active Watch List Candidates:



Coeur d'Alene Mines Corp. - CDE - close: 24.22

Comments:
03/17/12 update: Shares of silver miner CDE are not seeing much of a bounce. As a matter of fact the stock has continued to sink. Our plan to wait for a close over $30.50 may not happen for a long time. We are dropping CDE as a bullish candidate.

Our trade did not open.

03/17/12 removed CDE as a candidate
03/03/12 adjusted trigger to close over $30.50

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


Ford Motor Co. - F - close: $12.51

Comments:
03/17/12 update: Shares of Ford tried to breakout past resistance near $13.00 but it failed. Now shares are forming a three-day bearish reversal under the $13 level. I would not be surprised to see Ford drop back toward support near $12.00 again.

Currently our plan is unchanged. I am suggesting we wait for Ford to close over $13.25 and then buy calls the next day with a stop loss at $11.75. Our long-term target is $16.50.

Breakout trigger: Wait for Ford to close over $13.25, buy calls the next day.

BUY the 2013 Jan $12.50 call (F1319A12.5)

- or -

BUY the 2014 Jan $15 call (F1418A15)

Originally listed on the Watch List: 03/03/12


Limited Brands, Inc. - LTD - close: 46.93

Comments:
03/17/12 update: LTD was slowly setting new record highs until Friday. On Friday the stock produced a bearish engulfing candlestick reversal pattern. This could signal a correction lower back toward the $45-44 area. At the moment we have a buy-the-dip entry point at $42.50. We will re-evaluate our entry point next week.

If triggered at $42.50 we want to use a stop loss at $39.50. Our long-term target is $54.50.

Buy-the-Dip trigger: $42.50 (stop loss @ 39.50)

BUY the 2013 Jan $45 call (LTD1319A45)

Originally listed on the Watch List: 03/10/12


McDonald's Corp. - MCD - close: 97.66

Comments:
03/17/12 update: Our MCD was almost triggered this week with a dip to $96.37 on Tuesday. Shares have since started to bounce. I suspect that we'll see MCD bounce into the $99-100 zone and then roll over again. Once MCD produces a lower high under $100 it will see a correction into the $95-92.50 zone and test its rising 200-dma. That seems like a plausible scenario. Thus I am adjusting our buy-the-dip trigger to buy calls on MCD at $93.50 and we will adjust our stop loss to $88.50.

If triggered our long-term target is $108.00.

Buy-the-Dip trigger: $93.50, stop 88.50

BUY the 2013 Jan $100 call (MCD1319A100)

03/17/12 adjusted buy-the-dip trigger to $93.50, stop @ 88.50
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

Chart of MCD:

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


TiVo Inc. - TIVO - close: 11.55

Comments:
03/17/12 update: Shares of TIVO are holding very well considering some of the headlines this past week. One of them was news that Intel (INTC) could become a major competitor. A Reuters article discussed a story first broke by the Wall Street Journal. Intel plans an Internet-based TV produce that could be packaged as an Intel-branded set-top box. Another potentially troubling headline was news that James Barton, TIVO's Chief Technology Officer and Senior Vice President was resigning immediately but TIVO would retain him as a consultant for the next three years. Usually when a high-profile executive leaves it makes investors nervous. Yet shares of TIVO have continued to rebound higher off their test of the 50-dma two weeks ago.

I am still suggesting that we wait for TIVO to close over $11.75 and then buy calls the next day. More conservative trades may want to wait for a close over $12.25 instead. We'll use a stop loss at $10.75. Our long-term target is $16.00. FYI: The Point & Figure chart is bullish with a long-term $18.50 target.

Breakout trigger: Wait for TIVO to close over $11.75, buy calls the next day. Stop loss at $10.75.

BUY the 2013 Jan $12.50 call (TIVO1319A12.5)

03/10/12 adjust entry strategy to buy calls after TIVO closes over $11.75 with a stop at $10.75.

Originally listed on the Watch List: 03/03/12