New Watch List Entries

ATVI - Activision Blizzard

OMX - Officemax Inc.


Active Watch List Candidates

BRCM - Broadcom

F - Ford Motor Co.

KO - Coca-Cola Co.

LTD - Limited Brands

MCD - McDonald's Corp


Dropped Watch List Entries

TIVO graduated to the play list.



New Watch List Candidates:


Activision Blizzard, Inc. - ATVI - close: 12.70

Company Info

Video game giant ATVI has been showing relative strength once shares reversed off their March lows. Now ATVI is poised to breakout past key resistance in the $12.50-13.00 zone that has plagued the stock for months. Potentially driving the stock higher is Blizzard's upcoming launch of the latest Diablo game (Diablo 3) on May 15th. Later in the year will be Blizzard's "Mists of Pandaria" expansion for its massively successful Warcraft franchise.

I am suggesting we wait for ATVI to close over $13.25. We will buy calls the next day with a stop loss at $12.25. Our long-term target is the $16-18 range.

Breakout trigger: Wait for ATVI to close over $13.25, buy calls the next day with a stop at $12.25

BUY the 2013 Jan $15 call (ATVI1319A15)

- or -

BUY the 2014 Jan $15 call (ATVI1418A15)

Chart of ATVI:

Originally listed on the Watch List: 03/24/12


Officemax Inc. - OMX - close: 5.86

Company Info

Shares of OMX suffered a dismal 2011. Yet now it looks like shares may have put in a significant long-term bottom with its base in the $4.00-6.00 range. OMX is flirting with a breakout past its 200-dma and resistance near $6.00. If shares do get past $6.00 the stock could see a short squeeze. The most recent data listed short interest at almost 20% of the 84.6 million-share float.

I am suggesting we wait for OMX to close over $6.20 and we'll buy calls the next day with a stop loss at $5.49. Our first target is $9.50. FYI: The Point & Figure chart has turned bullish and is currently forecasting a $9.50 target.

Breakout trigger: Wait for OMX to close over $6.20 and then buy calls the next day, stop loss @ 5.49

BUY the 2013 Jan $7.50 call (OMX1319A7.5)

- or -

BUY the 2014 Jan $7.50 call (OMX1418A7.5)

Chart of OMX:

Originally listed on the Watch List: 03/24/12


Active Watch List Candidates:



Broadcom Corp. - BRCM - close: 38.47

Comments:
03/24/12 update: BRCM hit $39.00 on an intraday basis but has not yet closed over that level. Traders were buying the dip in BRCM near its rising 10-dma late this past week.

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)

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


Ford Motor Co. - F - close: $12.32

Comments:
03/24/12 update: Ford is still drifting toward the bottom of its $12.00-13.00 trading range. Nimble traders might consider buying a dip at the $12.00 mark. 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


Coca-Cola Company - KO - close: 71.49

Comments:
03/24/12 update: KO has been showing relative strength this past week with a rally to new six-month highs. Shares are nearing resistance in the $71.50-72.00 zone.

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)

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


Limited Brands, Inc. - LTD - close: 48.55

Comments:
03/24/12 update: Retail stocks continue to be a bright spot for the market. The RLX retail index climbed to new all-time highs this last week. LTD is hitting new highs as well. I am a little reluctant to chase it here. We will adjust our buy-the-dip entry point to $44.00 with a stop loss at $39.75.

Our long-term target is $54.50.

Buy-the-Dip trigger: $44.00 (stop loss @ 39.75)

BUY the 2013 Jan $45 call (LTD1319A45)

03/24/12 adjusted buy-the-dip trigger to $44.00 with a stop at $39.75

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


McDonald's Corp. - MCD - close: 95.55

Comments:
03/24/12 update: As expected the oversold bounce in MCD has reversed and shares are correcting lower. MCD is currently testing round-number support at $95.00 and technical support at its 150-dma. It could bounce here but I am betting MCD will continue to dip until it hits the simple 200-dma near $92.50. I'm actually tweaking our buy-the-dip trigger from $93.50 to $93.00.

If triggered our long-term target is $108.00.

Buy-the-Dip trigger: $93.00, stop 88.50

BUY the 2013 Jan $100 call (MCD1319A100)

03/24/12 adjusted trigger to $93.00
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

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