New Watch List Entries

JDSU - JDS Uniphase

URBN - Urban Outfitters


Active Watch List Candidates

ATVI - Activision Blizzard

F - Ford Motor Co.

LTD - Limited Brands

MCD - McDonald's Corp


Dropped Watch List Entries

BRCM, OMX and KO graduated to the play list.



New Watch List Candidates:


JDS Uniphase - JDSU - close: 14.49

Company Info

JDSU makes telecommunication equipment. The stock appears to have built a significant bottom over the last several months in the $9.00-14.00 zone. Shares are currently flirting with resistance near $15.00 and its 300-dma.

I am suggesting we launch small bullish positions if JDSU can close over $15.30. We'll start with a stop loss at $13.90. Our long-term target is $19.75. More aggressive traders could aim higher. FYI: The Point & Figure chart is bullish and is forecasting a long-term $26 target.

Breakout trigger: Wait for JDSU to close over $15.30 (stop 13.90)

BUY the 2013 Jan $17.50 call (JDSU1319A17.5)

- or -

BUY the 2014 Jan $20 call (JDSU1418A20)

Chart of JDSU

Originally listed on the Watch List: 03/31/12


Urban Outfitters Inc. - URBN - close: 29.11

Company Info

URBN runs a small empire of apparel stores under several different brand names. The company reported earnings just over two weeks ago and missed estimates for both the top and bottom line. Yet traders bought the post-earnings sell-off at the stock's rising 50-dma. Now shares are testing major resistance near the $30.00 level.

If the stock can breakout it could see a short squeeze with the most recent data listing short interest at more than 10% of the float. I am suggesting a trigger to launch small bullish positions when URBN closes over $30.50. We'll use a stop at $27.75. Our long-term target is $35.75.

Breakout trigger: Wait for URBN to close over $30.50 (stop 27.75)

BUY the 2013 Jan $35 call (URBN1319A35)

Chart of URBN:

Originally listed on the Watch List: 03/31/12


Active Watch List Candidates:



Activision Blizzard, Inc. - ATVI - close: 12.82

Comments:
03/31/12 update: The rally in ATVI stalled with shares consolidating sideways last week. We are waiting on a breakout past resistance.

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)

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


Ford Motor Co. - F - close: $12.48

Comments:
03/31/12 update: Ford also delivered a quiet week with the stock bouncing around the $12.20-12.60 range. 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: 48.00

Comments:
03/31/12 update: LTD rallied to round-number resistance at $50.00 and reversed. I don't see any changes from my prior comments. We want to buy LTD calls on a correction lower. We currently have a buy-the-dip trigger at $44.00.

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: 98.10

Comments:
03/31/12 update: MCD continues to bounce and shares are testing resistance near $98.00 and its 100-dma. The stock should have additional resistance at its descending 50-dma, currently at 98.80. Right now the plan is to buy calls on a dip at $93.00 but if MCD continues to rally we might want to consider buying calls if shares can close over $100 again.

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