New Watch List Entries

SLB - Schlumberger Ltd.

WMT - Wal-Mart Stores


Active Watch List Candidates

CSCO - Cisco Systems

SOHU - Sohu.com


Dropped Watch List Entries

None.



New Watch List Candidates:


Schlumberger Ltd. - SLB - close: 79.70

Company Info

The oil services industry has been outpacing the market's rally. Shares of SLB are helping lead the way. The stock is currently testing resistance near the $80.00 level. A breakout here could signal the next run higher.

I am suggesting we wait for SLB to close above $81.00 a share. If triggered our long-term targets is $94.75. We'll start with a stop loss at $76.40. We do want to start this trade with small positions. You could argue SLB is overbought and due for a correction given the rally off its late December lows.

FYI: The stock will begin trading ev-dividend on Feb. 15th. The next quarterly dividend is about 31 cents. The Point & Figure chart is bullish with a long-term target of $102.

Trigger: Wait for SLB to close above $81.00, then buy calls the next day. Stop loss @ 76.40

BUY the 2014 Jan $90 call (SLB1418a90) current ask $3.20

Chart of SLB:

Originally listed on the Watch List: 02/02/13


Wal-Mart Stores - WMT - close: 70.49

Company Info

WMT is the biggest retailer in the world and the largest private employer in the world. It looks like the correction from its 2012 highs is about over. I still see some resistance in the $72.00 area.

I am suggesting investors wait for shares of WMT to close above $73.00 a share. Then buy calls the next day with a stop loss at $67.25. Our long-term target is the $85-90 range.

NOTE: WMT is scheduled to report earnings on Feb. 21st.

Trigger: Wait for WMT to close above $73.00, then buy calls the next day. Stop loss @ 67.25

BUY the 2014 Jan $75 call (WMT1418a75) current ask $1.80

- or -

BUY the 2015 Jan $80 call (WMT1517a80) current ask $2.16

Chart of WMT:

Originally listed on the Watch List: 02/02/13


Active Watch List Candidates:



Cisco Systems - CSCO - close: 20.83

Comments:
02/02/13: CSCO retreated this past week to test technical support at its rising 30-dma again. The stock might be stuck in a sideways consolidation pattern until the company reports earnings. CSCO is scheduled to report on Feb. 13th. If the market corrects lower by then we might consider buying a dip or a bounce in the $19 area. Meanwhile I am adjusting our entry strategy. We want to wait for CSCO to close above $21.50 before initiating bullish positions. We'll start with a stop loss at $19.25. Our long-term target is $27.00.

Breakout trigger: Wait for a close above $21.50, buy calls the next day, stop loss at $19.25.

BUY the 2014 Jan $22 call (CSCO1418a22)

- or -

BUY the 2015 Jan $25 call (CSCO1517a25)

02/02/13 adjust entry trigger to wait for a close above $21.50

Originally listed on the Watch List: 01/12/13


Sohu.com - SOHU - close: 49.22

Comments:
02/02/13: SOHU is still struggling with resistance near the $50 level. Monday could be a volatile session for SOHU. The company is scheduled to report earnings on Feb. 4th, before the opening bell. I am still suggesting a buy-the-dip trigger at $45.50.

Earlier Comments:
Broken resistance at $45.00 should be new support. I am suggesting we buy calls on a dip a t $45.50. Our long-term target is $58.50.

Buy-the-Dip trigger: $45.50 (stop loss: 42.40)

BUY the 2014 Jan $50 call (SOHU1418a50)

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