New Watch List Entries

KO - Coca-Cola Co.


Active Watch List Candidates

CSCO - Cisco Systems

SLB - Schlumberger Ltd.

WMT - Wal-Mart Stores


Dropped Watch List Entries

SOHU graduated to our play list.



New Watch List Candidates:


The Coca-Cola Company - KO - close: 38.77

Company Info

Shares of this beverage titan were showing relative strength this past week. The stock broke through resistance at its 200-dma, 150-dma, and the $38.00 level on Feb. 5th. I'd like to buy this bullish breakout but odds are good KO will see a dip back toward $38.00, which should be support.

I am suggesting a buy-the-dip entry point at $38.05. If triggered we'll use a stop loss at $36.40. Our long-term target is $44.00. Please note that KO is scheduled to report earnings on Feb. 12th, before the opening bell. Investors may want to wait until after we see how the market interprets the earnings results before considering new positions.

FYI: The point & figure chart is bullish with a long-term $47 target.

Buy-the-Dip trigger: $38.05

BUY the 2014 Jan $40 call (KO1418a40) current ask $1.38

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BUY the 2015 Jan $40 call (KO1517a40) current ask $2.23

Chart of KO:

Originally listed on the Watch List: 02/09/13


Active Watch List Candidates:



Cisco Systems - CSCO - close: 21.16

Comments:
02/09/13: This could be a volatile week for shares of CSCO. The company is scheduled to report earnings on Feb. 13th, after the closing bell. Analysts expect a profit of 48 cents a share. More conservative investors may want to wait until after we see how the market reacts to CSCO's earnings results before considering new positions even if the stock meets our entry trigger requirements prior to earnings.

Currently the plan is to wait for CSCO to close above $21.50 and then buy calls the next day. 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)

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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


Schlumberger Ltd. - SLB - close: 79.07

Comments:
02/09/13: The last couple of weeks have seen shares of SLB consolidating sideways in the $78-80 range. A breakout past resistance at $80.00 would be bullish.

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)

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


Wal-Mart Stores - WMT - close: 71.48

Comments:
02/09/13: As expected shares of WMT trended higher. The rally did stall at its 100-dma. I don't see any changes from my prior comments.

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)

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BUY the 2015 Jan $80 call (WMT1517a80)

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