New Watch List Entries

EL - The Est

HON - Honeywell Intl.

LOW - Lowe's Companies

MRVL - Marvell Technology


Active Watch List Candidates

Currently, we have no active watch list candidates.


Dropped Watch List Entries

None. No dropped watch list candidates.



New Watch List Candidates:


The Est - EL - close: 71.23

Company Info

EL recently changed its corporate name from Estee Lauder Companies to "The Est". They manufacture, market, and sell a variety of skin care, make up, fragrance, and hair care products. The company recently reported earnings. EL beat estimates by 12 cents. Revenues were a miss but management raised their guidance.

EL initially gapped down on the revenue miss but quickly recovered. Shares have bounced back to new all-time closing highs. I want to see more follow through. I'm suggesting we wait for EL to close above $72.00. If EL can close above $72.00 we'll initiate positions the next morning with a stop loss at $65.90, just below last week's low. Our long-term target is $90.00. Currently the point & figure chart is bullish with a $93 target. We want to keep our position size small to limit our risk.

NOTE: 2015 calls are available but the spreads are significantly wider.

Breakout trigger: Wait for a close above $72.00, buy calls the next day.
stop loss @ 65.90.

BUY the 2014 Jan $80 call (EL1418A80) current ask $1.95

Chart of EL:

Originally listed on the Watch List: 05/04/13


Honeywell Intl. - HON - close: 75.24

Company Info

Large cap industrial names have been showing relative strength. The Dow Jones Industrial Average just crossed 15,000 for the first time in history. HON is not a member of the DJIA but it has followed the index with a rally back toward all-time highs near $75.00.

HON's all-time intraday high is $75.76. I am suggesting we wait for HON to close above $76.00 then buy calls the next day. Let's keep our position size small to start. We'll initiate the trade with a stop loss at $72.00. Our long-term target is $95.00.

Breakout trigger: Wait for a close above $76.00, buy calls the next day.
stop loss @ 72.00.

BUY the 2014 Jan $80 call (HON1418A80) current ask $2.22

- or -

BUY the 2015 Jan $85 call (HON1517A85) current ask $3.60

Chart of HON:

Originally listed on the Watch List: 05/04/13


Lowe's Companies - LOW - close: 39.59

Company Info

The recovery in the residential real estate industry should be good news for shares of home improvement retailer like LOW. Shares rallied to new all-time highs back in January 2013. LOW has spent the last three months consolidating sideways. Now shares look poised to break out past resistance near $40.00.

I am suggesting we wait for LOW to close above $40.25. Once our entry requirement is met we can buy calls the next day. I am suggesting a stop loss at $36.90. Our long-term target is $49.50.

NOTE: LOW is scheduled to report earnings on May 22nd, 2013. LOW's main rival Home Depot (HD) reports earnings on May 21st.

Breakout trigger: Wait for a close above $40.25, buy calls the next day.
stop loss @ 36.90.

BUY the 2014 Jan $45 call (LOW1418A45) current ask $0.96

- or -

BUY the 2015 Jan $45 call (LOW1517A45) current ask $2.65

Chart of LOW:

Originally listed on the Watch List: 05/04/13


Marvell Technology - MRVL - close: 10.71

Company Info

MRVL is in the semiconductor sector. The stock's long-term trend has been underperforming its peers. That might be about to change. The breakdown in mid-April has reversed sharply. Shares are now testing resistance near $11.00. This resistance is significant because it's both price resistance over the last few weeks plus it's also near the long-term trend line of lower highs dating back to the very early 2011 peak (near $22.00). A breakout here could signal the next leg higher.

I am suggesting a trigger to buy calls at $11.25. No waiting for a close above resistance. I'm suggesting calls on an intraday move to $11.25 or higher. If triggered our long-term target is $15.00.

NOTE: MRVL is due to report earnings on May 23rd. More conservative traders will want to seriously consider waiting until after we see MRVL's results and how the market reacts to them before initiating any positions.

Breakout trigger: $11.25, stop loss @ 10.25

BUY the 2014 Jan $13 call (MRVL1418A13) current ask $0.43

- or -

BUY the 2015 Jan $15 call (MRVL1517A15) current ask $0.68

Chart of MRVL:

Originally listed on the Watch List: 05/04/13


Active Watch List Candidates:




None: Currently we do not have any active watch list candidates.


Please see our newly added watch list candidates above.