New Watch List Entries

KMB - Kimberly-Clark

ODFL - Old Dominion Freight Lines

PFE - Pfizer Inc.


Active Watch List Candidates

None. See below.


Dropped Watch List Entries

None.



New Watch List Candidates:


Kimberly-Clark - KMB - close: 98.39

Company Info

KMB is in the consumer goods sector. The company makes a wide number of personal care products including diapers and paper products. Traditionally it is considered a more defensive play. Shares currently offer a 3.1% dividend yield.

The stock broke down in late May but the correction found a bottom at its rising 150-dma near $94. Since then the stock has bounced. If shares can breakout past its mid July high from two weeks ago and the trend of lower highs (see chart) then I would expect the longer-term up trend to resume.

I am suggesting a trigger to buy calls if KMB can close above $102.00. Once it closes above $102.00 we'll buy calls the next day. Our long-term target is $115.00.

Breakout trigger: Wait for KMB to close above $102.00
buy calls the next day. Start with a stop loss at $95.75

BUY the 2014 Jan $105 call (KMB1418a105) current ask $1.60

- or -

BUY the 2015 Jan $110 call (KMB1517a110) current ask $3.30

Chart of KMB:

Originally listed on the Watch List: 07/28/13


Old Dominion Freight Line - ODFL - close: 44.39

Company Info

ODFL is in the trucking industry. They focus on "less than truckload" services. They are one of the few companies that actually beat Wall Street's revenue estimates when they reported Q2 earnings this past week. The stock has been a relatively consistent performer. Right now traders are buying the recent dip near its 50-dma.

Shares have resistance in the $44.50 area. I am suggesting investors wait for ODL to close above $45.25 then buy calls the next day with a stop loss at $41.95. Our long-term target is $54.00.

Breakout trigger: Wait for ODFL to close above $45.25
buy calls the next day. Start with a stop loss at $41.95

BUY the 2014 Jan $50 call (ODFL1418a50) current ask $1.25

Chart of ODFL:

Originally listed on the Watch List: 07/28/13


Pfizer Inc. - PFE - close: 29.37

Company Info

Pfizer is a major drug manufacturer. Traditionally the big drug names were considered more safe-haven plays. The stock currently provides a 3.2% dividend yield. The stock got ahead of itself in April and PFE saw a multi-week correction lower. PFE found support in late May at its rising 150-dma. The last few weeks have been bullish with a new short-term trend higher. I am almost tempted to buy Friday's bounce from the $29.00 level. However, PFE is scheduled to report earnings on July 30th. The announcement comes out before the opening bell and Wall Street expects a profit of 55 cents a share. The smart move will be to wait and see how the market reacts to PFE's earnings results before considering new positions.

I am suggesting investors wait for PFE to close above $30.25. If that occurs we can launch positions the next morning. We'll start with a stop loss at $28.45. Our long-term target is $35.00.

Breakout trigger: Wait for PFE to close above $30.25
buy calls the next day. Start with a stop loss at $28.45

BUY the 2014 Jan $30 call (PFE1418a30) current ask $0.93

- or -

BUY the 2015 Jan $30 call (PFE1517a30) current ask $2.08

Chart of PFE:

Originally listed on the Watch List: 07/28/13


Active Watch List Candidates:





Currently we do not have any active watch list candidates (other than the new ones listed tonight). All of our prior watch list candidates were all triggered two weeks ago and added to the active play list.