New Watch List Entries


None, no new watch list candidates



Active Watch List Candidates

AVGO - Avago Technologies

DD - E.I. du Pont

DLTR - Dollar Tree Inc.

FCX - Freeport McMoRan

HAS - Hasbro Inc.

WAG - Walgreen Co.


Dropped Watch List Entries

KMX has graduated to our active play list.



New Watch List Candidates:


I am not adding any new watch list candidates tonight.

We have already added eleven watch list candidates this month (September) to our active play list. The next couple of weeks could be rough for the broader market.

I would focus on buy-the-dip entry strategies on strong stocks and just be patient.


Active Watch List Candidates:



Avago Technologies - AVGO - close: 42.70

Comments:
09/29/13: Apple (AAPL) announced better than expected sales for its new iPhones and the news helped boost some of AAPL's part suppliers. Shares of AVGO avoided the market's recent sell-off and instead consolidated sideways at its all-time high.

If we were looking at AVGO in a vacuum I would be tempted to buy it here. However, my short-term market view is bearish. We would much rather buy calls on a dip near $40.00, which should be support.

Earlier Comments:
I am suggesting a buy-the-dip entry point at $40.00 with a stop loss at $37.75. If triggered our long-term target is $45.00 for the 2014 January calls and $48.50 for the 2015 calls. FYI: The point & figure chart is bullish with a $49 target.

Buy-the-Dip trigger: $40.00, stop loss @ 37.75

BUY the 2014 Jan $42.50 call (AVGO1418a42.5)

- or -

BUY the 2015 Jan $45 call (AVGO1517a45)

Originally listed on the Watch List: 09/22/13


E.I. du Pont - DD - close: 59.01

Comments:
09/29/13: Profit taking in DD only amounted to about 40 cents. Yet the very short-term trend is down with a pattern of lower highs. I would expected a dip to $58.00. If we see DD closed below $58.00 we might drop it as an active candidates. Currently our entry strategy is unchanged.

We want to wait for DD to close above $60.75 and then buy calls the next morning with a stop loss at $57.90. Our long-term target is $69.00.

Breakout trigger: Wait for DD to close above $60.75
Then buy calls the next day. Stop loss @ 57.90.

BUY the 2014 Jan $65 call (DD1418a65)

- or -

BUY the 2015 Jan $65 call (DG1517a65)

09/22/13 adjust entry: wait for a close above $60.75
instead of a close above $60.50

Originally listed on the Watch List: 08/11/13


Dollar Tree, Inc. - DLTR - close: 57.52

Comments:
09/29/13: DLTR survived last week's market decline pretty well. Profit taking was limited to about 50 cents. Even news that Goldman Sachs had removed DLTR from its conviction buy list on valuation concerns failed to spark any real selling.

I do not see any changes from my prior comments.

Earlier Comments:
Shares of DLTR recently broke out past resistance near $55.00 and tagged new all-time highs. We do not want to chase it here. I suspect we will see DLTR retest $55 as support. I am suggesting a buy-the-dip trigger at $55.25 with a stop loss at $51.50. Our long-term target is the $65 area. FYI: The point & figure chart is bullish with a $78 target.

Buy-the-Dip trigger: $55.25, stop loss @ 51.50

BUY the 2014 Jan $60 call (DLTR1418a60)

- or -

BUY the 2015 Jan $65 call (DLTR1517a65)

Originally listed on the Watch List: 09/22/13


Freeport-McMoRan - FCX - close: 33.42

Comments:
09/29/13: FCX snapped a three-week rally with a pullback last week but profit taking was relatively mild. I don't see any changes from my earlier comments.

Earlier Comments:
I am suggesting we launch small bullish positions if FCX trades at $32.00 again. We'll try and limit our risk with a stop loss at $29.45. Our long-term target is the $38-40 zone but we'll adjust it as the play progresses.

Buy-the-Dip trigger: $32.00, small positions!
start with a stop loss at $29.45.

BUY the 2014 Jan $35 call (FCX1418a35)

- or -

BUY the 2015 Jan $34 call (FCX1517a34)

Originally listed on the Watch List: 09/15/13


Hasbro Inc. - HAS - close: 47.38

Comments:
09/29/13: HAS doesn't look so hot with a six-day decline. Shares have not yet broken the six-week trend of higher lows so we're not giving up yet. Our plan is unchanged.

Earlier Comments:
HAS looks like it has been consolidating for a breakout for the last five months. I am suggesting we wait for HAS to close above $50.25 and then buy calls the next morning with a stop loss at $46.75. However, I am putting a condition on this entry point. HAS could surge on a breakout past $50.00. We do not want to open positions if we see HAS close above $51.25. Our long-term target is $59.00.

Breakout trigger: Wait for a close above $50.25
then buy calls the next day. Yet do not open positions if HAS closes above $51.25.

BUY the 2015 Jan $55 call (HAS1517a55)

Originally listed on the Watch List: 09/22/13


Walgreen Co. - WAG - close: 54.51

Comments:
09/29/13: WAG tagged a new all-time high on Monday and has been down every day since. Shares could be volatile this week. The company is due to report earnings on October 1st, before the opening bell. Wall Street expects a profit of 73 cents a share. I don't see any changes from my earlier comments.

Earlier Comments:
Our target to exit the 2014 calls is $59.50. Target to be determined for the 2015 calls.

Buy-the-Dip trigger: $52.25, use a stop at $48.40

BUY the 2014 Jan $55 call (WAG1418a55)

- or -

BUY the 2015 Jan $60 call (WAG1517a60)

09/22/13 adjust entry strategy: move the trigger to $52.25
adjust the stop loss to $48.40
(previous trigger and stop was $51.50 & 47.40)

Originally listed on the Watch List: 09/15/13