New Watch List Entries

EBAY - eBay Inc.

KLAC - KLA-Tencor

UPS - United Parcel Service


Active Watch List Candidates

KMB - Kimberly-Clark Corp.

MA - MasterCard

PFE - Pfizer Inc.


Dropped Watch List Entries

CBI graduated to our play list. BSX has been moved to new plays



New Watch List Candidates:


eBay Inc. - EBAY - close: 59.06

Company Info

EBAY is labeled as part of the services sector and considered a specialty retailer with its online auction market place. They have grown their internet empire to include Stubhub.com and Half.com plus a handful of classified ads website including a stake in Craigslist. One of their biggest and best performing assets is their PayPal business.

The company has been making headlines, whether they want to or not, thanks to activist investor Carl Icahn calling for EBAY to split off its PayPal business. EBAY continues to reject this idea. Shares have been showing relative strength and just recently broke out past major resistance at the top of its trading range (see weekly chart). Now EBAY is hovering in the $59-60 area. The stock's prior highs were $59.00 back in 2004.

I am suggesting we wait for EBAY to close above $60.25 and buy calls the next morning with a stop loss at $54.75. If triggered our long-term target is the $70 - $80 range. Currently the Point & Figure chart is bullish and forecasting at $74 target.

NOTE: Our $79 target might be a little too optimistic if you're buying the 2015 calls but a move $70 would still be profitable.

Breakout trigger: Wait for a close above $60.25
then buy calls the next day with a stop loss at $54.75

BUY the 2015 Jan $65 call (EBAY1517a65) current ask $3.75

- or -

BUY the 2016 Jan $70 call (EBAY1615a70) current ask $5.75

Chart of EBAY:

Originally listed on the Watch List: 03/02/14


KLA-Tencor - KLAC - close: 66.85

Company Info

KLAC is in the technology sector. The company is in the semiconductor industry and the stock is part of the NASDAQ-100 index. Semiconductor stocks as a group have been helping lead the market higher. Shares of KLAC have rallied to resistance near the 2013 highs.

I am suggesting we wait for KLAC to close above $67.50 and then buy calls the next morning with a stop loss at $61.90. More conservative investors may want to use a stop closer to $64 instead. Our long-term target is $79.00. Currently the point & figure chart is bullish with an $82 target.

Breakout trigger: Wait for a close above $67.50
then buy calls the next day with a stop loss at $61.90

BUY the 2015 Jan $70 call (KLAC1517a70) current ask $4.20

- or -

BUY the 2016 Jan $75 call (KLAC1615a75) current ask $5.20

Chart of KLAC:

Originally listed on the Watch List: 03/02/14


United Parcel Service - UPS - close: 98.22

Company Info

UPS is part of the transportation industry. They are the largest package delivery company on the planet. Transports were showing relative strength last week. If you believe the U.S. or global economies are going to improve then that should mean more business for companies like UPS. The long-term growth forecast for online shopping is nothing but bullish for UPS.

Currently shares of UPS are bouncing from a long-term trend line of support (see weekly chart below). The stock is also testing technical resistance at the 50-dma. Nimble, more aggressive traders could buy calls on a dip in the $95-96 area. I am suggesting investors wait for UPS to close above round-number resistance at $100.00, actually our trigger is a close above $100.25. Then buy calls the next day with a stop at $94.75. Our long-term target is the $115-120 zone.

Breakout trigger: Wait for a close above $100.25
then buy calls the next day with a stop loss at $94.75

BUY the 2015 Jan $105 call (UPS1517a105) current ask $2.35

- or -

BUY the 2016 Jan $110 call (UPS1615a110) current ask $3.35

Chart of UPS:

Originally listed on the Watch List: 03/02/14


Active Watch List Candidates:



Kimberly Clark Corp. - KMB - close: 108.95

Comments:
03/09/14: KMB is still consolidating sideways in the $108-111 zone. I don't see any changes from my prior comments.

Earlier Comments:
The stock's recent rally has lifted shares to key resistance near $110-111. A breakout here could signal the next big leg higher. The point & figure chart is already very bullish forecasting a $145 target.

I am suggesting we wait for KMB to close above $112.00 and then buy calls the next day with a stop loss at $107.00. If triggered our long-term target is $128.00.

FYI: KMB is planning to spin off its health care business by the end of Q3 2014.

Breakout trigger: Wait for a close above $112.00
buy calls the next day. stop loss @ 107.00.

BUY the 2015 Jan $115 call (KMB1517a115)

- or -

BUY the 2016 Jan $120 call (KMB1615a120)

Originally listed on the Watch List: 02/23/14


Mastercard Inc. - MA - close: 77.94

Comments:
03/09/14: MA's performance last week was a bit disappointing. There was no follow through on Tuesday's big bounce and shares just slowly drifted lower the rest of the week. Big picture nothing has changed. We are still waiting on a breakout past its 50-dma and past the $80.00 mark.

Earlier Comments:
The stock recently held a 10-for-1 stock split on January 21st, 2014. During the market's January sell-off MA corrected from $85 to $72.50. The bounce has stalled beneath resistance in the $78-80 zone but the point & figure chart is still bullish with a $89.00 target.

I am suggesting investors wait for MA to close above $80.00 and buy calls the next morning with a stop loss at $74.75. Our long-term target is $99.00.

Breakout trigger: Wait for MA to close above $80.00
then buy calls the next morning with a stop at $74.75.

BUY the 2015 Jan $85 call (MA1517a85)

- or -

BUY the 2016 Jan $90 call (MA1615a90)

Originally listed on the Watch List: 03/02/14


Pfizer Inc. - PFE - close: 32.43

Comments:
03/09/14: PFE managed to tag new multi-year highs last week but failed to close above our $32.75 requirement to launch positions. It did come exceptionally close with PFE closing right at $32.75 on Tuesday. The overall trend is still bullish so you're probably fine if you did launch positions on Wednesday.

Tonight I am adjusting our entry point and moving the requirement to a close over $33.00 instead of $32.75. PFE struggled with the $33.00 level midweek. We will leave the stop loss unchanged.

Earlier Comments:
Our long-term target is the $38-40 zone. I prefer the 2016 calls but I'm listing both the 2015s and 2016s.

Breakout trigger: Wait for PFE to close above $33.00
then buy calls the next morning with a stop at $29.75.

BUY the 2015 Jan $35 call (PFE1517a35)

- or -

BUY the 2016 Jan $35 call (PFE1615a35)

03/09/14 adjust the entry trigger to a close above $33.00 (instead of $32.75)
03/05/14 PFE closed @ 32.75 but not above $32.75, no trade.

Originally listed on the Watch List: 03/02/14