New Watch List Entries

AEM - Agnico Eagle Mines

MPC - Marathon Petroleum

NKE - Nike Inc.


Active Watch List Candidates

EBAY - eBay Inc.

KMB - Kimberly-Clark Corp.

MA - MasterCard

PFE - Pfizer Inc.

UPS - United Parcel Service


Dropped Watch List Entries

KLAC graduated to our play list.



New Watch List Candidates:


Agnico Eagle Mines - AEM - close: 34.62

Company Info

AEM is in the basic materials sector. The company is a gold miner. They also produce silver, copper, zinc and lead. AEM was a significant underperformer in 2013. However, on a big picture basis the stock has built a bottom in the $25-35 zone over the last several months. Recent momentum in 2014 is bullish.

Currently the stock is poised to breakout past resistance near $35.00. As geopolitical tensions rise the price of gold has also broken out past resistance, which is a strong undercurrent for AEM.

Friday's high was $35.46. I am suggesting investors wait for AEM to close above $35.50 and then buy calls the next morning with a stop loss at $31.75. If triggered our long-term target is $48.50. Currently the point & figure chart is bullish with a $46 target.

Breakout trigger: Wait for a close above $35.50
then buy calls the next day with a stop loss at $31.75

BUY the 2015 Jan $40 call (AEM1517a40) current ask $3.15

- or -

BUY the 2016 Jan $45 call (AEM1615a45) current ask $4.55

Chart of AEM:

Originally listed on the Watch List: 03/16/14


Marathon Petroleum - MPC - close: 93.98

Company Info

MPC is in the basic materials sector. The company is in the oil industry with an oil refining and an oil pipeline business. Many investors view MPC as a value stock with is low P/E ratio (near 9) and a dividend yield close to 2%. Technically the stock has been showing relative strength. Shares closed the week at all-time highs.

I am suggesting investors wait for MPC to close above $95.00 and then buy calls the next day with a stop loss at $89.65. It is possible that the $100.00 mark could be round-number resistance but we are setting our long-term target at $115.00.

Breakout trigger: Wait for a close above $95.00
then buy calls the next day with a stop loss at $89.65

BUY the 2015 Jan $100 call (MPC1517a100) current ask $8.40

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BUY the 2016 Jan $110 call (MPC1615a110) current ask $10.20

Chart of MPC:

Originally listed on the Watch List: 03/16/14


Nike, Inc. - NKE - close: 78.32

Company Info

NKE is in the consumer goods sector. Named after the Greek goddess of victory, the company has built an empire on athletic footwear and apparel. The stock's big bounce from its February lows near $70.00 has stalled under resistance near $80.00 and its 2013 highs. Shares spent last week consolidating sideways in the $78-80 zone while the rest of the market sold off.

NKE could be coiling for a breakout higher. However, investors might wait to buy NKE until after the company reports earnings, which will be announced on Thursday, March 20th, after the closing bell.

I am suggesting we buy calls but only after NKE shares close above $81.00 and only after NKE reports earnings. That means we are about one week early adding NKE to the watch list but I wanted to give readers an early warning.

If this play is triggered our long-term target is $99.00. Currently the point & figure chart is bullish with a $108 target.

Breakout trigger: Wait for a close above $81.00
but do not launch positions until after we see NKE's earnings on March 20th
start with a stop loss at $75.75.

BUY the 2015 Jan $85 call (NKE1517a85) current ask $3.85

- or -

BUY the 2016 Jan $90 call (NKE1615a90) current ask $5.65

Chart of NKE:

Originally listed on the Watch List: 03/16/14


Active Watch List Candidates:



eBay Inc. - EBAY - close: 56.74

Comments:
03/16/14: EBAY has retreated nearly $3 from its recent highs. More aggressive investors might want to consider buying a dip in the $55-56 zone. I am suggesting we wait for a breakout higher.

Earlier Comments:
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. 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)

- or -

BUY the 2016 Jan $70 call (EBAY1615a70)

Originally listed on the Watch List: 03/09/14


Kimberly Clark Corp. - KMB - close: 109.66

Comments:
03/16/14: KMB is holding up pretty well and shares managed to post a gain last week. We are still waiting for a breakout higher.

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: 76.34

Comments:
03/16/14: The recent action in MA is short-term bearish, especially the failed rally at its 50-dma on Thursday. If shares do not improve soon we will likely drop it as a watch list candidate. Currently I don't see any changes from my earlier comments.

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: 03/09/14


Pfizer Inc. - PFE - close: 31.23

Comments:
03/16/14: PFE suffered some bad news on the legal front this past week. A U.S. district judge ruled that PFE's reissued patent on its Celebrex drug, due to expire on December 2nd, 2015, is no good. The company will face competition from generic versions of the drug sooner than expected.

This news along with the market's plunge on Thursday pushed shares below their 50-dma. If PFE does not recover soon then I'll likely drop it as a candidate.

Currently I am suggesting investors wait for PFE to close above $33.00 and then buy calls the next morning.

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


United Parcel Service - UPS - close: 96.27

Comments:
03/16/14: On Friday UPS announced they are raising their freight shipping rate by 4.4%. That's more than the 3.9% rise FedEx announced a couple of weeks ago.

We are still waiting for a breakout higher. I am suggesting investors wait for UPS to 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)

- or -

BUY the 2016 Jan $110 call (UPS1615a110)

Originally listed on the Watch List: 03/09/14