New Watch List Entries


None, no new watch list candidates



Active Watch List Candidates

CLX - Clorox Co.

KORS - Michael Kors


Dropped Watch List Entries

BIG and HES graduated to our play list. ZNGA has been removed.



New Watch List Candidates:


I am not adding any new watch list candidates tonight.

Every weekend I look at hundreds, sometimes thousands of stocks. We try and boil them down into a pool of potential candidates. Unfortunately, at the moment I don't see anything ready to be added to our watch list.

I do find Yum Brands (YUM) and McDonald's (MCD) to be interesting. Both look relatively bullish.

I would keep an eye on YUM since a close above resistance at $80.00 could be a new bullish entry point.

MCD has been showing relative strength and there appears to be short-term support at the $99.00 level. More aggressive traders may want to give MCD another look now given its relative strength late this past week.

Another stock that has caught my eye is Berkshire (BRK.B) . Shares are trading at all-time highs and look poised to breakout past short-term resistance near $128.00.


Active Watch List Candidates:



The Clorox Co. - CLX - close: 90.03

Comments:
04/27/14: CLX was showing some relative strength on Friday with a +1.0% gain. As the market turns lower this stock could see more interest as a safe-haven trade. Please note that CLX is due to report earnings on Thursday, May 1st. The stock could be volatile that day.

Earlier Comments:
CLX is what many consider a "safe haven" investment or a "recession-proof" stock. That's because in an economic slowdown consumer still buy the household goods and cleaning supplies they need. For a mature company like CLX, over 100 years old, growth has slowed down but the stock also offers a 3% dividend yield.

Shares have been consolidating sideways for weeks (about mid February). CLX last earnings report on February 4th was a disappointment thanks to management lowering their guidance. Investors seem to have backed that into their picture for CLX or they have forgotten since CLX shares have rallied to new two-month highs and broken through resistance near $90.00.

The most past $90.00 looks like a new bullish entry point. However, I would like to see more confirmation. That's why tonight I'm suggesting we wait for CLX to close above $91.50 and buy calls the next morning with a stop loss at $86.90. Please note that CLX is scheduled to report earnings on May 1st and investors may want to wait until after CLX reports earnings before they initiate new positions.

If we are triggered (a close above $91.50) then our long-term target is the $100-110 zone. The point & figure chart is bullish with a $128 target.

NOTE: I would hesitate to buy the 2016 calls because the spreads are so wide but over time they should narrow.

Breakout trigger: Wait for a close above $91.50
then buy calls the next day, stop @ 86.90

BUY the 2015 Jan $95 call (CLX1517a95) current ask $2.00

- or -

BUY the 2016 Jan $100 call (CLX1615a100) current ask $3.00

Originally listed on the Watch List: 04/20/14


Michael Kors - KORS - close: 89.88

Comments:
04/27/14: The bounce in KORS is rolling over. I am still expecting shares to fill the gap with a drop toward $80 and its 200-dma. The plan is unchanged but I am moving the stop loss to $77.25.

Earlier Comments:
I do want to caution you on this trade. We are attempting to "catch the falling knife". That can be hazardous. We are suggesting a buy-the-dip trigger to buy calls at $81.00. You may want to sit back and watch for a bounce from the $80 region before considering new positions. If we are triggered at $81.00 our target is $99.00.

Buy-the-Dip trigger: $81.00, stop loss at $77.25

BUY the 2015 Jan $90 call (KORS1517a90)

Originally listed on the Watch List: 04/13/14


Zynga, Inc. - ZNGA - close: 4.08

Comments:
04/27/14: I warned you that ZNGA was volatile. I also cautioned investors to wait until after ZNGA reported earnings before initiating positions. Shares have seen some big swings. Thursday's intraday high was $4.66 and Friday's low was $4.01 (-13.9%).

The earnings report on April 23rd was mixed. Bottom line met expectations and revenues were a beat. However, guidance was mixed and investors sold the news.

My suggested entry point was to wait for ZNGA to close in the $4.50-4.75 zone on Thursday or Friday before initiating positions. That did not happen so I am removing ZNGA from the watch list.

Trade did not open.

04/27/14 our aggressive trade on ZNGA was not triggered.

Originally listed on the Watch List: 04/20/14