Here are a few more stocks for your watch list:
BEAV - this stock has been on a roll with four weeks of gains. A dip back toward $40 or the $39 level might be a bullish entry point.
IPI - this agricultural chemical (fertilizer) stock is on the verge of breaking out past its 100-dma and 200-dma.
BBY - there has been a lot of talk about the resilient consumer. Shares of BBY appear to have formed a bullish double bottom with the lows in April and June. A rally past $33 might be an entry point. I would consider this an aggressive, higher-risk trade.
AG - some of the silver stocks are starting to move again. AG was a big outperformer today with a breakout past some technical resistance. I would not chase it today but it might be worth watching.
SBUX - consumer names and more specifically coffee-related stocks have been soaring higher. SBUX has powered past key resistance at $38.00 and major resistance at $40.00 in the last several days. SBUX is now at an all-time high. I would not chase it but keep your eye on it for a correction. It may be a bullish entry point.
NEW BULLISH Plays
AMBEV - ABV - close: 34.49 change: +0.19
Stop Loss: 31.25
Target(s): 35.75, 37.75
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see trigger
Why We Like It:
AMBEV is an abbreviation for Companhia de Bebidas Das Americas. This is a Brazilian based beverage maker and producer from soft drinks to beer. During the last couple of months when the U.S. market was sinking shares of ABV were consolidating sideways. When the U.S. market rallied sharply higher last week ABV broke out to new all-time highs.
The trend is clearly up but we don't want to chase it. I am suggesting bullish positions on a dip at $33.25. If triggered we'll use a stop loss at $31.25. Our multi-week upside targets are $35.75 and $37.75 (given enough time). My biggest concern is that I can't find an earnings report date for this Brazilian company. If they report earnings and miss or disappoint while we're long the stock it could be very painful.
Trigger @ $31.25
Suggested Position: buy ABV stock @ $31.25
- or -
buy the Aug. $34 call (ABV1120H34) current ask $1.35
Entry on July x at $xx.xx
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume: 6.3 million
Listed on July 5, 2011