New Watch List Entries
TEX - Terex Corp
XIDE - Exide Technologies
Active Watch List Candidates
ANR - Alpha Natural Resources, Inc.,
BEAV - BE Aerospace Inc.
BG - Bunge Limited
CLF - Cliffs Natural Resources Inc.,
CNX - Consol Energy Inc.
ERJ - EMBRAER - Empresa Brasileira de AeronÃ¡utica
IGT - Intl. Game Technology
MEE - Massey Energy Corp.
MICC - Millicom Intl. Cellular
WLT - Walter Energy Inc.
X - United States Steel Corp.
Dropped Watch List Entries
DISH was promoted to the play list this weekend.
New Watch List Candidates:
TEX $16.70 +1.12 -- Terex Corp.
If the economy is truly improving then construction sending should pick up and that would be good news for TEX. The stock has built a pretty solid looking, long-term bottom over the last several months. I am listing two different entry points to buy LEAPS on this stock. We can buy a dip at $15.00 or a breakout over resistance at $18.25. I'm suggesting a stop loss at $11.75 for the dip entry point and a stop loss at 13.90 for the breakout entry point. Our upside target is the $28.00-30.00 zone.
Terex Corporation is a diversified global manufacturer with 2008 net sales of $9.9 billion. Terex operates in four business segments: Terex Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex Materials Processing & Mining. Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining and utility industries. Terex offers a complete line of financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services.
(source: company press release or website)
Buy-the-Dip trigger: $15.00
Breakout trigger: $18.25
BUY the 2010 JAN $17.50 Calls (symbol: HAG-AW)
BUY the 2010 JAN $20.00 Calls (symbol: HAG-AD)
BUY the 2011 JAN $20.00 Calls (symbol: VXQ-AD)
Chart of TEX:
XIDE $7.65 +1.34 Exide Technologies
XIDE is another stock that has built an inverse head-and-shoulders bottom. The stock exploded higher on Friday after shares were upgraded Friday morning. The breakout over its May-June highs is certainly bullish but I expect shares will fill the gap. The plan is to buy calls on a dip at $6.50. We'll use a stop loss at $4.85. Our target is $12.00.
Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's four global business groups - Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World - provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.
Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.
(source: company press release or website)
Buy-the-Dip trigger: $6.50
BUY the 2010 March $7.50 Calls (symbol: FRU-CU)
A better idea might be to just buy the stock at $6.50
Chart of XIDE:
Active Watch List Candidates:
ANR $36.08 +1.50 - Alpha Natural Resources, Inc.
I am suggesting we turn more aggressive on ANR or it could run away from us. Let's buy 1/2 of our normal position on a dip at $34.00 and we'll use a stop loss at $29.50 since the $30.00 level is support. Should ANR continue to dip we can look for a bounce from $30 as a chance to buy the second half.
If triggered our long-term target is the $45.00-50.00 zone.
Buy-the-Dip trigger: $34.00 (1/2 position)
BUY the 2010 January $35.00 calls (symbol: ANR-AG)
BUY the 2011 January $40.00 calls (symbol: VJV-AH)
Chart of ANR:
BEAV $17.77 +0.23 -- BE Aerospace Inc.
The bounce in BEAV off its lows last week under performed the rest of the market. I'm keeping our trigger at $15.00. More aggressive traders may want to consider jumping in early near $16.00. If triggered our stop is at $11.90.
Buy-the-Dip trigger: $15.00
BUY the 2010 January $15.00 calls (symbol: BQV-AC)
BUY the 2010 January $17.50 calls (symbol: BQV-AW)
BUY the stock at $15.00
Note: At $15.00 you could just buy the stock instead but the $15 calls will allow you more leverage on your investment.
Chart of BEAV:
BG $66.30 +0.66 -- Bunge Limited
More aggressive traders may want to buy this bounce. I am upping our trigger to $63.00. We'll use a stop loss at $54.75. More conservative traders can still wait for a dip toward $60.00. If triggered we're going to aim for the $85-90 zone. Currently the Point & Figure chart is bullish with a $94 target.
Buy-the-Dip trigger: $63.00 *new*
BUY the 2010 January 70 calls (BGW-AN)
Chart of BG:
CLF $27.54 +1.14 -- Cliffs Natural Resources Inc.
The rebound in CLF under performed the rest of the market. I'm going to keep our triggers where they are. We have a buy the dip trigger at $23.50 and a breakout trigger at $32.55. If triggered our long-term target is the $50.00-55.00 zone. We'll use a stop loss at $19.40 for the dip entry point and a stop at $24.50 for the breakout entry point.
Buy-the-Dip trigger: $23.50
Breakout trigger: $32.55
BUY the 2010 January $30.00 call (CLF-AF)
Chart of CLF:
CNX $40.45 +1.59 -- Consol Energy Inc.
I am upping the trigger to buy LEAPS on CNX from $35.25 to $36.50. A 50% correction of the July-August rally would be a pull back to $35.00. We'll use a stop loss at $29.99. If triggered we want to sell half at $48.50 and half at $57.50.
Buy-the-Dip trigger: $36.50 *new*
BUY the 2010 January 35.00 calls (symbol: CNX-AG)
BUY the 2011 January 40.00 calls (symbol: VTL-AH)
Chart of CNX:
ERJ $22.04 -0.96 -- EMBRAER - Empresa Brasileira de AeronÃ¡utica S.A.
I am raising our trigger to buy LEAPS on ERJ from $18.50 to $20.50. Our target is the $29-30 zone. I'm suggesting a stop loss at $16.45.
Buy-the-Dip trigger: $20.50 *new*
BUY the 2010 January $20.00 call (symbol: ERJ-AD)
Chart of ERJ:
IGT $20.79 +0.82 --- Intl. Game Technology
I am turning more aggressive with the entry point on IGT. We're raising it to $19.00 but more patient traders can wait for a dip near $18.00 or its 50-dma. If triggered at $19.00 I would only open a position 1/2 your normal size. We'll use a stop loss at $15.50.
Our long-term targets are $25.00 (sell half) and $29.00 (sell half).
Buy-the-Dip trigger: $19.00 (19.00-17.50 zone)
BUY the 2010 January $20.00 call (IGT-AD) -or-
BUY the 2011 January $20.00 call (VGG-AD)
Chart of IGT:
MEE $30.43 +1.18 -- Massey Energy Corp.
MEE is still a relative strength leader in its sector. I am raising our trigger to buy LEAPS from $23.50 to $26.00. I'm raising the stop loss to $19.95. Our long-term target is the $35.00-40.00 range. The P&F chart agrees and points to a $37.50 target.
Buy-the-Dip trigger: $26.00 *new*
BUY the 2010 January $25.00 call (MEE-AE)
BUY the 2011 January $30.00 call (VHK-AF)
Chart of MEE:
MICC $73.55 +1.51 -- Millicom Intl. Cellular
We may have to give up on MICC. The stock just looks too extended. Currently the plan is to buy a correction back toward $62.50. More aggressive traders might want to raise that trigger.
Buy-the-Dip trigger: $62.50
BUY the 2010 January $70 call (symbol: CQD-AN)
Chart of MICC:
WLT $59.58 +1.70 -- Walter Energy Inc.
The strength in shares of WLT is just amazing. We need to raise our trigger but even $50 seems too high. I'm leaving the trigger at $41.00 for now but know that we'll re-evaluate buying a correction the next time WLT produces one. We don't want to chase this parabolic move with a long-term entry point.
Buy-the-Dip trigger: $41.00
BUY the 2010 January 50.00 call (WLT-AJ)
BUY the 2011 January 50.00 call (OZE-AJ)
Chart of WLT:
X $44.86 +1.15 United States Steel Corp.
The rebound in X was somewhat anemic compared to the rest of the market. Shares have not yet filled the gap from last Monday and you can almost see a bearish head-and-shoulders pattern on the 30-minute chart. I'm keeping our trigger at $37.50.
Traders can use the $37.50-35.00 zone to launch positions. We'll start with a stop loss at $32.40. Our target is the $60-70 zone.
Buy-the-Dip trigger: $37.50
BUY the 2010 January $40 calls (symbol: FBJ-AH)
Chart of X: