I remain cautious on the market and thus I'm not adding a lot of new material to the watch list tonight. We are adding one new play (RGLD), which is listed in our new plays section tonight.
I did update a few triggers in tonight's watch list.
New Watch List Entries
No new candidates
Active Watch List Candidates
AVY - Avery Dennison
BQI - Oilsands Quest, Inc.
CR - Crane Co.
ESV - ENSCO Intl. Inc.,
PCX - Patriot Coal Corp.
TXT - Textron Inc.
New Watch List Candidates:
No new watch list candidates tonight.
Active Watch List Candidates:
AVY $ 37.75 +0.21 -- Avery Dennison
A week ago AVY was breaking support and look poised to correct sharply lower. Now the stock is drifting back toward its 2009 highs. I'm not willing to chase it here. Stocks will see a correction eventually. We will raise our trigger from $30.50 to $31.50.
If triggered our stop loss is $27.40. Our long-term target is $44.50.
Buy-the-Dip trigger: $31.50
BUY the 2010 April $35 calls (symbol: AVY-DG)
Chart of AVY:
BQI $1.22 -0.02 -- Oilsands Quest Inc.
BQI managed to find and hold support at its rising 50-dma. This is short-term bullish. However, I'm concerned that oil might be weak over the next several days. We want to keep our trigger on BQI at $1.05. If triggered our stop loss is at $0.85. Please use wise judgment when it comes to your position size. Don't over do it just because the stock is "cheap".
I'm setting our long-term target at $2.90.
Buy-the-Dip trigger: $1.05
BUY the stock (not options) at $1.05
Chart of BQI:
CR $29.18 -0.38 -- Crane Co.
On a short-term basis I could see traders looking to buy a dip in the $27.00-26.00 zone and use a tight stop. For a longer-term position I'd rather wait for a more significant correction. Right now I'm suggesting a trigger at $22.60 but we might want to raise our entry point near $24.00 and its 100-dma instead. If triggered our target is $34.75. (It could take a few weeks before CR hits our trigger).
Buy-the-Dip trigger: $22.60
BUY the 2010 JUNE $25 calls (CR-FE)
Chart of CR:
ESV $48.03 -0.71 -- ENSCO Intl. Inc.
ESV is showing more relative strength than expected. Last week saw a bullish engulfing candlestick on Tuesday and the bounce carried toward $49. We still don't want to chase it here but I will raise our trigger to buy a dip from $40.50 to $42.50.
If triggered at $42.50 we'll use a stop at $37.25. We're going to aim for the $55-60 zone.
Buy-the-Dip trigger: $42.50
BUY the 2011 January $45 call (VKS-AI)
(More aggressive traders may want to trade January 2010 or March 2010 calls instead)
Chart of ESV:
PCX $12.45 -0.05 -- Patriot Coal Corp.
Coal stocks remain volatile. PCX rallied from $10.60 to $13.00 last week. I am still expecting a deeper correction. The $10.00 level could offer more support but I'm expecting a decline toward the 200-dma. It could take several weeks before PCX hits our trigger. We'll use an entry point at $8.50 and a stop loss at $7.75.
Buy-the-Dip trigger: $ 8.50
BUY the 2011 January $10 LEAP call (OKI-AB)
Buy the stock @ 8.50.
Chart of PCX:
TXT $19.33 +0.20 -- Textron Inc.
TXT is still churning sideways. Technicals can't help much with the stock oscillating up and down for several weeks. I am adjusting our trigger to buy LEAPS at $13.50. We'll use a stop loss at $11.75. Our long-term target is the $30 region.
Buy-the-Dip trigger: $13.50
BUY the 2011 January 15.00 call (symbol: XUD-AC)
Chart of TXT: