We are seeing some movement in the watch list with candidates jumping to our active trade list.
New Watch List Entries
DECK - Deckers Outdoor Corp
NFX - Newfield Exploration
Active Watch List Candidates
AAPL - Apple Inc.
BVN - Compania de Minas Buenaventura
CERN - Cerner Corp
DE - Deere & Co
F - Ford Motor Co.
GS - Goldman Sachs
HD - Home Depot
SBUX - Starbucks Corp.
WLL - Whiting Petroleum
WYNN - Wynn Resorts Ltd.
Dropped Watch List Entries
LLL and NOK graduated to the play list. NKE was promoted. NYX was dropped.
New Watch List Candidates:
Deckers Outdoor Corp. - DECK - close: 60.62
The recent strength in DECK has pushed the stock to new all-time highs. Resistance near $55-56 was very significant and shares are now in blue sky territory. We want to jump on board when the stock corrects. Look for a dip toward the same $56-55 zone. I'm suggesting a trigger to buy calls at $56.00. We'll place our stop loss at $52.00. Our first target is $64.50
Deckers Outdoor Corporation strives to be a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. TevaÂ®, SimpleÂ® ï€ Shoes, UGGÂ® Australia, TSUBOÂ®, AhnuÂ® and MozoÂ® brands are registered trademarks of Deckers Outdoor Corporation
(source: company press release or website)
Buy-the-Dip trigger: $56.00
BUY the 2011 June $60 calls (DECK1118F60)
Chart of DECK:
Newfield Exploration - NFX - close: 65.80
I'm bullish on energy stocks but the current rally is overdone. NFX is very overbought at current levels. I am suggesting we wait for a correction and buy calls on a dip at $61.50. More conservative traders could wait for a dip to $60.00 instead. Broken resistance near $60.00 should be support. If triggered I'm listing our stop loss at $55.75. The $68-70 zone appears to be significant resistance. We'll set our first target at $69.00.
Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy of growing reserves through an active drilling program and select acquisitions. Newfield's domestic areas of operation include the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of Mexico. The Company has international operations in Malaysia and China.
(source: company press release or website)
Buy-the-Dip trigger: $61.50
BUY the 2011 June $65 calls (NFX1118F65)
- or -
BUY the 2012 January $65 calls (NFX1221A65)
Chart of NFX:
Active Watch List Candidates:
Apple Inc. - AAPL - close: 308.03
AAPL hit some heavy profit taking on Friday after news service that one investor reduced their position by 90% (selling one million shares). The stock has been struggling with resistance near $320 and if traders think the market is topping out then AAPL could be a big target for more profit taking.
Currently our target to buy the dip is at $290.00 but more conservative traders could aim for a dip closer to $280 instead.
If we are triggered at $290 I am placing the stop loss at $274.00.
Our first long-term target is $345.
Buy-the-Dip trigger: $290.00
BUY the 2012 January $300 calls (1221A300)
- or -
BUY the 2013 January $320 calls (1319A320)
Compania de Minas Buenaventura - BVN - close: 53.94
Commodities remained strong throughout the week until Friday's widespread sell-off. BVN acts like it's topping out and I would expect to see a correction soon. At a minimum I'm looking for a pullback to $50.00 but I'm hoping for a pull back toward $47-46. We will keep our trigger to buy call LEAPS on the dip at $48.00. I would keep your position small (half normal size or less) given our aggressive entry point.
Buy-the-Dip trigger: $48.00 (half a position)
BUY the 2011 JUNE $50 calls (BVN1119F50)
Deere & Co - DE - close: 76.86
I really don't see any change from my previous comments on DE. The trend is up but the stock is overbought. I'm suggesting a trigger to launch bullish positions on a dip at $73.50. More conservative traders could wait for a dip closer to $70.00 instead. If triggered we'll use a stop loss at $66.90. Keep your position size small to limit your risk.
Buy-the-Dip trigger: $73.50 (only half a position)
BUY the 2012 January $80.00 calls (DE1221A80)
Ford Moto Co. - F - close: 16.30
The rally in Ford has been a little outrageous. I'm wondering if investors will move money out of ford and into the GM after the company IPOs again. Look for GM's IPO to spark some profit taking in Ford. I'm keeping our trigger at $14.30 for now.
Stop loss at $12.95.
Buy-the-Dip trigger: $14.30
BUY the stock - or -
BUY the 2012 January $15.00 calls (F1221A15)
Goldman Sachs - GS - close: 165.83
We are still waiting for GS to see a correction. The pull back appears to have started last week but shares have not yet broken the sharp trend of higher lows. Please note I'm adjusting our entry point to buy calls to $160.75.
We'll keep our stop loss at $152.25, just under the simple 200-dma.
I would keep your position small (at least half your normal size) given our more aggressive entry point.
Buy-the-Dip trigger: $160.75
BUY the 2011 April $180 calls (GS1116D180)
- or -
BUY the 2012 January $190 calls (GS1221A190)
Home Depot - HD - close: 31.44
We are still waiting for HD to breakout over resistance at $32.00.
I am suggesting we wait for a close over $32.50. When HD does close above this level we'll buy the open the next day. Stop at $29.90.
Wait for HD to close over $32.50, then launch positions.
BUY the 2012 Jan $35.00 calls (HD1221A35)
Nike Inc. - NKE - close: 82.62
I am promoting NKE from the watch list to a new play this weekend.
NYSE Euronext - NYX - close: 28.81
I am dropping the NYX as a watch list candidate. Shares have under performed and just broke down under their 200-dma on Friday. Our trigger was not hit.
Starbucks Corp. - SBUX - close: 30.19
SBUX has been digesting its gains with a healthy sideways consolidation. We still don't want to chase it here. I suggest waiting for a pull back. Our trigger to launch positions is at $28.50.
We'll use a stop loss at $25.90. Our long-term target is $34.75 and $38.75.
Buy-the-Dip trigger: $28.50
BUY the 2012 January $30.00 calls (symbol: SBUX1221A30)
Whiting Petroleum Corp. - WLL - close: 106.22
Energy and oil services stocks have continued to perform very well. Yet now these sectors indices are nearing potential resistance. It's time for a little correction. I'm expecting WLL to pull back toward the $100-95 zone. We have a trigger to buy call LEAPS at $100.00. If triggered our stop loss is $94.00.
Buy-the-Dip trigger: $100.00
BUY the 2011 March $100 calls (WLL1119C100)
- or -
BUY the 2012 January $110 calls (WLL1221A110)
Wynn Resorts - WYNN - close: 111.00
The five-week rally in WYNN appears to be done. WYNN performed a bearish reversal and looks ready to correct. The stock might see some support near $106 but I think it dips lower. I'm adjusting our trigger to launch bullish positions to $102.50. Keep your positions small. This is an aggressive trade. We'll inch the stop loss up to $94.75.
Buy-the-Dip trigger: $102.50 (small positions!)
BUY the 2011 MAR $110 calls (WYNN1119C110)
- or -
BUY the 2012 Jan $120 calls (WYNN1221A120)