In addition to tonight's new watch list candidate, readers may want to add these symbols to their radar screen as stocks to watch (on top of last week's list of radar screen candidates):
CCJ, JNPR, F, MON, APKT, EBAY, TIVO, CVX, AXP, DELL, TER, FNSR, FWLT, & SFY
New Watch List Entries
NVDA - NVIDIA Corp
Active Watch List Candidates
MCD - McDonald's Corp
Dropped Watch List Entries
ADM and INTC have been moved to "new plays"
MSI and UNH graduated to our active trade list.
New Watch List Candidates:
NVIDIA Corp. - NVDA - close: 15.85
This past week NVDA reported earnings that were two cents better than expected. Revenues were slightly above expectations but management guided lower for the first quarter. Normally you would expect a stock to plunge on the earnings warning. Yet traders bought the dip in NVDA near support at $15.00 and the simple and exponential 200-dma. The stock managed a gain for the week.
We don't want to buy calls yet. Let's wait for NVDA to build on this recent action. I am suggesting we wait for NVDA to close over $17.05 before we initiate positions the next day with a stop loss at $15.40. Our long-term target is $21.75.
FYI: The Point & Figure chart is bullish with a long-term $23 target.
Wait for a close over: $17.05, buy calls the next day.
stop loss @ 15.40.
BUY the 2013 Jan $20 call (NVDA1319A20)
Chart of NVDA:
Originally listed on the Watch List: 02/18/12
Active Watch List Candidates:
McDonald's Corp. - MCD - close: 99.99
MCD broke down under technical support at its 50-dma on Wednesday but traders quickly bought the dip. Currently it looks like MCD is working on a new bearish trend of lower highs within its larger longer-term up trend. We still want to wait for a correction lower.
I am leaving our buy-the-dip trigger at $95.50.
Our long-term target is $108.00.
Buy-the-Dip trigger: $95.50, stop 89.50
BUY the 2013 Jan $100 call (MCD1319A100)
12/24/11 adjusted entry point to $95.50, stop loss to $89.50
12/17/11 adjusted entry point to $91.50, stop loss to $87.25
11/26/11 adjusted stop loss to $86.45
Originally listed on the Watch List: 11/05/11