New Watch List Entries

None, no new watch list candidates

Active Watch List Candidates

CSCO - Cisco Systems


Dropped Watch List Entries

MTW, SCHW have graduated to the play list.
SYK - removed from the watch list

New Watch List Candidates:

None, no new watch list candidates tonight. Please see my update in the new plays section.

Active Watch List Candidates:

Cisco Systems - CSCO - close: 21.15

01/26/13: CSCO could be a play very soon. Shares are starting to breakout past resistance near $21.00. Right now the plan is to wait for shares to close above $21.25 and then buy calls the next day. We'll start with a stop loss at $19.25. Our long-term target is $27.00.

FYI: CSCO is due to report earnings in early February.

Breakout trigger: Wait for a close above $21.25, buy calls the next day, stop loss at $19.25.

BUY the 2014 Jan $22 call (CSCO1418a22) current ask $1.43

- or -

BUY the 2015 Jan $25 call (CSCO1517a25) current ask $1.25

Originally listed on the Watch List: 01/12/13 - SOHU - close: 49.29

01/26/13: It looked like SOHU was going to breakout past resistance at the $50.00 level. Yet there was no follow through on Friday and shares produced a bearish engulfing candlestick reversal pattern. There is no change from my prior comments. We are waiting on a correction. That may not happen until SOHH reports earnings on Feb. 4th.

Earlier Comments:
Broken resistance at $45.00 should be new support. I am suggesting we buy calls on a dip a t $45.50. Our long-term target is $58.50.

NOTE: SOHU's earnings are expected in early February.

Buy-the-Dip trigger: $45.50 (stop loss: 42.40)

BUY the 2014 Jan $50 call (SOHU1418a50)

Originally listed on the Watch List: 12/31/12

Stryker - SYK - close: 63.55

01/26/13: It looks like we have missed the move in SYK. There was no way to know that the stock was going to turn into a bottle rocket and scream higher without any pullbacks. Equities don't run in a straight line for very long but SYK has almost gone straight up since the bounce on December 31st, 2012. The stock is nearing what should be resistance in the $64-65 zone. I would expect a pullback soon. Aggressive and nimble traders could look for a short-term bearish put play on a reversal.

I am dropping SYK as a long-term bullish candidate. The stock did not hit our entry point to launch positions (which was a dip to $58.25).

Trade did not open.

01/26/13 removed from the newsletter.
01/19/13 adjust the buy-the-dip trigger up to $58.25

Originally listed on the Watch List: 01/12/13