In addition to the play below I have listed three other stocks on my watch list for potential breakout plays tomorrow if the employment report is favorable. These may or may not make it in the model portfolio but I thought I would mention them for readers interested.
EQR, VTR, BKCC - All are at pivotal levels and could breakout in a strong market. Otherwise, timing entries on a pullback is certainly an option.
NEW BULLISH Plays
Coeur d'Alene Mines - CDE - close 17.30 change +0.07 stop 15.90
Coeur d'Alene Mines Corporation (Coeur) is a silver producer with gold assets located in North America. The Company, through its subsidiaries, is engaged in the operation, ownership, development and exploration of silver and gold mining properties and companies located primarily within South America (Chile, Argentina and Bolivia), Mexico (Chihuahua), United States (Nevada and Alaska) and Australia (New South Wales).
Target(s): 18.95, 19.95
Key Support/Resistance Areas: 17.80, 16.70
Time Frame: 1 to 3 weeks
Why We Like It:
Demand for industrial metals such as silver is increasing and prices are rising. CDE has broken out of a longer term downtrend line from its October highs and price is now consolidating above it. The stock is forming a bull flag and is above all of its moving averages. I suggest we buy CDE on a breakout if it trades to $17.90 or on pullback to $16.90 which is just above the stock's 200-day SMA. Our initial stop will be $15.90 but it will be adjusted once we are in the position.
Suggested Position: Long CDE stock if it trades to $17.90 or $16.90
Options Traders: Buy October $18 CALL, current ask $0.85
Annotated daily chart:
Entry on September XX
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on September 1, 2010