I am reluctantly bullish. The market refuses to correct. In addition to tonight's candidate here's a list of what caught my eye today:
SHLD - If this retailer can breakout past resistance at $90 it could be a bullish candidate. The stock seems to be coiling for a breakout higher.
WYNN - This casino stock is reversing higher again. A move past resistance near $120 might be an entry point.
TEVA - This drug stock just broke out past resistance near $55. Readers may want to look for a dip back towards the $55 area as a potential entry point.
LRCX - Semiconductor stocks continue to rally and LRCX just broke resistance.
WLT - This coal miner just saw a big bounce from support near $120. Earnings are early February.
COP - This energy stock seems to be breaking out from its sideways consolidation.
CMP - A breakout past the top of the trading range near $91 could set up for a run at the $100 area.
NEW DIRECTIONAL CALL PLAYS
Deere & Co. - DE - close: 90.99 change: +1.60
Stop Loss: 87.99
Target(s): 94.75, 99.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see trigger
Why We Like It:
The market continues to rally and we could see some month end window dressing. DE looks like a good candidate for window dressing with the stock trading near two-year highs. Aggressive traders might want to buy calls now. I'm suggesting a trigger to buy calls at $92.10. If triggered we'll set our first target at $94.75. DE has some resistance near $95.00 dating back to late 2007 and early 2008. Keep your position size small to limit your risk! Our secondary target is $99.50 should DE manage a breakout. We do not want to hold over the mid February earnings report.
The Point & Figure chart for DE is bullish with a $100 target.
Trigger @ 92.10
- Suggested Positions -
Buy the 2011 February $95 calls (DE1119B95) current ask $0.96
Entry on January xxth at $ xx.xx
Earnings Date 02/16/11 (confirmed)
Average Daily Volume = 3.3 million
Listed on January 26th, 2010