The jobs report on Friday morning will likely determine the market's direction tomorrow. With that in mind, here are a few stocks that caught my eye:
SHLD - I have mentioned Sears before and the stock just broke out past key resistance near $80.00
FFIV - This tech stock is starting to recover from its painful sell-off. The $120 level and the 100-dma might be short-term resistance but I would be tempted to buy calls on a dip near $116-115.
COST - This wholesaler just rallied to new two-year highs on strong January same-store sales.
ILMN - Shares have a nice strong up trend. ILMN looks like it's coiling for another breakout higher.
PCAR - This truck maker has been crushed recently. Now shares are bouncing from an intraday dip near round-number support at $50.00. I would be tempted to buy calls now with a tight stop under today's low (49.70) and exit on a bounce near $54.00.
NEW DIRECTIONAL CALL PLAYS
Wynn Resorts - WYNN - close: 119.40 change: +0.53
Stop Loss: 117.40
Target(s): 129.00, 135.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see TRIGGER
Why We Like It:
The long-term trend for WYNN is up but shares have spent the last four weeks consolidating sideways under resistance in the $121 area. I suspect that if the jobs report comes in positive tomorrow we could see WYNN breakout higher. I am suggesting a trigger to launch bullish positions at $122.00. If triggered our targets are $129.00 and $134.50.
FYI: Tonight, rival Las Vegas Sands (LVS) reported earnings that beat estimates but missed on the revenue number. Shares of LVS are down sharply after hours. Shares of WYNN were also trading lower near $117. We'll have to wait and see how stocks react to the jobs data tomorrow and then re-evaluate. For now, use a trigger to buy calls at $122.00.
Trigger @ $122.00
- Suggested Positions -
Buy the March $130 calls (WYNN1119C130)
Entry on February xxth at $ xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on February 3rd, 2010