Wk7: Stocks to Watch

If you’re still looking to catch a move in the Basic Materials Sector look to stocks like IPI and BBG as they are the lagers of the group. ALWAYS make sure to manage your risk. PNRA is forming a nice triangle, watch for a move higher or a continued breakdown on stronger volume.

MMC, KBW and ROG are candidates for bounces of resistance here and we are keeping our eye on FLIR as it has had a nice move down with earnings continuing the trend. Here are a few more stocks to watch…

CECO (long)
Ascending Tri
Entry: $22.52
Stop: $21.12
Target: $24
Option Play: Feb 22.5 Calls
Comments: We are making our way closer to options expiry so make sure to watch out for theta and consider March options for stocks with longer time horizons for their price targets.
MYGN (long)
Bull Flag
Entry: $84-85
Stop: $80 area
Target: $86-87, $90
Option Play: Feb or Mar 85 Calls (not much vol. on Mar)
Comments: We are keeping a loose stop on MYGN because the pole of the flag is so long. Many times after a few days sideways the stick will put in a hammer with a long shadow so we want to make sure not to be stopped out on a day such as this.
COCO (long)
Bull Flag
Entry: $21.39
Stop: $20.14 or under breakout bar
Target: $86-87, $90
Option Play: Feb or Mar 20 Calls
SJT (short)
Bear Flag (and other patterns)
Entry: $18.45
Stop: $19.69
Target: $17.50
Option Play: None, short the stock
COST (short)
Descending Triangle
Entry: $43.90
Stop: $45.68
Target: $42.50
Option Play: Feb or Mar 45 Puts