STOCKS TO WATCH

Some stocks to watch...DLTR was the strongest current bullish pattern. There are a lot of stocks that could be great bullish trades if they pull back a bit more. They include: AMZN, NFLX, GLW, FCX, CREE, WDC, GS, RCII, and of course AAPL. Note the key word...pull back. The market is due for a bit of a correction. Be patient and wait for good entry points. You could also use contingent orders above previous highs and keep moving those orders down a bit if the stocks continue to sell off. This way, you will only buy the stock/option when the stock is (hopefully) starting to move back up. You would also be able to abandon the stock if it began to pull back too far or start to break below support levels. There are a few stocks out there with buyout rumors. These are dangerous trades, but they can sometimes payout big if the rumor becomes fact. I will usually buy out 60-90 days and find out when they are reporting earnings. Sometimes there is high, unusual option activity that can signal possible movements. I don't always like to get involved on the day of the high option volume. Sometimes the rumor will come out and the options will spike...then then stock will pull back a bit a few days later. This is usually when I like to get in. Some possible buyout candidate stocks include BIIB, TXT, CLF, and TRA. Sometimes rumors are thrown out to try to manipulate the stock. This is why I try to take chances on just the stocks that already have nice bullish trends or have made bullish moves (like a move above the 50 day moving average). This way, if the rumor doesn't become fact, you could still possibly make money on the trend. Get a free 30 day trial subscription to the Orbis Advisor's Market Trend Signal website. You can find it at www.orbisadvisors.com. Tell them you heard about it on my blog. Keep the success stories coming. If you have any questions or comments, you can e-mail them to me at jerry@myoptionmagic.com.