Dykstra: Stick by 3M

As I discussed in Tuesday's column, the Federal Reserve Bank affirmed expectations Wednesday and kept the interest rates steady.

In its previous meeting, the Fed warned that although interest rates would remain constant, there remained the potential to raise rates in the future. Yesterday's statement on rates was complemented by the fact that the Fed decided to remove the caution that interest rates might rise in the near future, and solely hold rates steady without issuing future guidance. Following the post-Fed rally Wednesday, the good news should continue to reflect positively on the market in the days to come.

The good news is that July 50 deep-in-the-money calls in British Petroleum(BP Quote) reached their target, and my pick yesterday, the July 20s in Hercules Offshore(HERO Quote), are extremely close to hitting the target price and almost did so in yesterday's trading.

Many readers have asked about the selection process for "entry points" in a stock or a deep-in-the-money call. 3M(MMM Quote) provides an excellent example of one of the things involved. Yesterday the stock crossed both its 50-day and 200-day moving averages.

These averages provide investors with an indicator of the levels of support for a stock, as well as an indication of which way a stock is heading. In looking at 3M in particular, each time the stock price has crossed the 200-day moving average, higher or lower, a dramatic move has followed in that direction. Now that 3M has once again crossed both the 50-day and 200-day moving averages in the same day, look for upward pressure and buying to continue.

And that's why my pick today is 3M. The stock was recently trading at $77.37, and I have an order in to buy 10 of the October 65 deep-in-the-money calls (MMMJM), with a limit price of $13.30.

This company invented the most popular office supply ever, the Post-It. I am beginning to feel like a broken record, but I cannot stress this point enough: In volatile times, look for companies with strong fundamentals.

3M is incredibly diversified and has large businesses both here and abroad. The company is large and diversified enough that it will not suffer significantly from a lackluster domestic economy. 3M's large global presence provides more reasons to invest, as global market growth has continued to outpace that of the U.S.

I'm not alone in my love for my 3M -- Cramer's also a fan.

Ready for More Hoops

As winter officially gave way to spring yesterday, the weather in the East seemed to take note. Snow from the recent storms is melting and temperatures are moderating to seasonal norms.