Closed Plays


None. We did not close any plays.


Play Updates


ACGY $10.69 +0.33 -- Acergy S.A.

Shares of ACGY were somewhat volatile last week. The stock dipped under the $10.00 level but managed to bounce back the next day. ACGY is a seabed construction company and shares tend to follow along with the oil service stocks, which displayed similar volatility last week. The larger bullish trend of higher lows is still intact. More conservative traders may want to consider a higher stop loss.

I'm not suggesting new LEAPS positions at this time. Our stop is at $6.95. Our plan is to exit in the $14.50-15.00 zone. ACGY is still testing resistance on its Point & Figure chart, which is currently forecasting a bullish target of $24.00.

April 25th, 2009 - entry price on ACGY @ 7.61, option @ 1.05
symbol: QLS-AB, 2010 JAN $10 LEAP call - current bid/ask $1.80/2.20
-stop loss on ACGY @ 6.95

Chart of ACGY


ACI $17.41 -0.08 -- Arch Coal Inc.

The coal industry has continued to rally and managed to breakout to new highs for the year. The rally is about three weeks old and the group looks overbought and due for a correction. What I find worrisome is that ACI is under performing many of its peers. The reason has been ACI's recent debt offering and secondary offering of stock. Last week ACI raised $600 million in seven-year notes and sold another 17 million shares of stock at $17.50 a share. The capital is supposed to help ACI buy the Jacobs Ranch mining complex in Wyoming.

Now that the market and the coal sector overbought odds are good that ACI will see another dip. I would wait for another dip near $16.00 or even the $15.00 region before considering new bullish LEAPS positions. Our long-term target is the $30 region. If you do launch new positions I would buy the 2010 January $20 calls or 2011 January $25 calls.

May 14th, 2009 - entry price on ACI @ 16.00, option @ 1.30
symbol: ACI-AE, 2010 JAN $25 LEAP call - current bid/ask .40/0.50
-stop loss on ACI @ 12.85

-or-

May 14th, 2009 - entry price on ACI @ 16.00, option @ 2.40
symbol: OSE-AF, 2011 JAN $30 LEAP call - current bid/ask $1.00/1.10
-stop loss on ACI @ 12.85

Chart of ACI:


BAC $14.79 +0.82 - Bank of America Corp.

It turned out to be a very strong week for BAC. The stock gained more than 18% and broke out over technical resistance at its exponential 200-dma. BAC is quickly approaching its May 2009 highs near $15.00 and I would expect a little profit taking.

I want to remind readers that this is a long-term, two-year trade. Our exit target is the $30-40 zone.

Jan 25th, 2009 - entry price on BAC @ 6.24, option @ 2.38
symbol: VBA-AB, JAN 2011 $10 LEAP call - current bid/ask $6.25/6.35
-stop loss on BAC @ none.

Chart of BAC


CRM $43.34 -0.39 -- Salesforce.com

After a very sharp three-week rally CRM spent last week consolidating sideways. A 50% correction of the rally would bring CRM near round-number support at $40.00. That's where I'd look for support. We want to sell half of our position at $49.00. We'll sell the second half at $57.00. I am not suggesting new LEAPS positions at this time.

April 1st, 2009 - entry price on CRM @ 30.00, option @ 4.30
symbol: CRM-AH, JAN 2010 $40 LEAP call - current bid/ask $6.90/7.10
-stop loss on CRM @ 34.90.
(note: readers have reported getting a better entry price than $4.30)

-or-

April 1st, 2009 - entry price on CRM @ 30.00, option @ 2.00
symbol: CRM-AI, JAN 2010 $45 LEAP call - current bid/ask $4.20/4.40
-stop loss on CRM @ 34.90.

Chart of CRM:


DBC $23.04 +0.45 -- PowerShares DB Commodity Index (ETF)

The weakness in the U.S. dollar finally restarted again. We've been expecting the bearish trend in the dollar to pick up for weeks. A weak dollar makes dollar-denominated commodities more expensive and an economy in recovery usually sees stronger demand for commodities. Both are a win-win for the DBC. Our long-term target is $30.00.

FYI: The DBC is an ETF on the Deutsche Bank Liquid Commodity index using futures on light sweet crude oil, heating oil, aluminum, gold, corn and wheat.

July 6th, 2009 - entry price on DBC @ 21.50, option @ 4.28
symbol: VCZ-AT, 2011 JAN $20 LEAP call - current bid/ask $4.60/5.80
-stop loss on DBC @ 18.90.

-or-

July 6th, 2009 - entry price on DBC @ 21.50, option @ 2.62
symbol: VCZ-AY, 2011 JAN $25 LEAP call - current bid/ask $2.60/3.50
-stop loss on DBC @ 18.90.

Chart of DBC:


DO $89.87 +0.02 -- Diamond Offshore

Oil service stocks have started to correct after the massive rally from the July lows. DO has pulled back from resistance in the $94-95 zone, which could be a potential bearish double top pattern. We want to buy LEAPS on a dip near $80.00. Right now our trigger is at $82.00. We'll put the stop at $69.95 but we could probably get away with a stop at $74.40.

-NEW- Buy the dip trigger: $82.00

BUY 2010 JANUARY $80 CALL (symbol: KWJ-AP)
-or-
BUY 2010 JANUARY $90 CALL (symbol: KWJ-AR)

Chart of DO:


DXO $4.64 +0.16 -- Deutsche Bank Double-long Oil ETN

Weakness in the U.S. dollar has breathed new life into the commodity rally. Oil rebounded sharply from its intra-week lows. The DXO is back to challenging short-term resistance near $4.60. I'm not suggesting new bullish positions at this time. Keep your eyes open for a dip near $3.50 or its 100-dma.

Prior comments on this play:
The DXO is our long-term oil position. When we say long-term we're talking two or three years (or more). Currently the plan is to build a long-term position averaging down on dips. The $2.50 region is the sweet spot to buy the DXO. Anything under $2.50 is a gift. I want to repeat that this is not a trade. It's a multi-year investment. Currently our exit target is the $25.00 to $30.00 zone.

The Crude oil double-long ETN (exchange-traded note) offers investors two times the leveraged exposure to the monthly performance of the Deutsche Bank optimum yield crude oil index plus the monthly TBill index return.

Basically, when oil was $147 a barrel this ETN was $29.65. If oil returns to the $150 range over the next few years this ETN could rally to $30 for a 1500% return. This ETN does not expire. It can be used in IRAs and has no margin requirements like crude oil futures.

ETN Info:

Deutsche Bank ETN Fact Sheet

Deutsche Bank Pricing Description

Our plan called for buying this ETN instead of the options.

Current position in the DXO = $2.15 entry (no stop loss at this time)

Chart of DXO


ERTS $21.47 +0.34 -- Electronic Arts

Investors need to be defensive here. Technically the upward trend off the 2009 lows has turned into a sideways consolidation. If you study the chart you can see the pennant formation of lower highs and higher lows. Now normally the pennant breaks out in the direction of the previous trend, which is up but it's not a guarantee. We may need to worry about ERTS. While they are the dominant player in their field a struggling consumer has been cutting back. The latest GDP report showed that consumer spending fell 1.2% in the second quarter. That doesn't bode well for anyone selling discretionary items like video games.

ERTS is due to report earnings on Tuesday, August 4th after the closing bell. I would seriously consider buying some cheap out of the money August puts before Tuesday's closing bell just in case ERTS bombs the earnings report and the stock plunges. These puts would be temporary insurance. The $19 or $18 strikes might work. I am not suggesting new bullish LEAPS positions at this time. We'll re-evaluate a potential entry point post earnings.

We have two targets. We want to take part of the position off the table at $29.00. Take the rest off at $34.00.

April 20th, 2009 - entry price on ERTS @ 18.00, option @ 1.08
symbol: EZQ-AE, JAN 2010 $25 LEAP call - current bid/ask $1.20/1.30
-stop loss on ERTS @ 17.95.

-or-

April 20th, 2009 - entry price on ERTS @ 18.00, option @ 0.70
symbol: WZW-AF, JAN 2010 $30 LEAP call - current bid/ask .30/0.35
-stop loss on ERTS @ 17.95.

Chart of ERTS:


FAS $57.57 +1.00 - Direxion Fincl.Bull 3x ETF

The banking stocks broke out higher last week. The RIFIN index is hitting new ten-week highs. The challenge is that most of the banking sector indices still have resistance at their May 2009 highs. With stocks looking overbought the May resistance would be a good spot to take some profits if you're a short-term trader. We're not suggesting new bullish positions in the FAS at this time.

Currently we have sold one third of our position at $12.00 (post-split price of $60.00) and we plan to sell another third at $120.00. We'll re-evaluate our final target for the last third of our position as needed. FYI: On July 9th, 2009 the FAS performed a 1:5 reverse split.

Our plan called for buying the ETF instead of the options.

Current position in the FAS = $2.64 entry (stop loss: 2.64)
post-split prices are: $13.20 entry (stop loss: 13.20)

Exit 1/3 position @ 12.00 (+354%) /post-split: 60.00

Chart of FAS

Chart of RIFIN (Russell 1000 financial services)


FCX $60.30 +1.89 - Freeport McMoran

The rally in the mining stocks stalled last week. The U.S. dollar made a mid-week rally attempt and the commodity-sensitive stocks plunged. The dollar quickly reversed. Copper futures have broken out to new highs for the year. FCX is close to hitting new 2009 highs as well.

The Point & Figure chart is bullish with a $93 target. We don't want to chase this move but investors might want to consider new positions near $50.00 or its 100-dma. Our long-term target is $69.00.

June 22nd, 2009 - entry price on FCX @ 46.00, option @ 6.00
symbol: FCX-AK, 2010 JAN $55 LEAP call - current bid/ask $11.40/11.55
-stop loss on FCX @ 39.45
-or-
June 22nd, 2009 - entry price on FCX @ 46.00, option @ 10.00
symbol: OBQ-AL, 2011 JAN $60 LEAP call - current bid/ask $15.40/15.70
-stop loss on FCX @ 39.45

Chart of FCX:


FSLR $154.39 -19.16 -- First Solar

Ouch! From July 14th to the 27th FSLR rallied from $140 to over $175. Last Thursday FSLR closed at $173.55. On Thursday night FSLR reported second quarter earnings. The company beat estimates by 49 cents with a profit of $2.11 per share. Revenues came in much better than expected making FSLR one of the few companies this season to see top-line growth. Shares soared more than $10 in after hours on Thursday night.

Everything changed following the company's conference call. When more details became available investors were unhappy with a significant rise in accounts receivable. Furthermore FSLR said they were resorting to a rebate plan as customers struggled to find financing. The stock's rally came to a screeching halt and shares gapped open lower to post an 11% decline on Friday. That's a reversal from $192.50 after hours on Thursday to $155 on Friday morning. Long-term FSLR still appears to be one of the best-positioned players in the field but we can probably expect more volatility in the stock price going forward.

We are not suggesting new positions.

This play looked like a done deal back on April 30th when shares spiked higher. Here's a repost of our April 30th, 2009 trade recap:

The covered-call trade is now at maximum profit. We bought FSLR at $128.00 and sold the 2010 $150 LEAP for $40.70. After the April 30th move odds are almost guaranteed that we'll be called out but we have to leave it in our portfolio until we are. Profit if called is $40.70 for the call option we sold and a $22 rise in the stock price (from $128 to $150). Together that's a $62.70 gain on a $128 investment (+48.9%).

Our put-spread play is a position we plan on holding until expiration in January 2010. We bought the 2010 $100 LEAP put for $32.90. We sold the 2010 $250 LEAP put for $135.70. Our net credit was $103 into our account. If you covered on April 30th by buying back the $250 LEAP put (at the time trading around $80.00) our profit would only be about $23.00. That's not our plan. We're holding this position until January 2010 and will buy back the $250 LEAP put then with the expectation it will be worth even less (as the stock continues to climb).

Covered Call position:

Long 100 shares of FSLR @ $128.00
Short 2010 $150 LEAPS Call LZL-AA @ $40.70
Profit if called is $40.70 in option premium + $22 in stock (+49%)

Put Spread position:

Long 2010 $100 LEAPS Put LQM-MT @ $32.90
Short 2010 $250 LEAPS Put LZL-MJ @ $135.70, net credit $103

Currently the 2010 Jan. $100 put is worth (bid) $4.40.
The 2010 Jan. $250 put is worth $ 97.40.
If you're curious the 2010 Jan. $150 call is at $25.70.

Chart of FSLR


GLBL $6.83 +0.15 -- Global Industries

GLBL just spent the last week digesting its gains. A pause in the rally is healthy but investors might get nervous ahead of earnings. GLBL is due to report earnings on Wednesday, August 5th after the closing bell. Wall Street expects a profit of 16-cents a share. I am not suggesting new bullish positions at this time and more conservative traders will want to seriously consider taking profits ahead of the earnings report. Currently our stop loss is at $4.85. Our target to exit is $8.85.

Our plan called for buying the stock instead of the options. Our entry point to buy GLBL was hit on January 6, 2009

Current position in GLBL = $4.10 entry (stop loss: 4.85)
Current target to exit is $8.85.

Chart of GLBL:


GT $17.02 +1.16 -- Goodyear Tire & Rubber Co.

Whoa! The rally in GT is getting a little crazy. The stock is up 70% from its July lows near $10.00. The relative strength is encouraging but stocks that rally this fast tend to have equally fast reversals. The company reported earnings on Thursday morning. Analysts were expecting a loss of 70 cents per share. GT reported a loss of only 35 cents per share. This sparked the breakout higher on Thursday, which looks more like a short squeeze. Friday's big gain is merely a continuation of the short covering.

I would expect some sort of correction sooner rather than later. Fortunately broken resistance near $14.00 should now offer new support. I'm not suggesting new LEAPS positions at these levels. Our long-term target is $25.00.

June 6th, 2009 - entry price on GT @ 12.94, option @ 2.20
symbol: GT-AC, 2010 $15 LEAP call - current bid/ask $3.50/3.70
-stop loss on GT @ 9.90.
-or-
June 6th, 2009 - entry price on GT @ 12.94, option @ 2.65
symbol: VYR-AD, 2011 $20 LEAP call - current bid/ask $2.85/3.60
-stop loss on GT @ 9.90.

Chart of GT:


HOS $21.78 +0.56 -- Hornbeck Offshore Services

HOS continued to under perform the market last week. The company reported earnings on July 30th and the results were under expectations. Furthermore management guided earnings lower. What's surprising is that HOS managed to find some support near $20.75 after its report. My concern now is that with the market so overbought if stocks correct HOS will continue to under perform and breakdown under the $20.00 level. I would wait for a dip or a bounce near its July lows (19.00-18.50 zone) before considering new bullish LEAPS positions. Our long-term target is $35.00.

June 27th, 2009 - entry price on HOS @ 21.20, option @ 4.90
symbol: HOS-AD, 2010 JAN $20 LEAP call - current bid/ask $4.00/4.50
-stop loss on HOS @ 17.85
-or-
June 27th, 2009 - entry price on HOS @ 21.20, option @ 2.70
symbol: HOS-AE, 2010 JAN $25 LEAP call - current bid/ask $1.75/2.20
-stop loss on HOS @ 17.85

Chart of HOS:


INTC $19.25 -0.08 -- Intel Corp.

The rally in INTC is losing steam pretty fast. That's okay. The stock has been very overbought and due for a correction. I would wait for INTC to fill the gap near $17.00 before considering new bullish LEAPS positions. Our target is the $24-26 zone.

FYI: Shares of Intel don't move very fast. Readers might want to consider turning this play into a calendar spread to further maximize your gains.

June 13th, 2009 - entry price on INTC @ 16.31, option @ 1.36
symbol: VNL-AD, 2011 LEAP $20 call - current bid/ask $2.42/2.45
-stop loss on INTC @ 14.40.

Chart of INTC:


JOYG $37.18 +0.60 -- Joy Global Inc.

JOYG came close to a 50% retracement of its July rally. If you look at the daily chart's technicals the pull back may not be over yet. Readers might want to consider new positions on a dip in the $35-30 zone. I'd focus on the $33.00-32.00 zone. Our stop loss on this play is at $24.75. Our first target is $48.50. More conservative traders may want to consider a higher stop loss!

June 22nd, 2009 - entry price on JOYG @ 33.00, option @ 3.80
symbol: JQY-AH, 2010 JAN $40 LEAP call - current bid/ask $4.10/4.10
-stop loss on JOYG @ 24.75
-or-
June 22nd, 2009 - entry price on JOYG @ 33.00, option @ 6.90
symbol: ZMC-AH, 2011 JAN $40 LEAP call - current bid/ask $8.20/8.90
-stop loss on JOYG @ 24.75

Chart of JOYG:


KSU $20.31 -0.72 -- Kansas City Southern

KSU hit new five-month highs last week. The company reported earnings on Thursday morning and missed estimates by 3 cents. The stock rallied anyway. Shares are very short-term overbought and Friday's profit taking may be just the beginning. Broken resistance in the $18.00-17.00 zone should offer new support. I am not suggesting new LEAPS positions at this time. Our long-term target is the $27.50-30.00 zone.

May 9th, 2009 - entry price on KSU @ 17.01, option @ 0.90
symbol: LJR-AE, 2010 LEAP $25 call - current bid/ask $1.00/1.25
-stop loss on KSU @ 13.90.

Chart of KSU:


MDR $19.54 +0.55 - McDermott Intl. Inc.

MDR's sell-off last week came close to a 50% correction of the rally of its July lows. Unfortunately some of the daily chart technicals are turning bearish. MDR is due to report earnings on August 10th and I don't want to launch new positions in front of earnings. Our target to exit is a move into the $30.00-35.00 zone.

April 4th, 2009 - entry price on MDR @ 15.56, option @ 2.70
symbol: MDR-AD, 2010 $20 LEAP call - current bid/ask $2.60/2.70
-stop loss on MDR @ 14.75.

Chart of MDR:


MSFT $23.52 -0.29 -- Microsoft Corp.

The short-term oversold bounce in MSFT is fading. Last week MSFT announced a 10-year search deal with Yahoo (YHOO). Investors have been speculating on some sort of deal with YHOO for over a year and now that it's out of the way it's one less thing to worry about. Some feared that MSFT might pay too much and in the end MSFT didn't have to make any up front payments. Thus far MSFT is still clinging to its bullish channel but I expect some profit taking.

I would consider new long-term LEAPS positions anywhere in the $22.50-20.00 zone but I seriously doubt the stock will break $21.00 any time soon. More conservative traders may want to raise their stops toward the $20.00 mark.

This is going to be a long-term (18-month) trade. MSFT doesn't move that fast (normally). Investors might want to turn this into a calendar spread, selling calls against your LEAPS position like a covered-call trade. My long-term target is the $30 region.

June 2nd, 2009 - entry price on MSFT @ 21.60, option @ 2.20
symbol: VMF-AE, 2011 Jan. $25 call - current bid/ask $2.65/2.72
-stop loss on MSFT @ 18.40.

Chart of MSFT:


MT $36.04 +0.18 -- ArcelorMittal

It was a volatile week for MT. The company reported earnings and the results were a lot worse than expected. You can see the gap down on Wednesday. Yet a global stock market rally forgives a lot of bad news and shares bounced back toward $36.00. I still expect a correction. Look to open new LEAPS positions in the $31.00-30.00 zone. Our long-term target is the $50 region. We'll use a stop loss at $24.45.

June 17th, 2009 - entry price on MT @ 30.50, option @ 2.70
symbol: MT-AH, JAN 2010 $40 call - current bid/ask $3.30/3.50
-stop loss on MT @ 24.45.

-or-

June 17th, 2009 - entry price on MT @ 30.50, option @ 2.00
symbol: MT-AJ, JAN 2010 $50 call - current bid/ask $1.05/1.15
-stop loss on MT @ 24.45.

Chart of MT:


NYX $26.95 -0.26 -- NYSE Euronext

NYX has been going sideways the last couple of weeks. Twice last week the stock failed at the $28.00 level. Some of the technical indicators on the daily chart are starting to turn bearish again. I think investors are a little nervous about the exchange stocks even though the news about possible increase in regulation will most likely hit the CME and the ICE exchanges. NYX reported earnings last week that were 6 cents better than expected but shares didn't react much. I would stay focused on the $24.00 region and its 100 and 200-dma. Wait for a dip or bounce near $24.00 before considering new bullish positions. Our long-term target is the $35.00-40.00 zone.

Apr. 11th, 2009 - entry price on NYX @ 21.51, option @ $1.81
-- NZV-AD, 2010 $30.00 LEAP call - current bid/ask $1.79/1.83
-stop loss on NYX at $19.95

Chart of NYX:


PBR $41.24 +0.34 -- Petroleo Brasiliero

PBR stumbled last week with a mild correction in oil stocks and a temporary decline in oil thanks to a one-day spike in the dollar. The longer-term trend in PBR is still up but short-term investors might get anxious. Earnings are coming on August 14th. There has been some rumor or concern that the new oil fields off the coast of Brazil may not be as great as previously expected and that some of the test wells have come up dry. I repeat I haven't read anything directly related to PBR and hopefully the company will shed some light on their progress after their next earnings report. With stocks overbought I'd wait for a dip in the $36-35 zone before considering new bullish positions although I'd probably wait until after the earnings report before initiating new LEAPS positions too. If PBR does offer a new entry point I'd buy the 2010 $45.00 calls not the $50s. The plan is to sell half our position at $49.50 and the rest at $57.50.

Apr. 4th, 2009 - entry price on PBR @ 35.10, option @ $2.80
symbol: PMJ-AJ, 2010 $50.00 LEAP call - current bid/ask $1.60/1.70
-stop loss on PBR at $29.00

Chart of PBR:


PCU $25.76 +0.73 - Southern Copper Corp.

Weakness in the U.S. dollar has fueled a rally in copper futures with copper hitting new highs for 2009. This has helped PCU rally to its 2009 highs near $26.00. Last week's bounce from $24 is encouraging but PCU still looks a little overextended. I'd prefer to wait for a dip back in the $22.00-20.00 zone as our next entry point. Our target is $30.00.

April 20th, 2009 - entry price on PCU @ 19.00, option @ 1.95
symbol: PCU-AE, JAN 2010 $25 LEAP call - current bid/ask $3.40/3.60
-stop loss on PCU @ 16.45.

Chart of PCU:


PEP $56.75 +0.15 -- PEPSICO Inc.

PEP's trend is still up but momentum indicators are definitely waning. Nothing has changed for us since last week. I would consider launching new positions on a dip in the $54.00-52.00 zone. Our long-term target is the $65-70 zone. We'll use a stop loss at $51.50. This is an 18-month bet.

July 7th, 2009 - entry price on PEP @ 57.25, option @ $4.50(estimate)
symbol: VP-AL, 2011 $60.00 LEAP call - current bid/ask $3.90/4.50
-stop loss on PEP at $51.50

Chart of PEP:


RAI $43.51 -0.22 -- Reynolds American Inc.

The rally continues for RAI. The stock is up four weeks in a row and up six out of the last seven weeks. Shares are overbought and with the wider market overbought odds are good RAI could see a pull back. I am suggesting readers launch new LEAPS positions on a dip near $40.00. I'm suggesting we take some money off the table at $49.50 and exit completely at $57.50.

July 24th, 2009 - entry price on RAI @ 42.50, option @ $1.45(estimate)
symbol: RAI-BI, 2010 FEB $45.00 LEAP call - current bid/ask $1.90/2.05
-stop loss on RAI at $35.99

or

July 24th, 2009 - entry price on RAI @ 42.50, option @ $4.50(estimate)
symbol: OWO-AH, 2011 JAN $40.00 LEAP call - current bid/ask $5.50/6.00
-stop loss on RAI at $35.99

Chart of RAI:


RIG $79.69 +1.01 -- Transocean Ltd.

Oil service stocks began to correct last week. I don't think it's over yet. RIG is due to report earnings on August 5th before the opening bell. More conservative traders may want considering buying some cheap out of the money puts the day before as a little insurance should RIG really disappoint Wall Street. I would consider buying LEAPS again on a dip near $70.00 but only after we see the reaction to the company's earnings report. Currently our target is $98.00.

July 3rd, 2009 - entry price on RIG @ 70.50, option @ 5.40
symbol: RIG-AP, JAN 2010 $80 call - current bid/ask $8.30/8.50
-stop loss on RIG @ 64.99.

-or-

July 3rd, 2009 - entry price on RIG @ 70.50, option @ 3.90
symbol: RIG-AZ, JAN 2010 $85 call - current bid/ask $6.10/6.30
-stop loss on RIG @ 64.99.

Chart of RIG:


SGY $10.86 +1.85 -- Stone Energy Corp.

Last week was super strong for SGY thanks to a 20.5% rally on Friday. The company reported earnings on Thursday night and the results were 48 cents better than the 17-cent estimate. Earnings also came in well above analysts' estimates. Given SGY's 12% short interest Friday's move was definitely filled with some short covering. We can expect some profit taking this week. I'm not suggesting new bullish positions at this time but look for SGY to fill the gap. Please note that I'm raising the stop loss to $5.80, just under July's low. Our target is $14.75.

June 22nd, 2009 - entry price on SGY @ 6.35, option @ 0.75
symbol: STQ-AB, 2010 JAN $10 LEAP call - current bid/ask $2.40/2.80
-stop loss on SGY @ 5.80

FYI: The symbol has changed from YLO-AB to STQ-AB

-or-

June 22nd, 2009 - entry price on SGY @ 6.35, (buying the stock)
-stop loss on SGY @ 5.80

Chart of SGY:


SLB $53.50 +0.07 -- Schlumberger Ltd.

Shares of SLB have rolled over and the stock looks headed for the $51-49 zone. Wait for the bounce before considering new bullish positions.

Currently our exit strategy has three parts. The plan is to sell one third of our position at $59.00, which was originally our first target. We'll sell another one third at $69.00. We'll exit our final third at $77.50.

April 20th, 2009 - entry price on SLB @ 45.01, option @ 3.00
symbol: SLB-AL, JAN 2010 $60 LEAP call - current bid/ask $3.40/3.50
-stop loss on SLB @ 44.90.

1st exit @ $59.00 (1/3 of position) option @ $7.25 (+141% estimate)

Chart of SLB:


UNG $12.87 -0.19 - U.S. Natural Gas ETF

I am not surprised to see the UNG drifting lower. Natural gas is still facing lackluster demand and too much supply but that will change. I'm suggesting readers wait for the UNG to show new signs of bottoming before we consider new bullish positions. It may take several weeks but this is a long-term 18-month investment so we have time before putting any more capital to work here.

Looking at the big picture it seems like natural gas is in the process of making long-term (multi-year) lows here but that doesn't mean the commodity won't get more oversold first Our long-term target is the $25-30 zone.

June 16th, 2009 - entry price on UNG @ 16.26, option @ 3.90
symbol: ZZM-AT, JAN 2011 $20 LEAP call - current bid/ask $1.80/2.00
-stop loss on UNG @ no stop

Weekly Chart of UNG:


UYG $4.59 +0.08 - ProShares Ultra Financials (2x) ETF

The banking sector has broken out and the rally is charging toward its May 2009 highs. After such a sharp three-week run up I'm expecting some profit taking. If you're looking for a new entry point I would prefer to buy a dip. Watch the 100-dma for support.

Please note that we have set our stop loss on UYG at breakeven at $1.50. More conservative traders might want to consider a stop near $2.00, $2.50 or higher based on your entry point.

Don't forget that the UYG trades off the DJUSFN index.

The plan is to hold the UYG for 18 to 24 months or longer. We'll evaluate potential exit points along the way.

Our strategy called for buying the ETF instead of the options.

Current position in the UYG = $1.50 entry (stop loss: 1.50)

Chart of UYG:


VOD $20.58 +0.40 -- Vodafone Group

The English stock market has turned in a very big rally off its July lows. VOD is finally participating. The stock broke through resistance near $20.00 and its exponential 200-dma. The rally past $20 was a new entry point if you were waiting for a breakout. I am raising our stop loss to $17.85. Our target is the $27.50 region.

July 10th, 2009 - entry price on VOD @ 18.25, option @ 1.10
symbol: VOD-AD, 2010 JAN $20 LEAP call - current bid/ask $1.80/1.95
-stop loss on VOD @ 16.90

Chart of VOD:


WFR $18.72 -2.14 -- MEMC Electronic Materials Inc.

The short-term action in WFR is not looking very good. Shares broke down from their sideways consolidation thanks to a huge gap down in FSLR on Friday. Many of the short-term technical indicators are turning bearish. I would expect another test of support near $16.00 and its trendline of higher lows. Let's adjust our entry point to buy LEAPS down to the $16.50-15.50 zone. Our long-term target is the $30.00 region.

June 23rd, 2009 - entry price on WFR @ 17.50, option @ 2.50
symbol: CJC-AD, 2010 JAN $20 LEAP call - current bid/ask $1.70/1.85
-stop loss on WFR @ 14.75

-or-

June 23rd, 2009 - entry price on WFR @ 17.50, option @ 3.43
symbol: ZET-AE, 2011 JAN $25 LEAP call - current bid/ask $2.10/2.30
-stop loss on WFR @ 14.75

Chart of WFR: