Closed Plays


None, there were no closed plays.


Play Updates


Editor's Note:

The market's correction is two weeks old and some expect it's only half done. Actually I wouldn't be surprised to see stocks bounce this week but that doesn't mean we don't see new relative lows first.


ACGY $11.83 -0.28 -- Acergy S.A.

ACGY managed to hit a new 2009 high last week before the market started to tank. Volume has been pretty light on the pull back. I suspect the $11.50-10.75 zone will offer some support. Investors should be aware that ACGY is due to report earnings around October 14th but that date is unconfirmed at the moment. Cautious traders may want to buy some short-term (October) puts just ahead of the report to protect against a sharp, post-earnings move lower. Please note I'm moving our stop loss to $8.85.

I'm not suggesting new LEAPS positions at this time. Our plan is to exit in the $14.50-15.00 zone although I'm starting to suspect that ACGY could go higher.

April 25th, 2009 - entry price on ACGY @ 7.61, option @ 1.05
symbol: QLS-AB, 2010 JAN $10 LEAP call - current bid/ask $2.35/2.80
-stop loss on ACGY @ 8.85

Chart of ACGY


ACI $20.49 -0.49 -- Arch Coal Inc.

ACI has corrected more than 16% from its 2009 highs and shares are now testing round-number support and technical support near $20.00. I would consider new LEAPS positions in the $20.00-18.00 region (right now works) but I'd prefer to buy positions on a bounce.

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 rather than the ones originally listed below.

May 14th, 2009 - entry price on ACI @ 16.00, option @ 1.30
symbol: ACI-AE, 2010 JAN $25 LEAP call - current bid/ask $0.90/1.00
-stop loss on ACI @ 15.95

-or-

May 14th, 2009 - entry price on ACI @ 16.00, option @ 2.40
symbol: OSE-AF, 2011 JAN $30 LEAP call - current bid/ask $2.25/2.50
-stop loss on ACI @ 15.95

Chart of ACI:


ANR $33.98 +0.18 - Alpha Natural Resources, Inc.

ANR, another coal stocks like ACI, has also seen a 16% correction. I suspect that ANR may continue to dip toward the $31-30 zone. Readers can look for a new entry point there.

We still have a trigger at $30.50 to buy the second half of our LEAPS position. Our long-term target is the $45.00-50.00 zone.

Aug. 25th, 2009 - entry price on ANR @ 34.00, option @ 5.10
symbol: HIC-AG, 2010 JAN $35 LEAP call - current bid/ask $5.60/5.90
-stop loss on ANR @ 29.50

Symbol just changed from ANR-AG to HIC-AG

bought 1/2 LEAP position on 08/25/09 (option price @ 5.10)
plan to buy 2nd half when ANR hits $30.50.

-or-

Aug. 25th, 2009 - entry price on ANR @ 34.00, option @ 7.00
symbol: VJV-AH, 2011 JAN $40 LEAP call - current bid/ask $6.20/7.10
-stop loss on ANR @ 29.50
bought 1/2 LEAP position on 08/25/09 (option price @ 7.00)
plan to buy 2nd half when ANR hits $30.50.

Chart of ANR:


BAC $16.34 +0.13 - Bank of America Corp.

BAC looks like it's about to breakdown. The stock has spent almost two months in the $16.00-18.00 zone and last week's sell-off broke multiple layers of support. BAC might see some support at its exponential 200-dma or the $14.00 level but they don't look very concrete.

More conservative traders may want to consider taking profits now and jumping back in later. However, I want to remind readers that this is a long-term, two-year trade. Our exit target is the $30-40 zone.

Trading note: Readers might want to consider some cheap October put options if you're worried about a serious correction over the next two weeks.

FYI: Earnings are expected on October 16th before the opening bell.

Jan 25th, 2009 - entry price on BAC @ 6.24, option @ 2.38
symbol: VBA-AB, JAN 2011 $10 LEAP call - current bid/ask $7.45/7.70
-stop loss on BAC @ 9.75

Chart of BAC


BG $61.50 +0.54 -- Bunge Limited

I've got good news and bad news. The good news is that BG managed to hold support near $60.00 in spite of breaking down under its trendline of higher lows. The bad news is that the eight-week bearish trend of lower highs is still in place. The simple 200-dma has risen to $57.20. I'm adjusting our stop loss down a little to $56.99, which will give BG a chance to bounce from the 200-dma if the correction continues.

I'm not suggesting new positions at this time. Wait for a move over $65.00 before considering new positions. Our target is the $85-90 zone. We have a tight stop loss at $57.49.

Sep 15th, 2009 - entry price on BG @ 63.00, option @ 5.90
symbol: BGW-DN, 2010 APR $70 LEAP call - current bid/ask $3.80/4.00
-stop loss on BG @ 56.99

Chart of BG:


CLF $30.18 -0.36 -- Cliffs Natural Resources Inc.

CLF broke down under support near $32.00 and is now testing support in the $29-30 zone with the 50-dma and exponential 200-dma. The stock's correction has seen almost a 20% pull back. I'm repeating my comments from last week to use a bounce in the $28.00-30.00 zone as a new bullish entry point. Consider using the 2011 January $30 LEAPS instead of our original trade.

Our long-term target is the $40.00-45.00 zone. More aggressive traders may want to aim for $50.

Sept. 5th, 2009 - entry price on CLF @ 26.19, option @ 4.84
symbol: CLF-AE, 2010 JAN $25 LEAP call - current bid/ask $ 6.90/ 7.10
-stop loss on CLF @ 22.24 (FYI: Gap open entry)

Chart of CLF:


CNX $43.04 -0.24 -- Consol Energy Inc.

CNX has only corrected about 14% from its highs near $50. I've been looking for support near $42.00 and $40.00. At this point I'd watch for a bounce near $40.00 as a potential entry point.

CNX has already hit our first target at $48.50. We will plan to sell the second half or our position at $57.50.

Sep 1st, 2009 - entry price on CNX @ 36.50, option @ 5.75
symbol: CNX-AG, 2010 JAN $35 LEAP call - current bid/ask $ 9.80/10.00
-stop loss on CNX @ 34.75

Target hit 09/16/09 @ 48.50, option price $14.50 (+152%)

-or-

Sep 1st, 2009 - entry price on CNX @ 36.50, option @ 7.80(estimate)
symbol: VTL-AH, 2011 JAN $40 LEAP call - current bid/ask $11.50/12.50
-stop loss on CNX @ 34.75

Target hit 09/16/09 @ 48.50, option price $15.40 (+97%)

Chart of CNX


CRS $22.27 -0.36 -- Carpenter Technology Corp.

The correction in CRS has shaved off 15% from its 2009 highs and the stock is now testing support near $22.00. If this level fails we can look for additional support near $20.00. I would consider new bullish positions on a bounce near $20.00. Our long-term target is the $35.00-40.00 zone.

Sep 1st, 2009 - entry price on CRS @ 20.50, option @ 3.10
symbol: CRS-CD, 2010 MAR $20 LEAP call - current bid/ask $4.20/4.70
-stop loss on CRS @ 17.50

Chart of CRS:


DISH $19.24 -0.12 -- Dish Network Corp.

DISH has been somewhat resistant to any profit taking. The stock hit new six-week highs and held on to its gains while the market sank. I'm not suggesting new positions at this time. Our long-term target is the $25.00-30.00 zone.

August 22nd, 2009 - entry price on DISH @ 17.18, option @ $3.20
symbol: HSW-AC, 2010 JAN $15 call - current bid/ask $4.70/5.00
-stop loss on DISH @ 15.45.

Chart of DISH:


DO $92.45 -1.33 -- Diamond Offshore

It looked like DO had created a bearish double top with the peak in June and then July but traders bought the pull back at the long-term trendline of higher lows. Now DO has produced another, smaller bearish double top near $97.00. Once again it's testing the long-term trendline of higher lows. Will the trendline hold this time?

If DO does breakdown from here I would expect to see support in the $85-84 zone. I'm not suggesting new positions at this time.

If you're concerned that DO might breakdown from here then consider some cheap October puts (that expire in two weeks).

Our first target is $109.00. Readers might want to consider the 2011 January calls if you're launching new positions.

FYI: New January 2010 options have been added with the normal DO- root symbol. If you're going to buy new option positions I'd use these new symbols. The new 2010 January $90 call is DO-AA. The new 2010 January $100 call is DO-AC.

If you're curious about the KWJ- root symbol the CBOE created them back in February 2009 to account for DO's special cash dividend in March 2009. There was another special cash dividend in July 2009 and the KWJ series now represents 100 shares of DO plus $562.50 in cash.

Sep 2nd, 2009 - entry price on DO @ 86.50, option @ 12.30
symbol: KWJ-AR, 2010 JAN $90 LEAP call - current bid/ask $12.20/12.60
-stop loss on DO @ 79.45

-or-

Sep 2nd, 2009 - entry price on DO @ 86.50, option @ 5.20
symbol: KWJ-AT, 2010 JAN $100 LEAP call - current bid/ask $6.70/6.90
-stop loss on DO @ 79.45

Chart of DO:


EMR $38.31 -0.78 -- Emerson Electric Co.

EMR is nearing potential support at $38.00 again. Last week I suggested that readers could open new bullish positions on a dip into the $38-37 zone. I would fine tune that a little and look for a dip into the $37-36 region. EMR doesn't move super fast so I'm listing the 2011 LEAPS.

Sept. 8th, 2009 - entry price on EMR @ 38.00, option @ $4.50
symbol: VHH-AH, 2011 JAN $40 call - current bid/ask $4.20/4.40
-stop loss on EMR @ 33.50.

Chart of EMR:


FAS $72.16 -0.44 - Direxion Fincl.Bull 3x ETF

The sell-off in financials is easy to see in the FAS. This ETF tumbled to $68.26 on Friday morning. I've been warning readers that we could see some volatility and the FAS has delivered.

I am not suggesting new bullish positions in FAS at this time.

Previous Comments on FAS:
Currently we have sold one third of our position at $60.00 (pre-split price of $12.00) and we plan to sell another third at $120.00. Honestly, I'm thinking we may want to take profits at $90.00 but we'll make that decision when the FAS gets there. 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.

FYI: The FAS is based off and moves with the Russell 1000 Financial Services index.

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

Current position in the FAS = $2.64 entry (stop loss: 7.00)
post-split prices are: $13.20 entry (stop loss: 35.00)

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

Chart of FAS

Chart of RIFIN (Russell 1000 financial services)


FCX $65.86 +0.46 - Freeport McMoran

The correction in FCX hit -14% at the Friday lows near $63.00. Concerns over the pace of the recovery and a bearish breakdown in copper prices has weighed on shares of FCX. The price of copper could be a real problem. After several weeks of trading sideways copper is correcting and doesn't show any signs of slowing down yet. The long-term trend in FCX is still up but the stock could see $55.00 before it sees $73 again. I hope that's not the case but I'm not suggesting new positions at this time.

FCX has already hit our first target at $66.00. Our second and final target is $77.00. More conservative traders may want to use a stop closer to $55 or higher.

June 22nd, 2009 - entry price on FCX @ 46.00, option @ 6.00
symbol: FCX-AK, 2010 JAN $55 LEAP call - current bid/ask $13.80/13.95
-stop loss on FCX @ 49.95

09/05/09 - Take Profits (sell half) at $66.00, option @ 15.00 (+150%)

-or-

June 22nd, 2009 - entry price on FCX @ 46.00, option @ 10.00
symbol: OBQ-AL, 2011 JAN $60 LEAP call - current bid/ask $16.60/17.70
-stop loss on FCX @ 49.95

09/05/09 - Take Profits (sell half) at $66.00, option @ 18.50 (+85%)

Chart of FCX:


FSLR $150.00 + 6.24 -- First Solar

FSLR popped on Friday morning after it was announced the stock will replace Wyeth in the S&P 100 index. At the moment it looks like FSLR is forming a bull-flag pattern but it will take a close over $155 and its 100-dma before it looks like a bullish entry point (for short-term positions). The stock still has significant resistance in the $155-160 zone.

We're not suggesting new positions at this time. At the moment we're long the 2010 January $100 put and we have a covered call play that should be fine if FSLR stays above $100.

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

- Update 08/15/09 -
Cover the 2010 $250 Put at $109.40. Keep the $100 put.

Currently the 2010 Jan. $100 put is worth (bid) $2.70.
If you're curious the 2010 Jan. $150 call is at $17.60.

Chart of FSLR


GT $15.35 -0.87 -- Goodyear Tire & Rubber Co.

GT really under performed on Friday with a 5.3% decline on above average volume. I couldn't find any specific news behind the relative weakness. GT has finally reached the 38.2% Fibonacci retracement of the July-August rally but I wouldn't bet on a bounce here. Look for a dip closer to $14.00, which should be stronger support.

I'm not suggesting new LEAPS positions at these levels. We have two targets. The plan is to sell half at $22.75 and half at $26.75.

June 6th, 2009 - entry price on GT @ 12.94, option @ 2.20
symbol: GT-AC, 2010 $15 LEAP call - current bid/ask $2.05/2.15
-stop loss on GT @ 11.90
-or-
June 6th, 2009 - entry price on GT @ 12.94, option @ 2.65
symbol: VYR-AD, 2011 $20 LEAP call - current bid/ask $2.30/2.90
-stop loss on GT @ 11.90

Chart of GT:


HOS $25.99 -0.59 -- Hornbeck Offshore Services

HOS is still trading in the $26-28 trading range but I expect shares will eventually dip toward stronger support near $24.00. We might want to consider new bullish positions if HOS bounces near the 50-dma. 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 $6.60/7.00
-stop loss on HOS @ 19.95
-or-
June 27th, 2009 - entry price on HOS @ 21.20, option @ 2.70
symbol: HOS-AE, 2010 JAN $25 LEAP call - current bid/ask $3.20/3.80
-stop loss on HOS @ 19.95

Chart of HOS:


INTC $18.97 +0.07 -- Intel Corp.

There are no surprises here. Last week I told readers that INTC looked ready to head lower. Shares broke short-term support near $19.20 and it the next significant levels of support are $18.50 and then $18.00.

I am not suggesting new long-term positions at this time. Please note that INTC is due to report earnings on October 13th after the market's closing bell. Our long-term 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 or diagonal 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 $2.22/2.27
-stop loss on INTC @ 15.90.

Chart of INTC:


LNN $36.14 -0.70 -- Lindsay Corp.

Ouch! LNN has taken a significant turn for the worse last week. Shares broke down under support near $40.00 and the selling pressure picked up with big volume on the decline. The stock is now very short-term oversold and due for a bounce. We may want to exit on any rebound from here especially if LNN starts to roll over under $40.00. More conservative traders may want to exit early right now. I am not suggesting new positions at this time.

August 7, 2009 - entry price on LNN @ 41.55, option @ 8.80
symbol: NRR-AG, 2010 JAN $35 LEAP call - current bid/ask $ 4.10/ 4.50
-stop loss on LNN @ 34.50
-or-
August 7, 2009 - entry price on LNN @ 41.55, option @ 6.00
symbol: NRR-AH, 2010 JAN $40 LEAP call - current bid/ask $2.10/2.55
-stop loss on LNN @ 34.50

Chart of LNN:


MDR $24.18 -0.42 - McDermott Intl. Inc.

The correction in MDR is now three weeks old. Shares are testing support near $24.00 and the rising 50-dma. I would expect a rebound soon. If not here then near the $22.00 level. More conservative traders might want to raise their stops closer to $22.00.

We want to sell 50% to 75% of our position at $29.75. We'll sell the remainder at $34.00. FYI: The Point & Figure chart has a $38 target.

April 4th, 2009 - entry price on MDR @ 15.56, option @ 2.70
symbol: MDR-AD, 2010 $20 LEAP call - current bid/ask $5.20/5.40
-stop loss on MDR @ 19.00

Chart of MDR:


MSFT $24.96 +0.08 -- Microsoft Corp.

MSFT managed to bounce from technical support near its 50-dma and the three-month trend of higher lows. I'm not suggesting new long-term positions at this time.

This should be a long (18-month) trade. MSFT doesn't move that fast (normally). Investors might want to turn this into a calendar or diagonal spread, selling calls against your LEAPS position. 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 $3.20/3.30
-stop loss on MSFT @ 19.95.

Chart of MSFT:


MT $34.52 -0.45 -- ArcelorMittal

Danger, Will Robinson! Shares of MT have broken significant support at its long-term trendline and near the $35.00 level. This is very bearish and more conservative traders may want to consider an early exit. I do see some short-term support near $34.00 so an alternative might be a tighter stop loss. I'm not suggesting new positions at this time. The $30.00 level should be the next significant level of support. Our long-term target is the $50 region.

June 17th, 2009 - entry price on MT @ 30.50, option @ 2.70
symbol: MT-AH, JAN 2010 $40 call - current bid/ask $1.75/1.90
-stop loss on MT @ 29.50

-or-

June 17th, 2009 - entry price on MT @ 30.50, option @ 2.00
symbol: MT-AJ, JAN 2010 $50 call - current bid/ask $0.30/0.40
-stop loss on MT @ 29.50

Chart of MT:


NYX $27.31 -0.45 -- NYSE Euronext

I have to warn readers that NYX is also breaking significant support with the recent declines. There is potential support at $26 and $24 but I'm not suggesting new positions at this time. Please note our new stop loss at $23.65, just under the July 2009 low. Our long-term target is the $35.00-40.00 zone.

Trading note - an alternative idea would be to buy some short-term puts to protect against a significant downturn.

Apr. 11th, 2009 - entry price on NYX @ 21.51, option @ $1.81
-- NZV-AD, 2010 $30.00 LEAP call - current bid/ask $1.23/1.27
-stop loss on NYX at $23.65 *new*

Chart of NYX:


PBR $44.72 +0.29 -- Petroleo Brasiliero

PBR flirted with a new 2009 high at $46.50 last week. The long-term trend is still up even though momentum has stalled. I'm not suggesting new long-term positions at this time. 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 $1.60/1.75
-stop loss on PBR at $33.50

Chart of PBR:


PCU $29.11 -0.43 - Southern Copper Corp.

The trend in PCU is still up but the stock looks tired. The MACD has a bearish divergence and other short-term technicals have turned negative. I'm not suggesting new positions at this time and wouldn't be surprised to see a correction back toward $25.00. More conservative traders may want to exit completely right here!

PCU has already hit our first target at $29.75. We plan to sell the second half of our position at $34.00.

April 20th, 2009 - entry price on PCU @ 19.00, option @ 1.95
symbol: PCU-AE, JAN 2010 $25 LEAP call - current bid/ask $5.30/5.50
-stop loss on PCU @ 22.00

Target Hit @ 29.75 on 08/24/09. Sold 1/2 at $6.00 (+207%)

Chart of PCU:


PEP $60.90 +2.44 -- PEPSICO Inc.

PEP was upgraded on Friday and given a $70 price target. This fueled a 4.1% rally and a new 2009 high. Volume was strong on the move. More conservative traders might want to raise their stops toward the $55 region. Our long-term target is the $65-70 zone. We'll use a stop loss at $51.50. This is an 18-month bet.

FYI: PEP is due to report earnings on October 8th after the market's closing bell. Readers may want to protect themselves with some cheap October puts should the stock disappoint. This is just a suggestion for the cautious trader. The newsletter is not buying any protective puts.

July 7th, 2009 - entry price on PEP @ 57.25, option @ $4.50(estimate)
symbol: VP-AL, 2011 $60.00 LEAP call - current bid/ask $6.20/6.60
-stop loss on PEP at $51.50

Chart of PEP:


RAI $44.16 -0.25 -- Reynolds American Inc.

There is no change from my prior comments on RAI.

A normal Fibonacci retracement of the June-August rally would produce a dip towards the $43.00 or $41.75 levels.

I'm not suggesting new LEAPS positions at this time. Wait and watch for support near $42.00. We want to take some money off the table at $49.50 (sell half) 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 $1.90/2.10
-stop loss on RAI at $39.75

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 $5.50/6.20
-stop loss on RAI at $39.75

Chart of RAI:


RIG $81.90 -0.99 -- Transocean Ltd.

RIG has produced a short-term bearish double top pattern. I would expect a dip toward the 100-dma near $77.50. This is where RIG should find technical support at its trendline of higher lows. More conservative traders may want to place their stop loss closer to $75.00. Currently our upside 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 $ 8.00/ 8.20
-stop loss on RIG @ 69.95.

-or-

July 3rd, 2009 - entry price on RIG @ 70.50, option @ 3.90
symbol: RIG-AZ, JAN 2010 $85 call - current bid/ask $5.60/5.80
-stop loss on RIG @ 69.95.

Chart of RIG:


SLB $56.83 -0.30 -- Schlumberger Ltd.

The correction in SLB has only produced an 11% decline so it may not be over yet. Last week's breakdown under what should have been support near $58.00 is disappointing but SLB did manage to hold technical support at its 100-dma.

Currently our exit strategy has three parts. The plan was 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 $5.10/5.30
-stop loss on SLB @ 49.90

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

Chart of SLB:


SPW $56.77 -1.28 -- SPX Corp.

The correction in SPW was a little sharper than expected. I was looking for a pull back toward support near $58.00. Shares hit our trigger at $58.50 and kept right on falling, slicing through the 50-dma. The next level of support should be the $55.00 region and its exponential 200-dma. Wait for a bounce before considering new bullish positions. I'm setting our stop loss at $52.40. More conservative traders may want to use a stop closer to $54-55 instead. Our long-term target is the $79.00 mark.

Oct 2nd, 2009 - entry price on SLB @ 58.50, option @ 5.70
symbol: SPW-CL, 2010 MAR $60 LEAP call - current bid/ask $4.60/4.90
-stop loss on SPW @ 52.40

Chart of SPW:


TEX $18.11 -1.34 -- Terex Corp.

Ouch! The sell-off in TEX has been pretty sharp with a 12% decline in just two days. The stock is now testing support near $18.00 and its exponential 200-dma, which is the area I suggested investors should watch. This pull back has reached a 50% correction of the September rally. Yet it would take a dip to $17.00 (near its 50-dma) to hit a 38.2% Fibonacci retracement of the July-September rally. We definitely want to see a bounce before considering new bullish positions. Our upside target is the $28.00-30.00 zone.

Sept. 11th, 2009 - entry price on TEX @ 18.25, option @ 4.40
symbol: HAG-AC, JAN 2010 $15 LEAP call - current bid/ask $4.10/4.30
-stop loss on TEX @ 14.25

-or-

Sept. 11th, 2009 - entry price on TEX @ 18.25, option @ 4.10
symbol: VXQ-AD, JAN 2011 $20 LEAP call - current bid/ask $4.10/4.90
-stop loss on TEX @ 14.25

Chart of TEX:


UYG $5.43 -0.01 - ProShares Ultra Financials (2x) ETF

The banking stocks continued to lead the market lower, especially these last couple of days. I would not be surprised to see the UYG test the $5.00 level. I don't see any changes from my prior comments.

More conservative traders may want to raise their stop toward $4.00. I am not suggesting new positions at this time.

Editor's Note: The idea is to hold this ETF as a long-term investment but experienced investors may want to trade it by taking profits now and re-entering on a pull back.

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. It's true that as a leveraged ETF there will be slippage in the daily performance between UYG and the underlying index.

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

Current position in the UYG = $1.50 entry (stop loss: 3.20)

Chart of UYG:


VOD $22.09 -0.25 -- Vodafone Group

Right on cue VOD has pulled back toward short-term support at $22.00. If it doesn't bounce here then look for strong support in the $21-20 zone. I would strongly consider raising the stop loss toward the $20.00 level. I'm not suggesting new long-term positions at this time. 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 $2.45/2.60
-stop loss on VOD @ 17.85

Chart of VOD:


WFR $15.38 -0.32 -- MEMC Electronic Materials Inc.

I think it's time we found an exit in WFR. Shares have collapsed in the last two weeks and they're on the verge of breaking the $15.00 level. The stock is so oversold that I'd like to see a bounce and get out on the rebound (maybe near $17.00). If WFR can't manage an oversold bounce we'll be stopped out at $14.95 soon. I'm not suggesting new positions at this time.

June 23rd, 2009 - entry price on WFR @ 17.50, option @ 2.50
symbol: CJC-AD, 2010 JAN $20 LEAP call - current bid/ask $0.50/0.60
-stop loss on WFR @ 14.95

-or-

June 23rd, 2009 - entry price on WFR @ 17.50, option @ 3.43
symbol: ZET-AE, 2011 JAN $25 LEAP call - current bid/ask $1.25/1.55
-stop loss on WFR @ 14.95

Chart of WFR:


X $40.75 -1.51 United States Steel Corp.

U.S. Steel (X) is a watch list candidate that hit our trigger on Friday. The stock's correction has been pretty steep with a 20% pull back in less than three weeks. X is now approaching round-number support near $40.00 and technical support near the 100-dma and its trendline of higher lows. Our trigger to buy LEAPS was at $41.00. If you haven't entered positions yet I would wait for a bounce first. Our stop loss is at $37.40. Our long-term target is the $60-70 zone.

Oct 3rd, 2009 - entry price on X @ 41.00, option @ 3.35
symbol: FBJ-AI, 2010 JAN $45 LEAP call - current bid/ask $3.30/3.40
-stop loss on X @ 37.40

Chart of X:


XIDE $7.10 -0.33 Exide Technologies

The bounce in XIDE has rolled over and shares have broken their trendline of higher lows. I would expect the correction to reach the $6.50 or $6.00 levels. Wait for a bounce from one of these levels before considering new positions.

Our long-term target is $12.00.

Sep 2nd, 2009 - entry price on XIDE @ 6.50, option @ 1.25
symbol: FRU-CU, 2010 MAR $7.5 call - current bid/ask $1.10/1.45
-stop loss on XIDE @ 4.85

-or-

Buy the stock @ 6.50, stop loss at $4.85

Chart of XIDE: