Editor's Note:

Investors are losing confidence again. The stock market is accelerating lower. We are seeing a lot of stocks break support. We had a handful of trades get stopped out during last week's market decline.

I would be very cautious and hesitate to open new positions in the current market environment.

-James


Closed Plays


EMC, HSY, INTC and JPM have been closed.


Play Updates


Allergan Inc. - AGN - close: 78.68

Comments:
11/26 update: The stock market's two-week sell-off has been ugly. Shares of AGN have lost -7.4% over the last couple of weeks. The breakdown under support at $80.00 and under support at its 200-dma is bearish. The low on Friday was $78.42 and our stop loss is at $77.45. AGN's long-term trend is still higher but if this market decline continues then AGN will probably hit our stop loss soon. More conservative traders may want to exit early. I am not suggesting new positions at this time.

Earlier Comments:
Option spreads are wide for these LEAPS. We want to keep our position size pretty small to limit our risk.

- Suggested Positions -
OCT 17, 2011 - entry price on AGN @ 85.46, option @ 5.10
symbol: AGN1319A100 2013 JAN $100 call - current bid/ask $ 1.20/ 4.20

11/19/11 Taking an aggressive stance on our stop loss and moving it down to $77.45
10/22/11 Earnings are coming up. Readers might want to consider raising their stop loss. We are keeping ours at $79.45.

Current Target: $99.00
Current Stop loss: 77.45
Play Entered on: 10/17/11
Originally listed on the Watch List: 09/24/11


Bank of America - BAC - close: 5.17

Comments:
11/26 update: Worries over the European debt contagion and how much exposure the U.S. banks might have to Europe continues to drive the financials lower. BAC is now down four weeks in a row. Last week we speculated that BAC would test its October lows near $5.15. I suggested we open small bullish positions on a dip at $5.15, which was hit on Wednesday, November 23rd. BAC slipped to $5.12 on Friday before bouncing.

The $5.00 level is a major line in the sand for investors. If BAC closes under $5.00 it will be extremely bearish and suggest the stock is headed for its early 2009 lows in the $2.50 area. Readers may want to exit positions if we see BAC close under $5.00. Currently our positions do not have a stop loss.

Earlier Comments:
A week ago there was a report from Reuters suggesting that S&P was going to change the way they rate the credit ratings of banks. Bank of America, Citigroup (C) and Morgan Stanley (MS) might all see their credit rating downgraded by S&P after they implement this new rating process. That will likely send shares of BAC lower.

- Suggested Positions -
AUG 29, 2011 - entry price on BAC @ 8.10, option @ 0.57
symbol: BAC1221A10 2012 JAN $10 call - current bid/ask $ 0.00/ 0.01
(no stop loss on this position)

- or -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.36/ 0.37
(No stop loss on this position)

(2nd Position, bought the dip at $5.15)

NOV 23, 2011 - entry price on BAC @ 5.15, option @ 0.35
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.36/ 0.37
(no stop loss on this position)

11/23/11 BAC hits new trigger @ 5.15 to buy calls.
11/19/11 New trigger to buy calls @ $5.15 (see 2nd position)
10/03/11 Sept. 26th position stopped out at $5.75.
2012 Jan. $7.50 call @ 0.48 (-27.2%)
2013 Jan. $10 call @ 0.74 (-26%)
10/01 raising our stop loss on the Sep. 26th position to $5.75
09/24 adding 2nd position, stop loss at $5.40
09/03 no stop loss on this trade at this time.

Chart of BAC:

Current Target: $12.00-to-$15.00
Current Stop loss: see details above
Play Entered on: 08/29/11
Originally listed in the New Plays 08/27/11


Bristol Meyers Squibb - BMY - close: 30.16

Comments:
11/26 update: The correction in BMY continues and the market's widespread weakness hasn't helped. Shares are now down about -10% from their 2011 highs. The stock is testing technical support at its rising 100-dma. It could test the $30.00 mark soon. We have a stop loss at $29.40. More conservative traders might want to raise their stops closer to $30.00 while more aggressive traders may want to lower their stop so its under the 200-dma instead.

I would be tempted to buy calls here near $30.00 but I'd probably wait for the stock market to stop falling before I consider new positions.

Earlier Comments:
We have two exit targets. One at $33.50 and a longer-term target at $35.75. NOTE: BMY is not a very fast moving stock. We will need to be patient.

- Suggested Positions -
SEP 19, 2011 - entry price on BMY @ 30.53, option @ 1.20
symbol: BMY1319A35 2013 JAN $35 call - current bid/ask $ 0.94/ 0.99

10/22/11 BMY is due to report earnings this week on Oct. 27th. Readers may want to take profits now or prior to the report.
10/08/11 new stop loss @ 29.40
09/16 Friday's close at $30.53 is our trigger to buy calls. Our entry will be Monday morning.

Current Target: $33.50 and 35.75
Current Stop loss: 29.40
Play Entered on: 09/19/11
Originally listed on the Watch List: 09/10/11


Beazer Homes - BZH - close: 1.88

Comments:
11/26 update: It's been a rough two weeks for BZH with a drop from $2.40 to $1.88 (-21.6%). Shares have bounced twice off its simple 50-dma but I do not expect this level to hold if the stock market continues to fall. Please note that I am raising our stop loss to $1.75. I would wait for a close over $2.05 before considering new bullish positions again.

- Suggested Positions -

(stock position)
OCT 28, 2011 - entry price on BZH @ $2.12

(option position)
OCT 28, 2011 - entry price on BZH @ 2.12, option @ 0.70
symbol: BZH1319A2.5 2013 JAN $2.50 call - current bid/ask $ 0.55/ 0.65

11/26/11 new stop loss at $1.75
11/15/11 BZH reports a loss of 57 cents a share, worse than expected
11/12 BZH has seen a big bounce. Cautious investors may want to take profits now before BZH reports earnings on Nov. 15th. (BZH +13.2%, option +21.4%)
10/28 trade begins: BZH opens @ $2.12
10/27 BZH meets our entry point requirement with a close over $2.05

Current Target: $3.70
Current Stop loss: 1.75
Play Entered on: 10/28/11
Originally listed on the Watch List: 10/22/11


Cisco Systems - CSCO - close: 17.50

Comments:
11/26 update: CSCO has seen a -10% correction in less than two weeks. Traders bought the dip near its 50-dma on Friday morning. I would be tempted to buy calls at current levels but more conservative traders may want to wait for a dip or a bounce from the $17.00 mark.

- Suggested Positions -
OCT 28, 2011 - entry price on CSCO @ 18.28, option @ 1.68
symbol: CSCO1319A20 2013 JAN $20 call - current bid/ask $1.58/1.63

10/29/11 new stop loss @ 16.40
10/28/11 stock opens at $18.28
10/27/11 CSCO meets our entry requirement: close at $18.44
10/22/11 Added entry to buy a close over $17.75
10/15/11 We are adjusting our entry point. Wait for a dip to $16.65
10/14/11 CSCO hit our entry point requirement for a close over $17.50.

Current Target: $21.75
Current Stop loss: 16.40
Play Entered on: 10/28/11
Originally listed on the Watch List: 10/08/11


CSX Corp. - CSX - close: 20.00

Comments:
11/26 update: CSX has fallen more than 10% in less than two weeks thanks to the market's sharp reversal lower. CSX's breakdown under short-term support at $21.00 and its 50-dma is bearish. Yet shares managed to hold at round-number support near the $20.00 mark. Readers can use this dip to $20.00 as a new entry point but personally I would wait for a rebound before initiating positions. A rally past $20.50 would work for me.

Earlier Comments:
I do see potential resistance at the $24.00 level and the $26.75-27.00 zone. Yet the Point & Figure chart for CSX is bullish with a $33.50 target.

- Suggested Positions -
NOV 14, 2011 - entry price on CSX @ 22.59, option @ 2.24
symbol: CSX1319A25 2013 JAN $25 call - current bid/ask $ 1.40/ 1.48

- or -

NOV 14, 2011 - entry price on CSX @ 22.59, option @ 3.30
symbol: CSX1418A25 2014 JAN $25 call - current bid/ask $ 2.19/ 2.39

11/26/11 I had cautioned readers to expect a potential dip to $20.00. CSX hit this level on Friday.

Current Target: $29.75
Current Stop loss: 19.75
Play Entered on: 11/14/11
Originally listed in the New Plays 11/12/11


Enterprise Products Partners - EPD - close: 44.12

Comments:
11/26 update: EPD held up pretty well until the market's drop on Wednesday. Shares of EPD finally succumbed to the market-wide decline. Shares are now resting above what should be significant support at the $44.00 level. I would use this pull back as a new bullish entry point to open positions.

Earlier Comments:
Our long-term target is $59.00. FYI: The Point & Figure chart for EPD is bullish with a $60 target. I am listing the 2013 calls but there are also 2014s available (with a much wider spread).

- Suggested Positions -
Nov 21, 2011 - entry price on EPD @ 45.17, option @ 1.45
symbol: EPD1319A50 2013 JAN $50 call - current bid/ask $ 1.20/ 1.40

Current Target: $59.00
Current Stop loss: 41.75
Play Entered on: 11/21/11
Originally listed in the New Plays 11/19/11


Corning Inc. - GLW - close: 13.95

Comments:
11/26 update: Shares of GLW have also seen a -10% correction in the last two weeks. The stock is currently flirting with support near $14.00 and its 50-dma. The stock's P/E has fallen from 7.0 to 6.5. Unfortunately, cheap stocks can always get cheaper. More conservative traders may want to raise their stop loss toward $13.75 or the $13.50 area. Currently we have our stop set at $12.85. At this time I would prefer to see a close over $14.50 again before considering new bullish positions.

- Suggested Positions -
OCT 25, 2011 - entry price on GLW @ 14.27, option @ 2.05
symbol: GLW1319A15 2013 JAN $15 call - current bid/ask $2.08/2.14

Current Target: $18.00
Current Stop loss: 12.85
Play Entered on: 10/25/11
Originally listed on the Watch List: 10/22/11


Hewlett-Packard - HPQ - close: 25.39

Comments:
11/26 update: The big headlines for HPQ last week was the earnings report on November 21st. The company beat estimates by 4 cents with a profit of $1.17 a share. Yet management lowered their earnings guidance for the first quarter and for 2012. This could be a case of the new CEO Meg Whitman trying to lower Wall Street's expectations going forward so it's easier for HPQ to beat them.

Previously I warned readers that we might see HPQ drop toward $25 following its earnings report. Shares have managed to test their 50-dma twice last week. Yet I am not convinced this is a bottom for the stock, at least not yet. I am not suggesting new positions at this time although nimble traders may want to consider buying a bounce from the $24.00 region.

- Suggested (SMALL) Positions -
Longer-term Trade
Sep 26, 2011 - entry price on HPQ @ 22.59, option @ 3.75
symbol: HPQ1319A25 2013 JAN $25 call - current bid/ask $ 4.90/ 5.00
Stop Loss @ 23.90

11/19/11 Readers need to decide: Take profits now (+76%) or hold on and expect some volatility following HPQ's earnings report on Nov. 21st
10/31/11 scheduled exit for the remainder of our 2012 calls @ the open. Options opened at $5.40 (+100%), plus we sold half of our 2013 $25 calls, which opened at $5.70 (+52%).
10/29/11 new stop loss on 2013 calls at $23.90
10/29/11 prepare to exit remainder of 2012 position on Monday @ open
prepare to sell 1/2 (half) of 2013 position on Monday at open
10/17/11 Planned exit, sell 1/2 of 2012 position, bid @ 4.10 (+52.4%)
10/15/11 new stop loss for the 2012 position @ 22.85
10/15/11 Plan to sell 1/2 of 2012 calls on Monday
10/08/11 new stop loss (both positions) at $21.40

Current Target: 2013 call target: 32.50
Play Entered on: 09/26/11
Originally listed in New Plays: 09/24/11


KB Home - KBH - close: 6.71

Comments:
11/26 update: From KBH's intraday high two weeks ago the stock has seen a -15.3% correction lower. Shares are flirting with a breakdown under their 50-dma. If the stock market's decline continues we will probably see KBH test its early November lows (support) near $6.40. I am not suggesting new positions at this time. If Europe gets worse then our exports to Europe will slow down and that could mean higher unemployment here in the U.S., which means less demand for housing.

Earlier Comments:
KBH can be a volatile stock. There is no need to chase it. If there is a breakout the stock could see a short squeeze. The most recent data listed short interest at 52% of the 65 million-share float.

- Suggested Positions -
(Stock Position)
Oct 19, 2011 - entry price on KBH @ 7.17

- or -

(Option Position)
Oct 19, 2011 - entry price on KBH @ 7.17, option @ 1.25
symbol: KBH1319A10 2013 JAN $10 call - current bid/ask $ 0.83/ 0.94

10/19/11 Trade opens. KBH opens @ 7.17, option @ 1.25
10/18/11 KBH meets our entry requirement with a close above $7.00

Current Target: $9.90
Current Stop loss: 5.95
Play Entered on: 10/19/11
Originally listed on the Watch List: 10/15/11


Kraft Foods Inc. - KFT - close: 34.32

Comments:
11/26 update: KFT spent the last week churning sideways in a 65-cent range. Unfortunately it was under technical resistance at its 50 and 100-dma. I am not convinced the sell-off in the market and KFT is over yet. Thus I am not suggesting new bullish positions at this time. KFT doesn't move very fast so it's unlikely to get away from us.

Earlier Comments:
NOTE: KFT is a very slow moving stock. It will take months to make any progress. Once a position is open readers may want to turn these into calendar spreads (a.k.a. vertical spreads).

- Suggested (SMALL) Positions -
Sep 22, 2011 - entry price on KFT @ 32.71, option @ 2.35
symbol: KFT1319A35 2013 JAN $35 call - current bid/ask $ 2.70/ 2.84

11/12/11 new stop loss @ 32.40

Current Target: $38.00
Current Stop loss: 32.40
Play Entered on: 09/22/11
Originally listed on the Watch List: 09/17/11


Kimberly-Clark Corp. - KMB - close: 68.69

Comments:
11/26 update: KMB was not immune to the market's recent weakness. Shares broke down to new six-week lows. The stock should find significant support in the $68-66 zone so we could see an entry point soon. Although in this market I would prefer to buy a bounce instead of buying the dip. It may be another week or two before we see a new entry point in KMB.

Earlier Comments:
KMB does have long-term resistance in the $73.00-73.50 area. Therefore we will only start with small (half-sized) positions. When KMB closes above $74.00 we'll reconsider adding new positions to this play. Our long-term target is $79.75 but we'll readjust it as the play progresses. The Point & Figure chart is currently suggesting a long-term target of $98.00. NOTE: KMB does not move very fast. Investors may want to try and maximize their returns by changing this into a vertical (a.k.a. calendar) spread.

- Suggested Positions -
(half sized position)
Nov 07, 2011 - entry price on KMB @ 69.50, option @ 2.05
symbol: KMB1319A75 2013 JAN $75 call - current bid/ask $ 2.00/ 2.25

Current Target: $79.75
Current Stop loss: 65.75
Play Entered on: 11/07/11
Originally listed in the New Plays 11/05/11


Limited Brands, Inc. - LTD - close: 38.33

Comments:
11/26 update: Ouch! The two-week sell-off in LTD has been painful with a -13.3% correction. The stock is nearing potential support near $38.00 and its simple 200-dma. We have a stop loss at $37.90 should LTD break this level. I would prefer to buy a bounce instead of a dip. Readers may want to wait for a close over $39.00 or $40.00 before considering new positions.

Earlier Comments:
The plan was to keep our position size small

- Suggested (SMALL) Positions -
Oct 25, 2011 - entry price on LTD @ 43.70, option @ 4.25
symbol: LTD1319A50 2013 JAN $50 call - current bid/ask $ 2.15/ 2.35

11/16/11 LTD reports earnings one cent above estimates
10/25/11 trade begins when LTD opens at $43.70
10/24/11 closed at $43.79, meets our entry point requirement
10/15/11 New Strategy: buy a close over $43.50, stop 37.90
10/01/11 adjusted stop loss to $32.90, if triggered
09/24/11 new trigger @ 35.50, updated 2013 option strike
09/17/11 new trigger @ 37.50, updated option strikes.

Current Target: $54.00
Current Stop loss: 37.90
Play Entered on: 10/25/11
Originally listed on the Watch List: 08/27/11


QUALCOMM Inc. - QCOM - close: 51.86

Comments:
11/26 update: QCOM also experienced a -10% correction in the last several days. I suspect the big drop on Wednesday was a reflection of light volume due to the holiday. Our trigger to buy calls was hit at $52.50 on November 23rd. I would still consider new positions now but you definitely have a choice depending on your risk tolerance. You could wait and hope to get a better entry point on a dip near $50.00. Or you could wait for a close back above potential resistance at its simple 200-dma near $54.00.

Currently we have a stop loss at $49.40. Our long-term target is $74.50.

Earlier Comments:
QCOM recently reported much better than expected earnings, beating both the top and bottom line estimates. Management raised their guidance looking ahead. The company is reaping the benefits from the booming smartphone market. The CEO said there is over 300 new devices in development that will use QCOM electronics inside. That sounds like there is a lot of potential for growth.

- Suggested (SMALL) Positions -
NOV 23, 2011 - entry price on QCOM @ 52.50, option @ 4.90
symbol: QCOM1319A60 2013 JAN $60 call - current bid/ask $ 4.65/ 4.75

11/23/11 QCOM hits our trigger @ 52.50

Chart of QCOM:

Current Target: $74.50
Current Stop loss: 49.40
Play Entered on: 11/23/11
Originally listed on the Watch List: 11/05/11


Reynolds American Inc. - RAI - close: 39.99

Comments:
11/26 update: Tobacco and cigarette stocks have been historically seen as safe haven trades. They have a recession-proof product and RAI sports a strong dividend. The stock has definitely earned its safe-haven status this past week. Shares merely consolidated sideways near multi-year highs while the rest of the market dropped.

I would still consider new positions now or you could wait for a new relative high to open positions.

- Suggested Positions -
Nov 18, 2011 - entry price on RAI @ 40.02, option @ 2.00
symbol: RAI1319A42.5 2013 JAN $42.50 call - current bid/ask $ 1.75/ 2.15

Current Target: $49.00
Current Stop loss: 37.85
Play Entered on: 11/18/11
Originally listed on the Watch List: 10/22/11


Red Hat Inc. - RHT - close: 44.93

Comments:
11/26 update: The profit taking in RHT has been pretty sharp with a -15% correction in less than two weeks. The breakdown under what should have been support near $48.00 is bearish. Now shares are testing round-number support near $45.00. The intraday low on Friday was $44.89 and our stop loss is at $44.75. If the market's sell-off continues on Monday we will likely see RHT hit our stop loss. On the other hand this dip to support could offer an entry point if RHT bounces. Readers may want to wait for a close over $46.00 or its 50-dma before considering new positions.

FYI: Technical traders will note that the pull back has stalled at the 38.2% Fibonacci retracement of the August-November rally. It's also a 50% retracement of the October-November move higher.

- Suggested Positions -
Nov 01, 2011 - entry price on RHT @ 47.70, option @ 4.75
symbol: RHT1319A60 2013 JAN $60 call - current bid/ask $ 3.20/ 4.40

11/12/11 new stop loss @ 44.75

Current Target: $59.75
Current Stop loss: 44.75
Play Entered on: 11/01/11

Originally listed on the Watch List: 10/29/11


Ross Stores Inc. - ROST - close: 85.43

Comments:
11/26 update: Lack of profit taking is a form of relative strength and ROST has been holding up pretty well. Shares have been consolidating sideways near the $85 level and the stock hit its 50-dma on Friday. I will point out that ROST does have a short-term bearish trend of lower highs and lower lows.

I don't see any changes from my prior comments. If you're looking for a new entry point then I would wait for a dip or a bounce into the $84-83 zone before considering new positions.

Earlier Comments:
ROST announced a 2-for-1 stock split when they reported earnings on November 17th. The split is set for Dec. 16th.

- Suggested Positions -
Oct 11, 2011 - entry price on ROST @ 84.36, option @ 5.30
symbol: ROST1319A100 2013 JAN $100 call - current bid/ask $ 4.80/ 5.60

11/17/11 ROST reported earnings that were in-line and announced a 2-for-1 stock split set for Dec. 16th
11/12/11 Cautious investors may want to take profits early. Option has a bid of $6.70 (+26.4%)
11/05/11 new stop loss @ 81.75
10/22/11 new stop loss @ 79.25
10/15/11 adjusted stop loss to $77.00
10/11/11 ROST opened at $84.36
10/10/11 ROST closed above $83, our requirement to open the trade
10/08/11 adjusted option strike to 2013 Jan. $100 call
10/01/11 new strategy: buy a close over $83.00
09/24/11 new trigger at $73.00, stop 69.50
09/17/11 new trigger at $76.50, stop @ 71.40, new strikes.

Current Target: $99.00
Current Stop loss: 81.75
Play Entered on: 10/11/11
Originally listed on the Watch List: 09/10/11


U.S. Steel Corp. - X - close: 22.27

Comments:
11/26 update: Investors are once again growing worried that the situation in Europe with its debt troubles and widespread austerity packages is going to slow down growth. Plus the economic situation in China might be worse than previously expected. If the global economy slows down then demand for steel will drop. This attitude has taken its toll on shares of X. The sell-off has been brutal with a -18% drop in less than two weeks. Shares broke down under what should have been support in the $25-24 zone.

More conservative traders may want to exit early now. We're going to hold on since X is now oversold and due for a bounce. We are leaving our stop loss at $21.40.

Earlier Comments:
This is an aggressive trade because X can be volatile and we have a wide stop loss. That's why we're using small positions to limit our risk.

- Suggested (SMALL) Positions -
Nov 09, 2011 - entry price on X @ 25.50, option @ 5.00
symbol: X1319A30 2013 JAN $30 call - current bid/ask $ 3.50/ 3.70

11/09/11 Trade opened at $25.50 (small positions)

Current Target: $37.50
Current Stop loss: 21.40
Play Entered on: 11/09/11
Originally listed on the Watch List: 11/05/11


CLOSED Plays


EMC Corp. - EMC - close: 21.88

Comments:
11/26 update: Tech stocks have been underperforming the last several days. EMC has crashed from above $24 to under $22 in the last six sessions. Our stop loss was hit at $22.20 on November 23rd. Our remaining position, the 2013 Jan $25 call, was trading at $2.16 (bid).

Earlier Comments:
The plan was to use small positions to limit our risk.

- Suggested (SMALL) Positions -
(Remaining positions)
Aug 18, 2011 - entry price on EMC @ 20.25, option @ 1.80
symbol: EMC1319A25 2013 JAN $25 call - exit $2.16 (+20.0%)

11/23/11 stopped out at $22.20.
11/19/11 EMC has fallen back to support near $23.00 and its 50-dma. A bounce here could be a new bullish entry point.
10/31/11 scheduled exit. EMC gapped down at $24.47. The 2012 $20 call opened at $4.65 (+111.3%). We also had plans to sell half of our 2013 $25 calls, which opened at $3.02 (+67.7%)
10/29/11 Plan to sell the rest of our 2012 Jan $20 calls on Monday at the open. Also plan to sell half of our 2013 Jan $25 calls on Monday at the open.
10/29/11 new stop loss @ 22.20
10/22/11 new stop loss @ 21.40
10/17/11 sold half of 2012 calls @ open, bid $3.55 (+61.3%)
10/15/11 Plan to Sell Half of our 2012 calls ASAP
10/08/11 new stop loss @ 19.85
09/24 new stop loss @ 19.49
09/17 new stop loss @ 19.80

Chart of EMC:

Current Target: final target for 2013 calls @ $27.50
Current Stop loss: 22.20
Play Entered on: 08/18/11
Originally listed on the Watch List: 07/23/11


Hershey Co. - HSY - close: 55.36

Comments:
11/26 update: HSY has been a disappointment. The $60.00 level looked like significant resistance so we waited for HSY to close above $60.25. Yet there was no follow through higher. HSY struggled with the $60.50-61.00 zone and eventually plunged following its earnings report on Oct. 27th. Shares have been in a long, slow decline every since with a pattern of lower lows and lower highs since the oversold bounce failed at its 50-dma in early November. HSY hit our stop loss at $55.40 on November 22nd with the bid on our 2013 Jan $65 call at $1.65.

- Suggested (SMALL) Positions -
Oct 19, 2011 - entry price on HSY @ 60.57, option @ 3.90
symbol: HSY1319A65 2013 JAN $65 call - exit $1.70 (-56.4%)

11/22/11 stopped out at $55.40, option bid @ 1.70.
This is an estimate. The option did not trade at that time.
10/29/11 adjust stop loss to $55.40, under 200-dma
10/27/11 reports earnings that are in-line with estimates
10/19/11 HSY opens at $60.57, option opens @ 3.90
10/18/11 HSY meets our entry requirement with a close over $60.25

Chart of HSY:

Current Target: $67.00 & 74.00
Current Stop loss: 55.40
Play Entered on: 10/19/11
Originally listed on the Watch List: 09/17/11


Intel Corp. - INTC - close: 22.73

Comments:
11/26 update: INTC has reversed from 3-year highs above $25 with -11% correction lower. Prior resistance at $24 failed to offer much support. Shares hit our stop loss at $22.90 on November 23rd.

If INTC can hold support near $22.00 I would be tempted to buy calls on a bounce with a tight stop loss under $22.00.

- Suggested Positions -
Nov 16, 2011 - entry price on INTC @ 25.13, option @ 1.08
symbol: INTC1319A30 2013 JAN $30 call - exit $0.68 (-37.0%)

- or -

Nov 16, 2011 - entry price on INTC @ 25.13, option @ 2.00
symbol: INTC1418A30 2014 JAN $30 call - exit $1.35 (-32.5%)

Chart of INTC:

Current Target: $29.75
Current Stop loss: 22.90
Play Entered on: 11/16/11
Originally listed on the Watch List: 11/12/11


JP Morgan Chase - JPM - close: 28.48

Comments:
11/26 update: Constant worries over Europe and how much exposure the major U.S. banks might have to the toxic debt that's drowning the EU has pulled the financials lower. Shares of JPM broke down under the $30.00 level and hit our stop loss at $29.90 on Nov. 21st. The stock is now testing its October lows near $28.00. More aggressive traders may want to consider buying calls on a bounce from this level ($28) with a tight stop loss.

Earlier Comments:
I have been suggesting that readers take a very cautious approach to position size. Start small to limit our risk.

- Suggested Positions -
Nov 01, 2011 - entry price on JPM @ 32.47, option @ 2.38
symbol: JPM1319A40 2013 JAN $40 call - exit @ $1.85 (-22.2%)

11/21/11 stopped out @ 29.90
11/19/11 If we get stopped out, consider buying calls on a dip near $28.00
11/12/11 remember to keep position size small.
11/05/11 new stop loss at $29.90

Chart of JPM:

Current Target: $46
Current Stop loss: 29.90
Play Entered on: 11/01/11
Originally listed on the Watch List: 10/29/11