Editor's Note:

The U.S. market continues to rally into 2012. Tonight we are updating several stop losses following the market's recent gains.

You'll also noticed that MRVL and RDC are new stocks on the active trade list.


Closed Plays


None. No closed plays this week.


Play Updates


Allergan Inc. - AGN - close: 86.08

Comments:
02/04/12 update: We may want t re-think our AGN position. The company reported earnings that were in-line with expectations on Feb. 2nd. Yet management guided lower for 2012. The stock sold off on Thursday in reaction to this news. Traders bought the dip near AGN's 100-dma. Now the $86.50-87.00 zone is new overhead resistance. More conservative traders may want to consider an early exit now. 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 $ 1.90/ 2.50

02/02/12 earnings in-line but guided lower for 2012
01/28/12 earnings are due on Feb. 2nd. Readers might want to raise their stop or consider some sort of hedge prior to the report.
12/24/11 new stop loss @ 81.60
12/10/11 spreads on our 2013 calls are getting wider!
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: 81.60
Play Entered on: 10/17/11
Originally listed on the Watch List: 09/24/11


Bank of America - BAC - close: 7.84

Comments:
02/04/12 update: Financials were strong performers last week. BAC gained +7.5% for the week and broke through resistance near the $7.50 level. Shares are now approaching resistance near $8.00 and its simple and exponential 200-dma. Odds are growing that BAC could see some profit taking but the new trend certainly seems to be higher.

I am not suggesting new positions at this time.

- Suggested Positions -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.57/ 0.58
(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 $ 0.57/ 0.58
(no stop loss on this position)

01/28/12 financials seem a bit overbought here.
01/21/12 2012 Jan. $10 calls have expired (-100%)
01/14/12 earnings are due out on Jan. 19th
01/07/12 BAC broke out past its 50-dma and the $6.00 this past week
12/17/11 expect BAC to retest the $5.10-5.00 zone.
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.

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: 32.26

Comments:
02/04/12 update: I am growing more concerned over BMY. The stock market rallied to new highs and BMY failed to participate. Shares are chopping sideways in the $32.00-32.50 zone. More conservative traders may want to exit early here. I am not suggesting new positions at this time.

We have a stop loss at $31.45 but more aggressive traders might want to put their stop under the $30.00 mark or the simple 200-dma.

- Suggested Positions -
SEP 19, 2011 - entry price on BMY @ 30.53, option @ 1.20
symbol: BMY1319A35 2013 JAN $35 call - current bid/ask $ 1.01/ 1.05

01/03/12 planned exit, sell half, bid on 2013 Jan $35 call @ 2.58 (+115%)
12/31/11 new stop loss @ 31.45.
12/31/11 Prepare to lock in gains and sell half of our position on Tuesday morning (Jan 3rd, 2012). The 2013 Jan $35 call currently has a bid at $2.60 (a +116.6% gain).
12/16/11 BMY hit our previous exit target at $34.50, more conservative traders may want to take profits now and exit early.
12/10/11 adjust exit target to $37.50
12/03/11 reduce our two exit targets to just one at $34.50
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: $37.50
Current Stop loss: 31.45
Play Entered on: 09/19/11
Originally listed on the Watch List: 09/10/11


Beazer Homes - BZH - close: 3.60

Comments:
02/04/12 update: It was a strong week for BZH with a +10.7% gain. The company reported earnings on Feb. 2nd and beat estimates by a penny. Revenues surged +73% compared to a year ago but still missed estimates. The company's backlog of homes to build rose from 787 homes to 1,307 compared to a year ago.

BZH has surged past resistance in the $3.40-3.50 zone but I am concerned the stock is short-term overbought. We should expect some profit taking. However, the trend is definitely higher. I am raising our stop loss to $2.60.

I am not suggesting new positions at this time.

- 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 $ 1.60/ 1.75

02/04/12 new stop loss @ 2.60
01/14/12 new stop loss @ 2.30, adjust exit target to $4.75
01/07/12 new stop loss @ 2.15
12/24/11 new stop loss @ 1.95
12/03/11 new stop loss @ 1.85
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: $4.75
Current Stop loss: 2.60
Play Entered on: 10/28/11
Originally listed on the Watch List: 10/22/11


Cisco Systems - CSCO - close: 20.09

Comments:
02/04/12 update: CSCO has finally broken out above round-number, psychological resistance at the $20.00 level. Technically this looks like a potential entry point but I wouldn't buy it now. CSCO is due to report earnings on Feb. 8th after the closing bell. Analysts are expecting a profit of 43 cents a share.

We are raising our stop loss up to $17.75.

- Suggested Positions -
OCT 28, 2011 - entry price on CSCO @ 18.28, option @ 1.68
symbol: CSCO1319A20 2013 JAN $20 call - current bid/ask $2.19/2.21

02/04/12 new stop loss @ 17.75
01/21/12 new stop loss @ 17.20
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: 17.75
Play Entered on: 10/28/11
Originally listed on the Watch List: 10/08/11


CSX Corp. - CSX - close: 23.17

Comments:
02/04/12 update: CSX is still lagging behind the market indices and its peers in the railroad industry but the overall pattern still looks bullish. The stock has been consolidating sideways the last few days. The DJUSRR railroad index is about to breakout past major resistance to new highs. If this occurs it should help boost shares of CSX.

We are moving our stop loss higher to $20.75.

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 $ 1.55/ 1.60

- or -

NOV 14, 2011 - entry price on CSX @ 22.59, option @ 3.30
symbol: CSX1418A25 2014 JAN $25 call - current bid/ask $ 2.64/ 2.85

02/04/12 new stop loss @ 20.75
01/28/12 adjust stop loss to $19.95
12/17/11 CSX is starting to bounce from support near $20. This can be used as a new entry point
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: 20.75
Play Entered on: 11/14/11
Originally listed in the New Plays 11/12/11


The Dow Chemical Co. - DOW - close: 34.18

Comments:
02/04/12 update: DOW has been struggling to get past resistance near the $34.00 level the past several days. The market's big rally on Friday helped boost DOW past this level. Shares remain arguably overbought here. I am surprised that DOW did not have a really bad week. The company reported earnings on Feb. 2nd and missed estimates by five cents and missed the revenue estimate as well. Management was cautious on the first quarter. Yet the stock refused to sell-off.

I am not suggesting new positions at this time. DOW will see some profit taking eventually.

Earlier Comments:
The Point & Figure chart for DOW is bullish with a $46 target.

- Suggested Positions -
Jan 09, 2012 - entry price on DOW @ 30.46, option @ 2.40
symbol: DOW1319A35 2013 JAN $35 call - current bid/ask $ 3.35/ 3.45

- or -

Jan 09, 2012 - entry price on DOW @ 30.46, option @ 2.54
symbol: DOW1418A40 2014 JAN $40 call - current bid/ask $ 3.00/ 3.20

02/02/12 missed earnings estimates by five cents
01/28/12 Readers will want to seriously consider taking profits right now, prior to the earnings report on Feb. 2nd.
01/28/12 new stop loss @ 29.75
01/21/12 new stop loss @ 28.40
01/14/12 new stop loss @ 27.75
01/06/12 DOW meets our entry requirement with a close over $30.25. Plan is to buy calls on Monday morning (01/09/12).

Current Target: $39.50
Current Stop loss: 29.75
Play Entered on: 01/09/12

Originally listed on the Watch List: 12/31/11


Enterprise Products Partners - EPD - close: 49.95

Comments:
02/04/12 update: It was another volatile week for EPD but this time shares rallied to new record highs. The company blew away earnings estimates when it beat by 27 cents on Feb. 1st. Revenues were up more than +20%. Shares seem to be struggling with a little profit taking near round-number resistance at the $50.00 level. I would not be surprised to see a pull back toward $48 or the rising 30-dma. I am raising our stop loss to $44.75.

Earlier Comments:
Our long-term target is $59.00 but bear in mind that EPD doesn't normally move very fast. FYI: The Point & Figure chart for EPD is bullish with a $69 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 $ 2.50/ 2.70

02/04/12 new stop loss @ 44.75
01/28/12 new stop loss @ 43.75
01/21/12 new stop loss @ 43.40
01/06/12 EPD (and PAA) both see sharp intraday dips (-5% or more)
12/31/11 2013 Jan $50 call spreads have improved significant.
12/24/11 spreads on the 2013 Jan $50 calls have widened significantly.
12/08/11 EPD gapped down on news of a 9 million share secondary price at $44.68.

Current Target: $59.00
Current Stop loss: 44.75
Play Entered on: 11/21/11
Originally listed in the New Plays 11/19/11


FedEx Corp. - FDX - close: 94.54

Comments:
02/04/12 update: It was another bullish week for FDX with shares breaking through resistance in the $93.50-94.00 zone. The stock is up five weeks in a row. Shares look free to run toward the next area of resistance at $96.00, $98.00 and the $100 mark. I am not suggesting new positions at this time. We will adjust our stop loss up to $85.75. More conservative investors might want to raise their stop even higher. FYI: The Point & Figure chart for FDX is bullish with a $101 target.

- Suggested Positions -
Jan 11, 2011 - entry price on FDX @ 88.08, option @ 5.52
symbol: FDX1319A100 2013 JAN $100 call - current bid/ask $ 7.07/ 7.20

02/04/12 new stop loss @ 85.75
01/28/12 new stop loss @ 84.75
01/21/12 new stop loss @ 83.40

Current Target: $98.00
Current Stop loss: 85.75
Play Entered on: 01/11/12
Originally listed on the Watch List: 12/31/11


Hewlett-Packard - HPQ - close: 29.00

Comments:
02/04/12 update: HPQ started the week on a sour note with a gap down toward $27.25 but quickly rebounded. The stock eventually climbed to new five-month highs. The stock looks bullish but I am hesitant to buy calls here with what could be significant resistance in the $30 area with its simple and exponential 200-dma.

We are moving our stop loss to $25.75. FYI: Earnings are coming up on Feb. 22nd.

The P&F chart is bullish with a long-term $44 target.

- 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 $ 5.80/ 5.90
Stop Loss @ 24.75

02/04/12 new stop loss @ 25.75
12/03/11 new stop loss @ 24.75
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


Kraft Foods Inc. - KFT - close: 38.88

Comments:
02/04/12 update: KFT is slowly drifting higher. Shares closed near new multi-year highs but you could argue the stock is essentially still in the $38.00-38.80 trading range. I am raising our stop loss to $35.90. Readers may want to take profits now. The newsletter's exit target is $40.00 but more aggressive investors could aim higher (maybe the $42-44 zone).

Earlier Comments:
The Point & Figure chart is forecasting a long-term target at $49.50. KFT is normally 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 $ 4.75/ 4.90

02/04/12 new stop loss @ 35.90
01/21/12 new stop loss @ 35.40
Readers may want to exit now with the call +102%
12/31/11 Investors may want to take profits now.
12/28/11 begins trading ex-dividend
12/24/11 new stop loss @ 34.25
12/03/11 new stop loss @ 33.85, adjusted exit target to $40.00
11/12/11 new stop loss @ 32.40

Current Target: $40.00
Current Stop loss: 35.90
Play Entered on: 09/22/11
Originally listed on the Watch List: 09/17/11


Kimberly-Clark Corp. - KMB - close: 72.23

Comments:
02/04/12 update: Investors bought the dip near KMB's 100-dma on Monday and the stock was up almost every day this week. Shares are testing short-term resistance near the $72.75 level. A failure here might suggest a deeper correction back toward the 200-dma near $69. I am not suggesting new positions at this time.

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 $109. 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 $ 1.95/ 2.05

12/24/11 New stops loss @ 68.25. KMB has broken out to all-time highs.

Current Target: $79.75
Current Stop loss: 68.25
Play Entered on: 11/07/11
Originally listed in the New Plays 11/05/11


LDK Solar Co. Ltd. - LDK - close: 5.66

Comments:
02/04/12 update: Wow! It was a big week for LDK. Shares gained +15% and closed at new four-month highs. I would not buy it here. The rally stopped right at resistance near the simple and exponential 200-dma(s) on Friday. After such a strong week I would expect some profit taking. I am raising our stop loss to $4.35.

- Suggested Positions -
(buy LDK stock)
Dec 23, 2011 - entry price on LDK @ 5.31

- or -

Dec 23, 2011 - entry price on LDK @ 5.31, option @ 0.89
symbol: LDK1319A5 2013 JAN $5 call - current bid/ask $ 1.01/ 1.13

02/04/12 new stop loss @ 4.35
01/14/12 new stop loss @ 3.90
01/07/12 new stop loss @ 3.60

Current Target: $ 9.00
Current Stop loss: 4.35
Play Entered on: 12/23/11

Originally listed on the Watch List: 12/17/11


Eli Lilly - LLY - close: 39.51

Comments:
02/04/12 update: LLY reported earnings on Jan. 31st. The company beat estimates by seven cents but the post-earnings pop was short-lived. Shares reversed at resistance near $40 and continue to churn sideways. I remain cautious here given LLY's failure to rally with the rest of the market. Readers may want to exit early. I am not suggesting new positions at this time.

- Suggested (SMALL) Positions -
Jan 05, 2012 - entry price on LLY @ 39.50, option @ 1.19
symbol: LLY1319A45 2013 JAN $45 call - current bid/ask $ 1.21/ 1.25

- or -

Jan 05, 2012 - entry price on LLY @ 39.50, option @ 2.75
symbol: LLY1418A45 2014 JAN $45 call - current bid/ask $ 1.65/ 1.96

01/28/12 new stop loss @ 37.75

Current Target: $44.75 & 48.00
Current Stop loss: 37.40
Play Entered on: 01/05/12

Originally listed on the Watch List: 12/17/11


Lexmark Intl. Inc. - LXK - close: 36.94

Comments:
02/04/12 update: Whoa! Looks like we need to buckle our seat belts. It was a very volatile week for LXK. The company reported earnings on Jan. 31st and beat estimates by 9 cents. Management also guided higher for the first quarter. The stock reacted by spiking higher toward $37.50, then immediately reversing to fall to $33 only to bounce again. Shares were showing relative strength on Friday with a +3.8% gain.

I am not suggesting new positions at this time. We are raising our stop loss up to $32.75.

Earlier Comments:
There is some resistance near $40 but our long-term target is $44.00. FYI: The Point & Figure chart on LXK is bullish with a $51 target.

- Suggested Positions -
Jan 19, 2012 - entry price on LXK @ 35.46, option @ 3.40
symbol: LXK1319A40 2013 JAN $40 call - current bid/ask $ 3.50/ 3.80

02/04/12 new stop loss @ 32.75

Current Target: $44.00
Current Stop loss: 32.75
Play Entered on: 01/19/12
Originally listed on the Watch List: 01/07/12


3M Co. - MMM - close: 87.73

Comments:
02/04/12 update: MMM continues to drift higher but I am disappointed the stock didn't make more progress given the stock market's gains last week. MMM has been struggling with resistance in the $88 level and still can't get past it. Don't be surprised if MMM sees profit taking back toward the $86-85 area. I am not suggesting new positions at this time.

Please note our new stop loss at $81.75.

- Suggested Positions -
Jan 19, 2012 - entry price on MMM @ 85.10, option @ 3.30
symbol: MMM1319A95 2013 JAN $95 call - current bid/ask $ 3.45/ 3.55

02/04/12 new stop loss @ 81.75

Current Target: $97.00
Current Stop loss: 81.75
Play Entered on: 01/19/12
Originally listed on the Watch List: 12/03/11


Marvell Technology - MRVL - close: 16.64

Comments:
02/04/12 update: MRVL has made the jump from our watch list to our play list. The stock climbed +5.3% last week and broke out past resistance to new multi-month highs. Our trigger to open positions as a close over $16.50, which occurred on Feb. 2nd (MRVL closed at $16.51). Our trade opened on Friday morning with the gap higher at $16.74. If you're looking for new positions consider waiting for a new dip and buy a bounce near the $16.00 level.

Our target is $21.75. FYI: The Point & Figure chart is bullish with a $21 target. Meanwhile MRVL is due to report earnings on Feb. 23rd.

- Suggested Positions -
Feb 03, 2012 - entry price on MRVL @ 16.74, option @ 2.14
symbol:MRVL1319A17.5 2013 JAN $17.50 call - current bid/ask $ 2.10/ 2.15

Chart of MRVL:

Current Target: $21.75
Current Stop loss: 15.20
Play Entered on: 02/03/12

Originally listed on the Watch List: 01/28/12


Nike Inc. - NKE - close: 103.50

Comments:
02/04/12 update: NKE rallied to new all-time highs near $105 early last week. Shares have started to correct a little bit. The stock appears to have some short-term support near $101. I would also expect prior resistance near $98 to offer some support. I am not suggesting new positions at this time. We are raising our stop loss to $94.75.

Earlier Comments:
FYI: The Point & Figure chart for NKE is bullish with a $115 target.

NOTE: 2014 calls are available but they are high-dollar options.

- Suggested Positions -
Jan 13, 2012 - entry price on NKE @ 98.39, option @ 4.95
symbol: NKE1319A110 2013 JAN $110 call - current bid/ask $ 6.45/ 6.60

02/04/12 new stop loss @ 94.75

Current Target: $119.00
Current Stop loss: 94.75
Play Entered on: 01/13/12
Originally listed on the Watch List: 12/24/11


ON Semiconductor Corp. - ONNN - close: 9.24

Comments:
02/04/12 update: ONNN has spent the last few days bouncing from the bottom of its two-week trading range and technical support at the 200-dma. Friday's rally looks like a bullish breakout and what could be the beginning of a new leg higher. I do have two concerns. Shares have been struggling with technical resistance at their 300-dma and the stock has not yet escaped the gravitational pull of this moving average. Second, ONNN is due to report earnings on Feb. 8th. I would not launch new positions prior to earnings. I am adjusting our stop loss to $7.90. More conservative traders may want to seriously consider a higher stop loss.

- Suggested (small) Positions -
Jan 19, 2012 - entry price on ONNN @ 8.96, option @ 1.00
symbol:ONNN1319A10 2013 JAN $10 call - current bid/ask $ 1.10/ 1.25

02/04/12 new stop loss @ 7.90

Current Target: $11.45
Current Stop loss: 7.90
Play Entered on: 01/19/12
Originally listed on the Watch List: 12/10/11


Pepsico, Inc. - PEP - close: 66.66

Comments:
02/04/12 update: PEP has bounced back toward resistance near the $67.00 level. Earnings are coming up on February 9th and the results will either push PEP past this level or shares could drop back toward technical support at the rising 50-dma. Speaking of the 50-dma, it's about to cross over the simple 200-dma soon, which is referred to as the "golden cross" since it's normally a bullish development.

I am not suggesting new positions prior to earnings. I am raising our stop loss to $63.75.

- Suggested (SMALL) Positions -
Dec 27, 2011 - entry price on PEP @ 66.47, option @ 2.70
symbol: PEP1319A70 2013 JAN $70 call - current bid/ask $ 1.91/ 1.96

02/04/12 new stop loss at $63.75
01/14/12 PEP and its rivals are all showing weakness. Readers may want to raise their stop loss
12/27/11 launch positions at the open on Tuesday
12/23/11 PEP meets our entry point requirements at the closing bell.

Current Target: $71.75
Current Stop loss: 63.75
Play Entered on: 12/27/11
Originally listed on the Watch List: 12/10/11


QUALCOMM Inc. - QCOM - close: 61.06

Comments:
02/04/12 update: It was an important week for QCOM. The company reported earnings on Feb. 1st and beat both the earnings and revenue estimates. Management guided higher as well. The stock gapped higher and broke out past major resistance near the $60 level. Shares are trading at ten-year highs.

I am raising our stop loss to $53.75. More conservative traders may want to put their stop closer to $56 or $57 instead.

- Suggested (SMALL) Positions -
NOV 23, 2011 - entry price on QCOM @ 52.50, option @ 4.90
symbol: QCOM1319A60 2013 JAN $60 call - current bid/ask $ 6.75/ 6.85

02/04/12 new stop loss @ 53.75
01/07/12 new stop loss @ 51.45. Investors may want to exit early. The worry of potential accounting risks have cast a shadow over QCOM.
11/23/11 QCOM hits our trigger @ 52.50

Current Target: $74.50
Current Stop loss: 53.75
Play Entered on: 11/23/11
Originally listed on the Watch List: 11/05/11


Reynolds American Inc. - RAI - close: 39.75

Comments:
02/04/12 update: RAI and most of the tobacco-related stocks have continued to underperform the market in January. It does look like RAI may have found a short-term bottom near $39 this past week. Unfortunately with shares trading under $40 and their 50-dma this stock's posture is still bearish. Whether or not RAI accelerates lower or reverses higher is going to depend on earnings. The company reports on Feb 8th, before the opening bell. Analysts are expecting 68 cents a share. I am not suggesting new positions at this time.

- 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 $ 1.05/ 1.15

01/28/12 RAI and the rest of the tobacco stocks are underperforming. Readers might want to exit early now given RAI's relative weakness.

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


Rowan Companies - RDC - close: 36.61

Comments:
02/04/12 update: RDC is a new active trade that made the leap from our watch list to play list. Shares broke through major resistance and hit our trigger to open positions when it closed over $36.50. Our entry point was Friday morning at $37.54. At this point I would look for a dip back toward the $35.50-35.00 zone before considering new positions.

Our long-term target is $44.50. FYI: RDC is due to report earnings on Feb. 28th. (2014 calls are also available)

- Suggested Positions -
Feb 03, 2012 - entry price on RDC @ 37.54, option @ 4.30
symbol: RDC1319A40 2013 JAN $40 call - current bid/ask $ 3.80/ 4.20

Chart of RDC:

Current Target: $44.50
Current Stop loss: 33.45
Play Entered on: 02/03/12
Originally listed on the Watch List: 01/28/12


Starbucks Corp. - SBUX - close: 48.32

Comments:
02/04/12 update: SBUX has spent the last couple of weeks quietly consolidating sideways. Shares are still arguably overbought. I would expect a correction toward $45 or the rising 50-dma eventually. I'm not suggesting new positions at this time.

FYI: The Point & Figure chart for PEP is bullish with a long-term $75 target.

NOTE: 2014 calls are also available.

- Suggested (SMALL) Positions -
Dec 27, 2011 - entry price on SBUX @ 45.40, option @ 4.00
symbol: SBUX1319A50 2013 JAN $50 call - current bid/ask $ 4.20/ 4.35

01/28/12 new stop loss at $42.40
12/27/11 launch positions at the open on Tuesday

Current Target: $55.00
Current Stop loss: 42.40
Play Entered on: 12/27/11
Originally listed on the Watch List: 12/10/11


Teva Pharmaceuticals - TEVA - close: 45.71

Comments:
02/04/12 update: TEVA briefly traded to new six-month highs on Wednesday. Shares seem to be struggling with resistance in the $46.00-46.20 area. Earnings are coming up in less than two weeks on Feb. 15th. I am not suggesting new positions prior to earnings. We will raise our stop loss up to $41.40.

FYI: The Point & Figure chart for TEVA is bullish with a $57 target.

- Suggested Positions -
Jan 19, 2012 - entry price on TEVA @ 45.40, option @ 2.49
symbol: TEVA1319A50 2013 JAN $50 call - current bid/ask $ 2.14/ 2.20

- or -

Jan 19, 2012 - entry price on TEVA @ 45.40, option @ 4.40
symbol: TEVA1418A50 2014 JAN $50 call - current bid/ask $ 4.05/ 4.35

02/04/12 new stop loss @ 41.40

Current Target: $54.00
Current Stop loss: 41.40
Play Entered on: 01/19/12

Originally listed on the Watch List: 01/14/12


Verizon Communications - VZ - close: 37.84

Comments:
02/04/12 update: Traders bought the dip on Monday with VZ bouncing near $37.00 and its 200-dma. This is also near a trend line of higher lows. Unfortunately VZ has been struggling and remains under its 50-dma. I am not suggesting new positions at this time. We are leaving our stop loss under what should be significant support near $37 and several key moving averages.

- Suggested Positions -
Dec 23, 2011 - entry price on VZ @ 39.42, option @ 2.17
symbol: VZ1319A40 2013 JAN $40 call - current bid/ask $ 1.12/ 1.14

- or -

Dec 23, 2011 - entry price on VZ @ 39.42, option @ 2.87
symbol: VZ1418A40 2014 JAN $40 call - current bid/ask $ 1.88/ 1.97

01/28/12 readers may want to consider an early exit immediately
01/24/12 VZ reported earnings and missed by a penny. Shares broke down on this news.

Current Target: $45.00
Current Stop loss: 36.75
Play Entered on: 12/23/11

Originally listed on the Watch List: 12/17/11


U.S. Steel Corp. - X - close: 32.25

Comments:
02/04/12 update: Shares of X are up about +8% for the week. The company reported earnings on Jan. 31st and missed estimates by 30 cents but revenues beat estimates. Investors chose not to punish the stock on this earnings miss. Shares have rallied to new five-month highs. If you look at a chart you'll note that X has closed right under technical resistance at its simple and exponential 200-dma(s). I would expect a correction back toward $30.00 soon. Nimble traders could buy a bounce off the $30 level.

I am raising our stop loss to $26.40.

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 $ 6.85/ 7.00

02/04/12 new stop loss @ 26.40
01/28/12 new stop loss @ 24.75
01/14/12 new stop loss @ 23.60
12/03/11 new stop loss at $21.90
11/09/11 Trade opened at $25.50 (small positions)

Current Target: $37.50
Current Stop loss: 26.40
Play Entered on: 11/09/11
Originally listed on the Watch List: 11/05/11


Exxon Mobil - XOM - close: 84.92

Comments:
02/04/12 update: XOM reported earnings early last week. Profits were in-line with estimates while revenues came out ahead of expectations. Traders decided to sell the news and shares fell toward their 50-dma but didn't quite get there before bouncing on Friday.

I am not convinced the correction is over. If the market sees any profit taking then we can look for XOM to drop toward what should be support near $82.00. I am not suggesting new positions at this time.

- Suggested Positions -
Dec 22, 2011 - entry price on XOM @ 83.56, option @ 4.63
symbol: XOM1319A90 2013 JAN $90 call - current bid/ask $ 3.60/ 3.75

- or -

Dec 22, 2011 - entry price on XOM @ 83.56, option @ 6.25
symbol: XOM1418A95 2014 JAN $95 call - current bid/ask $ 4.65/ 4.85

01/28/12 readers may want to raise their stop prior to earnings
01/21/12 new stop loss at $79.40
01/07/12 new stop loss @ 77.90

Current Target: $94.00
Current Stop loss: 79.40
Play Entered on: 12/22/11

Originally listed on the Watch List: 12/03/11