Editor's Note:

Stocks suffered one of their worst weekly declines of the year. The market is oversold and due for a bounce but it can always get more oversold before it finally rebounds. I don't see any changes from last week's comments. Readers may want to scale back the size of their positions or raise their stop losses or possibly exit early.

We did take profits early in both EBAY and KO last Monday. See their individual updates below.


Closed Plays


DOW, LVS, and MMM were stopped out.


Play Updates


Archer-Daniels-Midland Company - ADM - close: 31.82

Comments:
05/19/12 update: It was a rough week for the stock market and shares of ADM lost about a dollar for the week. Shares have closed under what should have been short-term support near $32.00. This is bearish and would suggest a likely correction toward the next significant support near $30.00. If ADM did break $30 it would break the longer-term bullish trend of higher lows.

I am not suggesting new positions at this time.

Earlier Comments:
We want to keep our new position size small to limit our exposure here. Start with half your normal position size or less.

- Suggested (small) Positions -
Feb 21, 2011 - entry price on ADM @ 31.31, option @ 1.74
symbol: ADM1319A35 2013 JAN $35 call - current bid/ask $ 1.76/ 1.83

05/12/12 new stop loss @ 29.45
05/01/12 ADM beat estimates by 18 cents.
04/28/12 ADM is scheduled to report earnings on May 1st.
02/21/12 trade opened on Tuesday @ 31.31
02/18/12 start with small positions to limit our exposure.
02/17/12 ADM meets our entry point requirements with a close over $31.25. Open positions the next day (Feb. 21st).
02/11/12 adjust entry trigger to wait for close over $31.25
FYI: 2014 calls are also available.

Current Target: $37.75
Current Stop loss: 29.45
Play Entered on: 02/21/12
Originally listed on the Watch List: 01/28/12


Allergan Inc. - AGN - close: 88.78

Comments:
05/19/12 update: The correction in AGN picked up speed this past week, especially on Thursday with the breakdown below its 100-dma and the $90.00 level. Shares closed the week on its 150-dma. I want to warn you. The $90 level should have been significant support even though we suspected AGN might dip into the $88-87 area (mentioned in last week's update). At this point I would expect the correction to pull AGN down toward its simple 200-dma near $85 or even to the $85 level. If the stock drops any further it would hit our stop loss at $84.50. 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 $ 2.40/ 2.95

05/02/12 AGN missed earnings estimates by a penny, guided lower
04/28/12 Exit strategy adjustment! We are not selling half at $99.00. Instead we'll aim for $109.00 to exit positions. See tonight's note for details on alternative exits
03/31/12 adjusted exit strategy. Sell half at $99.00 and sell the remainder at $109.00
03/10/12 new stop loss at $84.50
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:$109.00
Current Stop loss: 84.50
Play Entered on: 10/17/11
Originally listed on the Watch List: 09/24/11


American Intl. Group - AIG - close: 28.33

Comments:
05/19/12 update: Shares of AIG plunged -10.7% last week. The sell-off in financials is really starting to weigh on the markets. AIG plunged through the $30 level on Thursday but didn't hit our buy-the-dip trigger at $28.25 until Friday afternoon.

After reading some of the headlines regarding Europe on Friday and this weekend, I am not convinced the selling in the financials is over. Readers may want to wait for a dip into the $27.00 area before considering new bullish positions or even a drop toward potential support at the simple 200-dma near $26.00.

Our plan was to keep our initial position size small to limit our risk.

- Suggested Positions - (small positions @ first)
May 18, 2012 - entry price on AIG @ 28.25, option @ 3.40
symbol: AIG1319A30 2013 JAN $30 call - current bid/ask $ 3.35/ 3.45

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 3.90/ 4.20

05/18/12 triggered at $28.25
05/05/12 The U.S. government is planning to sell 164 million shares at $30.50 and AIG will probably gap down on this news.
Move the trigger down to $28.25, and move the stop loss to $25.75.
04/28/12 adjust buy-the-dip trigger to $30.00 and stop to $27.40

Chart of AIG:

Current Target:$ 39.00
Current Stop loss: 25.75
Play Entered on: 05/18/12
Originally listed on the Watch List: 04/07/12


Bank of America - BAC - close: 7.02

Comments:
05/19/12 update: The correction in BAC is now about eight weeks old and the stock has pulled back to the 61.8% Fibonacci retracement of its rally off the 2011 lows. Shares of BAC are very oversold and way overdue for a bounce. Yet I still expect more weakness in the financials over the next few weeks. I am not suggesting new positions at this time.

Earlier Comments:
Currently we do not have a specific exit target. The plan has been to exit in the $12.00-15.00 zone. We still have months left on our 2013 calls so we're not in a rush to exit just yet. However, more conservative traders may want to take some money off the table early since odds of a pullback are pretty high. You could exit now and buy calls again on a dip.

- Suggested Positions -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.28/ 0.29
(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 $ 0.28/ 0.29
(no stop loss on this position)

05/19/12 BAC has pulled back to the 61.8% retracement
03/17/12 BAC has broken out from its multi-week trading range. Broken resistance near $8.30 should be new support.
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: 32.72

Comments:
05/19/12 update: The headlines for BMY this past week were not very positive. The FDA has approved a generic version of the blood thinner medication Plavix, made by BMY. Of course this is not a surprise. Wall Street knew this patent was going to expire a long time ago. Shares of BMY did not move on this news. Instead the stock has been churning sideways albeit with a slightly bearish tilt of lower highs and lower lows. If the market continues to dip I would expect BMY to fall toward support near $32 and its simple 200-dma. I am not suggesting new positions at this time.

- Suggested Positions -
SEP 19, 2011 - entry price on BMY @ 30.53, option @ 1.20
symbol: BMY1319A35 2013 JAN $35 call - current bid/ask $ 1.06/ 1.10

02/11/12 adjust stop loss to $30.90
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: 30.90
Play Entered on: 09/19/11
Originally listed on the Watch List: 09/10/11


CH Robinson Worldwide - CHRW - close: 58.88

This is a bearish PUT option trade.

Comments:
05/19/12 update: CHRW broke down under support at the $60.00 level. Yet this important move didn't happen until Thursday. I'm actually a little surprised that CHRW did not see bigger declines this past week. The stock is now testing its late April lows near $58.75. More conservative traders may want to wait for CHRW to actually close under $58.75 before initiating new positions.

Our multi-month target is a drop to $50.50. We want to keep our position size small to limit our risk.

- Suggested (small) Positions -
May 07, 2012 - entry price on CHRW @ 60.61, option @ 3.00
symbol:CHRW1319M55 2013 JAN $55 PUT - current bid/ask $ 3.80/ 4.10

Current Target: $50.50
Current Stop loss: 65.25
Play Entered on: 05/07/12
Originally listed in the New Plays 05/05/12


Colgate-Palmolive Co. - CL - close: 98.79

Comments:
05/19/12 update: Even some of the defensive names like CL have started to see some profit taking. Shares actually rallied to new highs earlier in the week and almost hit $102 but the market's sharp sell-off on Thursday and Friday erased the gains. Looking at the daily or weekly chart you could definitely argue that CL could be forming a short-term top.

If CL does see a correction we should expect a pullback into the $96-94 area. More conservative traders holding the 2013 calls might want to just take profits now with an early exit. Our long-term target remains $109.

I am not suggesting new positions at this time.

- Suggested Positions -
MAR 16, 2012 - entry price on CL @ 95.48, option @ 2.92
symbol: CL1319A100 2013 JAN $100 call - current bid/ask $5.20/5.30

- or -

MAR 16, 2012 - entry price on CL @ 95.48, option @ 5.57
symbol: CL1418A100 2014 JAN $100 call - current bid/ask $8.45/9.05

05/19/12 CL looks poised to see a correction toward $96-94
05/05/12 new stop loss @ 91.75
04/26/12 CL reports earnings that are in-line with estimates.
03/31/12 CL is performing well but expect resistance at the $100 level and a possible pullback.

Current Target: $109.00
Current Stop loss: 91.75
Play Entered on: 03/16/12
Originally listed on the Watch List: 03/10/12


eBay Inc. - EBAY - close: 38.36

Comments:
05/19/12 update: EBAY also saw a sharp move lower in the last two sessions. Friday saw a breakdown from its $39.00-42.00 trading range and the stock settled on technical support at the 50-dma. I am not expecting this level to hold. Look for a dip into the $37-36 area.

Last week the plan was to exit our 2013 Jan $40 calls at the open on Monday. We were fortunate with the option bid opening at $4.80.

We still have the 2014 calls. I am not suggesting new positions at this time.

- Suggested Positions -
Mar 12, 2012 - entry price on EBAY @ 36.36, option @ 2.85
symbol: EBAY1319A40 2013 JAN $40 call - exit @ $4.80 (+68.4%)

- or -

Mar 12, 2012 - entry price on EBAY @ 36.36, option @ 5.11
symbol: EBAY1418A40 2014 JAN $40 call - current bid/ask $ 6.95/ 7.25

05/14/12 closed 2013 Jan $40 calls with a bid at $4.80 (+68.4%)
05/12/12 exit the 2013 Jan $40 calls at the open on Monday. Currently the bid is $4.90
04/28/12 EBAY closed near its highs. Readers may want to take profits now. The bid on the 2013 call is at $5.10 (+78.9%), and the bid on the 2014 call is at $7.95 (+55.5%)
04/21/12 new stop loss at $34.90
04/18/12 EBAY reports better than expected earnings and provides stronger 2012 earnings guidance. The stock spikes higher.
04/07/12 EBAY could see a dip toward $34.00
03/31/12 action this past week looks short-term bearish. Look for a pullback

Current Target: $44.50
Current Stop loss: 34.90
Play Entered on: 03/12/12
Originally listed in the New Plays 03/10/12


Enterprise Products Partners - EPD - close: 48.48

Comments:
05/19/12 update: The big headlines for EPD this past week was news that the "Seaway" pipeline, a project between EPD and Enbridge Inc. would launch this weekend. This pipeline allows for oil to flow from Cushing, Oklahoma to Houston, Texas allowing U.S. oil access to the Gulf of Mexico and international shipping. Oil inventories in Cushing had reached record levels. I doubt this story had an impact on shares of EPD. Yet the stock made a dramatic move on Friday. Shares of EPD spent the week churning sideways between support near $50 and its 100-dma and overhead resistance at the 50-dma. Then suddenly the stock collapsed on Friday with a -3.7% drop to settle on its 150-dma.

This breakdown and a new relative low definitely makes the peak in February and May look like a bearish double top. More conservative traders may want to exit immediately. I am not suggesting new positions at this time.

Earlier Comments:
Our long-term target is $59.00 but bear in mind that EPD doesn't normally move very fast.

- Suggested Positions -
Nov 21, 2011 - entry price on EPD @ 45.17, option @ 1.45
symbol: EPD1319A50 2013 JAN $50 call - current bid/ask $ 2.00/ 2.20

05/02/12 EPD beat earnings and revenue estimates
04/30/12 sold half on Monday at the open. option bid @ 2.85 (+96.5%)
04/28/12 plan to sell half of our position on Monday morning. Current option bid is $2.95 (+103%)
04/21/12 readers may want to take profits now. The bid on our call option is at $3.10 (+113%)
02/18/12 new stop loss @ 46.75
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: 46.75
Play Entered on: 11/21/11
Originally listed in the New Plays 11/19/11


Intel Corp. - INTC - close: 26.07

Comments:
05/19/12 update: Semiconductor stocks had a very rough week. The SOX index plunged -7.5% and fell through technical support at its 200-dma. A -5% drop in Intel didn't help. We have been worried that the reversal in early May was a bearish reversal for INTC and this breakdown to new relative lows confirms it. We have been expecting shares to dip toward the $26.00 level and INTC closed near $26 and its 150-dma on Friday. More conservative traders may want to raise their stop loss.

I am not suggesting new positions at this time.

- Suggested (small, half-sized) Positions -
Feb 21, 2011 - entry price on INTC @ 27.34, option @ 1.30
symbol: INTC1319A30 2013 JAN $30 call - current bid/ask $ 0.83/ 0.86

- or -

Feb 21, 2011 - entry price on INTC @ 27.34, option @ 2.11
symbol: INTC1418a30 2014 JAN $30 call - current bid/ask $ 1.96/ 2.01

02/21/12 INTC opened at $27.34.
02/18/12 start with small positions to limit our exposure.

Current Target: $34.00
Current Stop loss: 24.75
Play Entered on: 02/21/12

Originally listed on the Watch List: 02/11/12


Coca-Cola Company - KO - close: 74.05

Comments:
05/19/12 update: KO had been a relative strength leader for weeks. Yet investors started taking profits in KO as well. Nothing was spared in the market's recent sell-off. That might be a sign we're closer to a bottom. Shares of KO lost more than three points for the week and settled on support (old resistance) near $74.00.

Fortunately, last weekend we had already planned to take some money off the table by selling half of our 2014 call position at the open on Monday (05/14/12). The bid on our option opened at $6.20 (+72.2%).

If you're looking for an entry point I would be tempted to buy calls again on a dip (or a bounce) near $72.00.

Earlier Comments:
We will plan to exit positions prior to KO's proposed 2-for-1 split scheduled for August.

- Suggested Positions (start with small positions) -
Mar 29, 2012 - entry price on KO @ 72.35, option @ 3.60
symbol: KO1418A75 2014 JAN $75 call - current bid/ask $ 5.10/ 5.25

05/14/12 sold half of our 2014 Jan $75 calls on Monday at the open
the bid opened at $6.20 (+72.2%)
05/12/12 prepare to sell half at the open on Monday morning to take some money off the table. Current bid is $6.55.
04/28/12 new stop loss @ 69.75
More conservative traders may want to take profits now, bid @ $5.90
04/25/12 KO's BoD has recommended a 2-for-1 split subject to shareholder approval in July. Split to occur in August.

Current Target: $87.00
Current Stop loss: 69.75
Play Entered on: 03/29/12
Originally listed on the Watch List: 03/17/12


Eli Lilly - LLY - close: 40.44

Comments:
05/19/12 update: LLY spent most of the week churning sideways. Yet I don't see any changes from my prior comments. Odds are LLY will dip toward $40.00 and probably the $39.00 area. 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 $ 1.68/ 1.72

- or -

Jan 05, 2012 - entry price on LLY @ 39.50, option @ 2.75
symbol: LLY1418A45 2014 JAN $45 call - current bid/ask $ 2.51/ 2.52

04/25/12 LLY beat earnings estimates by 12c and raised guidance
03/17/12 LLY's close over $40.00 looks like a new bullish entry point
01/28/12 new stop loss @ 37.75

Current Target: $44.75 & 48.00
Current Stop loss: 37.75
Play Entered on: 01/05/12

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


Limited Brands, Inc. - LTD - close: 45.11

Comments:
05/19/12 update: LTD is a watch list candidate that has graduated to the play list. After churning sideways in the $48-49 zone for a few days the stock collapsed thanks to the market's widespread weakness and a disappointing earnings report on May 16th.

We have been expecting LTD to correct lower toward support near $45.00. The stock hit our buy-the-dip trigger at $45.50 on Friday (May 18th). The correction may not be over yet and more conservative traders might want to look for a dip toward the simple 200-dma $43.00-42.75 as their entry point instead.

Our long-term target is $59.00.

- Suggested Positions -
May 18, 2012 - entry price on LTD @ 45.50, option @ 5.10
symbol: LTD1319A45 2013 JAN $45 call - current bid/ask $ 4.80/ 5.00

05/18/12 triggered on a dip at $45.50
04/28/12 adjust entry point to buy a dip at $45.50, stop $41.50
03/24/12 adjusted buy-the-dip trigger to $44.00 with a stop at $39.75

Chart of LTD:

Current Target: $59.00
Current Stop loss: 41.50
Play Entered on: 05/18/12
Originally listed on the Watch List: 03/10/12


McDonald's Corp. - MCD - close: 89.85

Comments:
05/19/12 update: The correction in MCD has also accelerated this month. Shares are down three weeks in a row and off almost ten dollars from its April close. Shares have fallen below their 200-dma and 200-ema. Now the stock is testing support near $90 and its 300-dma. We have been anticipating a dip toward $90.00. MCD hit our buy-the-dip trigger at $90.25 on Thursday.

More conservative traders may want to wait for a close above its simple 10-dma before considering new bullish positions. I am adjusting our stop loss from $87.75 to $86.75.

- Suggested Positions -
May 17, 2012 - entry price on MCD @ 90.25, option @ 3.20
symbol: MCD1319A95 2013 JAN $95 call - current bid/ask $ 3.15/ 3.20

- or -

May 17, 2012 - entry price on MCD @ 90.25, option @ 4.75
symbol: MCD1418A100 2014 JAN $100 call - current bid/ask $ 4.60/ 4.80

05/19/12 new stop loss at $86.75
05/17/12 triggered on a dip at $90.25
05/12/12 move the trigger to $90.25, stop loss to $87.75
05/05/12 another adjustment. move the trigger to $91.00, stop to $88.40, adjusted the option strikes.
04/28/12 adjust the buy-the-dip trigger to $95.00
04/14/12 adjust buy-the-dip trigger to $94.00.

Chart of MCD:

Current Target: $109.00
Current Stop loss: 86.75
Play Entered on: 05/17/12
Originally listed on the Watch List: 11/05/11


Motorola Solutions, Inc. - MSI - close: 46.97

Comments:
05/19/12 update: It was an ugly week for MSI with shares losing about three points and sinking to new relative lows. The stock's breakdown under $48.00, which should have been support is definitely bearish. MSI ended the week sitting on its exponential 200-dma. At this point I am expecting a dip toward the next level of support near $46 and its simple 200-dma. I am not suggesting new positions at this time.

- Suggested Positions -
Feb 17, 2012 - entry price on MSI @ 49.35, option @ 2.27
symbol: MSI1319A55 2013 JAN $55 call - current bid/ask $ 1.41/ 1.48

02/18/12 new stop loss @ 45.75
02/17/12 trades opens on Friday morning at $49.35
02/16/12 MSI meets our requirement to open positions
02/04/12 if triggered, use a stop loss at $43.95
01/28/12 MSI underperformed as investors sold the stock following its earnings report. If MSI doesn't improve this week we'll drop it as a candidate.

Current Target: $64.50
Current Stop loss: 45.75
Play Entered on: 02/17/12

Originally listed on the Watch List: 12/10/11


NetEase.com - NTES - close: 58.84

Comments:
05/19/12 update: NTES spent Monday-Wednesday churning sideways just under its 50-dma. The stock appeared to be building a bear-flag pattern. Then NTES reported earnings. The company beat earnings estimates by 13 cents with a profit of $1.14 a share. Revenues came in +35.5% and above expectations. This news sent the stock spiking higher and NTES traded above $63.00 on Thursday intraday. Unfortunately the wider market was in sell-off mode Thursday and Friday so NTES pared its gains.

More conservative traders may want to raise their stop loss closer to the $55 level. I am not suggesting new positions at this time.

Earlier Comments:
Our long-term target is $64.00. Currently the Point & Figure chart is bullish with a $68 target. I want to remind readers that NTES can be volatile so we want to start with small positions (at least half your normal trade or smaller).

- Suggested (Small) Positions -
Feb 29, 2012 - entry price on NTES @ 52.74, option @ 4.70
symbol:NTES1319A60 2013 JAN $60 call - current bid/ask $ 7.90/ 8.40

05/16/12 NTES reports better than expected earnings
05/05/12 readers may want to take profits now or raise their stop loss prior to the earnings report on May 16th. Option bid @ 7.20 (+53.1%)
03/24/12 new stop loss @ 49.40
Nimble traders may want to take profits now (current bid $7.80, +66%) and they re-enter positions on a correction.

Current Target: $ 64.50
Current Stop loss: 49.40
Play Entered on: 02/29/12

Originally listed on the Watch List: 02/25/12


Reynolds American Inc. - RAI - close: 40.69

Comments:
05/19/12 update: RAI is little changed for the week but that is something of a victory considering the market's big declines. RAI is still trading under short-term resistance near $41.00 and its 100-dma and 50-dma near $41.00. I remain cautious here and readers may want to tighten their stops toward $39. 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 $ 1.20/ 1.35

05/05/12 the oversold bounce is reversing. readers may want to exit lower
04/24/12 RAI reports earnings and misses. Shares spike lower!
03/10/12 another close over $42.50 could be used as a bullish entry point.
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


UnitedHealth Group - UNH - close: 53.99

Comments:
05/19/12 update: UNH spent most of the last two weeks churning sideways in a narrow range between technical support at its 100-dma and a short-term trend of lower highs (near the 10-dma). This changed with Friday's breakdown to new relative lows.

Aggressive traders might want to consider lowering their stops to it's under the $50.00 level. If the market continues to drop I would expect UNH to fall toward round-number support near $50.00.

I am not suggesting new positions at this time. We'll keep our stop loss at $52.75 for now.

- Suggested Positions -
Feb 15, 2012 - entry price on UNH @ 54.53, option @ 3.25
symbol: UNH1319A60 2013 JAN $60 call - current bid/ask $ 2.61/ 2.68

- or -

Feb 15, 2012 - entry price on UNH @ 54.53, option @ 5.00
symbol: UNH1418A60 2014 JAN $60 call - current bid/ask $ 5.70/ 5.95

04/19/12 UNH reported earnings that beat estimates and raised guidance
03/31/12 new stop loss @ 52.75. Adjust exit to $64.00
03/24/12 action this past week has turned bearish. expecting a correction toward the $50 area.

Current Target: $64.00
Current Stop loss: 52.75
Play Entered on: 02/15/12

Originally listed on the Watch List: 02/11/12


Verizon Communications - VZ - close: 41.53

Comments:
05/19/12 update: Big cap telecom stocks like VZ and T continue to show relative strength. VZ spiked to a new multi-year high on Friday. Even though VZ is showing strength I remain cautious and would not launch new positions here. More conservative traders may want to raise their stop loss even higher. Last week we raised the stop loss to $37.75. I am not suggesting new positions at this time.

- Suggested Positions -
Dec 23, 2011 - entry price on VZ @ 39.42, option @ 2.17
symbol: VZ1319A40 2013 JAN $40 call - current bid/ask $ 3.20/ 3.25

- or -

Dec 23, 2011 - entry price on VZ @ 39.42, option @ 2.87
symbol: VZ1418A40 2014 JAN $40 call - current bid/ask $ 4.15/ 4.25

05/12/12 new stop loss @ 37.75
04/05/12 VZ began trading ex-div for its upcoming April 30th dividend
03/10/12 VZ is starting to see some positive momentum higher
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: 37.75
Play Entered on: 12/23/11

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


Exxon Mobil - XOM - close: 81.47

Comments:
05/19/12 update: Our XOM trade is in jeopardy. The oil and energy sector has been crushed this month with big declines in the last three weeks. XOM has been struggling to hold support near its April lows in the $82 area the last few days. Friday saw a drop to new four-month lows. If this market trend continues we could see XOM hit our stop under $80 soon. 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 $ 2.07/ 2.11

- or -

Dec 22, 2011 - entry price on XOM @ 83.56, option @ 6.25
symbol: XOM1418A95 2014 JAN $95 call - current bid/ask $ 3.45/ 3.55

04/26/12 XOM missed earnings estimates by 9 cents
04/14/12 XOM has broken down from its 3-month trading range.
03/17/12 XOM has bounced off the bottom of its bullish channel.
03/03/12 bears could argue that XOM is forming a potential double top pattern with the peak in late January and late February
02/11/12 recent action looks like a bearish H&S pattern with an $80 target.
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


CLOSED Plays


The Dow Chemical Co. - DOW - close: 29.45

Comments:
05/19/12 update: We have been concerned about the trading in shares of DOW this month. The correction accelerated sharply the last few days and DOW sliced through multiple layers of potential support. Our stop loss was hit on Thursday at $29.45.

- Suggested Positions -
Jan 09, 2012 - entry price on DOW @ 30.46, option @ 2.40
symbol: DOW1319A35 2013 JAN $35 call - exit $1.15 (-52.0%)

- or -

Jan 09, 2012 - entry price on DOW @ 30.46, option @ 2.54
symbol: DOW1418A40 2014 JAN $40 call - exit $1.35 (-46.8%)

05/17/12 stopped out at $29.45
04/26/12 DOW reported earnings one cent above expectations but revenues were a miss.
04/14/12 DOW produced a new lower low, last week. The correction may not be over yet.
02/11/12 adjust stop loss to $29.45. Readers may want to take profits now.
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).

Chart of DOW:

Current Target: $39.50
Current Stop loss: 29.45
Play Entered on: 01/09/12

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


Las Vegas Sands - LVS - close: 46.38

Comments:
05/19/12 update: When LVS was rising toward $60 back in March we were expecting a potential reversal lower, especially late March with the dip toward the 20-dma. Then shares of LVS rallied to 462 in April. We decided to take profits and sell half of our position on April 16th (+69.3%).

After such a big rally off the December lows we were expecting a correction lower. What we were not expecting was a five-week, -25% correction lower. LVS fell through multiple layers of support and hit our stop loss at $48.95 on May 15th.

- Suggested Positions -
Feb 06, 2012 - entry price on LVS @ 51.35, option @ 4.40
symbol: LVS1319A60 2013 JAN $60 call - exit $2.88 (-35.5%)

05/16/12 stopped out at $48.95
05/12/12 tweak our stop loss down to $48.95
04/28/12 expecting a correction lower into the $52.50-50.00 zone
04/16/12 Sold half of our position. Bid opened at $7.45 (+69.3%)
04/14/12 Prepare to sell half on Monday morning at the open. Current bid on the 2013 Jan $60 call is $8.30 (+88.6%).
02/06/12 LVS gapped open lower at $51.35
02/04/12 LVS met our entry point requirement at the close on Friday. Open positions on Monday, Feb. 6th.

Chart of LVS:

Current Target: $69.00
Current Stop loss: 49.75
Play Entered on: 02/06/12

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


3M Co. - MMM - close: 83.51

Comments:
05/19/12 update: The market's three-week correction definitely took its toll on MMM. The stock was trading just under resistance near $90 at the end of April. since then shares have plunged to new relative lows. Friday saw the stock hit our stop loss at $83.75.

- Suggested Positions -
Jan 19, 2012 - entry price on MMM @ 85.10, option @ 3.30
symbol: MMM1319A95 2013 JAN $95 call - exit $1.90 (-42.4%)

05/18/12 stopped out at $83.75
04/14/12 Readers will want to seriously consider an early exit right now. The short-term trend for MMM is down.
03/17/12 new stop loss @ 83.75
02/04/12 new stop loss @ 81.75

Chart of MMM:

Current Target: $97.00
Current Stop loss: 83.75
Play Entered on: 01/19/12
Originally listed on the Watch List: 12/03/11