Editor's Note:

Stocks were very quiet ahead of Bernanke's appearance in Jackson Hole. Unfortunately the market must have slept through his speech.

We did see SWKS join the active trade list.


Closed Plays


None. No closed plays this week


Play Updates


Abbott Labs - ABT - close: 65.54

Comments:
09/01/12 update: ABT spent another week consolidating sideways in the $65-66 range. If you look closely it seems like the consolidation is narrowing with technical support at the simple 50-dma. The stock should see a breakout one way or the other soon and odds should favor ABT resuming the longer-term up trend but that will probably depend on how the broader market performs this week.

Earlier Comments:
Before we continue I want to warn you that trading the drug makers or biotech stocks has an industry-specific danger. You never know when an FDA approval might get denied or delayed. Or some clinical trial data might disappoint. Headlines like these can send a stock gapping down. On the other hand positive news could send it soaring.

- Suggested Positions -
JUL 02, 2012 - entry price on ABT @ 64.22, option @ 1.91
symbol: ABT1319A65 2013 JAN $65 call - current bid/ask $ 2.54/ 2.67

- or -

JUL 02, 2012 - entry price on ABT @ 64.22, option @ 4.28
symbol: ABT1418A65 2014 JAN $65 call - current bid/ask $ 5.05/ 5.25

07/14/12 ABT is due to report earnings on July 18th
07/02/12 ABT opened at $64.22
06/29/12 ABT closed @ 64.47. Plan was to wait for a close over $63.50 and buy calls the next day. We will open positions on Monday, July 2nd.

Current Target:$74.00
Current Stop loss: 59.40
Play Entered on: 07/02/12
Originally listed on the Watch List: 06/23/12


American Intl. Group - AIG - close: 34.33

Comments:
09/01/12 update: AIG spent another week inside the $33-35 range. Bigger picture AIG looks like it's building up steam for a breakout higher past resistance at $35.00 but September is normally a tough month for stocks.

Earlier Comments:
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 $ 5.65/ 5.75

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 6.00/ 6.20

08/18/12 new stop loss @ 29.45
06/16/12 new stop loss @ 26.95
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

Current Target:$ 39.00
Current Stop loss: 29.45
Play Entered on: 05/18/12
Originally listed on the Watch List: 04/07/12


Apache Corp. - APA - close: 85.75

Comments:
09/01/12 update: many of the oil and oil service stocks have been underperforming thanks to Hurricane Isaac causing problems in the Gulf of Mexico. Now that the storm has passed the group might see a rebound. Rising oil prices thanks to a falling dollar could also help the sector. Technical traders will note that this past week does look troubling with the breakdown under the 50-dma. The bounce off Thursday's low was essentially off the three-month trend of higher lows. A breakdown there could be a warning signal (i.e. a close under $84.00).

- Suggested Positions -
Jun 18, 2012 - entry price on APA @ 87.10, option @ 3.45
symbol: APA1319A100 2013 JAN $100 call - current bid/ask $ 1.23/ 1.33

- or -

Jun 18, 2012 - entry price on APA @ 87.10, option @ 6.43
symbol: APA1418A100 2014 JAN $110 call - current bid/ask $ 4.25/ 4.50

08/18/12 new stop loss @ 81.40

Current Target: $109.00
Current Stop loss: 81.40
Play Entered on: 06/18/12
Originally listed in the New Plays 06/16/12


Bank of America - BAC - close: 7.99

Comments:
09/01/12 update: BAC has produced a two-week correction after the rally failed at $8.40 on August 21st. The recent performance has been disappointing since the $8.00 level should have offer some support.

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.

- Suggested Positions -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.17/ 0.18
(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 $ 0.17/ 0.18
(no stop loss on this position)

07/21/12 BAC reported earnings this past week and investors have decided to sell the news. The stock looks vulnerable here and readers may want to exit early!
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.
...look for earlier comments in prior updates...

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


Caterpillar Inc. - CAT - close: 85.33

Comments:
09/01/12 update: Ouch! Shares of CAT continue to underperform. The stock is off -8% from its intraday high near $92.00 about two weeks ago. CAT has been struggling to hold support near $85.00 and its 50-dma. More conservative traders may want to consider raising their stops closer to the $84.00 level. I am not suggesting new positions at this time. Technical traders will note that CAT has produced a 50% retracement of the July-August climb.

Our long-term target is the $110-115 zone (although we'll exit the 2013 calls before CAT hits our final target).

- Suggested (small) Positions -
Aug 10, 2012 - entry price on CAT @ 88.26, option @ 3.81
symbol: CAT1319A95 2013 JAN $95 CALL - current bid/ask $ 2.34/ 2.40

- or -

Aug 10, 2012 - entry price on CAT @ 88.26, option @ 7.90
symbol: CAT1418A100 2014 JAN $100 CALL - current bid/ask $ 6.75/ 6.95

08/18/12 new stop loss at $81.75
08/10/12 trade opened on Friday morning @ $88.26
08/09/12 CAT closed above our trigger (which was 87.50)
08/06/12 adjust entry trigger to a close over $87.50
07/21/12 adjusted entry point to wait for a close over $88.00, stop loss 79.90

Current Target: $110.00-115.00
Current Stop loss: 81.75
Play Entered on: 08/10/12
Originally listed on the Watch List: 07/07/12


CH Robinson Worldwide - CHRW - close: 56.61

This is a bearish PUT option trade.

Comments:
09/01/12 update: It has been a relatively quiet two weeks for CHRW. Traders with a bullish bias could look at CHRW and argue the stock is building a bull-flag consolidation pattern over the last few weeks. That would mean a breakout past the $57.25-57.50 area could signal the next leg higher. Bigger picture CHRW still has a very bearish long-term trend of lower highs and lower lows. We are leaving our stop at $60.75 for now. More conservative traders may want to lower their stop closer to $58.00 instead. I am not suggesting new positions at this time.

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 $ 2.90/ 3.10

07/28/12 lowering the stop loss to $60.75.
07/14/12 raising the risk on this trade by adjusting the stop loss to $63.25.
06/02/12 new stop loss @ 62.25

Current Target: $50.50
Current Stop loss: 60.75
Play Entered on: 05/07/12
Originally listed in the New Plays 05/05/12


Discover Financial - DFS - close: 38.73

Comments:
09/01/12 update: DFS has spent the last several days consolidating sideways in the $38-39 area. However this sideways move is still inside the larger up trend. While the trend is up I am a little concerned that after several weeks of gains DFS might need a little pullback. I'm not suggesting new positions at this time.

NOTE: The $40.00 level could be round-number psychological resistance. I am suggesting we exit our 2013 calls when DFS hits $39.75. Our target to exit the 2014 calls is at $44.00.

- Suggested Positions -
JUL 05, 2012 - entry price on DFS @ 35.28, option @ 2.15
symbol: DFS1319A37 2013 JAN $37 call - current bid/ask $3.50/3.70

- or -

JUL 05, 2012 - entry price on DFS @ 35.28, option @ 3.40
symbol: DFS1418A40 2014 JAN $40 call - current bid/ask $4.60/4.90

08/25/12 new stop loss @ 34.75
08/25/12 adjusted targets to $39.75 (2013 calls), $44 (2014 calls)
08/18/12 new stop loss @ 33.45
08/11/12 new stop loss @ 32.40
07/05/12 trade opens with DFS at $35.28
07/03/12 DFS closes at $35.45, above our trigger @ 35.00
06/30/12 removed the buy-the-dip trigger.
06/23/12 adjusted entry point strategy to two different entries
06/16/12 DFS is scheduled to report earnings on June 19th.

Current Target: $39.75 for the 2013 call2, $44.00 for the 2014s
Current Stop loss: 33.45
Play Entered on: 07/05/12
Originally listed on the Watch List: 06/02/12


HollyFrontier Corp. - HFC - close: 40.29

Comments:
09/01/12 update: Hurricane Isaac has passed and no major damage was reported to the oil rigs and refineries along the Gulf. Meanwhile shares of HFC continue to churn sideways under resistance at $41.00. If you look at an intraday chart shares seem to have built an inverse head-and-shoulders pattern under the $41.00 level (the neckline). I would consider a close over $41.00 as a new entry point.

Our long-term target is $44.50 for the 2013 calls and $48.50 for the 2014 calls. NOTE (option strike adjustment): HFC recently declared a special dividend of 50 cents a share payable on September 4th, 2012 to shareholders of record on August 27th. The option exchanges have adjusted some contracts by lowering the strike price by 50 cents. Our 2013 Jan $42 call is now a $41.50 call. The 2014 $45 call is now a $44.50 strike.

- Suggested Positions -
AUG 17, 2012 - entry price on HFC @ 40.50, option @ 2.75
symbol: HFC1319A41.5* 2013 JAN $41.5 call - current bid/ask $3.00/3.20

- or -

AUG 17, 2012 - entry price on HFC @ 40.50, option @ 5.00
symbol: HFC1418A44.5* 2014 JAN $44.50 call - current bid/ask $5.30/6.10

*The 2013 call was previously a $42 strike. Adjusted to $41.50 strike. The 2014 call was a $45 strike, now adjusted to a $44.50 strike (occurred in August 2012 due to a special dividend).

Current Target: $ 44.50(2013 calls), $48.50 (2014 call)
Current Stop loss: 36.90
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/06/12


Lennar Corp. - LEN - close: 32.43

Comments:
09/01/12 update: LEN lost twenty cents for the week. Shares are coiling for a breakout past resistance near $33.00. I would use a close over $33.00 as a new bullish entry point. However, readers may want to wait until after LEN reports earnings before initiating new positions. The company is expected to report in the middle of September but I don't see a confirmed date yet. LEN is currently trading at multi-year highs.

Earlier Comments:
Our long-term target is $36.00 for the 2013 calls and $39.50 for the 2014 calls. FYI: LEN is due to report earnings in mid September.

- Suggested Positions -
AUG 17, 2012 - entry price on LEN @ 32.72, option @ 2.07
symbol: LEN1319A35 2013 JAN $35 call - current bid/ask $2.20/2.25

- or -

AUG 17, 2012 - entry price on LEN @ 32.72, option @ 3.39
symbol: LEN1418A40 2014 JAN $40 call - current bid/ask $3.35/3.55

Current Target: $ 36.00(2013 calls), $39.50 (2014 call)
Current Stop loss: 29.75
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/11/12


Eli Lilly - LLY - close: 44.91

Comments:
09/01/12 update: It was not a great week for news out of LLY. On August 24th the stock soared on relatively positive news for its Solanezumab drug treatment for Alzheimer's. Yet since then LLY has reported two disappointing reports that it's phase III trial for TRILOGY ACS failed to meet its goals plus the company was scrapping plans for a phase III trial of pomaglumetad methionil, a schizophrenia treatment.

Shares of LLY held up relatively well considering two doses of bad news. I am not suggesting new positions at this time.

Currently we want to exit our 2014 calls when LLY hits $48.50.

- Suggested (SMALL) Positions -
(exited on July 23rd at the open)
Jan 05, 2012 - entry price on LLY @ 39.50, option @ 1.19
symbol: LLY1319A45 2013 JAN $45 call - exit $2.09 (+75.6%)

- or -

(still active)
Jan 05, 2012 - entry price on LLY @ 39.50, option @ 2.75
symbol: LLY1418A45 2014 JAN $45 call - current bid/ask $ 3.55/ 3.70

08/24/12 LLY spikes on news regarding Alzheimer treatment study
07/23/12 closed the 2013 calls @ the open (+75.6%)
07/21/12 prepare to exit the 2013 Jan $45 calls on Monday morning
07/21/12 adjust exit target for 2014 calls to $48.50
06/30/12 new stop loss @ 39.75
06/23/12 LLY is hitting new multi-year highs.
06/09/12 new stop loss @ 38.75
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: $48.50 (2014)
Current Stop loss: 39.75
Play Entered on: 01/05/12

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


Monsanto Co. - MON - close: 87.11

Comments:
09/01/12 update: MON managed a bounce off the $85.00 level. On this weekly chart this failed to confirm the prior week's bearish reversal candlestick pattern but MON is not out of the woods yet. If you have a bullish bias you could argue MON is building a bull-flag pattern over the last several weeks. The $90 level remains overhead resistance.

- Suggested Positions -
Jul 17, 2012 - entry price on MON @ 85.84, option @ 4.35
symbol: MON1319A90 2013 JAN $90 call - current bid/ask $ 4.15/ 4.25

- or -

Jul 17, 2012 - entry price on MON @ 85.84, option @ 6.50
symbol: MON1418A100 2014 JAN $100 call - current bid/ask $ 6.40/ 6.70

08/25/12 adjust expectations, look for a dip toward $82
08/11/12 look for a pullback toward $84 soon
07/17/12 trade opens with MON at $85.84
07/16/12 MON closes above our entry requirement ($85.25)

Current Target: $99.50
Current Stop loss: 79.90
Play Entered on: 07/17/12
Originally listed on the Watch List: 07/14/12


Merck & Co - MRK - close: 43.05

Comments:
09/01/12 update: We have been expecting a correction lower in MRK for several weeks. Shares started to pullback in mid August but MRK seems to have found some support near $42.50 and its 50-dma.

I am not suggesting new positions at this time. Our long-term target remains the $47.50 level since we have the 2014 options.

- Suggested Positions -
Jun 25, 2012 - entry price on MRK @ 39.91, option @ 3.14
symbol: MRK1418A40 2014 JAN $40 call - current bid/ask $ 5.25/ 5.35

08/11/12 new stop loss @ 40.90
07/14/12 new stop loss @ 39.49
07/14/12 Readers will want to seriously consider taking profits now.
MRK is at $43.47, option @ 5.15 (+93.9%)
06/25/12 MRK gap down at $39.91
06/22/12 MRK met our entry point requirement with a close over $40.00. Launch positions on Monday morning (conservative traders can wait for a dip to the 10-dma instead).

Current Target: $47.50
Current Stop loss: 40.90
Play Entered on: 06/25/12

Originally listed on the Watch List: 05/05/12


Microsoft - MSFT - close: 30.82

Comments:
09/01/12 update: MSFT is still consolidating under resistance near $31.00. The current pattern of higher lows would suggest MSFT is coiling for a breakout higher. I would be tempted to launch new 2014 call positions if MSFT can close over $31.25.

- Suggested Positions -
Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 1.69
symbol:MSFT1319A30 2013 JAN $30 call - current bid/ask $ 2.13/ 2.16

- or -

Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 3.05
symbol:MSFT1418A30 2014 JAN $30 call - current bid/ask $ 3.85/ 3.95

07/28/12 raise stop loss to $28.45
06/18/12 MSFT announces the "surface" line of tablets
06/01/12 triggered at $28.50
05/19/12 adjust the trigger to $28.50, stop to $26.45
05/05/12 adjust the trigger to $29.00
04/28/12 adjust buy-the-dip trigger to $29.50, stop to $26.75

Current Target: $32.75 & 34.75
Current Stop loss: 28.45
Play Entered on: 06/01/12
Originally listed on the Watch List: 04/14/12


Pepsico, Inc. - PEP - close: 72.43

Comments:
09/01/12 update: PEP is losing upward momentum. Of course that's not very surprising given the sideways churn in the market this past month. Shares have found support at the 50-dma over the last few months so readers could look for a bounce off there (currently near 71.40).

I am not suggesting new positions at this time.

- Suggested Positions -
Jul 02, 2012 - entry price on PEP @ 70.34, option @ 2.85
symbol: PEP1418A75 2014 JAN $75 call - current bid/ask $ 3.50/ 3.60

08/18/12 new stop loss @ 68.75
08/06/12 new stop loss @ 67.75
07/02/12 PEP opened at $70.34
07/02/12 launch positions at the open
06/29/12 PEP meets our entry requirement with a close above $70.25.

Current Target: $79.00
Current Stop loss: 68.75
Play Entered on: 07/02/12
Originally listed on the Watch List: 05/26/12


Pfizer Inc. - PFE - close: 23.86

Comments:
09/01/12 update: It looks like shares of PFE have been on summer vacation. The stock is drifting sideways in a very narrow range. PFE lost 15 cents for the week. If the stock does see a pullback we can look for support near $23.00 and at $22.00. I am not suggesting new positions at this time.

- Suggested Positions -
Jul 18, 2012 - entry price on PFE @ 23.53, option @ 1.30
symbol: PFE1418A25 2014 JAN $25 call - current bid/ask $ 1.65/ 1.69

08/06/12 new stop loss @ 21.35
07/18/12 trade opens. PFE @ 23.53
07/17/12 PFE meets our entry requirements (close over $23.40)
06/23/12 removed the 2013 call. We'll only play the 2014s
04/28/12 do not launch positions prior to the earnings report on May 1st.

Current Target: $28.00
Current Stop loss: 21.35
Play Entered on: 07/18/12
Originally listed on the Watch List: 04/21/12


QUALCOMM Inc. - QCOM - close: 61.46

Comments:
09/01/12 update: We are not surprised to see more profit taking in QCOM. After its big five-week rally I have been warning readers to expect a dip toward $60.00. The fact that QCOM has not declined very fast is encouraging. I would still expect a dip closer to $60 and the 200-dma. I am not suggesting new positions at this time.

- Suggested Positions -
Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 2.56
symbol:QCOM1319A65 2013 JAN $65 call - current bid/ask $ 2.33/ 2.38

- or -

Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 4.75
symbol:QCOM1418A70 2014 JAN $70 call - current bid/ask $ 4.75/ 4.90

Current Target: $68.50
Current Stop loss: 57.40
Play Entered on: 08/10/12
Originally listed on the Watch List: 08/06/12


Skyworks Solutions - SWKS - close: 30.46

Comments:
09/01/12 update: SWKS is a watch list candidate that just made the jump to our play list. The plan was to wait for shares to breakout past resistance at $30.00 and close over $30.25. The stock met our entry requirements on Friday with the close at $30.46. Our entry will be on Tuesday morning at the opening bell. We've got an initial stop loss at $27.40. We want to exit the 2013 calls when SWKS hits $34.00 and exit the 2014 calls when SWKS hits $37.50.

FYI: The point & figure chart is bullish with a $40 target.

- Suggested Positions -
Sep 04, 2012 - entry price on SWKS @ --.--, option @ -.--
symbol:SWKS1319A32 2013 JAN $32 call - current bid/ask $ 3.20/ 3.40

- or -

Sep 04, 2012 - entry price on SWKS @ --.--, option @ -.--
symbol:SWKS1418a35 2014 JAN $35 call - current bid/ask $ 5.60/ 6.00

09/01/12 SWKS hit our entry conditions on Friday 08/31/12, open positions on Tuesday morning (09/04/12).

Chart of SWKS:

Current Target: $34.00 (2013 calls) & 37.50 (2014 calls)
Current Stop loss: 27.40
Play Entered on: 09/04/12
Originally listed on the Watch List: 08/11/12


The TJX Companies - TJX - close: 45.79

Comments:
09/01/12 update: TJX tagged a new all-time high on Wednesday with a rally past $46.50. Unfortunately the rally didn't last. Several major retailers reported their August same-store sales figures on Thursday. TJX showed +8.0% same-store sales growth versus analysts estimates of +6.3%. That should have been a bullish mover for the stock but management also guided earnings toward the upper end of its prior guidance range but Wall Street has higher expectations for TJX and this guidance remains below analysts expectations.

I would not be surprised to see TJX dip toward technical support at its 50-dma again (currently near $44.50).

I am not suggesting new positions at this time.

- Suggested Positions -
Jun 20, 2012 - entry price on TJX @ 43.62, option @ 2.53
symbol: TJX1319A45 2013 JAN $45 call - current bid/ask $ 3.10/ 3.30

- or -

Jun 20, 2012 - entry price on TJX @ 43.62, option @ 5.10
symbol: TJX1418A45 2014 JAN $45 call - current bid/ask $ 6.00/ 6.20

08/18/12 new stop loss @ 40.85
07/05/12 TJX beats June same-store sales estimates and raises guidance
06/20/12 trade opens
06/19/12 TJX closed above our entry requirement (above $43.25)

Current Target: $49.75
Current Stop loss: 40.85
Play Entered on: 06/20/12

Originally listed on the Watch List: 06/16/12


Time Warner - TWX - close: 41.55

Comments:
09/01/12 update: Readers should not be surprised about the pullback in TWX. We've been expecting it after the early August explosion higher. We can look for support near $40 or possibly the $39 levels. I would consider buying a dip or a bounce near the $40.00 mark.

- Suggested Positions -
Aug 03, 2012 - entry price on TWX @ 40.66, option @ 1.79
symbol: TWX1319A42 2013 JAN $42 call - current bid/ask $ 2.02/ 2.08

- or -

Aug 03, 2012 - entry price on TWX @ 40.66, option @ 2.85
symbol: TWX1419A45 2014 JAN $45 call - current bid/ask $ 3.15/ 3.30

08/11/12 readers might want to lock in gains now (+49% on the 2013 calls) in just two weeks and then jump back in on a correction in the stock.
08/03/12 TWX opens at $40.66 (trade opens)
08/02/12 TWX meets our entry requirement with a close over $40.50

Current Target: $49.00
Current Stop loss: 38.75
Play Entered on: 08/03/12
Originally listed on the Watch List: 07/21/12


Union Pacific Corp. - UNP - close: 121.44

Comments:
09/01/12 update: The Dow Jones Transportation Average continues to underperform the broader market. Dow Theory investors see that as a warning sign for the market. The weakness in UNP has not been that bad. Shares of UNP are nearing what should be short-term support near $120 and its 50-dma. If this level fails then we're probably looking at a decline toward the next level of support near $115. The long-term trend is still higher. I am not suggesting new positions at the moment.

- Suggested Positions -
Jul 20, 2012 - entry price on UNP @ 122.10, option @ 3.80
symbol: UNP1319A130 2013 JAN $130 call - current bid/ask $ 3.20/ 3.35

- or -

Jul 20, 2012 - entry price on UNP @ 122.10, option @ 6.40
symbol: UNP1418A140 2014 JAN $140 call - current bid/ask $ 6.65/ 7.30

08/18/12 new stop loss at $114.75
08/11/12 that looks like a brand new bearish engulfing candlestick reversal pattern on the weekly chart today. Let's see if there is any follow through.

Current Target: $139.00
Current Stop loss: 114.75
Play Entered on: 07/20/12
Originally listed on the Watch List: 06/30/12


Urban Outfitters - URBN - close: 37.54

Comments:
09/01/12 update: Believe it or not URBN continues to defy gravity. Normally after such a big move higher you would expect some profit taking. Yet URBN is levitating above the gap open price from mid August. Shares actually hit new 52-week highs on Wednesday and Thursday this past week. We currently have a stop at $35.80 but more conservative traders may want to use a stop closer to $36.50 instead. I am not suggesting new positions at this time.

- Suggested Positions -
Aug 21, 2012 - entry price on URBN @ 36.82, option @ 4.25*
symbol:URBN1319A35 2013 JAN $35 call - current bid/ask $ 4.70/ 4.80

- or -

Aug 21, 2012 - entry price on URBN @ 36.82, option @ 5.20*
symbol:URBN1319C35 2013 MAR $35 call - current bid/ask $ 5.30/ 5.60

08/25/12 adjusted our entry, stop, and exit target
stop loss 35.80, exit target 39.50
*option entry prices are an estimate. neither traded at the time of our entry

Originally listed on the Watch List: 08/18/12


U.S. Bancorp - USB - close: 33.41

Comments:
09/01/12 update: USB managed a gain for the week but overall the stock remains inside a $32.50-33.60 trading range for the month of August. USB does look poised to move higher. The next obstacle are the three-year highs from late July near $34.00. I would be tempted to use a close over $34.00 as a new entry point.

- Suggested Positions -
Jul 20, 2012 - entry price on USB @ 33.62, option @ 1.39
symbol: USB1319A35 2013 JAN $35 call - current bid/ask $ 1.06/ 1.10

- or -

Jul 20, 2012 - entry price on USB @ 33.62, option @ 3.10
symbol: USB1418A35 2014 JAN $35 call - current bid/ask $ 3.05/ 3.20

07/20/12 trade opens Friday morning
07/19/12 USB closes above our trigger <33.50
07/14/12 adjusted strategy: wait for a close over $33.50, stop 29.90
06/30/12 readers might want to consider an alternative entry point
06/23/12 adjust entry trigger to $29.00, stop to 26.40
06/02/12 adjust entry trigger to $28.00

Current Target: $39.50
Current Stop loss: 29.90
Play Entered on: 07/20/12
Originally listed on the Watch List: 05/19/12


Visa, Inc. - V - close: 128.25

Comments:
09/01/12 update: After a mild three-week correction lower shares of V finally bounced. The stock spent the last few days testing technical support at its rising 50-dma. I would consider a close above $128.50 as a new bullish entry point.

Earlier Comments:
Our long-term target is $149.00 (although we'll likely exit our 2013 calls before V reaches our target).

- Suggested Positions -
JUL 03, 2012 - entry price on V @ 126.49, option @ 5.85
symbol: V1319A135 2013 JAN $135 call - current bid/ask $ 4.90/ 5.05

- or -

JUL 03, 2012 - entry price on V @ 126.49, option @ 11.95
symbol: V1418A140 2014 JAN $140 call - current bid/ask $11.85/12.40

08/06/12 new stop loss @ 119.75
07/16/12 V pops on news of a settlement in 7-year lawsuit
07/03/12 trade opens with Visa at $126.49
07/02/12 Visa closes above our trigger @ 125.50

Current Target: $149.00
Current Stop loss: 119.75
Play Entered on: 07/03/12
Originally listed on the Watch List: 06/30/12