Editor's Note:

Last week was a rocky one for stocks. We've been expecting a pullback and some of our trades have been closed.

CL jumped from the watch list to our active play list.
We sold half of our SCHW position on Feb. 19th.
I am suggesting we exit our HON trade come Monday


Closed Plays


GLD, LEN, NOK, SCCO were stopped out.
We sold half of our SCHW play.


Play Updates


Analog Devices - ADI - close: 45.52

Comments:
02/23/13: ADI tagged new multi-year highs on Tuesday and then sank from $47 to $45 on the midweek pullback. Technically last week's decline has created a bearish engulfing candlestick (reversal) pattern on the weekly chart. Do not be surprised to see ADI correct lower toward short-term support near $44.00. I am not suggesting new positions at this time.

- Suggested Positions -
JAN 03, 2013 - entry price on ADI @ 43.60, option @ 3.10
symbol: ADI1418a45 2014 JAN $45 call - current bid/ask $ 3.40/3.60

02/09/13 new stop loss @ 41.90
adjust exit target to $49.00

Current Target:$ 49.00
Current Stop loss: 41.90
Play Entered on: 01/03/13
Originally listed on the Watch List: 12/22/12


American Intl. Group - AIG - close: 38.45

Comments:
02/23/13: It was a volatile week for AIG as the stock dipped with the market and then popped following its earnings report on the 21st. The company delivered earnings of $0.27 a share. That was 20 cents better than expected. The stock gapped open higher on Friday following the earnings news but traders did sell the pop and AIG pared its gains to just +3.1% on the session.

Overall AIG could be stuck in the $37-40 zone for a while. Right now we have a stop loss at $34.40. More conservative traders may want to raise their stop loss.

Earlier Comments:
Our plan was to keep our initial position size small to limit our risk. We will plan on exiting our 2014 calls when shares hit $42.50.

- Suggested Positions - (small positions @ first)
(closed on Dec. 24th)
May 18, 2012 - entry price on AIG @ 28.25, option @ 3.40
symbol: AIG1319A30 2013 JAN $30 call - exit @ $5.00 (+47.0%)

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 5.90/ 5.05

02/02/13 new stop loss @ 34.40
01/26/13 new stop loss at $32.75
12/24/12 closed our 2013 call position at the open.
Our exit was at $5.00 (+47.0%)
12/22/12 Exit the 2013 calls immediately on Monday morning
current bid is at $4.80
..for prior updates, check older newsletters

Current Target:$ 2013 call: $37.00, 2014 calls: $42.50
Current Stop loss: 34.40
Play Entered on: 05/18/12
Originally listed on the Watch List: 04/07/12


Citigroup - C - close: 42.79

Comments:
02/23/13: The pullback in shares of Citigroup wasn't that bad. A dip from $44.50 to $42.00 isn't too shocking. The correction in financials or C may not be over yet. I would still look for a pullback closer to $40.00. I am not suggesting new positions.

- Suggested Positions - (small positions)
DEC 18, 2012 - entry price on C @ 39.21, option @ 3.02
symbol: C1418a45 2014 JAN $45 call - current bid/ask $ 3.70/ 3.80

01/05/13 new stop loss @ 37.35

Current Target:$ 47.50-50.00range
Current Stop loss: 37.35
Play Entered on: 12/18/12
Originally listed on the Watch List: 12/08/12


Colgate-Palmolive - CL - close: 113.97

Comments:
02/23/13: Shares of CL ignored the market's midweek decline and the stock soared to new all-time highs. CL was a watch list candidate. Our plan was to wait for shares to close over $111.50 and then buy calls the next day. CL met our entry requirement on Feb. 19th with a close at $111.91 and opened on Feb. 20th at $112.00. Shares are short-term overbought here. I would wait for a dip back into the $112.00-110.00 region before launching new positions.

- Suggested Positions - (small positions)
FEB 20, 2013 - entry price on CL @ 112.00, option @ 4.20
symbol: CL1418a115 2014 JAN $115 call - current bid/ask $ 5.10/ 5.50

Chart of CL:

Current Target:$ 124.50
Current Stop loss: 106.75
Play Entered on: 02/20/13
Originally listed on the Watch List: 02/16/13


Chevron Corp. - CVX - close: 115.96

Comments:
02/23/13: CVX held up pretty well last week. The stock garnered some positive analyst comments. Plus, a Brazilian court dismissed criminal charges against CVX for a 2011 oil spill off the Brazilian coast (source: associated press). Shares of CVX have been consolidating sideways in the $114-116 zone. If the market corrects lower we could see still CVX dip into the $112-110 range but so far it's holding up well.

- Suggested Positions -
JAN 14, 2013 - entry price on CVX @ 111.38, option @ 3.40
symbol: CVX1418a120 2014 JAN $120 call - current bid/ask $ 4.70/4.85

02/02/13 do not be surprised to see a pullback now that earnings have been announced.

Current Target:$124.50
Current Stop loss: 104.75
Play Entered on: 01/14/13
Originally listed on the Watch List: 12/22/12


Expedia Inc. - EXPE - close: 64.49

Comments:
02/23/13: EXPE trimmed its losses to just 10 cents for the week. Traders bought the dip at its rising 50-dma. While the larger trend is bullish with a pattern of higher lows and higher highs the short-term trend is still bearish with a two-week pattern of lower highs. I am raising our stop loss to $59.25. More conservative investors may want to consider a stop closer to the $62 level. I am not suggesting new positions at this time.

Earlier Comments:
I would consider this a more aggressive, higher-risk trade because EXPE can be so volatile. We will want to keep our position size small to limit our risk.

- Suggested Positions -
NOV 29, 2012 - entry price on EXPE @ 61.84, option @ 6.00
symbol: EXPE1418a74.48 '14 JAN $74.48 call - current bid/ask $4.70/4.90

02/23/13 new stop loss @ 59.25
01/05/13 new stop loss @ 57.40
12/13/12 EXPE began trading ex-dividend (52cents). The option strike on our 2014 calls moved from $75.00 to $74.48.

Current Target: $79.00
Current Stop loss: 59.25
Play Entered on: 11/29/12
Originally listed on the Watch List: 11/24/12


General Electric - GE - close: 23.39

Comments:
02/23/13: GE was breaking out to new multi-year highs above $23.50 before the midweek market sell-off began. Traders did buy the dip near its rising 10-dma, which is a show of strength. I'm not convinced the pullback is over. GE remains overbought at current levels. I am not suggesting new positions. More conservative investors may want to raise their stop loss.

- Suggested Positions -
NOV 14, 2012 - entry price on GE @ 20.25, option @ 0.42
symbol: GE1418a25 2014 JAN $25 call - current bid/ask $0.80/0.81

02/16/13 new stop loss @ 21.40
02/02/13 new stop loss @ 20.40
12/14/12 GE increased its dividend to 19 cents
11/24/12 new stop loss @ 19.75
11/14/12 triggered at $20.25
11/10/12 adjust the trigger down to $20.25, just above the 200-dma, stop to $19.25
10/27/12 move the buy-the-dip trigger down to $20.50
10/20/12 adjust the buy-the-dip trigger to $21.00 and our stop to $19.45

Current Target: $27.50
Current Stop loss: 21.40
Play Entered on: 11/14/12
Originally listed on the Watch List: 09/22/12


Honeywell Intl. - HON - close: 70.11

Comments:
02/23/13: We have been aiming for $72.00 and HON almost hit our target on Wednesday with a spike to $71.40. The stock is currently hovering near the $70.00 level. While the long-term trend is up I am expecting a correction.

Tonight I am suggesting we exit early now on Monday morning to lock in gains. We'll give HON a couple of weeks to cool off and look at it again. Investors may want to look for a pullback into the $65 area as a potential entry point to buy calls again.

- Suggested Positions -
DEC 31, 2012 - entry price on HON @ 62.50, option @ 4.40
symbol: HON1418a65 2014 JAN $65 call - current bid/ask $7.75/7.90

02/23/13 Exit now on Monday morning to lock in gains.
02/09/13 new stop loss @ 67.40, adjust exit target to $72.00,
investors may want to book profits now with the option bid @ $8.05
02/02/13 new stop loss @ 63.75
01/05/13 new stop loss @ 59.90

Current Target: $72.00
Current Stop loss: 67.40
Play Entered on: 12/31/12
Originally listed on the Watch List: 12/22/12


Juniper Networks - JNPR - close: 21.45

Comments:
02/23/13: It was a choppy week for JNPR. The $21 level is holding up as support for now but I expect a correction toward $20.00 if the broader market sees any significant pullback. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 19, 2012 - entry price on JNPR @ 20.39, option @ 1.84
symbol: JNPR1418a25 2014 JAN $25 call - current bid/ask $1.50/1.55

02/09/13 JNPR is showing relative weakness
01/26/13 new stop loss @ 19.45

Current Target: $24.75
Current Stop loss: 19.45
Play Entered on: 12/19/12
Originally listed on the Watch List: 12/15/12


The Coca-Cola Company - KO - close: 38.52

Comments:
02/23/13: It was a bullish week for shares of KO. The stock ignored the market's midweek weakness. Shares surged on Friday breaking out past resistance near its 200-dma and the $38 level. Helping fuel the move was news that KO's board of directors had announced a dividend increase with a +10% bump from 25.5 cents per shares to 28 cents per share. This is equivalent to an annual dividend of $1.12 per share. The quarterly dividend is payable on April 1st, 2013 to shareholders on record as of March 15th.

I would use this rally past $38.00 as a new entry point or nimble traders could wait and buy a dip near $38.00, which is probably a good bet.

- Suggested Positions -
FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.01
symbol: KO1418a40 2014 JAN $40 call - current bid/ask $1.19/1.23

- or -

FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.75
symbol: KO1517a40 2015 JAN $40 call - current bid/ask $2.02/2.13

Current Target: $44.00
Current Stop loss: 36.40
Play Entered on: 02/12/13
Originally listed on the Watch List: 02/09/13


L-3 Communications - LLL - close: 76.88

Comments:
02/23/13: Shares of LLL were downgraded on Wednesday morning and the stock gapped down on the news but quickly recovered and trimmed its losses. Overall LLL held up well during the market's midweek plunge. We have a tight stop loss on the stock at $75.75 because I'm worried the sequestration issue could negatively impact investor sentiment on the defense stocks. More conservative traders may want to abandon ship now and just exit early. I am not suggesting new positions.

- Suggested Positions - (small positions)
NOV 05, 2012 - entry price on LLL @ 75.64, option @ 4.40
symbol: LLL1418a80 2014 JAN $80 call - current bid/ask $ 3.00/ 3.20

02/09/13 new stop loss @ 75.75
01/05/13 new stop loss @ 73.75. readers may want to just exit early now!

Current Target:$ 85.00
Current Stop loss: 75.75
Play Entered on: 11/05/12
Originally listed on the Watch List: 10/20/12


Motorola Solutions - MSI - close: 61.90

Comments:
02/23/13: MSI continues to show relative strength with traders buying the dip on Thursday. The stock is poised to breakout past new resistance at the $62 level soon. We are currently aiming for $64.00. More aggressive investors may want to aim higher. Readers may want to consider taking profits early and/or raising their stop loss. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 26, 2012 - entry price on MSI @ 54.11, option @ 2.93
symbol: MSI1418a60 2014 JAN $60 call - current bid/ask $ 5.15/ 5.30

02/16/13 new stop loss @ 57.25, adjust exit to $64.00
02/09/13 new stop loss @ 55.75
01/19/13 new stop loss @ 54.75
01/12/13 new stop loss @ 53.75

Current Target:$64.00
Current Stop loss: 57.25
Play Entered on: 11/26/12
Originally listed on the Watch List: 11/17/12


The Manitowoc Co - MTW - close: 18.65

Comments:
02/23/13: I have been warning readers that with MTW hovering below resistance at $20.00 that the stock could see a correction. When the market reversed midweek MTW produced a sharp pullback. Traders bought the dip at the simple 30-dma, which was support a couple of months ago. I am not convinced the correction is over and more conservative investors may want to tighten their stop loss. I would look for support near $17 and the 50-dma.

- Suggested Positions -
JAN 24, 2013 - entry price on MTW @ 17.10, option @ 1.55
symbol: MTW1418a20 2014 JAN $20 call - current bid/ask $ 2.20/ 2.30

02/16/13 new stop loss @ 16.30

Current Target:$21.50
Current Stop loss: 16.30
Play Entered on: 01/24/13
Originally listed on the Watch List: 01/19/13


Starbucks Corp. - SBUX - close: 54.17

Comments:
02/23/13: It was a rocky week for shares of SBUX. The stock did pare its losses to just 17 cents for the week. Most of the short-term moving averages are directly overhead and could act as technical resistance. I would hesitate to launch new positions at this time.

- Suggested Positions -
DEC 07, 2012 - entry price on SBUX @ 53.43, option @ 3.80
symbol:SBUX1418a60 2014 JAN $60 call - current bid/ask $ 2.64/ 2.69

01/05/13 new stop loss @ 49.85

Current Target:$ 62.00
Current Stop loss: 49.85
Play Entered on: 12/07/12
Originally listed on the Watch List: 12/02/12


The Charles Schwab Corp. - SCHW - close: 16.73

Comments:
02/23/13: Last weekend I suggested we take some money off the table and sell half of our position on Tuesday, Feb. 19th. We were fortunate that shares of SCHW gapped open higher on the 19th at $16.94. The stock closed above $17 but reversed sharply with the financial sector when the market pulled back midweek. SCHW outperformed most of the market with a +2.1% gain on Friday but I am not convinced the correction is over. I am raising our stop loss to $15.20 since the $15.50 level should be support.

Earlier Comments:
Our long-term target is $18.75. More aggressive traders can aim higher. The Point & Figure chart is bullish with a $24 target.

- Suggested *SMALL* Positions -
JAN 23, 2013 - entry price on SCHW @ 15.74, option @ 0.80
symbol:SCHW1418a17 2014 JAN $17 call - current bid/ask $ 1.15/ 1.30

02/23/13 new stop loss @ $15.20
02/19/13 sold half at the open: option bid @ $1.25 (+56.2%)
02/16/13 prepare to sell half of our position on Tuesday morning, Feb. 19th at the opening bell
02/09/13 investors may want to consider exiting now to book a profit and then jump back in on a correction.

Current Target: $18.75
Current Stop loss: 15.20
Play Entered on: 01/23/13
Originally listed on the Watch List: 01/19/13


Schlumberger Ltd. - SLB - close: 77.79

Comments:
02/23/13: Our new SLB trade could be in trouble. The bullish breakout past resistance at $80.00 has reversed. Both shares of SLB and the OSX oil services index produced a bearish engulfing candlestick (reversal) pattern on the weekly charts. This reversal pattern needs to see confirmation first but SLB came awfully close to hitting our stop loss at $76.40 on Thursday this past week. I am not suggesting new positions at this time.

- Suggested Positions -
FEB 15, 2013 - entry price on SLB @ 81.03, option @ 3.37
symbol: SLB1418a90 2014 JAN $90 call - current bid/ask $ 2.58/ 2.66

Current Target: $94.75
Current Stop loss: 76.40
Play Entered on: 02/15/13
Originally listed on the Watch List: 02/02/13


Sohu.com - SOHU - close: 45.93

Comments:
02/23/13: Our new trade on SOHU is not working. The rally reversed on Wednesday and shares are back to testing support near $45.00 and its exponential 200-dma. This move looks like a new lower high. I suspect we could see SOHU correct lower toward $42.00. If that's the case then we either need to readjust our stop loss under $42.00 or tighten our stop loss to reduce our risk. I am raising the stop to $44.75. More conservative investors will want to seriously consider an early exit right now to cut their losses. I am not suggesting new positions at current levels.

- Suggested Positions -
FEB 05, 2013 - entry price on SOHU @ 45.50, option @ 4.40
symbol:SOHU1418a50 2014 JAN $50 call - current bid/ask $ 3.90/ 4.10

02/23/13 new stop loss @ 44.75, readers may want to exit early right now to cut their losses

Current Target: $58.50
Current Stop loss: 44.75
Play Entered on: 02/05/13
Originally listed on the Watch List: 12/31/12


Urban Outfitters - URBN - close: 39.54

Comments:
02/23/13: Be careful here with URBN. Conservative investors may want to exit early now. Two weeks ago there were new worries about retailers thanks to Wal-Mart's disappointing February sales (via the executive email story). This past week URBN's rival Abercrombie (ANF) issued bearish earnings guidance. The combination of the increase payroll tax and rising gasoline prices could be taking a big chunk out of consumers wallets. Shares of URBN have been weak three days in a row and they have broken down below their 50-dma and below what should have been support at $40.00.

We already have a stop loss at $37.85 and if the broader market turns lower again we could definitely see URBN hit our stop loss. Again, readers may want to consider scaling back their positions or exiting early.

- Suggested Positions -
JAN 03, 2013 - entry price on URBN @ 41.22, option @ 4.20
symbol:URBN1418a45 2014 JAN $45 call - current bid/ask $ 2.65/2.80

02/23/13 readers may want to consider scaling back positions or exiting early now.
02/07/13 URBN pre-warning better than expected sales numbers

Current Target: $48.00
Current Stop loss: 37.85
Play Entered on: 01/03/13
Originally listed on the Watch List: 12/15/12


Vulcan Materials Co. - VMC - close: 51.96

Comments:
02/23/13: Ouch! Material-related stocks had a rough week and VMC gave up about $3.00. The correction in this stock is now four weeks old. I am expecting VMC to find support near $50.00 but there is no guarantee. The stock is actually nearing oversold levels on its momentum oscillators.

Earlier Comments:
VMC has a one cent dividend payable on March 11, 2013 to shareholders of record on Feb. 25th.

We want to keep our position size small!

- Suggested Positions -
Jan 22, 2013 - entry price on VMC @ 56.81, option @ 5.60
symbol: VMC1418a60 2014 JAN $60 call - current bid/ask $ 2.25/2.70

02/02/13 expecting a pullback in VMC.
01/22/13 trade opens
01/19/13 moved to the new plays section
01/18/13 VMC rallies past resistance, meets our entry requirements
01/05/12 new strategy. Wait for a close above $55.25 with a stop at $49.75. Our long-term target is $68.50. Small positions.

Current Target:$ 68.50
Current Stop loss: 49.75
Play Entered on: 01/22/13
Originally listed on the Watch List: 12/02/12


CLOSED Plays


SPDR Gold ETF - GLD - close: 152.97

Comments:
02/23/13: The rally in the U.S. dollar continued last week and that fueled the profit taking in gold and silver and other precious metals. The GLD gold ETF fell to new multi-month lows and hit our stop loss on the 20th. Well, it would have, except shares of the GLD gapped open lower on Feb. 20th at $153.90. Our stop was $154.40.

Our trade is closed but I wouldn't give up on gold. Multiple QE programs around the world and the rising U.S. debt will eventually helped lift the value of gold. The GLD appears to have what looks like significant support in the $148-150 zone. I would keep an eye on this ETF for a new entry point down the road. On the other hand, a close below $148.00 would look very bearish technically.

- Suggested Positions -
DEC 20, 2012 - entry price on GLD @ 159.87, option @ 2.60
symbol: GLD1418a200 2014 JAN $200 call - exit $0.97 (-62.6%)

02/20/13 stopped out on the gap open lower at $153.90
02/15/13 the GLD almost hit our stop loss at $154.40
02/09/13 the sideways consolidation is narrowing. Expect a breakout one way or the other soon.
...look for older comments in prior updates

Chart of GLD:

Current Target: $190.00-200.00 zone
Current Stop loss: 154.40
Play Entered on: 12/20/12
Originally listed on the Watch List: 09/01/12


Lennar Corp. - LEN - close: 37.88

Comments:
02/23/13: It was not a good week for homebuilders. The homebuilder confidence survey declined for the first time in ten months. Plus, homebuilder Toll Brothers (TOL) delivered a disappointing earnings report. Add on top of this a sharp midweek market decline and LEN broke down through support. Shares hit our stop loss at $37.75 on Feb. 20th.

- Suggested Positions -
(target for 2013 calls was hit at $36.00 on 09/14/2012)
AUG 17, 2012 - entry price on LEN @ 32.72, option @ 2.07
symbol: LEN1319A35 2013 JAN $35 call - exit $3.70 (+78.7%)

- or -

AUG 17, 2012 - entry price on LEN @ 32.72, option @ 3.39
symbol: LEN1418A40 2014 JAN $40 call - exit $ 3.80 (+12.0%)

02/20/13 stopped out at $37.75
01/19/13 new stop loss @ 37.75, adjust exit target on 2014 calls to $46
01/05/13 new stop loss @ 35.75
10/20/12 new stop loss @ 33.90, adjust exit target on 2014 calls to $44.00
09/24/12 LEN reported earnings, investors sell the news
09/22/12 new stop loss @ 33.40
09/15/12 new stop loss @ 31.40
09/14/12 2013 call target hit at $36.00, option @ 3.70 (+78.7%)
...

Chart of LEN:

Current Target: $ 36.00(2013 calls), $46.00 (2014 call)
Current Stop loss: 37.75
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/11/12


Nokia Corp. - NOK - close: 3.99

Comments:
02/23/13: The pullback in NOK continued and shares dipped to technical support near their exponential 200-dma and the simple 300-dma around $3.70. Unfortunately our stop loss was hit at $3.75 on Feb. 21st.

Earlier Comments:
The plan was to buy NOK the stock or the 2014 calls.

- Suggested Positions - (small positions)
NOV 20, 2012 - entry price on NOK @ 2.97, option @ 0.78
symbol: NOK1418a3 2014 JAN $3 call - exit @ $1.11 (+42.3%)

- or -

Buy NOK stock: entry @ 2.97, exit $3.75 (+26.2%)

02/21/13 stopped out at $3.75
02/09/13 new stop loss @ 3.75
01/19/13 readers may want to take profits now, prior to the earnings announcement.
01/12/13 new stop loss @ 3.65
12/22/12 new stop loss @ 3.40
12/15/12 new stop loss @ 3.25
12/08/12 new stop loss @ $2.95

Chart of NOK:

Current Target:$ 4.95
Current Stop loss: 3.75
Play Entered on: 11/20/12
Originally listed on the Watch List: 11/17/12


Southern Copper Corp - SCCO - close: 36.75

Comments:
02/23/13: It was not a great week for material or mining-related stocks. The rising in the U.S. dollar usually pushes commodity prices lower. Plus, news that China was trying to slow down house prices, which would likely dampen construction and thus lessen demand for materials probably played a role in SCCO's decline. Shares plunged four days in a row and hit our stop loss at $36.75.

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

- Suggested *SMALL* Positions -
NOV 06, 2012 - entry price on SCCO @ 35.78, option @ 2.30
symbol:SCCO1418a40 2014 JAN $40 call - exit $1.75 (-23.9%)

02/21/13 stopped out @ 36.75
02/09/13 SCCO will begin trading ex-dividend on Monday (24 cents)
01/19/13 new stop loss @ 36.75
01/05/13 new stop loss @ 34.75
12/22/12 SCCO looks poised to correct lower toward $36.00
11/24/12 new stop loss @ 33.25
11/06/12 trade opened on gap down at $35.78, below our trigger.
(gap down was due to SCCO trading ex-dividend)

Chart of SCCO:

Current Target: $44.75
Current Stop loss: 36.75
Play Entered on: 11/06/12
Originally listed on the Watch List: 10/20/12