Editor's Note:

BBBY and M both graduated from the watch list to the play list.

I am suggesting we exit our MSI play on Monday morning to lock in profits. We also want to exit our URBN trade on Monday morning to cut our losses.


Closed Plays


JNPR was closed on Monday as planned.


Play Updates


Analog Devices - ADI - close: 44.90

Comments:
03/23/13: Last week I expressed concern that ADI and the semiconductor sector could be poised for weakness. ADI did post another weekly loss as it tried to hold technical support at the simple 50-dma. The SOX semiconductor index is a problem because it appears to have formed a potential bearish double top with the peak in March 2012 and now a new peak in March 2013 near the 440-445 area. It's not a complete reversal yet for the SOX but the up trend looks fragile and if the SOX breaks down it will weigh on shares of ADI.

Meanwhile ADI already seems to have produced a lower high. Technical oscillators are short-term bearish. I am expecting ADI to correct lower toward $42.00. More conservative traders could exit early now, minimize any losses, and jump back in on a bounce from the $42 level.

- Suggested Positions -
JAN 03, 2013 - entry price on ADI @ 43.60, option @ 3.10
symbol: ADI1418a45 2014 JAN $45 call - current bid/ask $ 3.00/3.30

03/23/13 ADI still looks poised to retreat lower.
03/16/13 did ADI just create a new lower high?
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: 37.79

Comments:
03/23/13: The financial sector hit a little profit taking this past week. That's not too surprising given all the bad press regarding the banking situation in Cyprus. Meanwhile shares of AIG retreated lower for the second week in a row. The stock is now testing technical support at the 50-dma. If AIG continues to move lower I would expect a retracement to the $36.00 level. I am not suggesting new positions at this time.

More conservative investors might want to adjust their stop closer to the $36.00 area.

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 $ 5.35/ 5.45

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


Bank of America - BAC - close: 12.56

Comments:
03/23/13: BAC is our new play from last weekend's newsletter. The stock was first listed on our watch list. Our traded opened on Monday morning, March 18th. BAC gapped open lower at $12.29. Shares did rally to a new 52-week high midweek thanks to some bullish analyst comments. The stock closed virtually unchanged for the week.

Given the action in the market and the financial sector the last few days it looks like odds are good we could see BAC provide a better entry point near $12.00. You may want to wait for the pullback.

- Suggested Positions -
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - current bid/ask $0.54/0.55

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.33/1.36

Current Target:$ 18.00
Current Stop loss: 10.90
Play Entered on: 03/18/13

Originally listed on the Watch List: 03/09/13


Bed Bath & Beyond - BBBY - close: 64.59

Comments:
03/23/13: BBBY is a watch list candidate that has graduated to our active play list. The rally in BBBY seems to be accelerating. After a slow, three-week slide lower in February the stock has exploded with a three-week rally from the $56.50 level to new five-month highs near $64.50.

Our plan was to wait for BBBY to close over $62.50 and then buy calls the next day. Shares met our entry requirement on March 20th with a close at $63.34. Our traded opened the next morning when BBBY gapped down at $63.06. If you missed the entry I would not worry. The $65.00 level is probably round-number resistance and BBBY is arguably short-term overbought. Odds are good the stock will provide a pullback into the $63-62 area where we can buy the dip.

Earlier Comments:
NOTE: BBBY's next earnings report is expected in early April, possibly the first week of April. More conservative investors will want to wait until after we see how the market reacts to the earnings results before initiating new positions, regardless if BBBY meets our entry requirement.

- Suggested Positions -
MAR 21, 2013 - entry price on BBBY @ 63.06, option @ 5.20
symbol: BBBY1418a65 2014 JAN $65 call - current bid/ask $0.54/0.55

03/21/13 trade opens with BBBY opening at $63.06
03/20/13 BBBY meets our entry requirement (close over $62.50) with a close at $63.34

Chart of BBBY:

Current Target:$ 74.50
Current Stop loss: 58.25
Play Entered on: 03/21/13
Originally listed on the Watch List: 03/16/13


Citigroup - C - close: 45.23

Comments:
03/23/13: Concerns over Cyprus and what that country's financial turmoil might mean for the EU sparked some profit taking in the financial sector. Shares of Citigroup, which were already short-term overbought, retreated this past week. Look for support in the $43-44 zone. 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 $ 4.90/ 4.95

03/16/13 new stop loss @ 41.75, readers may want to take profits now since our option has virtually doubled (+100%)
03/09/13 new stop loss @ 39.75, adjust target to $49.00
01/05/13 new stop loss @ 37.35

Current Target:$ 49.00
Current Stop loss: 41.75
Play Entered on: 12/18/12
Originally listed on the Watch List: 12/08/12


Colgate-Palmolive - CL - close: 114.41

Comments:
03/23/13: After a sharp pullback two weeks ago CL managed a decent rebound this past week without much help from the broader market. I am leaving our stop loss at $108.40 but more conservative traders may want to use a stop closer to $110 or even $111 near Monday's low. I am not suggesting new positions at this time.

- 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 $ 5.05/ 5.30

03/16/13 new stop loss @ 108.40

Current Target:$ 124.50
Current Stop loss: 108.40
Play Entered on: 02/20/13
Originally listed on the Watch List: 02/16/13


Chevron Corp. - CVX - close: 121.18

Comments:
03/23/13: The rally in CVX continues. The stock is outperforming the major indices and most of the oil sector. Shares of CVX are up five weeks in a row and broke out to new all-time, record highs this past week. Our option has almost doubled (+100%) and more conservative traders may want to take profits now.

Currently our exit target is $124.50. That could be hit this week. More aggressive traders may want to aim higher, say $129 or $134, since we still have several months left on our 2014 calls. The newsletter will plan to exit at $124.50.

- Suggested Positions -
JAN 14, 2013 - entry price on CVX @ 111.38, option @ 3.40
symbol: CVX1418a120 2014 JAN $120 call - current bid/ask $ 6.85/7.00

03/16/13 new stop loss @ 113.25
03/09/13 new stop loss @ 109.50
02/02/13 do not be surprised to see a pullback now that earnings have been announced.

Current Target:$124.50
Current Stop loss: 113.25
Play Entered on: 01/14/13
Originally listed on the Watch List: 12/22/12


Dollar Tree, Inc. - DLTR - close: 46.84

Comments:
03/23/13: The rally has resumed in shares of DLTR. Traders bought the dip on Monday near $44.00. Two days later the stock was breaking out past technical resistance at its simple 200-dma and 300-dma. Now shares are up three days in a row and hitting new multi-month highs. I am not suggesting new positions at this time.

- Suggested Positions -
FEB 28, 2013 - entry price on DLTR @ 45.25, option @ 4.76
symbol:DLTR1418a45 2014 JAN $45 call - current bid/ask $ 5.50/5.80

03/16/13 new stop loss @ 41.40
02/28/13 trade opened following gap higher, above our trigger

Current Target: $53.50
Current Stop loss: 41.40
Play Entered on: 02/28/13
Originally listed on the Watch List: 02/23/13


Expedia Inc. - EXPE - close: 62.94

Comments:
03/23/13: It was not a good week for online travel sites that do business in Hawaii. A judge has ruled that online travel companies including Expedia Inc. and most of its rivals, will have to pay the state of Hawaii a $70 million penalty for avoiding the state's general excise tax for the last ten years. Shares of EXPE plunged on Tuesday when the story came out. The stock found support near its simple 100-dma and retested this moving average again later in the week.

Technically it looks like the upward momentum in EXPE is in serious trouble. Investors will want to seriously consider an early exit out of this trade. I am not suggesting new positions. Tonight we're adjusting the stop loss to $59.75. If you choose to keep the play open you might want to tighten your stop closer to the $61.00 level instead.

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 $3.80/4.00

03/23/13 new stop loss @ 59.75, you may want to raise yours higher
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: 23.37

Comments:
03/23/13: GE spent the week in a choppy sideways drift. The stock bounced off its 30-dma but failed near the $23.80 level again. Momentum indicators are starting to turn more bearish. Shares could be forecasting a correction lower. If GE does see a pullback I would look for a dip toward $22.00.

Since our call options have virtually doubled (+100%) readers might want to take profits right now. I am not suggesting new positions.

- Suggested Positions -
NOV 14, 2012 - entry price on GE @ 20.25, option @ 0.42
symbol: GE1418a25 2014 JAN $25 call - current bid/ask $0.84/0.87

03/09/13 our 2014 Jan $25 call option has doubled. Readers might want to consider taking some money off the table.
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


The Coca-Cola Company - KO - close: 40.04

Comments:
03/23/13: Some of the defensive names were showing strength this past week. KO was helping lead the group with a surge from the $38.50 area to round-number resistance at $40.00. Shares hit $40.43 intraday on Thursday, a new seven-month high.

Last summer (2012) KO ran into resistance in the $40.60-40.70 zone. Odds are that area will be resistance again and KO will see a pullback once it trades up into that area. Our 2014 calls have almost doubled (+93%) and more conservative investors may want to take profits early right now. I am not suggesting new positions at this time. We will raise our stop loss to $37.65.

Earlier Comments:
KO's next quarterly dividend is payable on April 1st, 2013 to shareholders on record as of March 15th.

- Suggested Positions -
FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.01
symbol: KO1418a40 2014 JAN $40 call - current bid/ask $1.94/1.99

- or -

FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.75
symbol: KO1517a40 2015 JAN $40 call - current bid/ask $3.10/3.20

03/23/13 new stop loss @ 37.65
Our 2014 calls have almost doubled and readers may want to take profits early right now

Current Target: $44.00
Current Stop loss: 37.65
Play Entered on: 02/12/13
Originally listed on the Watch List: 02/09/13


Macy's Inc. - M - close: 42.66

Comments:
03/23/13: The iconic department store is seeing continued strength in its stock price. Macy's was a watch list candidate. The plan was to wait for shares to breakout and close above $42.50 then buy calls the next day. M closed at $42.55 on March 20th. Our traded opened the next day at $42.22. These are new multi-year highs for the stock. The bullish breakout past resistance near $42.00 looks very positive.

The old all-time highs near $46.50 could be resistance but at the moment we are aiming for $48.50. FYI: The Point & Figure chart is bullish with a $53 target.

- Suggested Positions -
MAR 21, 2013 - entry price on M @ 42.22, option @ 2.85
symbol: M1418a45 2014 JAN $45 call - current bid/ask $2.87/2.92

Chart of M:

Current Target: $48.50
Current Stop loss: 39.25
Play Entered on: 03/21/13
Originally listed on the Watch List: 03/09/13


Merck & Co. - MRK - close: 43.90

Comments:
03/23/13: It turned out to be a quiet week for shares of MRK. The stock churned sideways on either side of the $44.00 level. MRK was also flirting with both the 10-dma and the 150-dma. The high for the week was $44.29. Readers may want to wait for MRK to close above $44.30 before initiating new bullish positions.

- Suggested Positions -
MAR 13, 2013 - entry price on MRK @ 44.54, option @ 2.06
symbol: MRK1418a45 2014 JAN $45 call - current bid/ask $1.89/1.93

- or -

MAR 13, 2013 - entry price on MRK @ 44.54, option @ 3.60
symbol: MRK1517a45 2015 JAN $45 call - current bid/ask $3.25/3.40

03/16/13 use the dip to $44.00 as another entry point to buy calls
03/13/13 trade opens with MRK gapping down at $44.54
03/12/13 MRK gaps open higher and closed at $45.04, above our suggested entry (close above $44.25).

Current Target: $49.50
Current Stop loss: 41.45
Play Entered on: 03/13/13
Originally listed on the Watch List: 02/23/13


Motorola Solutions - MSI - close: 63.61

Comments:
03/23/13: The rally resumed in shares of MSI and the stock was accelerating higher on Friday with a +1.89% gain. This is a new multi-year high for the stock. We have been aiming for $64.00. Shares of MSI almost hit $64.00 on Friday. I am suggesting we exit immediately to lock in gains. Granted the trend is up and MSI could continue to rally. More aggressive traders may want to let it ride and keep the trade open but I would strongly suggest you tighten your stop loss significantly. The newsletter will plan on exiting positions on Monday morning at the opening bell.

- Suggested Positions -
NOV 26, 2012 - entry price on MSI @ 54.11, option @ 2.93
symbol: MSI1418a60 2014 JAN $60 call - current bid/ask $ 6.25/ 6.40

03/23/13 Prepare to exit on Monday morning (Mar. 25th)
03/09/13 new stop loss @ 59.75
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: 59.75
Play Entered on: 11/26/12
Originally listed on the Watch List: 11/17/12


The Manitowoc Co - MTW - close: 20.65

Comments:
03/23/13: MTW tagged a new 52-week high on Wednesday but have since pared its gains. The stock posted a small loss for the week but the option is unchanged. The high on Wednesday was $21.35 and we've been aiming for $21.50. Readers may want to just exit now and lock in gains. Please note that I am raising the stop loss to $18.40.

- Suggested Positions -
JAN 24, 2013 - entry price on MTW @ 17.10, option @ 1.55
symbol: MTW1418a20 2014 JAN $20 call - current bid/ask $ 3.20/ 3.40

03/23/13 new stop loss @ 18.40
Readers may want to exit early now to lock in gains
03/16/13 new stop loss @ 17.85
03/09/13 new stop loss @ 16.85
02/16/13 new stop loss @ 16.30

Current Target:$21.50
Current Stop loss: 18.40
Play Entered on: 01/24/13
Originally listed on the Watch List: 01/19/13


Starbucks Corp. - SBUX - close: 57.38

Comments:
03/23/13: Is the correction in SBUX already over? Traders bought the dip at $56.00 and the stock has been trying to build on that bounce. Right now SBUX is technically facing short-term resistance at its simple 10-dma. If the rally does continue SBUX faces potential resistance both at $59.00 and at $60.00. I am not suggesting 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 $ 3.75/ 3.85

03/09/13 new stop loss @ 52.75
01/05/13 new stop loss @ 49.85

Current Target:$ 62.00
Current Stop loss: 52.75
Play Entered on: 12/07/12
Originally listed on the Watch List: 12/02/12


The Charles Schwab Corp. - SCHW - close: 17.54

Comments:
03/23/13: After a strong two-week rally in early March SCHW produced a pullback this past week. The decline was relatively minor but at current levels every dip cuts into our potential profits. Investors have a decision to make. You could exit right now and pocket a +100% gain. Or we can hold on. SCHW could benefit from some end of quarter window dressing since shares are up significantly for the quarter.

The newsletter is going to hold on and keep the play open. We will also leave the stop loss at $15.90 for now. Our target remains $18.75.

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 $ 1.65/ 1.80

03/09/13 new stop loss @ 15.90, our call option has more than doubled and readers may want to take profits now.
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: 15.90
Play Entered on: 01/23/13
Originally listed on the Watch List: 01/19/13


Urban Outfitters - URBN - close: 38.75

Comments:
03/23/13: Mayday! Mayday! Mayday! This stock is going down! The bounce in shares of URBN has failed and now the stock is breaking down to new relative lows. URBN is developing a bearish trend of lower highs and lower lows. The stock broke through technical support at its 100-dma this past week. Now it's sitting on the 150-dma.

I am suggesting we abandon ship immediately on Monday morning at the open.

- Suggested Positions -
JAN 03, 2013 - entry price on URBN @ 41.22, option @ 4.20
symbol:URBN1418a45 2014 JAN $45 call - current bid/ask $ 2.10/2.20

03/23/13 prepare to exit on Monday, Mar. 25th at the open
03/16/13 no follow through on the earnings bounce. URBN looks vulnerable here.
03/09/13 Get ready for earnings. URBN is scheduled to report earnings on March 11th.
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


Wal-Mart Stores - WMT - close: 74.28

Comments:
03/23/13: WMT rallied almost two points for the week. Over half of that was on Friday with a surge past resistance near the $74.00 level. These are new three-month highs and WMT might actually get some window dressing to drive it higher this week. Currently our stop loss is at $67.25 but more conservative investors may want to adjust their stop closer to the $70 level.

- Suggested Positions -
MAR 05, 2013 - entry price on WMT @ 73.47, option @ 3.10
symbol: WMT1418a75 2014 JAN $75 call - current bid/ask $ 3.20/3.30

- or -

MAR 05, 2013 - entry price on WMT @ 73.47, option @ 2.97
symbol: WMT1517a80 2015 JAN $80 call - current bid/ask $ 3.20/3.35

Current Target: $85.00-90.00 range
Current Stop loss: 67.25
Play Entered on: 03/05/13
Originally listed on the Watch List: 02/02/13


Zynga, Inc. - ZNGA - close: 3.42

Comments:
03/23/13: Ouch! ZNGA is off 20 cents or -5.5% for the week. The stock gave us a scare on Wednesday with an intraday dip to $3.27. Our stop loss is at $3.25. Wednesday's weakness was exacerbated by an analyst downgrade that morning. Shares bounced off technical support at the 200-dma. The two-day rebound doesn't necessarily mean the correction is over. I would be very cautious here. The failed rally at $4.00 two weeks ago and the ensuing correction lower does not bode well for ZNGA. I am not suggesting new positions at this time.

Earlier Comments:
I cautioned readers that ZNGA was a higher-risk, more aggressive trade. The stock's volatility could make this a challenging trade.

- Suggested Positions -
MAR 12, 2013 - entry price on ZNGA @ 4.02, option @ 0.73
symbol:ZNGA1418a5 2014 JAN $5 call - current bid/ask $ 0.48/0.51

- or -

MAR 05, 2013 - entry price on ZNGA stock @ 4.02

03/12/13 ZNGA opens at $4.02 (entry point)
03/11/13 ZNGA closed at $3.93, above our entry requirement of 3.80

Current Target: $5.75
Current Stop loss: 3.25
Play Entered on: 03/12/13
Originally listed on the Watch List: 03/02/13


CLOSED Plays


Juniper Networks - JNPR - close: 18.72

Comments:
03/23/13: JNPR has not been cooperating. The stock had been correcting lower. Last weekend we decided the best move was to abandon ship and exit positions on Monday morning.

Unfortunately, JNPR only added insult to injury with a gap down on Monday, March 18th as it opened at $19.08 - a $1.09 drop! The sell-off continued with JNPR down -7.1% for the week.

- Suggested Positions -
DEC 19, 2012 - entry price on JNPR @ 20.39, option @ 1.84
symbol: JNPR1418a25 2014 JAN $25 call - exit $0.92 (-50.0%)

03/18/13 planned exit, but JNPR gapped down at $19.08
03/16/13 prepare to exit immediately on Monday morning (03/18/2013)
02/09/13 JNPR is showing relative weakness
01/26/13 new stop loss @ 19.45

Chart of JNPR:

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