Editor's Note:

In addition to closing our ZNGA play, we also closed the 2014 January calls on KO to lock in gains on April 1st.


Closed Plays


C and MTW were stopped out.
ZNGA was closed as planned.



Play Updates


Analog Devices - ADI - close: 43.61

Comments:
04/06/13: It was not a good week for semiconductor stocks and ADI was no exception. Shares plunged almost three points and broke down through several layers of support. Technically this past week was very bearish with a breakdown from a large pennant-shaped consolidation. More conservative traders may want to consider exiting on any bounce back into the $44-45 zone. Now the 50-dma and the $44.50-45.00 area are probably short-term overhead resistance. 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 $ 2.45/2.60

03/29/13 ADI's CEO dies of a heart attack.
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: 38.62

Comments:
04/06/13: It was a bumpy week for AIG but the big intraday bounce off its Friday lows helped reduce its losses to just 20 cents for the week.

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 $ 6.05/ 6.15

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: 11.97

Comments:
04/06/13: BAC also gave up about 20 cents for the week. It's worth noting that Friday's rebound off the morning lows looks like a bullish engulfing candlestick reversal pattern. A close back above the $12.00 level (and its 10-dma) would be short-term bullish.

BAC is due to report earnings on April 17th. Yet the stock could move on news from any of its major rivals when they report earnings. JPM and WFC report earnings on April 12th. Citigroup (C) on the 15th. USB on the 16th.

Earlier Comments:
You may want to wait for a bounce off the $12 level or a new close above $12.50 before considering new positions.

- Suggested Positions -
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - current bid/ask $0.36/0.38

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.10/1.11

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: 63.76

Comments:
04/06/13: The disappointing jobs report illustrates a potential pitfall for the retailers. If the U.S. labor market is deteriorating it's not going to bode well for retail sales. Yet overall shares of BBBY didn't react that poorly. I am still expecting a pullback toward $62.00 and shares might see some profit taking following its earnings report (maybe back toward $60 again).

I am not suggesting new positions at this time.

BBBY is due to report earnings on April 10th.

Earlier Comments:
More conservative investors will want to wait until after we see how the market reacts to BBBY's earnings results before initiating new positions, regardless if BBBY meets our entry requirement before then.

- Suggested Positions -
MAR 21, 2013 - entry price on BBBY @ 63.06, option @ 5.20
symbol: BBBY1418a65 2014 JAN $65 call - current bid/ask $5.45/5.55

03/30/13 Nimble traders could exit now (for a small profit) and re-enter positions on a pullback.
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

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


Colgate-Palmolive - CL - close: 116.72

Comments:
04/06/13: The market action last week showed investors putting money to work in defensive names like U.S. bonds, utilities stocks and REITs. I am somewhat surprised to see CL turning lower. Of course with the market retreating and CL at new highs it was a big target for traders to take some money off the table.

Shares did hit new highs on Monday but Tuesday's pullback created a bearish reversal pattern. Right now CL is testing short-term support near $116.00. If the market turns lower again we could see CL drop toward its 40 or 50-dma. I am not suggesting new positions at this time.

FYI: CL is due to report earnings on April 25th.

- 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 $ 6.30/ 6.55

03/30/13 new stop loss @ 109.90
03/16/13 new stop loss @ 108.40

Current Target:$ 124.50
Current Stop loss: 109.90
Play Entered on: 02/20/13
Originally listed on the Watch List: 02/16/13


Chevron Corp. - CVX - close: 117.52

Comments:
04/06/13: Energy stocks were not exempt from the market's sell-off this past week. Shares of CVX broke down under short-term support near $118.00 and its 50-dma. If CVX fails to rebound from current levels then the next support level should be the $114.00 area.

I am not suggesting new positions at this time.

FYI: CVX is due to report earnings on April 26th.

- Suggested Positions -
JAN 14, 2013 - entry price on CVX @ 111.38, option @ 3.40
symbol: CVX1418a120 2014 JAN $120 call - current bid/ask $ 4.90/5.05

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: 46.97

Comments:
04/06/13: DLTR garnered some bullish analyst comments midweek but the "news" failed to lift the stock past resistance. DLTR has been struggling with resistance in the $48.50 level the last couple of weeks. The pullback this past week has created what appears to be a bearish reversal pattern on its weekly chart. There is potential support in the $46-44 zone but 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 $ 5.50/5.70

03/30/13 new stop loss @ 43.45
More conservative investors might want to take profits as DLTR moves into the $49-50 zone.
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: 43.45
Play Entered on: 02/28/13
Originally listed on the Watch List: 02/23/13


General Electric - GE - close: 22.93

Comments:
04/06/13: GE was upgraded on Monday but the bounce quickly failed. The stock seems to be suffering from a new, three-week trend of lower highs and lower lows. There is potential support near $22.50 but I would expect shares to drift lower toward the $22.00 area. Keep in mind that GE is scheduled to report earnings on April 19th and a disappointment could send shares lower.

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 $0.66/0.69

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: 40.08

Comments:
04/06/13: KO's losses for the week were relatively mild. Yet Wednesday's session did create a bearish reversal pattern. I would expect KO to pullback toward the $39.00-38.50 zone. If it pulls back any further it could hit our stop at $38.25.

Our plan was to exit our 2014 Jan. $40 calls on Monday, April 1st at the opening bell to lock in gains.

FYI: KO is scheduled to report earnings on April 16th.

- Suggested Positions -
(closed 2014 calls on April 1st, 2013 at the open)
FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.01
symbol: KO1418a40 2014 JAN $40 call - exit $1.97 (+95.0%)

- or -

FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.75
symbol: KO1517a40 2015 JAN $40 call - current bid/ask $3.15/3.25

04/01/13 exited 2014 calls at the open. Option @ $1.97 (+95.0%)
03/30/13 prepare to exit our 2014 Jan $40 calls on Monday, April 1st, 2013 at the opening bell to lock in gains. Current bid is $2.09.
03/30/13 new stop loss @ 38.25
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: 38.25
Play Entered on: 02/12/13
Originally listed on the Watch List: 02/09/13


Macy's Inc. - M - close: 43.39

Comments:
04/06/13: Market sell-off? Profit taking? Shares of Macy's are ignoring any bad news. The rally continues for this department story giant and shares hit new multi-year highs on Thursday. While the relative strength is great to see I would be somewhat cautious about launching new positions. In a helium balloon (rising stock) will go down if it's stuck inside a descending elevator (the market).

Earlier Comments:
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 $3.00/3.10

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: 45.13

Comments:
04/06/13: The drug sector managed to tag a new high this past week before paring its gains. MRK rallied to a new five-month high before paring its gains. Shares are likely to show relative strength given the flow of money toward defensive names. Of course sometimes relative strength just means a stock declines less than its peers. MRK can still decline if the market turns lower again.

I am not suggesting new positions at this time.
The company is due to report earnings on May 1st.

- Suggested Positions -
MAR 13, 2013 - entry price on MRK @ 44.54, option @ 2.06
symbol: MRK1418a45 2014 JAN $45 call - current bid/ask $2.53/2.56

- or -

MAR 13, 2013 - entry price on MRK @ 44.54, option @ 3.60
symbol: MRK1517a45 2015 JAN $45 call - current bid/ask $4.05/4.15

03/30/13 MRK is not participating in the market's rally or drug sector rally. Investors will want to turn more defensive here.
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


Starbucks Corp. - SBUX - close: 57.80

Comments:
04/06/13: Believe it or not but SBUX posted a gain for the week. Shares have been finding consistent support near its rising 30-dma. If this trend continues we could see SBUX testing resistance near $59.00 again soon. On the other hand a close below its 30-dma could signal a sharp drop toward the $53-52 area.

I am not suggesting new positions at this time. More conservative investors may want to raise their stops.

- 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: 16.55

Comments:
04/06/13: it was a painful week of profit taking for SCHW. The stock is now down five days in a row. Traders did buy the dip on Friday morning near $16.15 but the short-term trend remains lower. Broken support near $17.00 and its 50-dma should be new short-term resistance. I am not suggesting new positions at this time.

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 $ 1.10/ 1.25

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


Under Armour, Inc. - UA - close: 53.04

Comments:
04/06/13: UA was a watch list candidate. The plan was to buy calls if shares hit our trigger at $52.50 (on an intraday basis). The stock has managed to ignore the market's sell-off this past week and continue to climb. The breakout past resistance near $52.00 and its 150-dma and 200-dma is bullish. Traders bought the dip on Friday morning helping reaffirm this area as new support. I would still consider new bullish positions now at current levels. However, if the market retreats on a disappointing Q1 earnings season UA could follow the market lower. Thus investors will want to consider keeping their position size small to limit their exposure.

UA's rise past $52.00 has created a brand new triple-top breakout buy signal that is currently forecasting at $66 target.

NOTE: UA is scheduled to report earnings on April 19th.

Earlier Comments:
It's also worth noting that UA has relatively high short interest at 18% of the 79.8 million share float. A breakout past resistance could also fuel some short covering.

- Suggested *SMALL* Positions -
APR 02, 2013 - entry price on UA @ 52.50, option @ 3.15
symbol: UA1418a60 2014 JAN $60 call - current bid/ask $ 3.50/ 3.70

04/02/13 triggered at $52.50

Chart of UA:

Current Target: $59.75
Current Stop loss: 47.45
Play Entered on: 04/02/13
Originally listed on the Watch List: 03/30/13


Wal-Mart Stores - WMT - close: 76.39

Comments:
04/06/13: Investors turned defensive this past week. While most of the retail sector turned lower shares of WMT bucked the trend. Shares rallied past resistance near $75.00 and closed at new five-month highs. Traders bought the dip on Friday at its short-term technical support on its 10-dma. The stock looks poised to test what is likely resistance at its October 2012 highs near $77.50. I would expect WMT to pullback from its initial test of this level.

I am not suggesting new positions at this time. We will raise the stop loss up to $71.40.

- Suggested Positions -
MAR 05, 2013 - entry price on WMT @ 73.47, option @ 3.10
symbol: WMT1418a75 2014 JAN $75 call - current bid/ask $ 4.40/4.55

- or -

MAR 05, 2013 - entry price on WMT @ 73.47, option @ 2.97
symbol: WMT1517a80 2015 JAN $80 call - current bid/ask $ 4.15/4.30

04/06/13 new stop loss @ 71.40
03/30/13 new stop loss @ 69.45

Current Target: $85.00-90.00 range
Current Stop loss: 71.40
Play Entered on: 03/05/13
Originally listed on the Watch List: 02/02/13


CLOSED Plays


Citigroup - C - close: 43.01

Comments:
04/06/13: Shares of Citigroup has extended their correction lower to three weeks in a row. We almost survived it with Citigroup finding support near $42.00 midweek. Yet the market's gap down on Friday morning thanks to the terrible jobs number sparked a gap down in C. Shares opened at $41.75 and dipped to $41.60 before bouncing. Our stop loss happens to be $41.75 so the play was closed immediately.

On a short-term basis C's bounce on Friday has created a bullish engulfing candlestick reversal pattern. Nimble traders could use a rally past $43.50 or $44.00 as a new bullish entry point with a stop below Friday's low.

- Suggested Positions - (small positions)
DEC 18, 2012 - entry price on C @ 39.21, option @ 3.02
symbol: C1418a45 2014 JAN $45 call - exit $2.90 (-3.9%)

04/05/13 stopped out on gap down at $41.75
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

Chart of C:

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


The Manitowoc Co - MTW - close: 20.56

Comments:
04/06/13: Ouch! It was a terrible week for shares of MTW. Last week I suggested readers take profits because our option had doubled in value. I certainly wish we had done that now. MTW gave up -10.6% for the week and at its low on Friday the stock was down -15% for the week. Of course our stop loss was $18.40 and shares of MTW hit our stop on Thursday afternoon with the dip to $18.33.

- Suggested Positions -
JAN 24, 2013 - entry price on MTW @ 17.10, option @ 1.55
symbol: MTW1418a20 2014 JAN $20 call - exit $2.05* (+32.2%)

04/04/13 stopped out at $18.40
*NOTE the option exit price is an estimate since the option did not trade on Thursday when the trade was stopped out.
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

Chart of MTW:

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


Zynga, Inc. - ZNGA - close: 3.55

Comments:
04/06/13: ZNGA was not working for us and last weekend we decided to close positions on Monday, April 1st at the opening bell. Shares opened at $3.37. The market's sell-off early in the week pulled ZNGA down to $3.05 on Tuesday. The stock managed a pretty decent bounce on Wednesday.

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 - exit $ 0.36 (-50.6%)

- or -

MAR 05, 2013 - entry ZNGA stock @ 4.02, exit $3.37 (-16.1%)

04/01/13 planned exit
03/30/13 prepare to exit on Monday, April 1st at the opening bell
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

Chart of ZNGA:

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