Editor's Note:

You will notice that both INTC and VOD, our new watch list candidates have graduated to the active play list.

I am suggesting we exit our SCHW trade immediately and exit our 2014 calls on WMT. Please see the play updates below for details.


Closed Plays


AIG hit our bullish exit target.
We closed the CL trade at its highs.



Play Updates


Bank of America - BAC - close: 11.66

Comments:
04/27/13: BAC was a strong performer last week with a +6.5% gain. The stock is arguably short-term overbought after such a fast rise. Investors may want to note that the financial sector ETF has broken out to a new 52-week high but BAC has not. I remain optimistically bullish here but I am not suggesting 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 $0.34/0.35

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.05/1.07

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: 67.09

Comments:
04/27/13: News of an analyst lowering their price target on BBBY on Thursday failed to stop the stock's rally. Yet there was no follow through higher on Friday. The $68.00 level remains short-term resistance. Friday's session actually painted a bearish engulfing candlestick reversal pattern. I would not be surprised to see BBBY retreat towards technical support at its rising 20-dma near $65.65 soon. More conservative traders may want to raise their stop loss significantly.

- Suggested Positions -
MAR 21, 2013 - entry price on BBBY @ 63.06, option @ 5.20
symbol: BBBY1418a65 2014 JAN $65 call - current bid/ask $6.90/7.05

04/13/13 new stop loss @ 62.25
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: 62.25
Play Entered on: 03/21/13
Originally listed on the Watch List: 03/16/13


Chevron Corp. - CVX - close: 120.04

Comments:
04/27/13: A big bounce in stocks and oil helped fuel a four-point rally in CVX. The company reported earnings on Friday morning that beat estimates, which helped fuel Friday's gains. Wall Street was expecting a profit of $3.08 a share. CVX delivered $3.18.

The big rebound in the stock price is encouraging but CVX is currently forming a short-term trend of lower highs. That is temporarily bearish. More conservative investors might want to take profits now.

I am not suggesting new positions at this time.

- Suggested Positions -
JAN 14, 2013 - entry price on CVX @ 111.38, option @ 3.40
symbol: CVX1418a120 2014 JAN $120 call - current bid/ask $ 5.60/5.75

04/27/13 more conservative investors may want to take profits now.
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: 47.95

Comments:
04/27/13: The three main "dollar" stores, DLTR, DG, and FDO have continued to rally. Yet all three look like they have reached likely resistance. Big picture, given what is likely a slowing U.S. economy, I expect this industry to perform well. Yet short-term they look poised for a pullback. Our stop loss on DLTR is at $44.75. That might actually be too high. More aggressive investors may want to adjust their stop so it's below the top of the gap higher in late February (about $43.50).

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 $ 6.10/6.20

04/13/13 new stop loss @ 44.75
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: 44.75
Play Entered on: 02/28/13
Originally listed on the Watch List: 02/23/13


Intel Corp. - INTC - close: 23.40

Comments:
04/27/13: The semiconductor sector was an overachiever last week. Chip giant Intel did not disappoint with a bullish breakout to new relative highs. Our plan was to wait for shares to close above $23.10 and then buy calls the next day. INTC met our entry point on April 23rd with a close at $23.38. Our trade opened the next day.

Shares have since run into potential resistance at $24.00 and its simple 300-dma. We can use any pullback from here as a new entry point and I would not be surprised to see a dip back toward the simple 10-dma.

Earlier Comments:
Our long-term target is $26.50 but we may have to exit our 2014 calls before then.

- Suggested Positions -
APR 24, 2013 - entry price on INTC @ 23.28, option @ 0.89
symbol:INTC1418a25 2014 JAN $25 call - current bid/ask $ 0.88/0.91

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 1.74/1.80

Chart of INTC:

Current Target: $26.50
Current Stop loss: 21.40
Play Entered on: 04/24/13
Originally listed on the Watch List: 04/20/13


The Coca-Cola Company - KO - close: 42.10

Comments:
04/27/13: With the market in rally mode some of the defensive, safe-haven names like KO were forgotten. Shares slowly drifted lower from their recent highs. We should not be surprised if KO retreats toward the $41-40 zone again.

Earlier Comments:
KO's all-time high is $44.47 from July 1998. We are leaving the long-term exit target at $44.00 but readers may want to seriously consider taking profits early.

- 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 $4.25/4.40

04/20/13 new stop loss @ 39.65, readers may want to take profits now.
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: 39.65
Play Entered on: 02/12/13
Originally listed on the Watch List: 02/09/13


Macy's Inc. - M - close: 44.63

Comments:
04/27/13: Friday's pullback snapped a five-day rally in the retail sector. Shares of Macy's were not quite so bullish but the trend was up. The stock is nearing its 2013 highs set two weeks ago. A failure here might be seen as a short-term bearish double top pattern.

Right now our stop is at $39.25. More conservative investors may want to raise their stops toward the $41.50 area since broken resistance near $42.00 should offer some support. I am not suggesting new positions at this time.

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 $3.50/3.60

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: 47.87

Comments:
04/27/13: The rally in MRK broke out past resistance near $48.00 and hit new five-year highs before reversing on Wednesday. The stock has seen a significant rally from its February lows. I suspect that MRK will see some profit taking following its earnings report on May 1st. The company reports before the opening bell. Wall Street expects a profit of 78 cents a share. I am not suggesting new positions at this time. More conservative investors may want to raise their stops or take profits early right now.

- Suggested Positions -
(closed 2014 call position on April 15, 2013)
MAR 13, 2013 - entry price on MRK @ 44.54, option @ 2.06
symbol: MRK1418a45 2014 JAN $45 call - exit $3.60 (+74.7%)

- or -

MAR 13, 2013 - entry price on MRK @ 44.54, option @ 3.60
symbol: MRK1517a45 2015 JAN $45 call - current bid/ask $5.50/5.65

04/15/13 closed 2014 calls
04/13/13 prepare to exit 2014 calls on Monday, April 15th at the opening bell.
new stop loss @ 43.40 and new target of $53.50 for 2015 calls.
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: $53.50
Current Stop loss: 43.40
Play Entered on: 03/13/13
Originally listed on the Watch List: 02/23/13


Starbucks Corp. - SBUX - close: 60.00

Comments:
04/27/13: Coffee giant SBUX kept the rally alive with a bullish breakout past round-number resistance at $60.00. Reaction to earnings sparked some profit taking on Friday but SBUX managed to bounce back to the $60.00 mark.

SBUX reported earnings on Thursday and only met analyst expectations with a profit of 48 cents a share. Revenues were up +11.3% to $3.56 billion, which was just below estimates. Unfortunately management lowered their earnings guidance. The fact that shares did not see a sharp sell-off on its earnings warning is somewhat bullish. Traders were prepare to buy the dip and they did. However, I would still expect a pullback in SBUX. Look for a correction toward the $57-56 area. More conservative investors may want to just take profits now and exit early. A slowing U.S. economy could prove to be tough for SBUX consumers.

- Suggested Positions -
DEC 07, 2012 - entry price on SBUX @ 53.43, option @ 3.80
symbol:SBUX1418a60 2014 JAN $60 call - current bid/ask $ 4.60/ 4.65

04/27/13 the earnings news is out. investors may want to exit early now
04/13/13 new stop loss @ 54.75, adjust target to $61.50
03/09/13 new stop loss @ 52.75
01/05/13 new stop loss @ 49.85

Current Target:$ 61.50
Current Stop loss: 54.75
Play Entered on: 12/07/12
Originally listed on the Watch List: 12/02/12


The Charles Schwab Corp. - SCHW - close: 16.73

Comments:
04/27/13: I am concerned about our SCHW trade. The stock's bounce failed near resistance at its 50-dma on Thursday. SCHW looks poised to drop toward support near $16.00 and likely breakdown. The S&P 500 and the financial sector ETF are trading at or near their recent highs. SCHW is not.

I am suggesting we exit immediately on Monday morning, April 29th!

- 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

04/27/13 prepare to exit immediately on Monday morning (04/29/13)
04/20/13 SCHW looks vulnerable following its earnings report and investors may want to exit early.
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


U.S. Oil (ETF) - USO - close: 33.12

Comments:
04/27/13: Ouch! I cautioned readers to expect a bounce but I was surprised by the strength of the rebound. The USO gained +5.5% for the week. Overall commodities in general had a good week. Actually stocks, commodities and bonds all rallied so it could be a case of a rising tide lifting all boats. Technical traders will note that the rebound stalled near technical resistance at its 50 and 100-dma. Plus, the bounce stalled near the 61.8% Fibonacci retracement of its April sell-off.

When you take into account that oil production is rising and that U.S. inventories are at 22-year highs I do not expect the rebound in oil to last. Investors could actually use this bounce as a new entry point for bearish positions although more conservative traders may want to lower their stop loss.

NOTE: Right now this is a put play with 2013 September puts. I am having second thoughts about the USO as viable long-term bullish trading vehicle. The USO should still work as a short-term or intermediate trade but longer-term we may need to find another way to play oil.

Earlier Comments:
There is still a significant risk that Israel and Iran eventually start shooting at each other as Israel tries to stop Iran's nuclear weapons program. If that happens oil will definitely skyrocket higher. However, no one expects any Israel/Iran conflict until late summer. Oil could plunge to new relative lows before that happens.

Here's the plan. We can aim for a drop into the $30-29 zone (target 29.50). The USO has what appears to be significant support near $29.00. If and when the USO nears this support level we can exit our USO puts for a potential profit and switch to buying calls in anticipation of any rising geopolitical risk in the Mideast.

This is a PUT play

- Suggested Positions -
APR 15, 2013 - entry price on USO @ 31.94, option @ 1.39
symbol: USO1321u30 2013 SEP $30 PUT - current bid/ask $ 0.75/ 0.77

Current Target:$ 29.50
Current Stop loss: 35.05
Play Entered on: 04/15/13
Originally listed on the Watch List: 04/06/13


Vodafone Group - VOD - close: 30.63

Comments:
04/27/13: Both INTC and VOD were new watch list candidates and both of them were triggered this past week. Our plan was to wait for VOD to breakout past resistance near $30.00 and close above $30.25. Shares of VOD met that entry requirement on Thursday with a gap open higher at $30.37 and a close at $30.43. The rally was fueled by news that Verizon was considering a $100 billion deal to buy VOD's stake in Verizon Wireless.

On Thursday Reuters published an article suggesting that VZ was hiring advisers on a potential $100 billion bid to buy VOD's stake in their joint venture: Verizon Wireless. The initial plan was a 50:50 cash and stock deal. The next day in a British news outlet, the Guardian, it was said that VOD had rejected VZ's $100 billion bid as no where close to being considered. There is speculation that $100 billion was merely the "opening bid" and VZ may make a higher offer. If so, that works well for us. Shares of VOD are surging on this news.

Our trade opened on Friday morning at $30.63. Nimble investors could look for a dip back toward $30.00 as an alternative entry point but I would consider new positions now.

- Suggested Positions -
APR 26, 2013 - entry price on VOD @ 30.63, option @ 2.07
symbol: VOD1418a30 2014 JAN $30 PUT - current bid/ask $ 2.00/ 2.10

- or -

APR 26, 2013 - entry price on VOD @ 30.63, option @ 1.00
symbol: VOD1517a35 2015 JAN $35 PUT - current bid/ask $ 0.85/ 1.20

Chart of VOD:

Current Target:$36.00
Current Stop loss: 28.45
Play Entered on: 04/26/13
Originally listed on the Watch List: 04/20/13


Wal-Mart Stores - WMT - close: 79.04

Comments:
04/27/13: It was a relatively quiet week for WMT. The stock has been churning sideways at new all-time highs. Wednesday's session was troubling with a bearish engulfing candlestick reversal pattern but there was no follow through lower.

Please note that I am suggesting we exit our 2014 Jan. $75 calls immediately. The option currently has a bid/ask spread of $6.10/6.20. I am suggesting we exit these on Monday morning, April 29th.

We've got about two weeks before WMT reports earnings on May 16th.

- Suggested Positions -
MAR 05, 2013 - entry price on WMT @ 73.47, option @ 3.10
symbol: WMT1418a75 2014 JAN $75 call - current bid/ask $ 6.10/6.20

- or -

MAR 05, 2013 - entry price on WMT @ 73.47, option @ 2.97
symbol: WMT1517a80 2015 JAN $80 call - current bid/ask $ 5.50/5.70

04/27/13 prepare to exit our 2014 calls immediately on Monday morning (04/29/13)
04/13/13 new stop loss @ 73.45
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: 73.45
Play Entered on: 03/05/13
Originally listed on the Watch List: 02/02/13


CLOSED Plays


American Intl. Group - AIG - close: 40.87

Comments:
04/27/13: AIG rallied to new 52-week highs and hit our exit target at $42.50 on Thursday.

- 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 - exit $8.45 (+101.1%)

04/25/13 target hit
04/13/13 new stop loss @ 35.75
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

Chart of AIG:

Current Target:$ 2013 call: $37.00, 2014 calls: $42.50
Current Stop loss: 35.75
Play Entered on: 05/18/12
Originally listed on the Watch List: 04/07/12


Colgate-Palmolive - CL - close: 118.99

Comments:
04/27/13: Our plan was to exit our CL positions on Tuesday, April 23rd, at the closing bell. We were lucky in that proved to be an excellent exit. CL rallied right up to Tuesday's close and then promptly reversed on Wednesday morning. We were fortunate to exit at CL's closing high.

- Suggested Positions - (small positions)
FEB 20, 2013 - entry price on CL @ 112.00, option @ 4.20
symbol: CL1418a115 2014 JAN $115 call - exit $10.00 (+138.0%)

04/23/13 planned exit at the close
04/20/13 new stop loss @ 115.90, readers may want to exit immediately!
Plan on exiting positions April 23rd at the closing bell
04/13/13 new stop loss @ 114.35
Investors may want to just take profits now with the bid on our call at $7.15.
03/30/13 new stop loss @ 109.90
03/16/13 new stop loss @ 108.40

Chart of CL:

Current Target:$ 124.50
Current Stop loss: 115.90
Play Entered on: 02/20/13
Originally listed on the Watch List: 02/16/13