Editor's Note:

We added two new plays this past week with both Macy's (M) and Whole Foods (WFM) graduating from our watch list to our active play list.


Closed Plays



None. No closed plays this week.




Play Updates


Bank of America - BAC - close: 13.78

Comments:
07/14/13: Financial stocks continued to rally last week. The XLF financial ETF closed at a new multi-year high. Meanwhile banking giants JPM and WFC both reported better than expected results on Friday. This probably boosted shares of BAC, which added +1.99% on Friday. It will be BAC's turn to report earnings on July 17th, before the opening bell.

Currently our stop loss is at $11.35, which is below the simple 200-dma. More conservative investors may want to raise their stop higher since BAC could see a big drop if the company disappoints with its earnings results.

I am not suggesting new positions at this time.

- Suggested Positions -
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - current bid/ask $0.52/0.54

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.41/1.42

07/07/13 new stop loss @ 11.35
05/04/13 BAC did not participate in the market's rally this past week. Investors should turn more defensive here.

Current Target:$ 18.00
Current Stop loss: 11.35
Play Entered on: 03/18/13

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


Citigroup, Inc. - C - close: 50.81

Comments:
07/14/13: The financial sector rally gave C a nice lift last week. Shares are up three weeks in a row and C managed to rally past potential resistance at its 50-dma and the $50.00 mark.

Citigroup is scheduled to report earnings on July 15th, before the opening bell. Wall Street expects earnings of $1.18 a share. I would not be surprised to see shares pullback following the report.

Tonight we are raising the stop loss up to $44.65.

- Suggested Positions -
JUN 21, 2013 - entry price on C @ 46.00, option @ 2.45
symbol: C1418a50 2014 JAN $50 call - current bid/ask $ 4.25/4.35

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 4.95/5.05

07/14/13 new stop loss @ 44.65
06/23/13 adjust stop loss to $41.60
06/21/13 triggered on a dip at $46.00

Current Target:$ 59.00
Current Stop loss: 44.65
Play Entered on: 06/21/13
Originally listed on the Watch List: 05/25/13


Ford Motor Co. - F - close: 17.11

Comments:
07/14/13: Ford spent a few days consolidating sideways in the $16.50-17.00 zone but finally broke out past $17.00 on Friday. The stock is up significantly from its late June lows. The trend is obviously up but Ford has become overbought here. We should expect some profit taking between now and the end of the month. Ford reports earnings on July 24th. Shares could see a pullback after the announcement. Look for likely support near $16.00 and near the 50-dma.

- Suggested Positions -
(closed the 2014 calls on May 20th, at the open)
APR 29, 2013 - entry price on F @ 13.73, option @ 0.60
symbol: F1418a15 2014 JAN $15 call - exit $1.18 (+96.6%)

- or -

APR 29, 2013 - entry price on F @ 13.73, option @ 1.22
symbol: F1517a15 2015 JAN $15 call - current bid/ask $ 3.15/3.20

07/07/13 new stop loss @ 14.25
06/01/13 investors may want to exit our 2015 calls now with a bid at $2.34 (+91.8%)
06/01/13 adjust long-term target to $17.75
05/20/13 closed the 2014 calls at the open. Option @ +96.6%
05/18/13 prepare to exit the 2014 calls on Monday, May 20th
05/18/13 new stop loss @ 13.40

Current Target:$ 17.75
Current Stop loss: 14.25
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Honeywell Intl. - HON - close: 82.37

Comments:
07/14/13: HON rallied more than $2 last week to hit new all-time highs. More importantly shares have broken out from their $76-$81 trading range. The stock is poised for the next leg higher. However, HON is scheduled to report earnings on July 19th. The results come out before the opening bell. Analysts are expecting a profit of $1.21 a share. If HON disappoints or issues guidance that is too cautious it could short circuit the rally.

I am raising the stop loss to $75.75.

Earlier Comments:
Let's keep our position size small to start.

- Suggested Positions -
(closed the 2014 calls on May 20th at the open)
MAY 07, 2013 - entry price on HON @ 76.20, option @ 2.68
symbol: HON1418a80 2014 JAN $80 call - exit $5.10 (+90.2%)

- or -

MAY 07, 2013 - entry price on HON @ 76.20, option @ 4.10
symbol: HON1517a85 2015 JAN $85 call - current bid/ask $ 6.80/7.00

07/14/13 new stop loss at $75.75
05/20/13 closed the 2014 calls at the open. option @ +90.2%
05/18/13 prepare to exit 2014 Jan. calls immediately on Monday, May 20th
05/18/13 new stop loss @ 74.50
05/07/13 Our trade opens
05/06/13 HON meets our entry requirement with a close above $76.00

Current Target:$ 95.00
Current Stop loss: 75.75
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


Intel Corp. - INTC - close: 23.90

Comments:
07/14/13: We have been expecting shares of INTC to drop toward support near $23.00. The stock actually pierced that level on Wednesday last week with a spiked down to $22.64. INTC has recovered and looks poised to keep bouncing. However, the stock's relative weakness compared to the rest of the market and the semiconductor index is disturbing.

I am still suggesting a lot of caution here. We will raise our stop loss up to $22.45. More conservative traders may want to just exit early now instead. There are probably better candidates out there for our capital.

Please note that INTC is scheduled to report earnings on July 17th. The results come out after the closing bell. Wall Street expects a profit of 40 cents a share.

Earlier Comments:
We want to exit our 2014 calls when INTC hits $26.50. We will plan to exit our 2015 calls at $28.00.

- Suggested Positions -
APR 24, 2013 - entry price on INTC @ 23.28, option @ 0.89
symbol:INTC1418a25 2014 JAN $25 call - current bid/ask $ 0.94/0.96

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 1.79/1.84

07/14/13 new stop loss @ 22.45. Consider exiting early prior to the earnings report
06/08/13 adjust exit strategy:
plan to exit the 2014 calls when INTC hits $26.50
plan to exit the 2015 calls when INTC hits $28.00
05/18/13 The rally has stalled. INTC might correct lower soon
05/11/13 new stop loss @ 21.90

Current Target: $26.50 & $28.00 (see above)
Current Stop loss: 22.45
Play Entered on: 04/24/13
Originally listed on the Watch List: 04/20/13


JPMorgan Chase & Co. - JPM - close: 54.97

Comments:
07/14/13: The rally in JPM continued last week. Shares are up three weeks in a row. It's not a surprise to see JPM stall just under its May highs with resistance near $56.00 as investors waiting for the company's earnings report.

JPM announced Q2 earnings on Friday morning. Analysts were looking for $1.44 a share. The company delivered $1.60 a share. Revenues also beat estimates at $25.21 billion for the quarter. It looks like a strong quarter but these results also reflect $1.5 billion in loan loss reserves that JPM has "released". The company was relatively optimistic about the rest of the year but CEO Jamie Dimon stressed concern about the future for mortgage lending given the sharp rise in bond yields (and thus mortgage rates).

A little post-earnings pullback here would be normal. Yet if JPM retreats too much it will start to look like a bearish double top with a failure at the $56.00 level.

Please note our new stop loss at $48.75.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 3.05/3.15

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 5.30/5.40

07/14/13 new stop loss @ 48.75
Current Target: $64.00
Current Stop loss: 48.75
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Macy's Inc. - M - close: 49.43

Comments:
07/14/13: Our new watch list candidate, Macy's (M), has already graduated to our play list. The plan was to buy calls if M could close above $50.25. The stock met that requirement on Monday with a surge past resistance at the $50.00 level. The stock closed at $50.27 on July 8th. Our trade opened the next day with M gapping higher at $50.50. Unfortunately there was no follow through. Shares of M reversed in what looks like a three-day bearish reversal candlestick pattern. The stock languished on Thursday and Friday as well, which is perplexing. One potential culprit that could be influencing retail stocks is the rise in gasoline prices. Oil has surged in recent sessions and gasoline prices are poised to follow with another march higher.

Bigger picture the retailers appear to be doing well. This past week brought the June same-store sales data. Macy's doesn't provide same-store sales data on a monthly basis but the industry showed growth of +4.1% in June. That was better than the 3.5% estimate. Industry experts are also expecting the back-to-school season to show +3% growth this year.

The gasoline issue could be a problem. Last week's performance in M does look like a potential bull-trap or failed rally pattern. Therefore the best move today might be to wait for Macy's to close above $50.75 or above $51.00 before initiating new bullish positions.

Earlier Comments:
If triggered our long-term target is $59.00. More aggressive investors may want to aim higher since the point & figure chart is forecasting a $76 target.

- Suggested Positions -
JUL 09, 2013 - entry price on M @ 50.50, option @ 1.85
symbol: M1418a55 2014 JAN $55 call - current bid/ask $ 1.35/1.40

- or -

JUL 09, 2013 - entry price on M @ 50.50, option @ 4.40
symbol: M1517a55 2015 JAN $55 call - current bid/ask $ 3.80/3.95

Chart of M:
Current Target: $59.00
Current Stop loss: 47.25
Play Entered on: 07/09/13
Originally listed on the Watch List: 07/07/13


NetApp, Inc. - NTAP - close: 39.30

Comments:
07/14/13: NTAP continues to slowly drift higher. Shares ended the week just below its mid-June highs near $39.50. I would expect the $40.00 level to short-term resistance as well. If NTAP can breakout past the $40 mark the stock could see some short covering. At the moment I would wait for a close above $40 before considering new bullish positions.

NTAP will probably report earnings in mid August.

Earlier Comments:
FYI: NTAP's point & figure chart is bullish with a $58 target.

- Suggested *Small* Positions -
MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 3.35
symbol: NTAP1418a40 2014 JAN $40 call - current bid/ask $2.83/2.88

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $5.00/5.10

05/18/13 adjust stop loss to $34.90
05/17/13 trade opens on NTAP's gap open higher at $38.93
05/16/13 NTAP met our entry requirement with a close above $37.15

Current Target: $44.75
Current Stop loss: 34.90
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


Whole Foods Market - WFM - close: 56.23

Comments:
07/14/13: WFM was a new watch list candidate. The plan was to wait for shares to breakout from their trading range and close above $54.00. WFM flirted with a breakout past $54 on Monday but it didn't close above this level until Tuesday, July 9th. Our trade opened on Wednesday morning with WFM at $54.53. The stock has continued to rally and WFM is at new all-time highs. Yet on a short-term basis the stock actually looks overbought here. Odds are good WFM could see some profit taking. I would wait for a dip back into the $55-54 zone before considering new bullish positions.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 2.71/2.78

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 6.85/7.00

Chart of WFM:

Current Target: $59.75 for the 2014 calls, $64.00 for the 2015 calls
Current Stop loss: 49.75
Play Entered on: 07/10/13
Originally listed on the Watch List: 07/07/13