Editor's Note:

Equities experienced widespread profit taking but the selling pressure was pretty mild. In many cases traders are still buying the dip.


Closed Plays



None. No closed plays this week.




Play Updates


American Intl. Group - AIG - close: 48.03

Comments:
08/11/13: AIG spent the week churning sideways and closed on Friday down 30 cents for the week. Lack of any real profit taking is encouraging. I do expect shares to fill the gap with a dip to $47.00 and possibly a dip to its 50-dma near $46.00.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $2.33/2.37

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.70/3.85

08/04/13 new stop loss @ 43.75
07/15/13 trade opens. AIG opens at $46.99
07/14/13 AIG came within a penny of hitting our new entry trigger (closing above $46.75). We are adding it as a new play tonight. Buy calls on Monday morning. Move the stop loss up to $42.40.
07/07/13 adjust entry strategy: wait for shares to close above $46.75 and then buy calls the next day. Stop loss at $41.40. Target 55.00.
06/16/13 adjust entry strategy: move the buy-the-dip trigger to $40.00, from 38.50. Move the stop loss to $36.35 from 34.75.

Current Target:$ 54.75
Current Stop loss: 43.75
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Bank of America - BAC - close: 14.45

Comments:
08/11/13: Upward momentum in the banking sector has stalled. Shares of BAC look poised to correct lower. At a minimum I would expect a dip to $14.00. If stocks do pullback we could see BAC slip into the $13.50-13.00 zone.

- Suggested Positions -
(exit target hit on 07/23/13 @ $15.00)
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - exit $1.04 (+136.3%)

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.68/1.70

07/23/13 $15.00 exit target hit for the 2014 Jan. $15 calls.
07/20/13 new stop loss @ 12.75. Adjust the exit target for the 2014 calls to exit when BAC hits $15.00. Our exit for the 2015 calls is $18.00 on BAC
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: BAC @ 15.00 for 2014 calls. BAC @ $18 for 2015 call
Current Stop loss: 12.75
Play Entered on: 03/18/13

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


Citigroup, Inc. - C - close: 51.32

Comments:
08/11/13: Citigroup is another financial stock that is pulling back from its July and August highs. You could argue that the stock has created a bearish double top pattern. The $50.00 level should be support but I would expect a dip into the $50-48 zone.

I am not suggesting new positions at this time.

- Suggested Positions -
(exited the 2014 calls on July 22nd, 2013 at the open)
JUN 21, 2013 - entry price on C @ 46.00, option @ 2.45
symbol: C1418a50 2014 JAN $50 call - exit $5.00 (+104.0%)

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 4.75/4.85

08/04/13 new stop loss @ 47.75
07/22/13 scheduled exit for the 2014 Jan. $46 calls at the open.
07/21/13 prepare to exit our 2014 calls on Monday morning (07/22/2013)
07/21/13 new stop loss @ 45.75
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: 47.75
Play Entered on: 06/21/13
Originally listed on the Watch List: 05/25/13


Cypres Semiconductor - CY - close: 12.55

Comments:
08/11/13: CY closed below its simple 10-dma for the first time in weeks. If this turns into a real correction lower we could witness CY decline into the $11.85-11.65 zone. I am not suggesting new positions at this time.

- Suggested Positions -
JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.02*
symbol: CY1418a13 2014 JAN $13 call - current bid/ask $ 0.80/0.90

- or -

JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.20*
symbol: CY1517a15 2015 JAN $15 call - current bid/ask $ 1.05/1.20

07/21/13 new stop loss @ 11.35
07/19/13 trade opened. CY opens at $12.50
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/18/13 CY meets our entry requirement with a close above $12.10

Current Target: $14.75 for the 2014 calls, 16.00 for the 2015 calls
Current Stop loss: 11.35
Play Entered on: 06/21/13
Originally listed on the Watch List: 07/14/13


Walt Disney - DIS - close: 64.73

Comments:
08/11/13: As expected shares of DIS produced a volatile week as the market reacted to earnings news. Analysts were expecting $1.01 a share. DIS beat estimates by two cents with $1.03 a share. Revenues were a miss at $11.54 billion. There was a lot of focus about DIS' losses on the Lone Ranger film.

On a short-term basis DIS should still have support near $64.00. If the $64 level were to fail then the next level of support should be $62 near its June 2013 lows.

- Suggested Positions -
JUL 16, 2013 - entry price on DIS @ 65.00, option @ 1.82
symbol: DIS1418a70 2014 JAN $70 call - current bid/ask $ 1.25/1.29

- or -

JUL 16, 2013 - entry price on DIS @ 65.00, option @ 4.70
symbol: DIS1517a70 2015 JAN $70 call - current bid/ask $ 4.20/4.30

07/16/13 buy-the-dip trigger hit at $65.00
07/14/13 new entry strategy: adjust buy-the-dip trigger to $65.00
move the stop loss to $61.45. Move the target to $79.00
adjust the option strikes
07/07/13 adjust entry trigger from $57.00 to $58.00

Current Target:$ 79.00
Current Stop loss: 61.45
Play Entered on: 07/16/13
Originally listed on the Watch List: 06/01/13


Eastman Chemical Co. - EMN - close: 80.07

Comments:
08/11/13: EMN spent most of the week churning sideways inside the $80-82 zone. If the stock does breakdown below $80.00 then prior resistance in the $75 area should be new support. More conservative investors with the 2014 calls might want to take profits now.

Our long-term target for the 2014 call is $84. Our long-term target for the 2015 call is $95.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
JUL 18, 2013 - entry price on EMN @ 75.34, option @ 3.60*
symbol: EMN1418a80 2014 JAN $80 call - current bid/ask $ 5.30/5.40

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 6.30/6.60

08/04/13 new stop loss @ 74.40
07/18/13 Trade opened. EMN opens at $75.34
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/17/13 EMN meets our entry requirement with a close above $75.25

Current Target: 2014 calls: target $84 on EMN. 2015 calls: target $95
Current Stop loss: 74.40
Play Entered on: 07/18/13
Originally listed on the Watch List: 07/14/13


Ford Motor Co. - F - close: 17.02

Comments:
08/11/13: Ford gave up 48 cents for the week (-2.7%). Given the tone of trading last week I suspect that we're going to see the pullback continue. Look for F to dip into the $16.50-16.00 zone.

- 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

08/04/13 new stop loss @ 14.85
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: 14.85
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Honeywell Intl. - HON - close: 83.32

Comments:
08/11/13: Profit taking has pulled HON back below short-term support at the $84.00 level. If this market pullback continues I would expect HON to dip into the $82-81 zone. I'm not suggesting new positions at this time.

Our initial plan was to keep our position size small to limit risk.

- 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 $ 6.70/6.90

08/04/13 new stop loss @ 77.45
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: 77.45
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


JPMorgan Chase & Co. - JPM - close: 54.52

Comments:
08/11/13: JPM was not immune to the profit taking in the financial sector. As a matter of fact the stock is now down six days in a row. Shares ended the week sitting on technical support at the rising 50-dma. If this correction continues we could see JPM dip toward its next major moving average at the 100-dma, currently near $52.00. Meanwhile most of the headlines for JPM were all negative last week with new government investigations or cases ranging from Florida to California. None of them seemed to be too earth shaking for the company. Nimble traders may want to consider buying calls on a dip near the $52 level.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 2.46/2.48

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 4.80/4.90

07/21/13 new stop loss @ 49.65
07/14/13 new stop loss @ 48.75
Current Target: $64.00
Current Stop loss: 49.65
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Kellogg Co. - K - close: 65.68

Comments:
08/11/13: It proved to be a quiet week for K. The stock slowly drifted higher but failed to breakout past its 10-dma or the $66.00 level. I remain cautious here.

I am not suggesting new positions at this time.

Earlier Comments:
Please note that K does not move very fast. We will definitely need some patience with this trade.

- Suggested Positions -
JUL 22, 2013 - entry price on K @ 67.21, option @ 2.10
symbol: K1517a75 2015 JAN $75 call - current bid/ask $ 1.35/1.55

07/22/13 trade will open.
07/19/13 K closed above $67.00, meeting our entry point requirement

Current Target:$ 74.75
Current Stop loss: 63.75
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/16/13


Macy's Inc. - M - close: 48.52

Comments:
08/11/13: Most of the retail names were underperformers last week. Shares of Macy's were hammered on Tuesday. The stock almost hit our stop loss on Thursday but bounced at $47.32 (our stop is $47.25). Macy's is due to report earnings on Wednesday morning, August 14th. Analysts are expecting 78 cents a share. I would not be surprised to see M drift sideways on Monday and Tuesday as investors wait for the results.

More conservative traders may want to consider buying some short-term puts on Tuesday afternoon before the closing bell just in case M disappoints and plunged on Wednesday morning.

I am not suggesting new long-term positions at this time.

Earlier Comments:
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 $ 0.84/0.88

- or -

JUL 09, 2013 - entry price on M @ 50.50, option @ 4.40
symbol: M1517a55 2015 JAN $55 call - current bid/ask $ 3.10/3.30

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


Monster Beverage Corp. - MNST - close: 63.70

Comments:
08/11/13: MNST reported earnings on Thursday evening. The results were 62 cents a share, which missed estimates by two cents. Revenues were also a miss at $630.9 million for the quarter. The company said rising distribution costs and legal expenses impacted its bottom line. MNST has come under fire for potential safety issues regarding their highly caffeinated beverages and marketing to children. There seems to be a difference of opinion among analysts. Some express concerns that the legal and safety issues are not going away. Other firms have raised their price targets on MNST.

The stock did rally on Friday morning in spite of the top and bottom line misses. Although it's worth noting that MNST gave back nearly all of its Friday gains by the closing bell.

I am not suggesting new positions at this time. We will raise our stop loss up to $59.40.

Earlier Comments:
I do consider this an aggressive, higher-risk trade because of the volatility and the risk that another headline regarding the safety of MNST's drinks could send shares lower. Therefore I am suggesting we keep our position size small to limit risk.

- Suggested Positions -
JUL 19, 2013 - entry price on MNST @ 63.40, option @ 3.95*
symbol:MNST1418a70 2014 JAN $70 call - current bid/ask $ 3.20/3.40

- or -

JUL 19, 2013 - entry price on MNST @ 63.40, option @ 8.70
symbol:MNST1517a70 2015 JAN $70 call - current bid/ask $ 8.10/8.50

08/11/13 new stop loss @ 59.40
07/19/13 Trade opened. MNST opens at $63.40
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/18/13 MNST meets our entry requirement with a close above $63.00
07/17/13 MNST breaks out past resistance near $62.50
Current Target: $74.00
Current Stop loss: 59.40
Play Entered on: 07/19/13
Originally listed on the Watch List: 07/07/13


NetApp, Inc. - NTAP - close: 42.52

Comments:
08/11/13: NTAP managed to buck the market's down trend and move higher. Shares broke out past resistance near $42 on Thursday and closed at new 52-week highs. The company is due to report earnings on August 14th. Don't be surprised to see NTAP move sideways from here as traders wait for the report. More conservative investors might want to take profits on their 2014 calls before NTAP reports earnings on Wednesday.

The simple 50-dma has risen to $39.41. I am adjusting our stop loss up to $39.25.

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 $4.40/4.50

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $6.75/6.95

08/11/13 new stop loss @ 39.25
08/04/13 new stop loss @ 38.75
07/21/13 new stop loss @ 36.85
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: 38.75
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


PetSmart, Inc. - PETM - close: 74.02

Comments:
08/11/13: PETM tagged a new all-time high near $75.00 on Monday. After a multi-day rally the stock finally succumbed to profit taking. Shares are trading technically with investors stepping in to buy the dip near $73.00, which was prior resistance. The trend is up and I would be tempted to buy the bounce from $73.00. However, investors may want to wait until after PETM's earnings report. There's one challenge with that. I can't find an accurate date. One source says earnings are due out on August 14th and another source says August 21st.

Tonight we're raising the stop loss to $69.40.

- Suggested Positions -
JUL 16, 2013 - entry price on PETM @ 72.70, option @ 3.40
symbol:PETM1418a75 2014 JAN $75 call - current bid/ask $ 3.60/3.90

- or -

JUL 16, 2013 - entry price on PETM @ 72.70, option @ 5.15*
symbol:PETM1517a80 2015 JAN $80 call - current bid/ask $ 4.90/5.60

08/11/13 new stop loss @ 69.40
08/04/13 new stop loss @ 68.90
07/16/13 trade opened. PETM opens at $72.70
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/15/13 PETM meets our entry requirements with a close above $72.50

Current Target: Target for 2014 calls: PETM @ 79.00, 2015 target @ 84
Current Stop loss: 69.40
Play Entered on: 07/16/13
Originally listed on the Watch List: 07/14/13


Union Pacific Corp. - UNP - close: 159.79

Comments:
08/11/13: The transportation sector was one of the worst performers of the week. UNP was no exception with a four dollar drop. If this market decline continues then we'll likely see UNP testing its 50-dma near $157.60 soon. I am not suggesting new positions at this time.

Earlier Comments:
Our long-term target is $185.00 for the 2014 calls and $200 for the 2015 calls.

- Suggested Positions -
JUL 22, 2013 - entry price on UNP @ 163.80, option @ 3.10
symbol: UNP1418a180 2014 JAN $180 call - current bid/ask $ 1.53/1.60

- or -

JUL 22, 2013 - entry price on UNP @ 163.80, option @ 4.75
symbol: UNP1517a200 2015 JAN $200 call - current bid/ask $ 3.35/3.50

07/22/13 trade will open.
07/19/13 UNP closed above our trigger
07/14/13 adjust entry trigger to $162.00, adjust stop loss to $153.00

Current Target:
Exit 2014 calls when UNP hits $185.00, 2015 calls @ $200
Current Stop loss: 153.00
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/08/13


Whole Foods Market - WFM - close: 55.42

Comments:
08/11/13: WFM managed to eke out a small gain for the week. The stock appears to be inside a $54-57 trading range. Although if you look hard enough the consolidation seems to be narrowing with a trend of lower highs and a trend of higher lows. Traders just bought the dip on Friday at the rising 30-dma.

I am not suggesting new positions at this time.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 1.71/1.76

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 5.70/5.90

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