Editor's Note:

We just finished a painful month for stocks in August. September could be worse. Is this going to be a case of jumping out of the frying pan and into the fire? I suggest investors double-check their stop loss placement. We're about to start what could be a very volatile month.


Closed Plays


C & CY were stopped out.



Play Updates


American Intl. Group - AIG - close: 46.46

Comments:
09/01/13: The financial sector continues to sink and it's pulling AIG lower. For now AIG is outperforming many of its peers in the financials by falling less. Currently shares are testing short-term support near $46 and its 50-dma. If market weakness continues I would expect AIG to dip toward $45.00 and its 100-dma.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $1.67/1.72

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.25/3.45

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: 14.12

Comments:
09/01/13: The market pullback this past week hit BAC pretty good. Shares underperformed with a -3.0% loss for the week. BAC is now testing support near $14.00 and its 50-dma.

If this market weakness continues I would look for BAC to dip toward $13.50 and its 100-dma. If it gets really bad we could see BAC drop toward $13.00. I am not suggesting new positions at this time.

- 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 $1.50/1.52

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


Eastman Chemical Co. - EMN - close: 76.00

Comments:
09/01/13: It was a painful week for EMN. The stock produced a failed rally at resistance near $80.00 on Monday and the Monday-through-Wednesday drop pushed shares to the $75 level. EMN ended the week with a -4.6% decline.

We expected the $75 level to act as support and more aggressive traders may want to consider buying calls here. I am concerned that if the market continues to see widespread selling that EMN may drop toward its 150-dma near $72.00. Currently our stop loss is at $74.40. FYI: Thursday's low was $74.75.

Earlier Comments:
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 $ 3.10/3.40

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 4.70/5.00

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: 16.19

Comments:
09/01/13: It was a choppy week for shares of Ford. I am concerned that the selling is not over yet. The midweek two-day bounce appears to have failed with Friday's reversal near the 20-dma and 50-dma. Furthermore Friday's session has also created a bearish engulfing candlestick reversal pattern. I suspect that we will see Ford testing the $15.50 area in the next couple of weeks. More conservative traders may want to raise their stops. I am not suggesting new positions at this time.

- 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 $ 2.66/2.70

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


Halliburton Company - HAL - close: 48.00

Comments:
09/01/13: The midweek strength in the energy sector started to fade on Thursday and Friday. HAL ended the week sitting on short-term support at its 10-dma with a -1.4% loss for the week. If the market looked stronger I would be tempted to buy calls now. However, if market weakness continues then investors might want to consider waiting for HAL to correct toward the $45-46 levels, which may prove to be a new bullish entry point for us.

- Suggested Positions -
AUG 21, 2013 - entry price on HAL @ 47.22, option @ 1.82
symbol: HAL1418a50 2014 JAN $50 call - current bid/ask $ 2.37/2.42

- or -

AUG 21, 2013 - entry price on HAL @ 47.22, option @ 4.80
symbol: HAL1517a50 2015 JAN $50 call - current bid/ask $ 5.40/5.55

Current Target:$ 52.50 for the 2014 calls, $56.0 for the 2015 calls
Current Stop loss: 43.75
Play Entered on: 08/21/13
Originally listed on the Watch List: 08/18/13


Honeywell Intl. - HON - close: 79.57

Comments:
09/01/13: The correction lower in shares of HON seems to be picking up speed. The stock is now down four weeks in a row. The breakdown below the $80.00 level is bearish. Shares are currently clinging to technical support at the 100-dma. If there is any follow through lower this week then we could see HON hit our stop loss at $78.40. If that happens I would not be surprised to see HON drop toward the $75 level or potentially down to the 200-dma.

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 $ 5.15/5.35

08/25/13 new stop loss @ 78.40
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: 78.40
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


JPMorgan Chase & Co. - JPM - close: 50.53

Comments:
09/01/13: Big American banks continue to see scandals. This time JPM is in the spotlight for its hiring practices in Asia. I doubt this story had much impact on the stock price, which was already in correction mode.

The sell-off in JPM has pushed shares to a four-week decline and now JPM is testing round-number, psychological support at the $50.00 mark. I am concerned that JPM might see an intraday spike below $50.00 only to bounce at its simple 200-dma near $49.35. Therefore I am actually increasing our risk by adjusting the stop loss down to $48.99 (from 49.65).

If JPM can hold support near the $50.00 level then we'll be able to use this pullback as a new entry point but I would hesitate to launch new positions at the moment.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 0.93/0.96

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 3.15/3.25

09/01/13 adjust stop loss to $48.99
07/21/13 new stop loss @ 49.65
07/14/13 new stop loss @ 48.75
Current Target: $64.00
Current Stop loss: 48.99
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


NetApp, Inc. - NTAP - close: 41.54

Comments:
09/01/13: NTAP held up pretty well last week, only falling about -1%. Shares are essentially consolidating sideways. There should be short-term technical support at the rising 40-dma (near 41.20).

Currently we have a stop loss at $39.25. More conservative investors may want to raise their stop closer to the $40.00 level.

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 $3.45/3.55

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $6.05/6.20

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: 39.25
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


Old Dominion Freight Line - ODFL - close: 43.42

Comments:
09/01/13: Hmm... ODFL doesn't look so great. The transportation stocks were hurt by the sharp rise in oil prices. Shares of ODFL have broken down below technical support at the 50-dma. If this weakness continues then the next stop is likely the simple 100-dma, just above the $42.00 level. Our stop loss is at $41.95. Considering the market's likelihood for volatility in September, more conservative investors might want to consider calling it quits now with an early exit to cut their losses. I am not suggesting new positions at this time.

- Suggested Positions -
AUG 14, 2013 - entry price on ODFL @ 45.62, option @ 1.25
symbol: ODFL1418a50 2014 JAN $50 call - current bid/ask $0.50/0.95

09/01/13 conservative traders may want to cut their losses now
08/14/13 trade opens. ODFL opens at $45.62.
08/13/13 ODFL meets our entry requirement with close at $45.65
08/11/13 adjust the entry trigger. Wait for ODFL to close above $45.50 instead of $45.25.

Current Target: $54.00
Current Stop loss: 41.95
Play Entered on: 08/14/13
Originally listed on the Watch List: 07/28/13


PetSmart, Inc. - PETM - close: 70.43

Comments:
09/01/13: PETM almost hit our stop loss last week. The stock market's sharp sell-off on Tuesday (Aug. 27th) pushed PETM below the $80 level but the stock bounced near its 100-dma (the low was $69.54). Our stop loss is at $69.40. Unfortunately given Friday's reversal lower in PETM it looks like shares may retest their 100-dma again soon.

I am not suggesting new positions at this time.

- Suggested Positions -
JUL 16, 2013 - entry price on PETM @ 72.70, option @ 3.40
symbol:PETM1418a75 2014 JAN $75 call - current bid/ask $ 1.75/1.90

- or -

JUL 16, 2013 - entry price on PETM @ 72.70, option @ 5.15*
symbol:PETM1517a80 2015 JAN $80 call - current bid/ask $ 3.60/4.00

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: 153.54

Comments:
09/01/13: Railroads are very efficient transport machines. They can move one ton of freight almost 450 miles on one gallon of fuel. Rising fuel costs still impact railroad margins. The weakness in the transportation sector affected the rails this past week. UNP lost 4 1/2 points (-2.8%).

The stock's breakdown below $155 and its 100-dma is technically bearish. I am very concerned that we will see UNP hit our stop loss at $152.00 soon. The August 28th low was $152.04. More conservative investors may want to abandon ship immediately. I am not suggesting new positions.

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 $ 0.77/0.85

- or -

JUL 22, 2013 - entry price on UNP @ 163.80, option @ 4.75
symbol: UNP1517a200 2015 JAN $200 call - current bid/ask $ 2.60/2.76

08/18/13 adjust stop loss to $152.00.
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: 152.00
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/08/13


Whole Foods Market - WFM - close: 52.75

Comments:
09/01/13: It was a rocky week for WFM. Yet shares pared their losses to less than 15 cents for the week thanks to a big bounce off its Thursday morning low. WFM is now sitting just below short-term resistance at the $53.00 level.

There is no guarantee that the correction is over so I would hesitate to launch new positions. If the market weakness continues then look for WFM to test support near $50.00.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 0.88/0.93

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 4.45/4.65

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


CLOSED Plays


Citigroup, Inc. - C - close: 48.33

Comments:
09/01/13: The stock market sell-off on Tuesday pushed Citigroup below its 100-dma. Follow through selling on Wednesday morning was enough to push C below the $48 level and hit our stop loss at $47.75. For now C is holding just above its simple 150-dma. If the stock doesn't recover soon the long-term up trend could be in jeopardy.

- 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 - exit $3.40 (-6.8%)

08/28/13 stopped out at $47.75
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

Chart of C:

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: 11.32

Comments:
09/01/13: It was a painful week for CY as well. Shares gave up -3.9% by Friday's closing bell. The market's sharp sell-off on Tuesday (Aug. 27th) was too much for CY. Share shit our stop loss at $11.35. The stock saw another spike lower on Wednesday morning before bouncing. Unfortunately the oversold bounce appears to be failing at its 10-dma.

- Suggested Positions -
JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.02*
symbol: CY1418a13 2014 JAN $13 call - exit $0.35 (-65.6%)

- or -

JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.20*
symbol: CY1517a15 2015 JAN $15 call - exit $0.65 (-45.8%)

08/27/13 stopped out at $11.35
08/23/13 CY is bouncing from support near $11.50
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

Chart of CY:

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