Editor's Note:

Our play list is growing. We had six watch list candidates graduate to our active play list.


Closed Plays


PETM was stopped out.



Play Updates


American Intl. Group - AIG - close: 48.18

Comments:
09/08/13: AIG rallied last week. Shares are less than two points from a new two-year high. Yet Friday's session has created a bearish engulfing candlestick reversal pattern. Don't be surprised to see another dip toward the rising 50-dma.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $2.15/2.20

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.65/3.80

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: 14.36

Comments:
09/08/13: BAC eked out a minor gain for the week. Shares found support near the rising 50-dma yet BAC has been unable to breakthrough the four-week trend of lower highs. 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 $1.58/1.61

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


Deckers Outdoor Corp. - DECK - close: 61.24

Comments:
09/08/13: The rally in DECK continues. This stock was a watch list candidate. Our plan was to wait for DECK to breakout past resistance near $60.00 and close above $60.50. Shares met that requirement on September 4th with a close at 61.13. Our trade opened on September 5th with DECK at $61.47. I will point out that Friday's session is technically a bearish engulfing candlestick reversal pattern. We might see DECK dip back into the $60-58 zone again. Thus investors might want to wait for a bounce near the $60 area before considering new bullish positions.

Earlier Comments:
Our target is $74.00. FYI: The point & figure chart is forecasting a bullish target of $87.00. We want to keep our position size small to limit our risk. DECK can be a volatile stock.

- Suggested Positions -
SEP 05, 2013 - entry price on DECK @ 61.47, option @ 4.30
symbol: DECK1418a65 2014 JAN $65 call - current bid/ask $4.00/4.20

- or -

SEP 05, 2013 - entry price on DECK @ 61.47, option @ 8.15*
symbol: DECK1517a70 2015 JAN $70 call - current bid/ask $7.40/8.10

*entry price on the 2015 call is an estimate as it did not trade at the time our play was opened.

Chart of DECK:

Current Target: 74.00
Current Stop loss: 55.75
Play Entered on: 09/05/13
Originally listed on the Watch List: 08/25/13


Dollar General Corp. - DG - close: 56.96

Comments:
09/08/13: DG delivered a strong performance last week with the stock climbing to new all-time highs. DG was a watch list candidate. The plan was to wait for a breakout past resistance and for the stock to close above $56.50. DG almost met that requirement on Wednesday with a close at $56.39. The rally continued on Thursday and DG closed at $57.38. Our trade opened on Friday morning at $57.61. Broken resistance near $56.00 should be new support. More nimble investors might want to wait and try and launch positions on a dip near the $56.00 area as an alternative entry point.

Last week's rally got a boost from DG's earnings report. The company delivered better than expected top and bottom line numbers.

We are starting this trade with a stop loss at $52.45. More conservative investors may want to tighten their stop closer to the 50-dma or 100-dma.

Earlier Comments:
Our long-term target is $64.00 for the 2014 calls. Our target is $69.00 for the 2015 calls. FYI: The point & figure chart is bullish with a $78.00 target.

- Suggested Positions -
SEP 06, 2013 - entry price on DG @ 57.61, option @ 2.58
symbol: DG1418a60 2014 JAN $60 call - current bid/ask $2.45/2.60

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $2.75/3.30

Chart of DG

Current Target: 64.00 for the 2014s, 69.00 for the 2015s
Current Stop loss: 52.45
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/04/13


Eastman Chemical Co. - EMN - close: 76.88

Comments:
09/08/13: It was a very quiet week for shares of EMN. The stock has been churning sideways in the $76-77 area. The stock garnered some bullish analyst comments and an $88 price target but this failed to move EMN. Shares are coiling between the longer-term trend of higher lows and the shorter-term four-week trend of lower highs.

I am not suggesting new positions at this time. Our stop remains at $74.40. More aggressive traders may want to adjust their stop lower and give EMN more room to maneuver.

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 $ 3.40/3.60

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 5.00/5.30

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: 17.00

Comments:
09/08/13: It was a good week for the American automakers. Ford said its vehicle sales in August rose +12.2%. This company sold an F-series pickup truck every 42 seconds in August. Industry-wide auto sales hit their strongest pace since November 2007.

Shares of Ford broke out above their 50-dma but Friday's session saw some profit taking. Technically Friday's session has created a bearish engulfing candlestick reversal pattern but it needs to see confirmation. I am not suggesting new positions at this time.

Please note our new stop loss at $15.35.

- 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 $ 3.20/3.30

09/08/13 new stop loss @ 15.35
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: 15.35
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Halliburton Company - HAL - close: 48.00

Comments:
09/08/13: Strength in crude oil continues to boost the oil service stocks. HAL hit new two-year highs this past week. Keep in mind that the $50.00 level could be round-number, psychological resistance. I would not be surprised to see HAL retreat a little bit here. I am not suggesting new positions at this time.

We are adjusting the stop loss to $44.75.

- Suggested Positions -
AUG 21, 2013 - entry price on HAL @ 47.22, option @ 1.82
symbol: HAL1418a50 2014 JAN $50 call - current bid/ask $ 2.99/3.05

- or -

AUG 21, 2013 - entry price on HAL @ 47.22, option @ 4.80
symbol: HAL1517a50 2015 JAN $50 call - current bid/ask $ 6.20/6.35

09/08/13 new stop loss @ 44.75

Current Target:$ 52.50 for the 2014 calls, $56.0 for the 2015 calls
Current Stop loss: 44.75
Play Entered on: 08/21/13
Originally listed on the Watch List: 08/18/13


Harley-Davidson - HOG - close: 61.97

Comments:
09/08/13: HOG is another watch list candidate that has graduated to our play list. We wanted to see HOG breakout past key resistance near the $60.00 level. Our trigger was a close above $60.50. HOG met that requirement on September 3rd with a close at $61.07. The stock's rally has pushed shares to new six-year highs. Nimble investors may want to consider trying to buy calls on a dip near $60.00, which should be new short-term support.

- Suggested Positions -
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - current bid/ask $ 2.27/2.32

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 4.50/4.70

*note the entry price on our 2015 call is an estimate since the option did not trade at the time our play opened.

Chart of HOG:

Current Target: 69.00
Current Stop loss: 56.75
Play Entered on: 09/04/13
Originally listed on the Watch List: 08/25/13


Honeywell Intl. - HON - close: 81.66

Comments:
09/08/13: HON continues to bounce after testing its 100-dma two weeks ago. On a short-term basis HON seems to be struggling with resistance near $82.00 and its 30-dma and 50-dma. If shares reverse and breakthrough the 100-dma I would expect HON to hit our stop loss at $78.40. I am not suggesting new positions at this time.

Earlier Comments:
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 $ 6.15/6.35

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: 52.56

Comments:
09/08/13: Investors were in a buying mood with JPM last week. Shares rebounded from round-number support near $50.00 and the stock added two points (almost +4%). JPM is now sitting just below potential technical resistance at its simple 100-dma. The simple 200-dma has risen to $49.57 and more conservative investors may want to adjust their stop loss closer to this long-term moving average.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 1.44/1.46

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 3.95/4.10

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


MAKO Surgical Corp. - MAKO - close: 15.50

Comments:
09/08/13: MAKO is yet another watch list candidate that has graduated to our active play list. We wanted to wait for shares to close above $15.25 and then buy calls the next day. Our trade opened on September 4th with MAKO at $15.66. Currently shares are hovering below the next level of resistance around the $16.00 level. Previously I suggested that more conservative investors wait for MAKO to close above $16.25 as an alternative entry point.

On a short-term basis Friday's move looks like a bearish reversal so I would not be surprised to see MAKO dip back toward the $15.00 level.

Earlier Comments:
More conservative investors may want to wait for MAKO to close above $16.25 as an alternative entry point since the $16.00 level has been resistance in the past. Our long-term target is $19.50. FYI: The point & figure chart is bullish with a $24 target.

- Suggested Positions -
SEP 04, 2013 - entry price on MAKO @ 15.66, option @ 2.20
symbol:MAKO1418a15 2014 JAN $15 call - current bid/ask $ 2.00/2.20

- or -

SEP 04, 2013 - entry price on MAKO @ 15.66, option @ 2.40
symbol:MAKO1517a20 2015 JAN $20 call - current bid/ask $ 2.25/2.50

Chart of MAKO:
Current Target: $19.50
Current Stop loss: 13.95
Play Entered on: 09/04/13
Originally listed on the Watch List: 09/01/13


Medivation - MDVN - close: 60.66

Comments:
09/08/13: MDVN was a strong performer with gains every day for the holiday-shortened week. MDVN has broken out past resistance near $60.00. Our plan was to buy calls with an intraday trigger at $61.00. MDVN hit our trigger on Friday. The intraday high was $61.46. More conservative investors may want to wait for MDVN to actually close above $61.0 before initiating positions.

Big picture MDVN has spent many months consolidating sideways below the $60 level so the breakout should signal the next leg higher for the stock. Our long-term target is $75.00 but we may have to adjust it since we're only using the 2014 calls. MDVN does have 2015s but the option spreads are too wide.

Earlier Comments:
MDVN's options look a little expensive. I am suggesting smaller positions to limit our exposure.

- Suggested Positions -
SEP 06, 2013 - entry price on MDVN @ 61.00, option @ 7.80*
symbol:MDVN1418a65 2014 JAN $65 call - current bid/ask $ 7.05/7.70

*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of MDVN:
Current Target: $75.00
Current Stop loss: 54.90
Play Entered on: 09/06/13
Originally listed on the Watch List: 09/01/13


NetApp, Inc. - NTAP - close: 42.24

Comments:
09/08/13: NTAP has snapped a three-week decline. There does appear to be some short-term resistance near $42.50 but the longer-term trend of higher lows remains intact. More conservative traders may want to consider raising their stops toward the simple 50-dma (currently near 40.90).

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 $3.90/4.00

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $6.55/6.75

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: 44.62

Comments:
09/08/13: The transportation sector managed a bounce for the week in spite of a new one-year high for crude oil prices. ODFL's gains were limited. I am suggesting caution here. Investors may want to wait for ODFL to close above $46.00 before considering new bullish positions.

I am concerned that if oil accelerates too quickly it's going to have a negative influence on the transportation stocks. If the U.S. strikes at Syria it could push oil higher (even though Syria doesn't produce a lot of oil).

- Suggested Positions -
AUG 14, 2013 - entry price on ODFL @ 45.62, option @ 1.25
symbol: ODFL1418a50 2014 JAN $50 call - current bid/ask $0.70/1.00

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


Constellation Brands - STZ - close: 57.68

Comments:
09/08/13: The rally in STZ seems to be picking up speed. This is our fifth and final watch list candidate to graduate to the active play list this past week. We wanted to see STZ breakout to new highs and close above $56.25. Shares met that requirement on Thursday with a close at $56.52. Then on Friday morning, before the opening bell, Bank of America upgraded STZ. The stock reacted by gapping open higher at $57.56 (our new entry price). Personally, I would wait for STZ to dip back toward $56.00 before initiating new positions.

Big picture this stock's breakout past resistance in the $55-56 area could signal the next big leg higher in the stock's advance. Our long-term target is the $65-70 zone.

Please note our new stop loss at $51.75.

- Suggested Positions -
SEP 06, 2013 - entry price on STZ @ 57.56, option @ 2.00
symbol: STZ1418a60 2014 JAN $60 call - current bid/ask $2.40/2.55

- or -

SEP 06, 2013 - entry price on STZ @ 57.56, option @ 4.35*
symbol: STZ1517a65 2015 JAN $65 call - current bid/ask $4.30/4.80

09/08/13 new stop loss @ 51.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of STZ:

Current Target: $65-70 zone
Current Stop loss: 51.75
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/25/13


Union Pacific Corp. - UNP - close: 154.92

Comments:
09/08/13: Warning! I am urging caution here. The transportation sector did produce a bounce last week in spite of the rally in oil prices. Yet shares of UNP have produced a bearish reversal candlestick pattern with Friday's decline. At the very least I am concerned we will see UNP retest the $152.00 level. That means we could see UNP hit our stop loss (which is at the $152.00 mark) in the very near future. More conservative traders 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 $ 0.76/0.81

- or -

JUL 22, 2013 - entry price on UNP @ 163.80, option @ 4.75
symbol: UNP1517a200 2015 JAN $200 call - current bid/ask $ 2.64/2.90

09/08/13 warning! UNP looks like the bounce is reversing!
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: 54.52

Comments:
09/08/13: Shares of WFM are on a roll with the stock up six days in a row. Friday's gain was significant because it marks a bullish breakout over short-term resistance near $54.35 and its 50-dma. The current bounce is encouraging but I am not suggesting new positions.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 1.24/1.29

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 5.25/5.45

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


PetSmart, Inc. - PETM - close: 69.65

Comments:
09/08/13: Our PETM trade did not pan out. The stock has continued to struggle since its post-earnings sell-off. This past week saw PETM struggling to hold support near $70 and its 100-dma. Traders were selling every rally near its 10-dma. The stock market's volatility on Friday morning pushed PETM to an intraday low of $69.18. Our stop loss was hit at $69.40.

- Suggested Positions -
JUL 16, 2013 - entry price on PETM @ 72.70, option @ 3.40
symbol:PETM1418a75 2014 JAN $75 call - exit $1.40 (-58.8%)

- or -

JUL 16, 2013 - entry price on PETM @ 72.70, option @ 5.15*
symbol:PETM1517a80 2015 JAN $80 call - exit $3.40 (-33.9%)

09/06/13 stopped out
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

Chart of PETM

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