Editor's Note:

The Q4 earnings season is upon us. Earnings results and guidance can generate significant volatility in individual stocks. Investors will want to double-check their stop loss placement. I am updating several stop losses tonight.

Citigroup graduated from our watch list to our active play list. We want to exit our MGM and VRSN positions on Monday morning, Jan. 13th.


Closed Plays


SBUX was closed on Monday, January 6th.
We also closed our 2014 calls for AIG and DG last week.



Play Updates


American Intl. Group - AIG - close: 52.22

Comments:
01/12/14: AIG and the financial sector continued to drift higher last week. The stock also hit our new exit target for the 2014 calls. In last week's newsletter we adjusted our exit target to close the 2014s at $52.00. AIG hit $52.00 on Thursday. If you're still holding the 2014s you've only got five trading days left.

The 2013 highs in the $52-53 area could be overhead resistance. I am not suggesting new positions at this time.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - exit $2.04 (-18.4%)

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.90/4.05

01/09/14 AIG hit our $52.00 exit target for the 2014 calls
01/05/14 adjust the exit for the 2014 calls down to $52.00
12/29/13 new stop loss @ 47.75
10/20/13 new stop loss @ 46.40
10/13/13 exit strategy update: exit 2014 calls at $54.50
adjust the exit target for the 2015 calls to $59.00
09/15/13 new stop loss @ 44.65
08/04/13 new stop loss @ 43.75
...please see earlier updates for more history...

Current Target:$ exit 2014 calls @ 52.00, exit 2015 calls @ 59.00
Current Stop loss: 47.75
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Avago Technologies - AVGO - close: 53.30

Comments:
01/12/14: AVGO spent most of the week churning sideways below resistance near the $54.00 level. I am raising our stop loss up to $47.25. More conservative investors may want to raise their stop closer to $50.00. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 11, 2013 - entry price on AVGO @ 44.44, option @ 3.60
symbol: AVGO1517a50 2015 JAN $50 call - current bid/ask $7.50/8.10

01/12/14 new stop loss @ 47.25
12/29/13 new stop loss @ 45.90
12/22/13 new stop loss @ 44.90, adjust exit target to $58.50
12/08/13 new stop loss @ 42.40
...see earlier updates for older comments...

Current Target: $58.50
Current Stop loss: 47.25
Play Entered on: 11/11/13
Originally listed on the Watch List: 09/22/13


Bank of America - BAC - close: 16.77

Comments:
01/12/14: BAC managed to keep the rally alive with another gain for the week. These are new multi-year highs for the stock. The company will report earnings on Wednesday, January 15th, before the opening bell. Analysts are expecting a profit of 27 cents a share. I suspect that after BAC's recent rally that the stock will likely see some post-earnings profit taking. Do not be surprised to see a pullback toward support near $16.00 or possibly $15.50. I'm not suggesting new positions.

- 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 $2.83/2.87

01/12/14 don't be surprised to see some post-earnings profit taking
01/05/14 new stop loss @ 14.75
11/24/13 new stop loss @ 13.70
11/17/13 new stop loss @ 13.35
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 @ $18 for 2015 call
Current Stop loss: 14.75
Play Entered on: 03/18/13

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


BB&T Corp. - BBT - close: 38.66

Comments:
01/12/14: BBT continues to show relative strength with a big surge to new multi-year highs last week. The stock is looking short-term overbought here. Odds are good that BBT will see some post-earnings profit taking after they announce. BBT is due to release earnings on Thursday, January 16th, before the opening bell. Current estimates are at 72 cents a share. I would expect a dip back toward the $37.00 area.

Tonight we are raising our stop loss to $34.90. More conservative investors may want to just take profits now with our current position up +70%. If not then you might want to raise your stop loss even higher. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.69/1.73

01/12/14 new stop loss @ 34.90

Current Target: BBT @ 42.50
Current Stop loss: 34.90
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Citigroup Inc. - C - close: 54.72

Comments:
01/12/14: Citigroup has finally graduated from our watch list to our active play list. The financial stocks have been showing relative strength and this bank saw its shares breakout to new multi-year highs. The move above the $53-54 area is a significant (bullish) breakout higher. Our plan was to wait for C to close above $54.00 and then buy calls the next day. C met that requirement on January 7th with a close at $54.18. Our trade opened the next day at $54.29.

Please note that shares of C could be volatile this week. The company is scheduled to report earnings on January 16th. Current estimates are for a profit of $1.03 a share. I am raising our stop loss from $47.90 to $49.45. At this point I would wait until after we see how the market reacts to C's earnings before initiating positions.

- Suggested Positions -
JAN 08, 2014 - entry price on C @ 54.29, option @ 3.05*
symbol: C1517a60 2015 JAN $60 call - current bid/ask $3.05/3.15

- or -

JAN 08, 2014 - entry price on C @ 54.29, option @ 6.05*
symbol: C1615a60 2016 JAN $60 call - current bid/ask $5.70/5.95

01/12/14 new stop loss @ 49.40
01/08/14 trade opens. C @ $54.29
*option entry price is an estimate since the option did not trade at the time our play was opened.
01/07/14 C meets our entry point requirement with a close above $54.00
01/05/14 adjust the trigger to $54.00
...see earlier updates in the watch list section for older comments...

Current Target: C @ 70.00
Current Stop loss: 49.40
Play Entered on: 01/08/14
Originally listed on the Watch List: 11/24/13


Capital One Financial - COF - close: 78.02

Comments:
01/12/14: COF has extended its rally to four up weeks in a row. Yet the rally is starting to look tired with shares struggling near the $78.00 level. The company reports earnings on January 16th, after the closing bell. Wall Street is expecting a profit of $1.55 a share. I do expect COF to see some profit taking after its report. Shares could easily see a drop back toward the $75.00 area. Please note our new stop loss at $71.75. I'm not suggesting new positions at this time.

- Suggested Positions -
NOV 29, 2013 - entry price on COF @ 71.69, option @ 5.80*
symbol: COF1517a75 2015 JAN $75 call - current bid/ask $8.30/8.55

01/12/14 new stop loss @ 71.75
12/29/13 new stop loss @ 69.45
12/22/13 new stop loss @ 68.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: COF @ 84.00 for 2015 calls
Current Stop loss: 71.75
Play Entered on: 11/29/13
Originally listed on the Watch List: 11/17/13


E.I. du Pont - DD - close: 63.54

Comments:
01/12/14: As we suspected shares of DD did see a pullback toward support near $62.00. Shares are bouncing from that support with a little help from an analyst upgrade. I am not suggesting new positions at this time.

If the $62 level fails the next level of support should be $60.00.

FYI: DD is scheduled to report earnings on January 28th.

- Suggested Positions -
(2014 calls closed on December 30th, 2013)
OCT 25, 2013 - entry price on DD @ 62.57, option @ 0.74
symbol: DD1418a65 2014 JAN $65 call - exit $0.69 (-6.7%)

- or -

OCT 25, 2013 - entry price on DD @ 62.57, option @ 3.15
symbol: DD1517a65 2015 JAN $65 call - current bid/ask $3.70/3.75

12/30/13 planned exit for 2014 calls.
12/29/13 prepare to exit 2014 calls on Monday, Dec. 30th at the open.
12/08/13 new stop loss @ 58.90
10/25/13 trade opens. DD gaps higher a $62.57
10/24/13 DD closed above our trigger @ 60.75
09/22/13 adjust entry: wait for a close above $60.75
instead of a close above $60.50

Current Target: DD @ 69.00
Current Stop loss: 58.90
Play Entered on: 10/25/13
Originally listed on the Watch List: 08/11/13


Deer & Co - DE - close: 89.76

Comments:
01/12/14: Both CAT and DE experienced some profit taking early last week. Both stocks were also bouncing on Friday but that doesn't mean the correction is over. DE could see some support near $88.00 and should definitely find support in the $85-86 area. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 10, 2013 - entry price on DE @ 87.26, option @ 5.85*
symbol: DE1517a90 2015 JAN $90 call - current bid/ask $6.55/6.75

01/05/14 new stop loss @ 84.40
12/22/13 new stop loss @ 83.75
12/10/13 trade opens. DE @ 87.26
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/09/13 DE closed @ 87.20, above our suggested entry of a close above $86.25

Current Target: DE @ 98.50
Current Stop loss: 84.40
Play Entered on: 12/10/13
Originally listed on the Watch List: 12/08/13


Dollar General Corp. - DG - close: 62.87

Comments:
01/12/14: DG displayed some relative strength last week but most of that was on Thursday and Friday as the market reacted to earnings from a rival company, Family Dollar Store (FDO). The funny thing is that FDO issued bearish earnings guidance, which should have sparked a sell off in the ultra-cheap dollar discount type stores. Instead shares of DG surged higher after the initial knee-jerk drop on Thursday morning. Friday's follow through rally pushed DG through resistance near $62.00 to close at all-time highs.

Unfortunately, due to our lack of time, we had already decided to in last week's newsletter to exit our 2014 calls on Monday, January 6th, at the opening bell. I am not suggesting new positions.

Please note our new stop loss at $57.45.

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

- Suggested Positions -
(exit on 2014 calls was Monday, January 6th, 2014)
SEP 06, 2013 - entry price on DG @ 57.61, option @ 2.58
symbol: DG1418a60 2014 JAN $60 call - exit $1.89 (-26.7%)

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $4.00/4.60

01/12/14 new stop loss @ 57.45
01/06/14 planned exit for the 2014 calls
01/05/14 prepare to exit 2014 calls immediately on Monday morning
11/17/13 new stop loss @ 54.75
09/22/13 new stop loss @ 53.60

Current Target: DG @ 69.00 for the 2015s
Current Stop loss: 57.45
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/04/13


The Walt Disney Co. - DIS - close: 75.39

Comments:
01/12/14: After a three-week rally to new highs shares of DIS hit some profit taking last week. If this pullback continues look for potential support in the $72 area near its rising 50-dma. I am not suggesting new positions at this time.

FYI: DIS is scheduled to report earnings on February 5th.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $7.00/7.15

01/05/14 new stop loss @ 69.40
12/29/13 new stop loss @ 67.40
12/08/13 new stop loss @ 65.75
11/24/13 new stop loss @ 64.75

Current Target: DIS @ 84.00
Current Stop loss: 69.40
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Dick's Sporting Goods - DKS - close: 56.76

Comments:
01/12/14: DKS set new closing highs last week but the stock also seems to have peaked. Shares are currently down three days in a row. If this correction continues we can watch for support in the $54-55 area. I am not suggesting new positions at this time.

Our long-term target is $65.00. More aggressive traders could aim higher. The point & figure chart is already bullish and forecasting at $71 target.

- Suggested Positions -
NOV 12, 2013 - entry price on DKS @ 54.73, option @ 4.00*
symbol: DKS1517a60 2015 JAN $60 call - current bid/ask $4.00/4.30

11/12/13 trade opens. DKS opens at $54.73
*option entry price is an estimate since the option did not trade at the time our play was opened.
11/11/13 closed about our suggested entry trigger (above 54.50)
10/27/13 removed the 2014 call.

Current Target: DKS @ 65.00
Current Stop loss: 49.95
Play Entered on: 11/12/13
Originally listed on the Watch List: 10/06/13


Freeport-McMoRan - FCX - close: 36.17

Comments:
01/12/14: We may want to rethink our FCX trade. I warned readers last weekend that a retreat from resistance near $38.00 would start to look like a bearish double top. Well a pullback is exactly what FCX delivered. Now shares are flirting with a breakdown below their 50-dma in the $36.00 area.

A bounce in gold last week was offset by weakness in copper prices. Most of the opinion I read about gold suggest the precious metal could see new lows in 2014. That could be a problem for FCX. Meanwhile FCX was dealing with a major headache in Indonesia. The country recently enacted a ban on mineral ore exports. It was unclear up until this weekend if FCX would be affected by the ban. The latest reports suggest that FCX will be exempt from this mineral ore export ban and this good news might give the stock price a bump. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 13, 2013 - entry price on FCX @ 35.25, option @ 2.60*
symbol: FCX1517a39 2015 JAN $39 call - current bid/ask $2.21/2.26

12/29/13 new stop loss @ 33.45
11/13/13 FCX hits our buy-the-dip entry point at $35.25
*option entry price is an estimate since the option did not trade at the time our play was opened.
10/27/13 strategy update: removed the 2014 calls
adjust the buy-the-dip trigger to $35.25 and the stop to $32.25.
adjust the option strike to the 2015 Jan $39 call

Current Target:$ 42.50
Current Stop loss: 33.45
Play Entered on: 11/13/13
Originally listed on the Watch List: 09/15/13


Fluor Corp. - FLR - close: 78.90

Comments:
01/12/14: Last week was quiet for FLR. The stock has been churning sideways inside the $78-80 zone and closed down 25 cents for the week. I am concerned that if FLR breaks below the $78 level it could signal a drop toward its December lows near $75.00. More conservative investors may want to take profits on our 2015 calls now. I am not suggesting new positions at this time.

Earlier Comments:
We will plan to exit our 2015 calls when FLR trades at $88.00.

- Suggested Positions -
SEP 12, 2013 - entry price on FLR @ 67.14, option @ 2.90
symbol: FLR1418a70 2014 JAN $70 call - exit $9.30 (+220.6%)

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 10.00/10.30

12/22/13 new stop loss @ 74.40
11/24/13 new stop loss @ 72.75
11/13/13 exit target hit for 2014 Jan. $70 calls
11/10/13 new stop loss @ 71.40
10/31/13 FLR reported earnings and management lowered guidance
10/20/13 new stop loss @ 68.80
adjust exit targets: Target for 2014 call is $79.00
target for 2015 call is $88.00
09/22/13 new stop loss @ 64.75
09/22/13 adjust exit target from $74.75 to $79.50
09/20/13 high for the day was $74.72
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target:$ Target for 2014 call is $79.00,
Target for 2015 is $88.00
Current Stop loss: 74.40
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


General Electric - GE - close: 26.96

Comments:
01/12/14: Uh-oh! GE has been underperforming all year long (2014). The stock is down two weeks in a row and almost down every day this year with shares settling on technical support near its 50-dma this Friday. The relative weakness is troubling and if this correction continues we could see GE drop toward its December lows near $26.20.

The next move will most likely be driven by earnings. GE is scheduled to report earnings on January 17th. Wall Street is looking for a profit of 53 cents a share. I would not be surprised to see GE drift sideways until the earnings report and then move. I am not suggesting new positions at this time.

Earlier Comments:
Keep in mind that GE doesn't move very fast so we'll need to be patient.

- Suggested Positions -
DEC 27, 2013 - entry price on GE @ 27.84, option @ 1.19
symbol: GE1517a30 2015 JAN $30 call - current bid/ask: 0.83/ 0.86

- or -

DEC 27, 2013 - entry price on GE @ 27.84, option @ 1.96
symbol: GE1615a30 2016 JAN $30 call - current bid/ask: 1.65/ 1.69

Current Target: GE in the $32.50-35.00 zone.
Current Stop loss: 25.95
Play Entered on: 12/27/13
Originally listed on the Watch List: 12/22/13


Home Depot, Inc. - HD - close: 82.01

Comments:
01/12/14: Shares of HD have spent the last week consolidating sideways inside the $81-82 zone. Fortunately shares closed near their highs for the week and HD looks poised to breakout higher. Investors might want to wait for a new close above $82.50 before initiating new positions.

Earlier Comments:
Our long-term target is $99.00. FYI: The point & figure chart is bullish with a $97 target.

- Suggested Positions -
DEC 27, 2013 - entry price on HD @ 81.65, option @ 3.40
symbol: HD1517a90 2015 JAN $90 call - current bid/ask: 3.10/ 3.20

- or -

DEC 27, 2013 - entry price on HD @ 81.65, option @ 6.55
symbol: HD1615a90 2016 JAN $90 call - current bid/ask: 6.10/6.35

Current Target: HD at $99.00
Current Stop loss: 76.75
Play Entered on: 12/27/13

Originally listed on the Watch List: 12/01/13


HollyFrontier Corp. - HFC - close: 49.79

Comments:
01/12/14: Oil prices have continued to plunge from their late December highs and that's putting pressure on some of the energy names. Yet shares of HFC have been relatively resilient. The stock has been consolidating sideways under resistance near the $50 level for the last three weeks. Friday saw HFC testing resistance at its early December intraday high near $50.50-51.00 before paring its gains. A close above $51.00 could be used as an alternative bullish entry point.

Tonight we're adjusting the stop loss to $44.75.

Bear in mind that I am cautious on this trade given HFC's recent volatility over the last few weeks. If you're launching positions I would start small.

Earlier Comments:
NOTE: The options for HFC have changed. Due to a 50-cent special dividend the option strikes have all been adjusted down by 50 cents. Our listed option strike 2015 January $49.50 has become $49.00.

- Suggested Positions -
NOV 26, 2013 - entry price on HFC @ 47.17, option @ 5.00*
symbol: HFC1517a49 2015 JAN $49 call - current bid/ask $6.00/6.50

01/12/14 new stop loss @ 44.75
12/15/13 new stop loss @ 43.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: HFC @ 59.00
Current Stop loss: 44.75
Play Entered on: 11/26/13
Originally listed on the Watch List: 11/24/13


Harley-Davidson - HOG - close: 69.62

Comments:
01/12/14: HOG continues to consolidate sideways below resistance near the $70 level. Fortunately it seems to be doing so with a bullish trend of higher lows. If the market cooperates HOG could breakout higher soon. Tonight we're adjusting our stop to $64.75. More conservative investors may want to move their stop closer to the 50-dma.

FYI: HOG is scheduled to report earnings on January 30th.

Earlier Comments:
Our exit target for the 2015 calls remains $74.50 for now.

- Suggested Positions -
(exited 2014 calls on Monday, December 9th, 2013)
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - closed @ 3.70 (+56.7%)

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 6.40/6.60

01/12/14 new stop loss @ 64.75
12/29/13 new stop loss @ 63.75
12/09/13 planned exit for 2014 calls. option @ $3.70 (+56.7%)
12/08/13 prepare to exit 2014 calls immediate on Monday morning
12/08/13 new stop loss @ 62.75
11/17/13 new stop loss @ 61.45
adjust the exit target for 2015 calls to $74.50
10/20/13 do not be surprised to see some profit taking after HOG reports earnings on Oct. 22nd.
09/22/13 new stop loss @ 59.00
*note the entry price on our 2015 call is an estimate since the option did not trade at the time our play opened.

Current Target: exit exit 2015 calls @ 74.50
Current Stop loss: 64.75
Play Entered on: 09/04/13
Originally listed on the Watch List: 08/25/13


Honeywell Intl. - HON - close: 90.16

Comments:
01/12/14: Shares of HON were downgraded this past week. The downgrade really didn't have much impact on the stock price but it certainly didn't help. HON has been slowly drifting lower the last couple of weeks. If this continues we might see HON retesting its trend of higher lows in the $86-87 area. I am not suggesting new positions at this time.

FYI: HON is scheduled to report earnings on January 24th.

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 $ 9.55/ 9.70

12/29/13 new stop loss @ 84.85
12/22/13 adjust the exit target to $98.00
11/24/13 new stop loss @ 83.75
11/17/13 new stop loss @ 82.75
11/10/13 new stop loss @ 81.75
10/20/13 new stop loss @ 79.40
10/13/13 investors might want to take profits on our 2015 calls, which have doubled in value.
...please see earlier newsletter for prior comments...

Current Target:$ 98.00
Current Stop loss: 84.85
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Helmerich & Payne, Inc. - HP - close: 85.55

Comments:
01/12/14: Traders bought the dip in HP on Tuesday morning and the stock has been up every day since. Friday was a new all-time high. We are adjusting our stop loss up to $79.65. I am not suggesting new positions at this time.

FYI: HP is scheduled to report earnings on January 30th.

- Suggested Positions -
DEC 05, 2013 - entry price on HP @ 81.00, option @ 5.60*
symbol: HP1517a90 2015 JAN $90 call - current bid/ask $ 6.40/6.70

01/12/14 new stop loss @ 79.65
12/29/13 new stop loss @ 77.45
12/05/13 trade opens with HP opening at $81.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/04/13 HP closes at $80.97, above our suggested trigger @ 80.25
11/17/13 strategy change: Wait for HP to close above $80.25 and then buy calls the next day with a stop loss at $74.75. Our new long-term target is $95.00. New option strike at 2015 $90 call

Current Target:$ 95.00
Current Stop loss: 79.65
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13


JPMorgan Chase & Co. - JPM - close: 58.49

Comments:
01/12/14: JPM tagged new highs early last week but gains faded. Shares spent the rest of the week churning sideways. Investors are most likely waiting for earnings to come out. JPM will announce earnings on Tuesday morning, January 14th, before the opening bell. Analysts are expecting a profit of $1.32 a share. If JPM disappoints we could see shares drop toward the $55-56 range. I am not suggesting new positions at this time.

- Suggested Positions -
(2014 call exit on Monday, December 23rd)
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - exit $3.05 (+90.6%)

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 6.60/6.70

01/05/14 new stop loss @ 52.90
12/23/13 planned exit for 2014 calls, option @ +90.6%
12/22/13 prepare to exit the 2014 calls on Monday morning, Dec. 23rd
12/01/13 adjust exit target for the 2014 calls to exit when JPM hits $59.50
11/24/13 new stop loss @ 51.95
Consider taking profits on the 2014 calls now
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: exit 2015 calls when JPM hits $64.00
Current Stop loss: 52.90
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Level 3 Communications - LVLT - close: 34.00

Comments:
01/12/14: LVLT continues to show relative strength with another surge to new two-year highs. The stock is starting to look a little bit overbought with its run from the $30 area in mid December. I am raising our stop loss up to $29.75.

FYI: LVLT is scheduled to report earnings on February 5th.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - current bid/ask $ 6.50/6.90

01/12/14 new stop loss @ 29.75
12/29/13 new stop loss @ 28.75
12/08/13 new stop loss @ 27.75
11/24/13 new stop loss @ 26.75
*option entry price is an estimate since the option did not trade at the time our play was opened.
Current Target: $39.00
Current Stop loss: 29.75
Play Entered on: 10/31/13
Originally listed on the Watch List: 10/20/13


MGM Resorts - MGM - close: 25.36

Comments:
01/12/14: Wow! The rally in MGM just refuses to slow down. Shares are up another +8% last week. This stock is now up +37.5% from its November 2013 closing low of $18.44. On a purely technical basis this past week's breakout past round-number resistance at $25.00 looks bullish. MGM is definitely showing a lot of momentum but it's also up six weeks in a row. Our long-term target has been the $26-28 area and MGM is almost there!

Tonight we are deciding to lock in profits now and exit immediately on Monday morning, January 13th. You may want to hold on. If you do choose to hold on I would strongly suggest you raise your stop loss. There seems to be short-term technical support at the rising 10-dma, currently near $24.00.

- Suggested Positions -
DEC 17, 2013 - entry price on MGM @ 21.79, option @ 2.00
symbol: MGM1517a25 2015 JAN $25 call - current bid/ask $ 3.80/3.85

01/12/14 prepare to exit positions on Monday morning, Jan. 13th
01/05/14 MGM could be forming a bearish reversal, expect a pullback from here
12/17/13 trade opens. MGM @ 21.79
12/16/13 MGM meets our entry requirement with a close above $21.50

Chart of MGM:
Current Target: $26.00-28.00 zone
Current Stop loss: 19.35
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Motorola Solutions - MSI - close: 66.15

Comments:
01/12/14: MSI delivered a lackluster performance. Shares drifted sideways between short-term support near $66 and short-term resistance near its 10-dma. A breakdown from here could be a warning signal. I am not suggesting new positions. I am raising our stop loss to $62.75. Cautious investors might want to move their stop closer to $64 instead.

FYI: MSI is scheduled to report earnings on January 22nd.

Earlier Comments:
Currently our target is the $80-90 zone but we'll be more specific as the trade progresses. The point & figure chart is bullish with a long-term target at $91.00.

- Suggested Positions -
DEC 23, 2013 - entry price on MSI @ 66.75, option @ 4.10
symbol: MSI1517a70 2015 JAN $70 call - current bid/ask $ 3.50/3.70

- or -

DEC 23, 2013 - entry price on MSI @ 66.75, option @ 5.10
symbol: MSI1615a75 2016 JAN $75 call - current bid/ask $ 4.20/4.55

01/12/14 new stop loss @ 62.75
Current Target: Exit when MSI trades in the $80-90 zone.
Current Stop loss: 62.75
Play Entered on: 12/23/13
Originally listed on the Watch List: 12/08/13


The Manitowoc Co. - MTW - close: 24.85

Comments:
01/12/14: Shares of MTW were upgraded on January 8th. Yet the stock accelerated again on Friday the 10th. The rally last week now marks MTW's seventh weekly gain in a row. Shares do look short-term overbought and I would expect some profit taking. Investors might want to consider exiting their calls now to lock in gains and then look for a new entry point on a pullback. I am not suggesting new positions at this time. We are adjusting the stop loss to $21.90.

- Suggested Positions -
DEC 19, 2013 - entry price on MTW @ 22.33, option @ 2.85*
symbol: MTW1517a25 2015 JAN $25 call - current bid/ask $ 3.70/4.00

01/12/14 new stop loss @ 21.90, investors may want to just lock in profits now.
12/19/13 trade opens. MTW @ 22.33
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/18/13 triggered with MTW close at $22.36, above our $22.10 trigger
Current Target: $28.00-30.00 zone
Current Stop loss: 21.90
Play Entered on: 12/19/13
Originally listed on the Watch List: 12/15/13


QUALCOMM Inc. - QCOM - close: 73.87

Comments:
01/12/14: QCOM is finally starting to show a little relative strength and shares flirted with a bullish breakout past resistance near $74 late last week. The CES show in Vegas kept investors focused on technology stocks. QCOM was also in the headlines for news regarding an anti-trust probe from Chinese regulators. QCOM's CEO mentioned in an interview this past week that they still do not know why China is investigating the company. I am not suggesting new positions at this time.

FYI: QCOM is scheduled to report earnings on January 29th.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.35/5.45

12/08/13 new stop loss @ 67.75
11/15/13 trade opens. QCOM @ 71.34
11/14/13 QCOM closes above entry trigger (above 70.50)

Current Target: $85.00
Current Stop loss: 67.75
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


VeriSign, Inc. - VRSN - close: 61.46

Comments:
01/12/14: VRSN is the gift that keeps on giving. Shares extended their gains another week to close at new multi-year highs again. We've been planning on exiting our 2015 calls when VRSN hits $64.50. Tonight we're altering that plan. I am suggesting an immediate exit to lock in gains now. VRSN is near its trend line of higher highs. Take the money and run.

- Suggested Positions -
(option exit on December 2nd, 2013)
SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 1.16
symbol:VRSN1418a55 2014 JAN $55 call - exit @ $2.80** (+141.3%)

- or -

SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 4.25*
symbol:VRSN1517a55 2015 JAN $55 call - current bid/ask $ 9.55/9.75

01/12/14 prepare to exit 2015 calls on Monday, Jan 13th at the open
01/05/14 new stop loss @ 55.75
12/22/13 new stop loss @ $54.40
12/02/13 planned exit for the 2014 calls, option @ +141.3%
**option exit price is an estimate since the option did not trade at the time our play was closed.
12/01/13 prepare to exit our 2014 Jan. $55 calls on Monday, Dec. 2nd.
...please see older updates for prior comments ...

Chart of VRSN:

Current Target: 2015 calls @ $64.50
Current Stop loss: 55.75
Play Entered on: 09/19/13
Originally listed on the Watch List: 08/18/13


Western Digital Corp. - WDC - close: 85.46

Comments:
01/12/14: It was an up week for shares of WDC. The stock broke through resistance near $84.00 on Tuesday morning. Shares almost hit $88 before finally seeing some profit taking. Technically Thursday's session has created a bearish reversal pattern but it has not been confirmed yet. Look for support in the $82-84 zone if WDC does see any pullback.

Please note our new stop loss at $77.40.

FYI: WDC is scheduled to report earnings on January 22nd.

Our long-term target is $94.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
DEC 10, 2013 - entry price on WDC @ 77.00, option @ 6.00*
symbol: WDC1517a90 2015 JAN $90 call - current bid/ask $ 9.30/9.55

01/12/14 new stop loss at $77.40
01/05/14 new stop loss at $76.40
12/22/13 new stop loss at $74.25
12/10/13 triggered on our buy-the-dip entry at $77.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/08/13 adjust the entry point strategy to buy calls on a dip at $77.00 since we missed the breakout (see the December 8th, watch list update)
12/01/13 adjust entry point to a close above $76.50 instead of 76.25
adjust the stop loss to $69.75

Current Target: Exit 2015 calls when WDC hits $94.00
Current Stop loss: 77.40
Play Entered on: 09/19/13
Originally listed on the Watch List: 11/17/13


Wells Fargo & Co. - WFC - close: 44.94

Comments:
01/12/14: Large financial stocks continued to rally last week. WFC hit new all-time highs on Thursday. The trend is up but WFC could see some profit taking after they report earnings. Wall Street expects a profit of 98 cents a share. The company is scheduled to report earnings on Tuesday, January 14th, before the opening bell. I would wait until after we see how the market interprets WFC's results before considering new positions.

- Suggested Positions -
DEC 26, 2013 - entry price on WFC @ 45.50, option @ 1.50
symbol: WFC1517a50 2015 JAN $50 call - current bid/ask $ 1.49/1.54

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 3.00/3.10

12/26/13 trade opens with WFC @ $45.50
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/24/13 WFC closed @ 45.39, above our trigger at $45.25

Current Target: Exit WFC hits $54.50
Current Stop loss: 41.95
Play Entered on: 12/26/13
Originally listed on the Watch List: 12/08/13


Wyndham Worldwide - WYN - close: 72.97

Comments:
01/12/14: Shares of WYN garnered an upgrade last week but the announcement failed to have much impact on the stock price. The stock did find some short-term support near $71.65 this past week but I remain concerned that WYN's upward momentum is stalling. Shares are likely due for a deeper pullback. I am not suggesting new positions at this time.

FYI: WYN is scheduled to report earnings on February 7th.

Earlier Comments:
The point & figure chart is bullish and currently forecasting a $93.00 target.

- Suggested Positions -
NOV 18, 2013 - entry price on WYN @ 68.97, option @ 4.20
symbol: WYN1517a75 2015 JAN $75 call - current bid/ask $ 4.80/5.50

12/22/13 new stop loss @ 67.40
12/01/13 new stop loss @ 65.40
11/24/13 new stop loss @ 64.75
11/18/13 trade opens. WYN opens @ 68.97

Current Target: 85.00
Current Stop loss: 67.40
Play Entered on: 11/18/13
Originally listed on the Watch List: 11/10/13



CLOSED Plays


Starbucks - SBUX - close: 77.67

Comments:
01/12/14: Last weekend shares of SBUX were trending lower. We suggested investors exit immediately on Monday morning, January 6th. Since then SBUX has bounced near its December lows around the $76.00 level, which was a possibility I discussed. However, I am not convinced the correction in SBUX is over. We currently have SBUX on our watch list for a correction closer toward the $70 area.

- Suggested Positions -
DEC 04, 2013 - entry price on SBUX @ 80.00, option @ 4.70
symbol: SBUX1517a90 2015 JAN $90 call - exit $3.00 (-36.1%)

01/06/14 planned exit
01/05/14 prepare to exit positions immediately on Monday, Jan 6th
12/15/13 The breakdown in SBUX this past week throws the up trend in question. Investors might want to exit early now to minimize losses
12/04/13 triggered on a dip at $80.00
12/01/13 adjust the trigger to $80.00
11/24/13 adjust the trigger to $79.25
adjust the option strike to the 2015 January $90 call
11/17/13 adjust the trigger to $78.25
11/10/13 adjust the buy-the-dip entry to $78.00 and stop to $74.75
11/03/13 adjust buy-the-dip entry from $76 to $77.00

Chart of SBUX:

Current Target: exit calls when SBUX hits $98.00
Current Stop loss: 74.75
Play Entered on: 12/04/13
Originally listed on the Watch List: 10/27/13