Editor's Note:

FSLR has graduated from our watch list to our active play list.


Closed Plays


HP hit our bullish exit target.



Play Updates


Agilent Technologies - A - close: 56.34

Comments:
02/23/14: Shares of A did manage to bounce from support near $55.00. Now the stock faces overhead resistance near $58 and its 50-dma. A displayed some relative weakness on Friday. If the market pulls back we will likely see A retest the $55.00 level. I am not suggesting new positions at the moment.

Earlier Comments:
FYI: Agilent is planning to spin off its electronic measurement company, Keysight Technologies, toward the end of 2014.

- Suggested Positions -
FEB 14, 2014 - entry price on A @ 55.00, option @ 3.70
symbol: A1517a60 2015 JAN $60 call - current bid/ask $4.10/4.20

- or -

FEB 14, 2014 - entry price on A @ 55.00, option @ 5.10
symbol: A1615a65 2016 JAN $65 call - current bid/ask $5.15/5.40

02/16/14 new stop loss @ 52.90 (was 52.40)
02/14/14 triggered at $55.00
02/09/14 adjust the entry trigger to $55.00 (from $55.50)

Current Target: BAC @ $74.00
Current Stop loss: 52.90
Play Entered on: 02/14/14
Originally listed on the Watch List: 01/26/14


Bank of America - BAC - close: 16.29

Comments:
02/23/14: Both BAC and the financial sector trended lower last week. Shares are hovering near their 50-dma. The stock looks poised to move lower. If it breaks $16.00 I would expect a dip toward the $15.00 area. 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 $2.32/2.36

02/03/14 move stop loss to $15.35, investors may want to just exit now to lock in potential gains
01/19/14 adjust exit target to $19.50 (from 18.00)
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 @ $19.50 for 2015 call
Current Stop loss: 15.35
Play Entered on: 03/18/13

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


BB&T Corp. - BBT - close: 37.22

Comments:
02/23/14: BBT is still consolidating sideways. This past week the stock found trouble with its 20-dma as overhead resistance. I am starting to think we will see BBT retesting the $36.00 area again. which may prove to be another entry point.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.17/1.22

02/03/14 conservative investors may want to exit now to avoid a potential loss (or raise their stop loss)
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


The Walt Disney Co. - DIS - close: 80.13

Comments:
02/23/14: After a brief pause near round-number resistance at $80.00 the rally in DIS resumed on Friday with a +1.1% gain. The strength is encouraging but DIS shares look overbought and due for a pullback. I am not suggesting new positions.

Bear in mind that DIS will see another pullback, probably sooner than later, and it will be several points. More conservative investors might want to lock in gains now.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $9.60/9.75

02/16/14 more conservative traders may want to take profits now.
We are adjusting our long-term target from $84 to $89
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 @ 89.00
Current Stop loss: 69.40
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Delphi Automotive - DLPH - close: 65.91

Comments:
02/23/14: DLPH has gone almost straight up from its February lows. The stock is nearing a significant trend line of higher highs. I do expect some profit taking soon and it could be $2 to $3. I am not suggesting new positions at this time.

- Suggested Positions -
JAN 24, 2014 - entry price on DLPH @ 60.25, option @ 4.49
symbol: DLPH1517a65 2015 JAN $65 call - current bid/ask $6.60/7.10

02/04/14 DLPH reports better than expected earnings but lowers Q1 guidance

Current Target: DLPH @ 75.00
Current Stop loss: 57.25
Play Entered on: 01/24/14
Originally listed on the Watch List: 01/19/14


Foot Locker, Inc. - FL - close: 40.00

Comments:
02/23/14: It was a bullish week for FL with a breakout above its 50-dma. The stock is now up four weeks in a row. The next hurdle for the bulls will be resistance at its highs near $41.50.

Investors should note that FL is due to report earnings on March 7th.

Earlier Comments:
Our long-term target is $48.00 but more aggressive traders could aim higher since the point & figure chart is forecasting a $60 target.

- Suggested Positions -
JAN 17, 2014 - entry price on FL @ 39.25, option @ 3.85*
symbol: FL1517a40 2015 JAN $40 call - current bid/ask $3.70/4.00

02/16/14 recent performance has been disappointing. Investors may want to exit early now.
02/03/14 adjust stop loss to $36.49
01/17/14 triggered @ 39.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: exit when FL hits $48.00
Current Stop loss: 36.49
Play Entered on: 01/17/14
Originally listed on the Watch List: 12/29/13


First Solar, Inc. - FSLR - close: 55.93

Comments:
02/23/14: FSLR is a new addition to the play list. We added it to our watch list last weekend. The plan was to wait for shares to close above $54.00 and then buy calls the next day. FSLR met that requirement in a big way with a huge surge higher on Feb. 18th and a close at $56.86. Our trade opened the next morning at $56.63. Investors may want to wait for a dip near $54.00 again before initiating new positions.

Earlier Comments:
FSLR can be a volatile stock so I consider this an aggressive, higher-risk trade. Our long-term target is $74.00.

FYI: Earnings are coming up on February 25th. More conservative investors will want to seriously consider waiting until after FSLR reports earnings and we see the market reaction before initiating positions.

*Use small positions to limit risk*

- Suggested Positions -
FEB 19, 2014 - entry price on FSLR @ 56.63, option @ $10.20
symbol: FSLR1517a60 2015 JAN $60 call - current bid/ask $ 9.45/ 9.65

Chart of FSLR:

Current Target: exit when FSLR hits $74.00
Current Stop loss: 47.40
Play Entered on: 02/19/14
Originally listed on the Watch List: 02/16/14


Gilead Sciences - GILD - close: 82.59

Comments:
02/23/14: GILD posted a gain for the week and the stock is only a couple of points away from new all-time highs. Yet shares seem to be lagging behind their peers. The biotech indices were surging higher this past week. I am not suggesting new positions at this time.

Earlier Comments:
I am labeling this a more aggressive, higher risk trade. There is always the risk that the wrong headline sends any biotech stock gapping lower (or higher as the case may be). I'm suggesting small positions to start. Broken resistance near $75.00 should be new support. Currently the point & figure chart is bullish and forecasting at $98 target.

- Suggested Positions -
FEB 07, 2014 - entry price on GILD @ 76.25, option @ 7.30
symbol: GILD1517a85 2015 JAN $85 call - current bid/ask $9.70/9.85

02/16/14 new stop loss @ 74.00
02/07/14 triggered @ 76.25
01/26/14 move the buy-the-dip trigger from 75.25 to 76.25

Current Target: exit when GILD hits $95.00
Current Stop loss: 74.00
Play Entered on: 02/07/14
Originally listed on the Watch List: 01/19/14


Honeywell Intl. - HON - close: 93.93

Comments:
02/23/14: HON spent the week consolidating sideways. Shares were unable to breakout past resistance near $95.00. If HON were to see a pullback we can look for likely support near $91 and near $88.00. 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 $11.60/11.80

02/09/14 new stop loss @ 87.45
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: 87.45
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Hospira Inc. - HSP - close: 42.27

Comments:
02/23/14: Ouch! It has been shaping up as a quiet week for shares of HSP. Then shares plunged on Friday with a -3.8% drop toward support near $42.00. The close below its 50-dma is technically bearish. The drop occurred Friday morning. I don't see any news that may account for the relative weakness. I am not suggesting new positions at this time.

Earlier Comments:
Our long-term target is $49.75. You may want to aim higher since the point & figure chart is forecasting at $69 target but I do see potential resistance at $50.00.

FYI: Earnings are scheduled for February 12th.

- Suggested Positions -
FEB 03, 2014 - entry price on HSP @ 43.00, option @ 4.60
symbol: HSP1517a45 2015 JAN $45 call - current bid/ask $ 3.20/3.60

02/03/14 triggered at $43.00

Current Target:$ 49.75
Current Stop loss: 39.90
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/26/14


JPMorgan Chase & Co. - JPM - close: 57.61

Comments:
02/23/14: After a three week rally JPM finally saw some profit taking. Even then the pullback wasn't that bad and shares found support near their 50-dma. I am not convinced the pullback is over. 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 $ 5.55/5.65

02/09/14 new stop loss @ 53.65
01/26/14 a dip or a bounce near $54.00 could be used as a new bullish entry point
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
(see older updates for earlier comments)
Current Target: exit 2015 calls when JPM hits $64.00
Current Stop loss: 53.65
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Micron Technology - MU - close: 25.08

Comments:
02/23/14: MU spent most of the holiday-shortened week consolidating sideways near the $25.50 level. The volatility on Friday (-1.6%) may have been option expiration related. By the closing bell MU had bounced back to close unchanged on the week (and right on the $25.00 option strike price).

Nimble traders may want to look for a dip near $24.00 or its 50-dma as an alternative entry point.

Earlier Comments:
Keep in mind that late last year MU saw some volatility around news that a rival chip maker, Hynix, was building a new factory in 2014 and investors worried that might (naturally) impact supply and thus memory pricing. This could be a story that shows up again in 2014 even though the new factory probably won't start producing until 2015.

- Suggested Positions -
FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.75*
symbol: MU1517a25 2015 JAN $25 call - current bid/ask $ 3.75/3.85

- or -

FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.60*
symbol: MU1615a30 2016 JAN $30 call - current bid/ask $ 3.45/3.85

02/10/14 trade opens, MU @ $24.64
*option entry price is an estimate since the option did not trade at the time our play was opened.
02/07/14 MU meets our entry point requirement with a close above $24.50
02/03/14 adjust entry strategy. Instead of a buy-the-dip trigger at $22.00, wait for MU to close above $24.50 and then buy calls the next day.

Current Target: MU @ $29.75
Current Stop loss: 21.75
Play Entered on: 02/10/14
Originally listed on the Watch List: 01/12/14


QUALCOMM Inc. - QCOM - close: 75.61

Comments:
02/23/14: Shares of QCOM are holding up reasonably well considering the headlines last week. According to a recent Forbes article, QCOM is facing an anti-monopoly investigation by Chinese regulators. The accusation is that QCOM is charging a higher royalty rate in China than in other countries. This news comes just as China is about to launch its 4G network. Shares of QCOM bounced off their 10-dma midweek but I suspect we could see it dip toward the $74 level again.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.50/5.60

02/19/14 QCOM being investigated by Chinese authorities
01/19/14 new stop loss @ 69.45
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: 69.45
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


Starbucks - SBUX - close: 72.56

Comments:
02/23/14: Uh-oh! Our SBUX trade could be in trouble. The recent bounce has stalled and now reversed at resistance near $75.00. More conservative traders may want to hit the eject button immediately.

SBUX shares could be suffering as coffee prices surge higher. Brazil accounts for about one third of the global coffee supply. Right now worries about the Brazilian coffee crop are surging due to weather. That has sparked a massive rally in coffee prices with spot coffee price up +75% from their November 2013 lows. Naturally the market may begin to worry that rising coffee will impact SBUX's margins. Believe it or not the price of coffee only accounts for about 10% of SBUX operating costs.

The recent breakdown under its 200-dma doesn't bode well for SBUX. I suspect we are going to see SBUX retest the $70-69 area before it moves higher.

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - current bid/ask $5.15/5.25

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $6.65/6.85

02/23/14 SBUX is rolling over and looks headed for the February low
02/09/14 new stop loss @ 67.90
02/03/14 triggered at $70.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: $82.00
Current Stop loss: 67.90
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/05/14


Wells Fargo & Co. - WFC - close: 45.60

Comments:
02/23/14: WFC was not immune to the pullback in financials last week. Shares are sitting on their 50-dma. Any further weakness probably signals a drop toward $44.00. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 26, 2013 - entry price on WFC @ 45.50, option @ 1.50
symbol: WFC1517a50 2015 JAN $50 call - current bid/ask $ 1.14/1.18

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 2.59/2.73

01/19/14 new stop loss @ 42.90
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: 42.90
Play Entered on: 12/26/13
Originally listed on the Watch List: 12/08/13



CLOSED Plays


Helmerich & Payne, Inc. - HP - close: 94.34

Comments:
02/23/14: Target achieved at $95.00.

After flirting with resistance near $95.00 the last few days HP finally tagged the $95.00 level on Friday. The stock is short-term overbought here. I would expect a pullback if you're still in the name.

- Suggested Positions -
DEC 05, 2013 - entry price on HP @ 81.00, option @ 5.60*
symbol: HP1517a90 2015 JAN $90 call - exit @ $10.90 (+94.6%)

02/21/14 target hit
02/16/14 new stop loss @ 84.00
02/03/14 new stop loss @ 82.45
01/26/14 new stop loss @ 81.40
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

Chart of HP:

Current Target:$ 95.00
Current Stop loss: 84.00
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13