Editor's Note:

Last week we closed our Foot Locker (FL) trade to lock in potential gains.

KLAC has graduated from our watch list to our active play list below.


Closed Plays


Our plan was to close the FL trade on Monday, March 10th

KBH and RYL were stopped out.



Play Updates


Agilent Technologies - A - close: 55.44

Comments:
03/16/14: Shares of Agilent have reversed sharply with a plunge back below its 50-dma and 100-dma. The stock is now retesting round-number support near $55.00. If there is any follow through lower this week we could see A hit our stop loss at $53.80.

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 $3.55/3.70

- or -

FEB 14, 2014 - entry price on A @ 55.00, option @ 5.10
symbol: A1615a65 2016 JAN $65 call - current bid/ask $4.65/5.40

03/02/14 new stop loss @ 53.80
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: A @ $74.00
Current Stop loss: 53.80
Play Entered on: 02/14/14
Originally listed on the Watch List: 01/26/14


Alaska Air Group - ALK - close: 91.49

Comments:
03/16/14: ALK was slowly losing altitude all week. Then on Friday morning one analyst slapped a $100 price target on the stock and shares rallied +4.66%. I am raising our stop loss to $83.40.

Earlier Comments:
The point & figure chart is already bullish with a $98.00 target. Our long-term target is $99.00.

- Suggested Positions -
FEB 25, 2014 - entry price on ALK @ 85.88, option @ 8.00
symbol: ALK1517a90 2015 JAN $90 call - current bid/ask $10.40/11.40

03/16/14 new stop loss @ 83.40
03/09/14 Friday's move is a potential reversal pattern
02/25/14 trade opens with ALK gapping higher at $85.88
02/24/14 ALK meets our entry requirement with a close above $82.50

Current Target: ALK @ $99.00
Current Stop loss: 83.40
Play Entered on: 02/25/14
Originally listed on the Watch List: 02/23/14


Allied Nevada Gold - ANV - close: 6.39

Comments:
03/16/14: A surge in gold prices helped fuel big moves in shares of ANV. The stock rallied +15.9% last week and that's after the intraday pullback from its Friday highs.

I would not be surprised to see ANV dip back toward the $6.00 level, which should be new support. I am raising our stop loss to $4.95.

Earlier Comments:
This is an aggressive play . Gold and the miners can be volatile I am suggesting small positions to limit our risk. I am also suggesting investors buy the stock as an alternative to buying the options.

- Suggested Positions -
FEB 26, 2014 - entry price on ANV @ 5.00, option @ 0.60
symbol: ANV1517a7.5 2015 JAN $7.50 call - current bid/ask $1.05/1.20

- or -

(Buy the stock)
FEB 26, 2014 - entry price on ANV @ $5.00

03/16/14 new stop @ 4.95
02/26/14 triggered @ 5.00
02/23/14 Adjust the buy-the-dip entry to $5.00 (from $5.25)

Current Target: ANV @ $9.50
Current Stop loss: 4.95
Play Entered on: 02/26/14
Originally listed on the Watch List: 02/16/14


Bank of America - BAC - close: 16.80

Comments:
03/16/14: After leading the market higher in early March the financial sector reversed sharply. BAC was no exception with a drop back toward its 50-dma. If this market pullback continues we could see BAC retesting support near $16.00.

- 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 $2.62/2.65

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
...please see earlier updates for older comments...

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: 38.47

Comments:
03/16/14: Uh-oh! The pullback in BBT suddenly looks like a bearish double top. I warned investors about this last weekend. The $38.00 level should offer some short-term support. If shares close below $38.00 it could be a warning signal. 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 $1.60/1.69

03/16/14 BBT has formed a potential bearish double top.
03/02/14 new stop loss @ 35.80
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: 35.80
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Boston Scientific - BSX - close: 13.01

Comments:
03/16/14: Ouch! Two weeks ago BSX was breaking out past resistance. This past week has seen a sharp reversal lower and a close below its 50-dma. BSX remains inside the long-term bullish channel on its weekly chart but any further weakness could spell trouble. More conservative investors may want to raise their stop loss closer to the $12.50 level. I am not suggesting new positions at this time.

Earlier Comments:
Our long-term target is the $17-18 area. More aggressive investors, with a longer time frame, may want to aim higher. The Point & Figure chart is very bullish and forecasting at $32 target.

NOTE: More conservative investors might want to wait for BSX to close above potential resistance at $14.00 before launching positions.

- Suggested Positions -
MAR 10, 2014 - entry price on BSX @ 13.73, option @ 1.07
symbol: BSX1517a15 2015 JAN $15 call - current bid/ask $0.74/0.79

- or -

MAR 10, 2014 - entry price on BSX @ 13.73, option @ 2.08*
symbol: BSX1615a15 2016 JAN $15 call - current bid/ask $1.41/1.68

03/10/14 trade opens.
*option entry price is an estimate since the option did not trade at the time our play was opened.
03/09/14 Move BSX from watch list to new plays
03/07/14 BSX closes above $13.60
03/02/14 adjust entry trigger. Wait for close above $13.60 (instead of 13.50)

Current Target: BSX @ 17.50
Current Stop loss: 11.90
Play Entered on: 03/10/14
Originally listed on the Watch List: 02/09/14


Chicago Bridge & Iron - CBI - close: 81.70

Comments:
03/16/14: CBI is pulling back and looks like it could retest round-number support near $80.00 soon. At the moment I am not suggesting new positions. More aggressive traders may want to jump in on a dip near $80.00. Our stop is currently at $79.45.

- Suggested Positions -
MAR 07, 2014 - entry price on CBI @ 85.52, option @ 6.85
symbol: CBI1517a90 2015 JAN $90 call - current bid/ask $5.00/5.30

- or -

MAR 07, 2014 - entry price on CBI @ 85.52, option @ 8.50
symbol: CBI1615a100 2016 JAN $100 call - current bid/ask $6.60/7.10

03/07/14 trade opens with CBI @ $85.52
03/06/14 CBI closes above our entry requirement of $85.00

Current Target: CBI @ 99.50
Current Stop loss: 79.45
Play Entered on: 03/07/14
Originally listed on the Watch List: 03/02/14


The Walt Disney Co. - DIS - close: 80.07

Comments:
03/16/14: I warned readers last week to expect some profit taking. DIS shares have given up three dollars in the last six trading days. If this pullback continues we should not be surprised to see a decline toward the December-January highs near $76.50.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $ 9.75/10.00

03/09/14 new stop loss @ 74.75, traders may want to take some money off the table here. DIS is overbought and due for a dip.
03/02/14 new stop loss @ 71.75
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: 74.75
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


First Solar, Inc. - FSLR - close: 54.03

Comments:
03/16/14: FSLR pulled back toward technical support near its 50-dma. Shares have started to bounce but investors may want to wait for a close above $55.00 before considering new positions.

Currently our stop loss is at $51.75 but that might be too high. More aggressive traders may want to keep their stop below $50 and below its 200-dma (currently 49.57).

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

*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 $ 7.35/ 7.75

03/09/14 recent action looks short-term bearish, expect a pullback
03/02/14 new stop loss @ 51.75. The earnings call last week was very disappointing and does not bode well for FSLR. More conservative traders may want to just exit early now.

Current Target: exit when FSLR hits $74.00
Current Stop loss: 51.75
Play Entered on: 02/19/14
Originally listed on the Watch List: 02/16/14


Gilead Sciences - GILD - close: 75.05

Comments:
03/16/14: GILD has seen a two-week correction lower. This past week shaved off almost five points. The breakdown below its 50-dma is bearish but shares settled on Friday near its 100-dma and price support near $75.00. If there is any follow through lower on Monday we could see GILD hit our stop loss at $74.00. 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 $6.35/6.60

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: 92.01

Comments:
03/16/14: HON has given up more than three points with last week's dip toward support near $92 and its 50-dma. The next level of support is $90.00 and the 100-dma. I am not suggesting new positions.

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 $10.30/10.60

03/02/14 new stop loss @ 89.75, adjust target to $99.00
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
...please see earlier newsletter for prior comments...

Current Target: exit when HON hits $99.00
Current Stop loss: 89.75
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Hospira Inc. - HSP - close: 42.10

Comments:
03/16/14: HSP has dipped to support near $42.00 again. If shares break down below this level the next area of support is $40.00 and its 200-dma. Currently our stop loss is at $39.90. More conservative investors may want to use a higher stop loss.

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 $ 3.00/3.30

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: 56.80

Comments:
03/16/14: Financial stocks were hit with profit taking last week. Shares of JPM fell five days in a row. If this market pullback continues we could see JPM retest its 200-dma near $55.00. I am not suggesting new positions at this time.

FYI: JPM is scheduled to report earnings on April 11th.

- 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 $ 4.90/5.00

03/09/14 adjust target from $64.00 to $69.00
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 $69.00
Current Stop loss: 53.65
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


KLA-Tencor - KLAC - close: 66.88

Comments:
03/16/14: KLAC is a watch list candidate that has graduated to our active play list. The plan was to wait for shares to close above $67.50 and then buy calls the next day. The stock met our entry requirement on March 12th with a close at $67.63. Our trade opened on Thursday morning. If you're looking for a new entry point investors might want to wait for a new close above $67.25.

Earlier Comments:
More conservative investors may want to use a stop closer to $64 instead. Our long-term target is $79.00. Currently the point & figure chart is bullish with an $82 target.

- Suggested Positions -
MAR 13, 2014 - entry price on KLAC @ 67.63, option @ 4.50*
symbol:KLAC1517a70 2015 JAN $70 call - current bid/ask $ 4.10/4.30

- or -

MAR 13, 2014 - entry price on KLAC @ 67.63, option @ 5.50*
symbol:KLAC1615a75 2016 JAN $75 call - current bid/ask $ 5.00/5.30

03/13/14 trade opens with KLAC @ 67.63
03/12/14 KLAC closes @ 67.63, above our suggested entry, a close above $67.50

Chart of KLAC:
Current Target: exit calls when KLAC hits $79.00
Current Stop loss: 61.90
Play Entered on: 03/13/14
Originally listed on the Watch List: 03/02/14


Micron Technology - MU - close: 23.96

Comments:
03/16/14: MU ended the week still clinging to support near $24 and its 50-dma. A bounce from here could be used as a new entry point but investors may want to wait for a rally past $25.20 before considering new positions.

Keep in mind that MU is due to report earnings on April 3rd, 2014 and you might want to wait until after the announcement before considering new positions (previously earnings were expected on March 20th).

Earlier Comments:
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 $ 3.30/3.35

- or -

FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.60*
symbol: MU1615a30 2016 JAN $30 call - current bid/ask $ 3.05/3.40

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: 74.74

Comments:
03/16/14: QCOM had been holding up reasonably well until the market's sharp sell-off on Thursday. The stock ended the week sitting on technical support at its 50-dma. If this market decline continues we could see QCOM testing its early March low near $73.00. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.25/5.40

03/04/14 QCOM raises dividend and buyback program
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: 74.27

Comments:
03/16/14: It was an interesting week for shares of SBUX but first there were a few headlines. SBUX and GMCR amended their five-year deal signed last year. In the new deal SBUX gives up exclusivity for Green Mountain's Keurig K-cup high-end coffee pods while SBUX gains a wider selection of coffees to sell through GMCR's system and better business terms. Shares of GMCR reacted more strongly than SBUX.

Meanwhile shares of SBUX rallied through key resistance levels last week like its 50-dma, 200-dma and the $74.00 level in addition to its trend of lower highs. However, the rally reversed near resistance at $76.00 and Thursday's move produced a bearish engulfing candlestick reversal pattern. On a short-term basis I would not be surprised to see a dip back toward $72.00. Technically seeing the 50-dma cross under the 200-dma is traditionally a bearish signal.

I am not suggesting new positions at this time.

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - current bid/ask $5.95/6.10

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $7.25/7.45

03/16/14 SBUX rallied through several resistance levels last week but the pullback is already starting to reverse.
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


Toll Brothers - TOL - close: 36.21

Comments:
03/16/14: TOL was not immune to the bloodbath in the homebuilder stocks and shares were downgraded on March 12th. Last week's sell-off erased about four weeks of gains. More conservative investors will want to seriously consider raising their stop loss. I am not suggesting new positions at this time.

- Suggested Positions -
FEB 27, 2014 - entry price on TOL @ 38.72, option @ 4.25*
symbol: TOL1517a40 2015 JAN $40 call - current bid/ask $2.70/3.10

- or -

FEB 27, 2014 - entry price on TOL @ 38.72, option @ 5.35*
symbol: TOL1615a45 2016 JAN $45 call - current bid/ask $3.40/4.00

02/27/14 trade opens with TOL @ 38.72
*option entry price is an estimate since the option did not trade at the time our play was opened.
02/26/14 TOL closes above our trigger (38.50)

Current Target: RYL @ $49.00
Current Stop loss: 34.30
Play Entered on: 02/27/14
Originally listed on the Watch List: 02/16/14


Wells Fargo & Co. - WFC - close: 47.40

Comments:
03/16/14: WFC weathered last week's market pullback very well. That doesn't mean the pullback in WFC is over. I would not be surprised to see a decline into the $46.50-46.00 zone.

FYI: WFC is scheduled to report earnings on April 11th.

- Suggested Positions -
DEC 26, 2013 - entry price on WFC @ 45.50, option @ 1.50
symbol: WFC1517a50 2015 JAN $50 call - current bid/ask $ 1.79/1.83

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 3.25/3.45

03/09/14 new stop loss @ 43.90
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: 43.90
Play Entered on: 12/26/13
Originally listed on the Watch List: 12/08/13



CLOSED Plays


Foot Locker, Inc. - FL - close: 45.07

Comments:
03/16/14: Last week, after FL's big rally higher, we decided to lock in potential profits and exit on Monday, March 10th, at the opening bell. FL has been drifting lower since then. The stock opened at $46.62 on the 10th.

- Suggested Positions -
JAN 17, 2014 - entry price on FL @ 39.25, option @ 3.85*
symbol: FL1517a40 2015 JAN $40 call - exit $7.90 (+105.1%)

03/10/14 planned exit
03/09/14 prepare to exit immediately on Monday morning to lock in potential gains.
03/02/14 new stop loss @ 37.45
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.

Chart of FL:

Current Target: exit when FL hits $48.00
Current Stop loss: 37.45
Play Entered on: 01/17/14
Originally listed on the Watch List: 12/29/13


KB Home - KBH - close: 17.51

Comments:
03/16/14: The homebuilders have been terrible performers in March. After breaking out to new relative highs in late February the group has reversed lower. KBH has been one of the worst performers with a crash from $20.75 to $17.00. Shares hit our stop loss at $18.45 on March 10th.

- Suggested Positions -
FEB 27, 2014 - entry price on KBH @ 20.15 option @ 3.09
symbol: KBH1517a20 2015 JAN $20 call - exit $2.04* (-33.9%)

03/10/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
03/09/14 KBH has reversed sharply with a -8.7% plunge last week. Any further weakness will hit our stop loss at $18.45.

Chart of KBH:
Current Target: KBH @ $25.00
Current Stop loss: 18.45
Play Entered on: 02/27/14
Originally listed on the Watch List: 02/03/14


Ryland Group - RYL - close: 43.41

Comments:
03/16/14: RYL is another housing stock that has suffered a brutal two-week decline. Last week shares fell -6.9% and RYL is down -13% from its early March high. Our stop loss was hit at $41.25 on March 12th. You'll notice on the weekly chart below that RYL settled on its long-term trend line of higher lows.

- Suggested Positions -
FEB 27, 2014 - entry price on RYL @ 45.78, option @ 4.85*
symbol: RYL1517a50 2015 JAN $50 call - exit $2.75** (-43.2%)

03/12/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
02/27/14 trade opens with RYL @ 45.78
*option entry price is an estimate since the option did not trade at the time our play was opened.
02/26/14 RYL closes above our trigger (45.75)

Chart of RYL:

Current Target: $55.00-60.00 range
Current Stop loss: 41.25
Play Entered on: 02/27/14
Originally listed on the Watch List: 02/09/14