Editor's Note:

We want to exit our FSLR and MU trades immediately on Monday morning.

A, BSX, HSP, JPM, KLAC, and QCOM have new stop losses.


Closed Plays


GILD was stopped out.



Play Updates


Agilent Technologies - A - close: 56.09

Comments:
03/23/14: I am growing increasingly concerned with A's performance. More conservative investors may want to exit early now. The recent bounce attempt has failed near its 50-dma and reinforced the two-month trend of lower highs. A looks poised to retest support near $55.00. If the $55 level fails then A is probably headed form $50.00. I am raising our stop loss to $54.40.

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 $3.60/3.70

- or -

FEB 14, 2014 - entry price on A @ 55.00, option @ 5.10
symbol: A1615a65 2016 JAN $65 call - current bid/ask $4.40/5.70

03/23/14 new stop loss @ 54.40
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: 54.40
Play Entered on: 02/14/14
Originally listed on the Watch List: 01/26/14


Alaska Air Group - ALK - close: 90.76

Comments:
03/23/14: ALK spent the week testing new highs and finding resistance in the $93.50-94.00 zone. Friday's decline looks like a short-term bearish reversal. If ALK breaks down under $90.00 then it's probably headed for the $85-86 zone.

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 $10.20/10.80

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: 5.49

Comments:
03/23/14: After a sharp rise higher two weeks ago ANV has seen an equally sharp decline. Shares are now testing support near the $5.50 level. More conservative investors may want to raise their stop loss toward the $5.25-5.30 zone. I am not suggesting new positions at this time.

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 $0.65/0.75

- or -

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

03/23/14 investors may want to raise their stop loss
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: 17.56

Comments:
03/23/14: Financial stocks were leaders last week as the market reacted to news that the 29 of the 30 biggest banks in the U.S. passed the Federal Reserve's "stress test". BAC was tagging new multi-year highs before Friday's -2.0% pullback. 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 $3.10/3.20

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: 40.19

Comments:
03/23/14: BBT is another financial stock hitting new multi-year highs following the stress test news. The breakout past $40.00 is technically bullish but I'm not convinced BBT can hold it this time. Look for support near $39.00.

Please note that I am raising our exit target from $42.50 to $44.00.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $2.27/2.35

03/23/14 adjust exit target to $44.00
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 @ 44.00
Current Stop loss: 35.80
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Boston Scientific - BSX - close: 12.82

Comments:
03/23/14: BSX is only down 20 cents for the week. Yet its recent performance is disappointing and looks bearish. Friday's move has generated a bearish candlestick reversal pattern. More conservative investors may want to exit early now. I am moving our stop loss up to $12.40. No 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 $0.66/0.71

- or -

MAR 10, 2014 - entry price on BSX @ 13.73, option @ 2.08*
symbol: BSX1615a15 2016 JAN $15 call - current bid/ask $1.41/1.69

03/23/14 new stop @ 12.40, readers may want to exit early.
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: 12.40
Play Entered on: 03/10/14
Originally listed on the Watch List: 02/09/14


Chicago Bridge & Iron - CBI - close: 86.87

Comments:
03/23/14: CBI is up more than five points for the week thanks to the pop higher on Tuesday. The rally appeared to be a reaction to news that CBI had won some large construction contracts. I am not suggesting new positions at this time.

- Suggested Positions -
MAR 07, 2014 - entry price on CBI @ 85.52, option @ 6.85
symbol: CBI1517a90 2015 JAN $90 call - current bid/ask $7.10/7.40

- or -

MAR 07, 2014 - entry price on CBI @ 85.52, option @ 8.50
symbol: CBI1615a100 2016 JAN $100 call - current bid/ask $8.30/9.30

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: 80.35

Comments:
03/23/14: DIS continues to consolidate sideways. The stock has been churning sideways in the $80-82 zone for about two weeks. While the long-term trend is up I would not be surprised to see a pullback toward the $76.00 area.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $ 9.80/ 9.90

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: 73.37

Comments:
03/23/14: It's time to take profits in our FSLR. I am suggesting an immediate exit!

It's not very often we see a stock move $20 in a week. The company issued bullish guidance for 2015 and 2016 and shares surged +20% on Wednesday. The stock was up every day last week and hit an intraday high of $73.97 on Friday. Our exit target is $74.00 but I am suggesting an immediate exit to lock in potential gains (exit Monday morning, March 24th).

*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 $19.70/20.10

03/23/14 exit immediately to lock in potential gains.
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.

Chart of FSLR:

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


Honeywell Intl. - HON - close: 92.99

Comments:
03/23/14: HON spent the week consolidating sideways in the $92-94 zone. 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 $10.85/11.00

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: 42.33

Comments:
03/23/14: HSP eked out a small gain for the week but I am growing more and more concerned about its bearish trend of lower highs. More conservative traders may want to exit early now. I am raising our stop loss to $41.40. The stock is currently testing support near $42.00 and appears to have additional support near $41.50. I am not suggesting new positions.

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 $ 2.90/3.40

03/23/14 new stop @ 41.40, more conservative traders may want to exit early now
02/03/14 triggered at $43.00

Current Target:$ 49.75
Current Stop loss: 41.40
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/26/14


JPMorgan Chase & Co. - JPM - close: 60.17

Comments:
03/23/14: JPM helped lead the financial sector higher with a surge to new 14-year highs. The breakout past round-number resistance at $60.00 is technically bullish but I would expect a pullback.

I am not suggesting new positions. We will adjust the stop loss to $54.75.

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 $ 6.95/7.10

03/23/14 new stop @ 54.75
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: 54.75
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


KLA-Tencor - KLAC - close: 70.02

Comments:
03/23/14: Financials were not the only stocks in rally mode. The semiconductors also pushed higher. KLAC displayed relative strength with a surge to new multi-year highs. On a short-term basis KLAC does look a bit overbought and due for a pullback.

We are adjusting the stop loss to $63.90.

Earlier Comments:
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 $ 5.40/5.60

- or -

MAR 13, 2014 - entry price on KLAC @ 67.63, option @ 5.50*
symbol:KLAC1615a75 2016 JAN $75 call - current bid/ask $ 6.20/6.50

03/23/14 new stop loss @ 63.90
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
Current Target: exit calls when KLAC hits $79.00
Current Stop loss: 63.90
Play Entered on: 03/13/14
Originally listed on the Watch List: 03/02/14


Micron Technology - MU - close: 23.66

Comments:
03/23/14: Warning! MU's performance is getting worse. The stock completely ignored the rally in the semiconductor industry. Shares have continued to sink under a trend of lower highs and now MU is breaking down below technical support at its 50-dma.

More aggressive investors may want to hold on to their positions since MU could bounce in the $22-23 area. I am suggesting an immediate exit on Monday morning (March 24th) to try and preserve capital. We can look at MU again after its earnings report on April 3rd.

- Suggested Positions -
FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.75*
symbol: MU1517a25 2015 JAN $25 call - current bid/ask $ 2.97/3.05

- or -

FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.60*
symbol: MU1615a30 2016 JAN $30 call - current bid/ask $ 2.89/3.20

03/23/14 prepare to exit positions immediately on Monday morning (March 24th)
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: 78.19

Comments:
03/23/14: QCOM recovered from its mid-March sell-off. Shares reversed higher and were tagging new multi-year highs. Tonight we are adjusting our stop loss to $71.75. 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 $7.15/7.30

03/23/14 new stop @ 71.75
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: 71.75
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


Starbucks - SBUX - close: 76.71

Comments:
03/23/14: A month ago SBUX had us worried but shares have since delivered a strong three-week rally and pushed through multiple layers of resistance.

This past week the company held its annual meeting and Wall Street seemed pretty happy with what SBUX management had to say. I recall hearing something on CNBC that SBUX had hedged its coffee prices for the next couple of years prior to the recent explosion in coffee futures. The currently rally in coffee is unlikely to have that much impact on SBUX.

Management unveiled plans to broaden their alcohol selection. They're calling it "Starbucks Evenings" as they try and bring customers back into the store after the morning rush. Back in 2010 SBUX only had one store that offered beer and wine. Today they have 26 locations with alcohol. They plan to up that number to 40 by year end. Over the next several years beer and wine will be available in thousands of stores.

On a short-term basis the stock is arguably overbought. I would not be surprised to see a dip into the $74-75 area.

NOTE: The $82.00 level is resistance for SBUX but I am raising our long-term target to $89.00 for the 2015 calls and $99.00 for the 2016 calls.

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - current bid/ask $7.20/7.35

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $8.35/8.55

03/23/14 adjust exit targets to $89 for the 2015 calls and $99 for the 2016s
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: exit the 2015 calls when SBUX hits $89.00
exit the 2016 calls when SBUX hits $99.00
Current Stop loss: 67.90
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/05/14


Toll Brothers - TOL - close: 35.72

Comments:
03/23/14: The homebuilders continue to struggle. The NAHB homebuilder confidence survey decline last month. The fear of rising interest rates could be killing the housing stocks. TOL has been a terrible performer in the month of March. Shares are currently testing support near its 100-dma and the $35.00 area. 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 $2.30/2.50

- or -

FEB 27, 2014 - entry price on TOL @ 38.72, option @ 5.35*
symbol: TOL1615a45 2016 JAN $45 call - current bid/ask $3.10/3.70

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: 49.12

Comments:
03/23/14: WFC is another winner from the banking industry. The company passed the Fed's stress tests and shares surged to new all-time highs. Not surprisingly the rally failed at round-number resistance near $50.00. I would expect a pullback from here.

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 $ 2.40/2.46

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 4.00/4.10

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


Gilead Sciences - GILD - close: 72.07

Comments:
03/23/14: Our GILD trade has been stopped out. Shares already looked weak but the stock underperformed on Friday with a -4.5% drop and hit our stop loss at $74.00. The move in GILD was a reaction to House Democrats asking GILD why the cost of its Sovaldi treatment, a hepatitus C drug, is so expensive. The product costs patients $84,000 but it's worth noting that Sovaldi actually cures the patient it doesn't just treat the disease. Analysts tried to defend GILD suggesting the alternative was a lot more expensive. A liver transplant costs $250,000 and $50,000 a year for medications the rest of their life. The sell-off in GILD also had the unfortunate timing of occurring (or sparking) a widespread industry-wide drop in biotech stocks.

Our play was closed on Friday but I would keep GILD on your radar screen.

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.

- Suggested Positions -
FEB 07, 2014 - entry price on GILD @ 76.25, option @ 7.30
symbol: GILD1517a85 2015 JAN $85 call - exit $5.25* (-28.0%)

03/21/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
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

Chart of GILD:

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