Editor's Note:

The market's longer-term up trend seems to be losing momentum. Investors will want to double-check their stop loss placement. We are updating several stops tonight (ALK, BAC, BBT, QCOM, SBUX, TOL, and WFC).


Closed Plays


The plan was to exit our FSLR and MU trades on Monday morning (03/24/2014).

A, ANV, and HSP hit our stop loss.



Play Updates


Alaska Air Group - ALK - close: 90.73

Comments:
03/30/14: ALK ended the week virtually unchanged. The stock has continued to churn sideways inside the $90-94 zone. That's two weeks in a row ALK has been in this range. I am worried about Friday's performance, which looks like a bearish reversal. Move the stop loss to $84.75. If the $90.00 level breaks then ALK is 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 $ 9.90/10.50

03/30/14 new stop loss @ 84.75
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: 84.75
Play Entered on: 02/25/14
Originally listed on the Watch List: 02/23/14


Bank of America - BAC - close: 16.98

Comments:
03/30/14: BAC has seen nothing but profit taking since it hit new multi-year highs near $18.00 two weeks ago. The stock is down six days in a row and testing technical support at its 50-dma.

News that BAC had passed the Federal Reserve's stress test did not stop the pullback. Neither did news that the Fed had approved BAC's 2014 capital plans. BAC will raise its stock buyback program and raise its dividend from one cent to five cents.

I am not suggesting new positions at this time. If you're looking for an entry point I would keep an eye on potential support near its 100-dma (currently near 16.20).

Please note our new stop loss at $15.70.

- 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 $2.68/2.69

03/30/14 new stop @ $15.70
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: 15.70
Play Entered on: 03/18/13

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


BB&T Corp. - BBT - close: 39.83

Comments:
03/30/14: BBT managed to hit new five-year highs before succumbing to profit taking near $41.00 with a midweek pullback. It looks like the pullback is not over yet. I would not be surprised to see a dip into the $38-39 zone.

We are moving the stop loss to $36.40.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $2.09/2.17

03/30/14 new stop @ 36.40
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: 36.40
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Boston Scientific - BSX - close: 13.20

Comments:
03/30/14: I am growing concerned over BSX's lack of progress. Granted the broader market has not been very helpful these last three weeks. More aggressive investors may want to hold on to it since the long-term trend is still higher. Unfortunately, momentum has stalled.

As a precaution I am suggesting an immediate exit on Monday morning to cut our losses early. We can revisit BSX if shares breakout past $14.00 later.

- Suggested Positions -
MAR 10, 2014 - entry price on BSX @ 13.73, option @ 1.07
symbol: BSX1517a15 2015 JAN $15 call - current bid/ask $0.74/0.82

- or -

MAR 10, 2014 - entry price on BSX @ 13.73, option @ 2.08*
symbol: BSX1615a15 2016 JAN $15 call - current bid/ask $1.50/1.82

03/30/14 prepare to exit on Monday, March 31st at the open
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: 85.02

Comments:
03/30/14: It was a rocky week for shares of CBI but the stock ended on an up note. 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 $6.10/6.40

- or -

MAR 07, 2014 - entry price on CBI @ 85.52, option @ 8.50
symbol: CBI1615a100 2016 JAN $100 call - current bid/ask $7.40/8.20

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: 78.99

Comments:
03/30/14: I have been warning readers to look for a pullback in shares of DIS and the stock did not disappoint. DIS tested its 50-dma this past week. There is no guarantee the pullback is over. We can watch for potential support in the $75.00-76.50 area. Our stop remains at $74.75.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $ 8.65/ 8.80

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


Honeywell Intl. - HON - close: 90.89

Comments:
03/30/14: HON has had a hard time these last three weeks with a pullback from $96.00 to $90.00. Shares are testing support near $90.00, near its rising 100-dma, and the trend line of higher lows going back several months. If HON fails here it could be ugly.

Our stop loss is at $89.75. My fear is that HON sees an intraday dip to $89.50-89.00 and then reverses higher. You may want to adjust your stop accordingly. We're leaving ours unchanged. 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 $ 9.20/ 9.35

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



JPMorgan Chase & Co. - JPM - close: 60.04

Comments:
03/30/14: JPM passed the Federal Reserve's stress test. The Fed also approved JPM's 2014 capital plan. The company plans to raise its stock buyback program by another $6.5 billion. They also plan to increase the quarterly dividend to 40 cent a share.

Shares of JPM hit new multi-year highs near $61.00 midweek before profit taking started.

I am not suggesting new positions.

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 $ 6.85/6.90

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: 68.75

Comments:
03/30/14: KLAC found some resistance at the $70.75 level and has started to retreat. Look for support near $66.00. I would wait for this dip or a bounce from the $66 area before considering new positions.

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 $ 4.70/4.90

- 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


QUALCOMM Inc. - QCOM - close: 79.28

Comments:
03/30/14: QCOM is still drifting higher. The stock ended the week at another round of multi-year highs. Shares are nearing what could be round-number resistance at $80.00. I would not be surprised to see a pullback soon. I am raising our stop loss to $73.75.

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 $7.65/7.75

03/30/14 new stop @ 73.75
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: 73.75
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


Starbucks - SBUX - close: 73.70

Comments:
03/30/14: I don't see any clear reasons for the volatility in SBUX lately. After a sharp three-week bounce SBUX was due for a pullback. I cautioned readers to expect a dip into the $74-75 area. SBUX exceeded that with a plunge toward the $72.70 area.

I am not suggesting new positions at this time. We will adjust the stop loss to $69.75.

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 $5.40/5.50

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $6.70/6.90

03/30/14 new stop @ 69.75
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: 69.75
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/05/14


Toll Brothers - TOL - close: 35.72

Comments:
03/30/14: TOL is unchanged for the week. Traders bought the dip near its exponential 200-dma again. Has TOL found a bottom? The price of new home continues to rise, albeit at a slightly slower pace. Yet the pace of new single-family homes fell to five-month lows in February. Homebuilders blamed the weather.

TOL has found support twice near $34.70. I am inching our stop loss up to $34.40. 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 $2.20/2.40

- or -

FEB 27, 2014 - entry price on TOL @ 38.72, option @ 5.35*
symbol: TOL1615a45 2016 JAN $45 call - current bid/ask $2.70/3.50

03/30/14 new stop @ 34.40
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: 34.40
Play Entered on: 02/27/14
Originally listed on the Watch List: 02/16/14


Wells Fargo & Co. - WFC - close: 49.29

Comments:
03/30/14: WFC eked out another small gain for the week. The bank passed the Federal Reserve's stress tests and the Fed approved WFC's 2014 capital plans. WFC plans to increase its stock buyback program and raise its quarterly dividend from 30 cents to 35 cents a share.

Shares less than a dollar away from all-time highs and just below likely round-number resistance at the $50.00 mark. Do not be surprised to see a dip into the $47-48 zone.

I am raising the stop loss to $44.80. More conservative investors may want to use a stop near $46.00 or the 50-dma instead.

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 $ 2.42/2.47

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 4.05/4.15

03/30/14 new stop loss @ 44.80
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: 44.80
Play Entered on: 12/26/13
Originally listed on the Watch List: 12/08/13



CLOSED Plays


Agilent Technologies - A - close: 54.69

Comments:
03/30/14: I've been growing more cautious on A and suggested more conservative traders exit in last week's newsletter. Thanks to a down week for the market shares of A broke support and hit our stop loss at $54.40.

- Suggested Positions -
FEB 14, 2014 - entry price on A @ 55.00, option @ 3.70
symbol: A1517a60 2015 JAN $60 call - exit $2.90* (-21.6%)

- or -

FEB 14, 2014 - entry price on A @ 55.00, option @ 5.10
symbol: A1615a65 2016 JAN $65 call - exit $4.10* (-19.6%)

03/27/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
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)

Chart of A:

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


Allied Nevada Gold - ANV - close: 4.64

Comments:
03/30/14: The price of gold fell sharply again, down two weeks in a row. This weighed heavily on the gold mining stocks. Shares of ANV are down -10% for the week and hit our stop loss at $4.95 on Wednesday's breakdown.

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 - exit $0.51* (-15.0%)

- or -

(Buy the stock)
FEB 26, 2014 - entry price on ANV @ $5.00 exit $4.95 (- 1.0%)

03/26/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
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)

Chart of ANV:

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


First Solar, Inc. - FSLR - close: 68.64

Comments:
03/30/14: A week ago FSLR had surged to new highs with a $20 rally. Our plan was to exit positions on Monday, March 24th at the opening bell to lock in gains. FSLR opened on the 24th at $72.86, down 51 cents.

If you did not exit on Monday morning with us, FSLR actually hit our suggested exit target at $74.00 on Monday afternoon.

*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 - exit $19.50 (+91.1%)

03/24/14 planned exit at the open
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


Hospira Inc. - HSP - close: 42.59

Comments:
03/30/14: HSP managed to close the week with a gain. That hardly tells the whole story. Shares broke support near $42.00 on Monday. HSP broke support near $41.00 on Wednesday. It traded below technical support at its 200-dma on Thursday and then reversed sharply higher.

Our stop loss was hit on Monday at $41.40.

- Suggested Positions -
FEB 03, 2014 - entry price on HSP @ 43.00, option @ 4.60
symbol: HSP1517a45 2015 JAN $45 call - exit $2.50* (-45.6%)

03/24/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
03/23/14 new stop @ 41.40, more conservative traders may want to exit early now
02/03/14 triggered at $43.00

Chart of HSP:

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


Micron Technology - MU - close: 21.91

Comments:
03/30/14: Shares of MU were looking weak and vulnerable. That's why in last weekend's newsletter we decided to pull the plug. Good thing we did. MU is down -7.4% for the week.

Our plan was to exit on Monday morning, March 24th. MU opened at $24.64 that morning, up 13 cents.

- Suggested Positions -
FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.75*
symbol: MU1517a25 2015 JAN $25 call - exit $3.00** (-20.0%)

- or -

FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.60*
symbol: MU1615a30 2016 JAN $30 call - exit $2.90** (-19.4%)

03/24/14 planned exit
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

Chart of MU:

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