Editor's Note:

It was a very rough week for the U.S. market. If the selling doesn't stop soon it will start to feed on itself. Investors should double check their stop loss placement. Make sure you are prepared for how much risk you're taking.


Closed Plays


The plan was to exit our SBUX trade on Monday morning (04/07/2014).

AGU, ALK, BAC, and JPM hit our stop loss.



Play Updates


BB&T Corp. - BBT - close: 38.65

Comments:
04/13/14: The sell-off in financials last week hit BBT pretty hard and shares fell toward their 50-dma. More conservative investors may want to raise their stop loss. I am not suggesting new positions at this time.

BBT is scheduled to report earnings on April 17th.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.57/1.64

04/06/14 new stop @ 36.90
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: 36.90
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Caterpillar Inc. - CAT - close: 101.45

Comments:
04/13/14: CAT is showing some relative strength. The stock gave up less than a dollar for the week. Friday's close under its 10-dma is short-term bearish so I would not be surprised to see a dip toward the $100 level or even support near $98.00.

FYI: CAT is scheduled to report earnings on April 24th.

Earlier Comments:
Our long-term target is the $115-125 zone. Currently CAT's point & figure chart is bullish with a $126 target.

- Suggested Positions -
APR 03, 2014 - entry price on CAT @ 101.92, option @ 3.50*
symbol: CAT1517a110 2015 JAN $110 call - current bid/ask $3.25/3.45

- or -

APR 03, 2014 - entry price on CAT @ 101.92, option @ 7.40*
symbol: CAT1615a110 2016 JAN $110 call - current bid/ask $6.70/7.15

04/03/14 trade opens. CAT @ 101.92
*option entry price is an estimate since the option did not trade at the time our play was opened.
04/02/14 CAT meets our entry trigger with a close above $101.00

Current Target: CAT @ 115.00-125.00 zone
Current Stop loss: 94.90
Play Entered on: 04/03/14
Originally listed on the Watch List: 03/30/14


Chicago Bridge & Iron - CBI - close: 81.94

Comments:
04/13/14: Ouch! CBI gave up more than four dollars in last week's market decline. The action over the past two weeks is starting to look like a top. Investors may want to adjust their stop loss higher. I am still expecting the $80.00 level to act as support. Our stop is currently at $79.45.

FYI: CBI is scheduled to report earnings on April 23rd.

- Suggested Positions -
MAR 07, 2014 - entry price on CBI @ 85.52, option @ 6.85
symbol: CBI1517a90 2015 JAN $90 call - current bid/ask $4.80/5.10

- or -

MAR 07, 2014 - entry price on CBI @ 85.52, option @ 8.50
symbol: CBI1615a100 2016 JAN $100 call - current bid/ask $6.50/7.40

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: 77.01

Comments:
04/13/14: Shares of DIS lost about 3 1/2 points last week. The stock has closed at new multi-week lows and looks poised to test what should be support near $75.00. If the $75.00 level doesn't hold our trade will be stopped out at $74.75.

More conservative investors may want to exit early now since DIS' long-term up trend line of support is probably closer to the $70.00 area.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $ 7.45/ 7.60

04/13/14 investors may want to take profits now. DIS could be headed for $70.00
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


Honeywell Intl. - HON - close: 90.40

Comments:
04/13/14: HON retreated with a $3.00 drop toward support near $90.00. If there is any follow through lower we could see shares hit our stop at $89.75. I am not suggesting new positions.

HON is scheduled to report earnings on April 17th.

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 $ 8.80/ 9.20

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



Joy Global Inc. - JOY - close: 60.15

Comments:
04/13/14: JOY is a new addition to the active play list. We added JOY as a watch list candidate last week. The plan was to buy calls if JOY traded at $60.75 or higher. The rally in JOY continued as expected. After breaking out past resistance near $60.00 the stock was testing the $62 level by Thursday morning. Our trade was triggered on April 8th.

Currently JOY has pulled back and is testing the $60 level as new support. A bounce from here could be used as a new entry point. However, with the market in sell-off mode I would not be surprised to see JOY test the $58.50 area. Readers may want to wait on launching new positions.

- Suggested Positions -
APR 08, 2014 - entry price on JOY @ 60.75, option @ 4.40
symbol: JOY1517a65 2015 JAN $65 call - current bid/ask $ 4.00/ 4.25

- or -

APR 08, 2014 - entry price on JOY @ 60.75, option @ 6.05
symbol: JOY1615a70 2016 JAN $70 call - current bid/ask $ 5.10/ 5.50

04/08/14 JOY hit our entry trigger at $60.75

Chart of JOY:

Current Target: We're aiming for the $75-80 zone
Current Stop loss: 55.75
Play Entered on: 04/08/13
Originally listed on the Watch List: 04/06/14


KLA-Tencor - KLAC - close: 65.50

Comments:
04/13/14: Tech stocks were some of the worst performers last week and some of the semiconductors stocks were the worst of the worst. KLAC was trading at ten-year highs in early April. Traders rushed in to lock in profits this past week and KLAC fell four points. The close below what should have been support at $66 and its 50-dma is bearish. More conservative investors may want to exit early now. I am not suggesting new positions.

KLAC is due to report earnings on April 24th.

- Suggested Positions -
MAR 13, 2014 - entry price on KLAC @ 67.63, option @ 4.50*
symbol:KLAC1517a70 2015 JAN $70 call - current bid/ask $ 3.30/3.50

- or -

MAR 13, 2014 - entry price on KLAC @ 67.63, option @ 5.50*
symbol:KLAC1615a75 2016 JAN $75 call - current bid/ask $ 4.30/4.70

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


NuStar Energy - NS - close: 54.81

Comments:
04/13/14: NS is not normally a very volatile stock. Shares churned sideways last week in the $53.75-55.50 zone last week while the market fell. Investors may want to wait for a new close above $56.00 before considering new positions.

FYI: NS is due to report earnings on April 23rd.

Earlier Comments:
Our target is $64.50. More aggressive investors with a longer time frame may want to aim higher since the point & figure chart is targeting an $87 target.

- Suggested Positions -
APR 04, 2014 - entry price on NS @ 55.25, option @ 3.10*
symbol: NS1517a55 2015 JAN $55 call - current bid/ask $ 2.70/3.00

04/04/14 our play opens. NS @ 55.25
*option entry price is an estimate since the option did not trade at the time our play was opened.
04/03/14 NS closes above $55.25
Current Target: exit calls when NS hits $64.50
Current Stop loss: 51.75
Play Entered on: 04/04/14
Originally listed on the Watch List: 03/23/14


QUALCOMM Inc. - QCOM - close: 78.01

Comments:
04/13/14: QCOM garnered bullish analyst comments on Friday morning. That helped shares resist the market's sell-off. QCOM managed to limit last week's damage to about 50 cents. QCOM has short-term support near $77.50. If this level fails I would expect a drop toward the $75.00 level.

FYI: QCOM is scheduled to report earnings on April 23rd.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $7.00/7.20

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


Toll Brothers - TOL - close: 34.73

Comments:
04/13/14: The homebuilders continue to disappoint. The late March bounce has reversed. TOL has fallen back to support in the $34.50-35.00 zone. Honestly, I think this play is dead. There is a chance that TOL will bounce from current levels but I would not bet on it. Odds are we will see TOL hit our stop loss at $34.40 on Monday.

- Suggested Positions -
FEB 27, 2014 - entry price on TOL @ 38.72, option @ 4.25*
symbol: TOL1517a40 2015 JAN $40 call - current bid/ask $1.85/2.05

- or -

FEB 27, 2014 - entry price on TOL @ 38.72, option @ 5.35*
symbol: TOL1615a45 2016 JAN $45 call - current bid/ask $2.60/3.30

04/13/14 TOL looks poised to hit our stop at $34.40
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


Western Digital Corp. - WDC - close: 88.21

Comments:
04/13/14: WDC spent the week struggling to get past its simple 10-dma. Thursday's market decline pulled WDC to technical support at its 50-dma. Surprisingly WDC did show some relative strength on Friday.

Currently our stop loss is at $85.75. More aggressive investors may want to move their stop below $85.00 or below the 100-dma (currently $84.50) to give WDC more room to maneuver. My concern is WDC will dip to $85.00 and bounce.

I am not suggesting new positions at this time.

FYI: WDC is scheduled to report earnings on April 30th.

- Suggested Positions -
APR 01, 2014 - entry price on WDC @ 92.56, option @ 6.85*
symbol: WDC1517a100 2015 JAN $100 call - current bid/ask $5.35/5.55

- or -

APR 01, 2014 - entry price on WDC @ 92.56, option @ 9.65*
symbol: WDC1615a110 2016 JAN $110 call - current bid/ask $7.55/7.85

04/01/14 trade opens. WDC opened @ 92.56
*option entry price is an estimate since the option did not trade at the time our play was opened.
03/31/14 WDC meets entry requirement with close above $91.25

Current Target: WDC @ $110.00
Current Stop loss: 85.75
Play Entered on: 04/01/14
Originally listed on the Watch List: 03/30/14


Wells Fargo & Co. - WFC - close: 48.08

Comments:
04/13/14: JPM's earnings report on Friday morning was a major disappointment for the market and the financial sector. WFC, on the other hand, managed to beat estimates. Wall Street's estimates were 97 cents a share on revenues of $20.71 billion. WFC delivered $1.05 in earnings on $20.63 billion revenues. The company said their loan losses remain near historically low levels. This was WFC's 17th consecutive quarter of earnings growth. Overall Wall Street was very happy with WFC's results. Yet that didn't stop shares from producing a very volatile day. WFC could easily decline, in spite of good news, if the broader market continues to sink.

Look for support near $46.00. 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 $ 2.00/2.05

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 3.60/3.85

04/06/14 WFC looks poised for a pullback
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


Agrium Inc. - AGU - close: 91.60

Comments:
04/13/14: The stock market's decline was pretty rough on AGU and shares broke down below support and hit our stop at $92.45.

- Suggested Positions -
APR 01, 2014 - entry price on AGU @ 97.48, option @ 2.60*
symbol: AGU1517a110 2015 JAN $110 call - exit @ $1.43 (-45.0%)

- or -

APR 01, 2014 - entry price on AGU @ 97.48, option @ 6.20*
symbol: AGU1615a110 2016 JAN $110 call - exit @ $4.05** (-34.6%)

04/08/14 stopped @ 92.45
**option exit price is an estimate since the option did not trade at the time our play was closed.
04/01/14 AGU opens at $97.48
*option entry price is an estimate since the option did not trade at the time our play was opened.
03/31/14 AGU closes above our suggested entry trigger (above $97.50)

Chart of AGU:

Current Target: AGU @ $115.00
Current Stop loss: 92.45
Play Entered on: 04/01/14
Originally listed on the Watch List: 03/30/14


Alaska Air Group - ALK - close: 90.52

Comments:
04/13/14: ALK displayed some volatility thanks to the market's big moves. Shares hit our stop loss at $88.45 on April 8th. Shares rebounded to re-challenge resistance near $96.00 again and now ALK has reversed yet again. This could be signs of a top. I would not be surprised to see a decline toward the 100-dma.

- Suggested Positions -
FEB 25, 2014 - entry price on ALK @ 85.88, option @ 8.00
symbol: ALK1517a90 2015 JAN $90 call - exit $8.35* (+4.3%)

04/08/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
04/06/14 new stop loss @ 88.45
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

Chart of ALK:

Current Target: ALK @ $99.00
Current Stop loss: 88.45
Play Entered on: 02/25/14
Originally listed on the Watch List: 02/23/14


Bank of America - BAC - close: 15.77

Comments:
04/13/14: We bid goodbye to our BAC trade. It's been on the LeapsTrader play list a long time. Unfortunately the financials were hit hard this past week. It looked like BAC might hold support near $16.00 again but then JPM reported disappointing earnings on Friday morning. BAC gapped open lower on Friday at $15.86 and closed below support. Our stop was hit at $15.85.

Our 2015 option gapped down at $2.01 on Friday morning (+77% from our entry).

- 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 - exit $2.01 (+77.8%)

04/11/14 stopped out
04/06/14 new stop @ 15.85
04/06/14 BAC appears to have created a bearish H&S pattern (target 15.50)
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...

Chart of BAC:

Current Target: BAC @ $19.50 for 2015 call
Current Stop loss: 15.85
Play Entered on: 03/18/13

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


JPMorgan Chase & Co. - JPM - close: 55.30

Comments:
04/13/14: It was a rough week for the financial sector and JPM was leading the group lower. The stock gave up about five points last week and four of those points were in the last two days. The company reported a very disappointing earnings report on Friday morning. Shares gapped open lower at $55.18 on Friday morning in reaction to the earnings news. Friday's drop breaks the long-term trend line of support and its 200-dma. Our stop loss was hit at $54.75.

- 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 - exit $4.17 (+9.7%)

04/11/14 stopped out
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)

Chart of JPM:
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


Starbucks - SBUX - close: 68.73

Comments:
04/13/14: Last weekend we decided that SBUX wasn't acting very healthy and suggested everyone exit on Monday morning, April 7th. We're glad we did. Shares fell -4% for the week and broke down under support near $70.00 to close at new multi-month lows. The stock opened at $71.20 on Monday, April 7th. The next stop for SBUX could be the $65.00 area.

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - exit $3.95 (-15.0%)

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - exit $5.25** (-22.2%)

04/07/14 planned exit on Monday, April 7th
**option exit price is an estimate since the option did not trade at the time our play was closed.
04/06/14 prepare to exit immediately on Monday, April 7th
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.

Chart of SBUX:

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