Editor's Note:
Shares of HANS plunged after hours after missing Wall Street's earnings estimates. Our plan was to exit positions at the closing bell to avoid holding over earnings. Meanwhile the market seems to be holding near support. This is probably a good spot to buy the dip.

REMINDER: I am away from the office this week for a seminar. Play updates will be brief and we might see fewer new positions added to the newsletter.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 16.55 change: +0.11

Stop Loss: 15.95
Target(s): 18.50, 19.75
Current Gain/Loss: - 6.2%
2nd Position Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24 update: AA posted a gain for the session but shares did fail at their 30-dma overhead. The intraday action is a little bit worrisome but I would still use this dip near the bottom of AA's bullish channel as an entry point for new bullish positions.

The newsletter is going to double down here. See below.

Current Position: Long AA stock @ $17.65

- or -

Long the March $17.00 calls (AA1119C17) Entry @ $0.98

-2nd position, Entry 2/225-

New Position: Buy AA stock @ current levels

- or -

Buy the March $17.00 calls (AA1119C17) Ask @ $0.34

02/24 Open new positions on the bounce.
02/23 use the bounce as a new entry point.
02/22 Adjust the stop loss to $15.95
02/18 AA provides another entry point
02/14 AA hits our breakout trigger @ 17.65, Stop @ 16.25

Entry on February 14 at $17.65
Earnings Date 04/11/11 (unconfirmed)
Average Daily Volume: 41 million
Listed on February 2nd, 2010


AnnTaylor Stores - ANN - close: 23.53 change: -0.02

Stop Loss: 22.85
Target(s): 25.90, 27.85
Current Gain/Loss: - 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24 update: ANN did not see a lot of action on Thursday. I remain cautious here. We do not want to open new positions at this time.

Small Positions

Current Position: Long ANN stock @ $23.86

- or -

Long the March $22.50 calls (ANN1119C22.5) Entry @ $2.35

02/23 New stop loss @ 22.85
02/22 New stop loss @ 22.40

Entry on February 14 at $23.86
Earnings Date 03/11/11 (confirmed)
Average Daily Volume: 3.0 million
Listed on February 8th, 2010


Allied Nevada Gold Corp. - ANV - close: 29.23 change: -0.05

Stop Loss: 27.95
Target(s): 33.00, 34.75
Current Gain/Loss: - 2.0%
Time Frame: 2+ weeks
New Positions: see below

Comments:
02/24 update: Gold prices ticked lower today even though investors remain uneasy about the situation in the Mideast. Gold mining stocks saw some heavy profit taking today with the GDX ETF off 3.1% and the XAU index down -2.2%. ANV held up reasonably well compared to its peers with a -0.1% drop but the sector weakness is a warning sign for us. We need to plan an early exit anyway. ANV did confirm they will report earnings on Monday morning before the bell. This means that we want to exit this trade TOMORROW at the closing bell. I am raising our stop loss to $27.95.

- Small Bullish positions -

Current Position: Long ANV stock @ $29.85

- or -

Long the March $30 calls (ANV1119C30) Entry @ $1.45

02/24 New stop loss @ 27.95

Entry on February 17 at $29.85
Earnings Date 02/28/11 (confirmed)
Average Daily Volume: 689 thousand
Listed on February 16th, 2010


Baxter Intl. - BAX - close: 51.68 change: -0.04

Stop Loss: 49.90
Target(s): 54.90, 57.50
Current Gain/Loss: - 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24 update: We are not seeing a lot of change in BAX. I would still wait for a dip near $51.00 before considering new bullish positions. We want to keep our position size small to limit our risk.

FYI: The Point & Figure chart for BAX is bullish with a $73 target.

(small positions only)

Current Position: Long BAX stock @ 52.00

- or -

Long the May $55 call (BAX1121E55) Entry @ $1.05

Entry on February 22 at $52.00
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume: 5.8 million
Listed on February 19th, 2010


Lincare Holdings Inc. - LNCR - close: 29.39 change: +0.45

Stop Loss: 27.45
Target(s): 29.90, 31.75
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24 update: LNCR is showing relative strength again with a +1.5% gain. There is no change from my prior comments. I am not suggesting new bullish positions at this time.

FYI: The Point & Figure chart for LNCR is bullish with a $40 target. Plus, investors will be interested to note that LNCR has relatively high short interest. The most recent data listed short interest at 11.6% of the 86-million share float. With the recent breakout this stock could see a short squeeze.

- Small Bullish Positions -

Current Position: Long LNCR stock @ 28.37

- or -

Long the March $29.00 calls (LNCR1119C29) Entry @ $0.75

02/22 New stop loss @ 27.95
02/19 New stop loss @ 27.45
02/12 Adjusted entry point to current levels.

Entry on February 14 at $28.37
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 932 thousand
Listed on February 9th, 2010


Signet Jewelers Limited - SIG - close: 43.18 change: -0.64

Stop Loss: 42.40
Target(s): 49.75
Current Gain/Loss: - 4.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24 update: Hmm... the last couple of days SIG has tried to rally first thing in the morning only to see traders selling into strength. This is a caution sign for us! Readers may want to scale back positions and/or raise their stop loss. I am not suggesting new positions at this time.

Current Position: Long SIG stock @ $45.25

- or -

Long the March $45 calls (SIG1119C45) Entry @ $1.85

Entry on February 18 at $45.25
Earnings Date 03/30/11 (unconfirmed)
Average Daily Volume: 436 thousand
Listed on February 16th, 2010


UnitedHealth Group - UNH - close: 42.91 change: -0.05

Stop Loss: 41.80
Target(s): 44.75
Current Gain/Loss: + 3.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/24 update: UNH spent another day consolidation sideways. There is no change from my prior comments. Shares could be setting up for a bearish double top pattern. I remain cautious. No new positions at this time.

Current Position: UNH stock @ $41.15

02/22: New stop loss @ 41.80
02/17: New stop loss @ 41.49
02/12: New stop loss @ 41.25
02/12: Exit the call options early (bid $1.47 +22.5%)
02/08: New stop loss @ 40.75

Entry on January 28 at $41.15
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 5.9 million
Listed on January 20th, 2010


Vanguard National Res. - VNR - close: 33.04 change: +0.99

Stop Loss: 30.70
Target(s): 34.95
Current Gain/Loss: +0.0%
Time Frame: 1 week
New Positions: see below

Comments:
02/24 update: Whoa! VNR hasn't seen this kind of volatility for several weeks. I did not see any specific headlines behind today's moves. Shares opened higher but p lunged to $31.33 intraday. Traders finally bought the dip near its rising 20-dma. Energy stocks did see some profit taking due to a pull back in oil prices but VNR has been rising regardless of recent fluctuations in oil and gas. Readers will want to seriously consider raising their stops to reduce their risk. I'd consider moving the stop close to today's low. Earnings are due out on March 1st. We will plan on exiting this trade Monday (Feb. 28th) at the closing bell.

Keep your positions small to limit your risk.

small bullish positions

Current Position: Long GNR stock @ $32.17

- or -

Long the March $30 call (VNR1119C30) Entry @ $2.80

Entry on February 23 at $32.17
Earnings Date 03/01/11 (unconfirmed)
Average Daily Volume: 277 thousand
Listed on February 22nd, 2010


CLOSED BULLISH PLAYS

Hansen Natural Corp. - HANS - close: 54.69 change: -1.17

Stop Loss: 53.75
Target(s): 59.50
Current Gain/Loss: - 1.5%
Time Frame: just a couple of weeks left.
New Positions: see below

Comments:
02/24 update: Investors turned cautious ahead of HANS' earnings report. The stock lost -2% with a dip to its 50-dma. Our plan was to exit today at the closing bell to avoid holding over earnings. So far traders are unhappy with the news. HANS missed estimates by 9 cents and missed the revenue estimate. Shares are trading down near $50 after hours.

- Small Positions to limit our risk -

Closed Position: HANS stock @ $55.54, Exit @ 54.69 (-1.5%)

02/24 Exit at the close $54.69 (-1.5%)
02/23 Prepare to exit tomorrow
02/22 Consider an early exit now!
02/12 New stop loss @ 53.75
01/29 Exit call positions early. @ $1.15 (-23.3%)
01/26 the CBOE listed the MAR $60 call's open @ $1.50

chart:

Entry on January 26 at $55.54
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 654 thousand
Listed on January 25th, 2010


Oracle Corp. - ORCL - close: 32.25 change: +0.07

Stop Loss: 31.65
Target(s): 34.90
Current Gain/Loss: - 2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24 update: ORCL managed to eke out a small gain on Thursday. Unfortunately shares spiked lower this morning thanks to some less than flattering analyst comments. ORCL opened at $32.10 but quickly plunged to $31.64 in moments only to bounce back. Our stop loss (32.65) was hit closing this trade.

small positions to limit our risk.

Closed Position: ORCL stock @ $32.62, Exit 31.65 (-2.9%)

- or -

2011 March $33 calls (ORCL1119C33) Entry @ $0.80, Exit @ $0.35 (-56.2%)

02/24 Stopped out @ 31.65 (-2.9%), option @ -56%
02/23 New entry point on dip near $32.00
02/12 New stop loss @ 31.65
02/10 ORCL is improving. This looks like a new entry point.
01/29 Consider an early exit, especially the calls.
01/27 The CBOE listed the open for our calls at $0.80

chart:

Entry on January 27 at $32.62
Earnings Date 03/24/11 (unconfirmed)
Average Daily Volume: 27 million
Listed on January 26th, 2010