Editor's Note:
Traders were buying the dip this afternoon. The U.S. continues to see positive economic data. We expect the trend of positive economic data to continue throughout this week. Use this afternoon dip on Monday as a new entry point for bullish positions.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 16.85 change: +0.17

Stop Loss: 15.95
Target(s): 18.50, 19.75
Current Gain/Loss: - 4.5%
2nd Position Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: AA turned in a quiet session. Shares are still trading under what could be short-term resistance near $17.00. I remain bullish on AA but that could change if shares fail at this level.

Current Position: Long AA stock @ $17.65

- or -

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

-2nd position, Entry Feb. 25th -

New Position: Buy AA stock @ 16.84

- or -

Buy the March $17.00 calls (AA1119C17) Entry @ $0.39

02/25 AA opened at $16.84. March $17 calls opened @ $0.39
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


ACI Worldwide Inc. - close: 31.31 change: +0.60

Stop Loss: 27.80
Target(s): 33.00, 34.75
Current Gain/Loss: + 5.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: The action in ACIW today was encouraging. The stock did not see the same afternoon swoon that most of the market experienced. Shares were surging higher into the closing bell, which bodes well for tomorrow. I am not suggesting new positions at this time. Our upside targets are $33.00 and $34.75.

FYI: ACIW does have options but the spreads are very wide, which puts us at a significant disadvantage.

SMALL bullish positions

Current Position: Long ACIW stock @ $29.63

Entry on February 25 at $29.63
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 122 thousand
Listed on February 24th, 2010


AnnTaylor Stores - ANN - close: 23.21 change: -0.64

Stop Loss: 22.85
Target(s): 25.90, 27.85
Current Gain/Loss: - 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: ANN underperformed on Monday. This is do or die time for the stock. Shares will either rally with the market tomorrow or hit our stop loss at $22.85. No 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


Baxter Intl. - BAX - close: 53.15 change: +0.73

Stop Loss: 49.90
Target(s): 54.90, 57.50
Current Gain/Loss: + 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: BAX displayed some relative strength with a +1.3% gain. Volume remains light but there's not much we can do about it. More conservative traders may want to raise their stops toward $51.00 or the $51.40 level. 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


Boston Scientific Corp. - BSX - close: 7.16 change: -0.02

Stop Loss: 6.85
Target(s): 7.80, 8.90
Current Gain/Loss: - 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: The performance in BSX today was underwhelming. Shares opened at $7.22 and then faded lower. Readers may want to wait for another dip or bounce near $7.00 before initiating positions. The plan is to keep our position size small to limit our risk.

- (Small Positions to Limit our Risk)

Current Position: Long BSX stock @ 7.22

- or -

Long the April $7.00 calls (BSX1116D7) Entry @ $0.44

Entry on February 28 at $ 7.22
Earnings Date 04/26/11 (unconfirmed)
Average Daily Volume: 16 million
Listed on February 26th, 2010


Intuit - INTU - close: 52.58 change: +0.18

Stop Loss: 49.49
Target(s): 54.75, 59.00
Current Gain/Loss: + 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: Monday proved to be a quiet day for INTU with the stock consolidating sideways in a narrow range. Readers may want to wait for another dip into the $52.00-51.00 zone before initiating new positions.

Current Position: Long INTU stock @ $51.87

- or -

Long the March $52.50 calls (INTU1119C52.5) Entry @ $1.10

- or -

Long the April $55.00 calls (INTU1116D55) Entry @ $1.05

Entry on February 25 at $51.87
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on February 24th, 2010


Lincare Holdings Inc. - LNCR - close: 29.34 change: -0.23

Stop Loss: 27.95
Target(s): 29.90, 31.75
Current Gain/Loss: + 3.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: Uh-oh! Reversal alert! LNCR spiked to $29.82 this morning and then faded lower throughout the session. While most of the market was bouncing higher into the closing bell LNCR was accelerating lower. Our first exit target at $29.90 has not been hit yet. I am suggesting we take some money off the table right now. Sell at least half of our position. 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 11.5% 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

02/28 Sell Half to lock in a gain. LNCR @ $29.34 (+3.4%)
02/28 Sell Half: March $29 calls bid $0.85 (+13.3%)
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


Maxim Integrated Products - MXIM - close: 27.58 change: -0.05

Stop Loss: 25.95
Target(s): 29.90, 33.50
Current Gain/Loss: - 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: The stock opened at $27.68. Then MXIM provided a nice intraday dip for us to buy. I would still consider new positions now. Our targets are $29.90 and $33.50.

Current Position: Long MXIM stock @ $27.68

- or -

Long the April $30 calls (MXIM1116D30) Entry @ $0.35

Entry on February 28 at $27.68
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 3.3 million
Listed on February 26th, 2010


Omnicom Group Inc. - OMC - close: 50.90 change: +0.98

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: +1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: OMC is off to a good start. Shares opened at $50.04 and closed with a +1.9% gain. The $51 level might be a little short-term resistance so nimble traders could look to buy a dip tomorrow. Our target is the $54.00 level since OMC has significant resistance in the $54-55 zone.

Current Position: Long OMC stock @ $50.04

- or -

Long the April $50 calls (OMC1116D50) Entry @ $1.65

Entry on February 28 at $50.04
Earnings Date 04/20/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on February 26th, 2010


Signet Jewelers Limited - SIG - close: 43.87 change: +0.09

Stop Loss: 42.40
Target(s): 49.75
Current Gain/Loss: - 3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/28 update: Be careful here. The action in SIG is not very encouraging. The stock spiked higher this morning and actually hit a new 52-week high at $45.52 but immediately reversed lower and gave back almost all of its gains. This is a warning signal for us. Readers may want to start scaling out of this position. Last week's low was $42.68. I am raising our stop loss to $42.65. 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

02/28 Consider scaling back positions here.

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: 42.58 change: +0.06

Stop Loss: 41.95
Target(s): 44.75
Current Gain/Loss: + 3.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/28 update: UNH continues to consolidate sideways and traded in a narrow range today. I remain very cautious here. More conservative traders may want to go ahead and take profits now with an early exit. No new positions at this time.

Current Position: UNH stock @ $41.15

02/26: New stop loss @ 41.95
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


Wyndham Worldwide - WYN - close: 31.28 change: -0.08

Stop Loss: 29.90
Target(s): 34.50, 37.50
Current Gain/Loss: - 0.5%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
02/28 update: There is no change from my weekend comments on WYN. I would still consider new positions here at current levels.

Current Position: Long WYN stock @ $31.45

- or -

Long the April $32 calls (WYN1116D32) Entry @ $1.15

Entry on February 28 at $31.45
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 3.2 million
Listed on February 26th, 2010


CLOSED BULLISH PLAYS

Vanguard National Res. - VNR - close: 32.74 change: +0.27

Stop Loss: 31.25
Target(s): 34.95
Current Gain/Loss: +1.7%
Time Frame: 1 week
New Positions: see below

Comments:
02/28 update: Our time has run out. We planned to exit VNR tonight to avoid holding over earnings tomorrow.

small bullish positions

Closed Position: Long GNR stock @ $32.17, Exit @ 32.74 (+1.7%)

- or -

March $30 call (VNR1119C30) Entry @ $2.80, Exit @ $2.45 (-12.5%)

02/28: Planned Exit. VNR +1.7%, Option @ -12.5%
02/26: Prepare to exit on Monday at the close.
02/26: New stop loss @ 31.25

chart:

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