Editor's Note:
Healthcare stocks were some of the best performers on Wednesday. Oil service and semiconductors also performed well. It was encouraging to note that most of our candidates did not see any follow through lower on Tuesday's bearish reversal.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 16.23 change: -0.62

Stop Loss: 15.95
Target(s): 18.50, 19.75
Current Gain/Loss: - 8.3%
2nd Position Current Gain/Loss: - 3.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: AA did not see much of a bounce and still looks headed for short-term support near $16.00. I am not suggesting new bullish positions at this time. Let's wait and see if AA can bounce at $16 again.

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: 31.72 change: +0.62

Stop Loss: 27.80
Target(s): 33.00, 34.75
Current Gain/Loss: + 7.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: ACIW continues to post gains on strong volume. The stock hit another three-year high today. More conservative traders will want to start thinking about raising their stop loss. No 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: 23.80 change: +0.66

Stop Loss: 22.85
Target(s): 25.90, 27.85
Current Gain/Loss: - 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: ANN is bouncing from short-term support and shares outperformed the market today with a +2.8% gain. Tomorrow the retail stocks could see some volatility as 25 of the biggest chains report their February same-store sales numbers. I am not suggesting 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: 51.99 change: -0.20

Stop Loss: 49.90
Target(s): 54.90, 57.50
Current Gain/Loss: - 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: Hmmm.... BAX almost closed unchanged on the session but eventually settled with a loss. Technically that is confirmation of the reversal yesterday. We should expect a dip toward the $50 area. I am not suggesting new bullish positions at this time. The plan was 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: 7.37 change: -0.15

Stop Loss: 6.85
Target(s): 7.80, 8.90
Current Gain/Loss: + 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: BSX gave back almost half of yesterday's gain and on an intraday basis came close to filling the gap, which is what I cautioned readers to look for. I am not suggesting new positions at this time. 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


Gildan Activewear - GIL - close: 30.97 change: -0.23

Stop Loss: 28.99
Target(s): 34.85, 38.00
Current Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
03/02 update: GIL is still slipping. I don't see any changes from my prior comments. We have a trigger to buy the dip at $30.35 with a stop loss at $28.99, just under the simple 200-dma.

Trigger @ 30.35

Suggested Position: buy GIL stock @ 30.35

- or -

Buy the April $30 call (GIL1116D30)

03/01 Adjusted buy-the-dip trigger to $30.35
03/01 Adjusted stop loss to $28.99

Entry on March x at $xx.xx
Earnings Date 05/12/11 (unconfirmed)
Average Daily Volume: 634 thousand
Listed on February 28th, 2010


Intuit - INTU - close: 51.78 change: +0.36

Stop Loss: 49.49
Target(s): 54.75, 59.00
Current Gain/Loss: - 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: INTU spent the day consolidating sideways. At this point I'm looking for a dip or bounce near $50.00 or another breakout past $53.00 as potential entry points.

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: 29.08 change: +0.08

Stop Loss: 27.95
Target(s): 29.90, 31.75
Current Gain/Loss: + 2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: LNCR managed a meager bounce from $29.00 but still looks headed lower. Look for support near $28.00. 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

03/01 The exit number below were updated for Tuesday's open
02/28 Sell Half to lock in a gain. LNCR @ $29.52 (+4.0%)
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: 26.99 change: +0.22

Stop Loss: 25.95
Target(s): 29.90, 33.50
Current Gain/Loss: - 2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: The semiconductor sector was one of the better performers today thanks to some bullish analyst comments. MXIM lagged its peers with a +0.8% gain. Readers may want to wait for a new move over the $27.50 level before initiating new positions again.

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: 49.65 change: +0.21

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: -0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: We are seeing a similar story in OMC. There was no follow through lower after yesterday's bearish reversal pattern. I'm a little reluctant to open positions right here. Let's wait for another bounce over $50 or another dip or bounce near $48.00.

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: 44.56 change: +1.16

Stop Loss: 42.65
Target(s): 49.75
Current Gain/Loss: - 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: SIG delivered a +2.6% gain thanks to an analyst upgrade this morning. The stock looks poised to challenge its highs and if the market rebounds we could see this stock breaking out soon. I would be tempted to launch new positions here.

Current Position: Long SIG stock @ $45.25

- or -

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

02/28 New stop loss @ 42.65
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


Sony Corp. - SNE - close: 36.19 change: -0.08

Stop Loss: 34.80
Target(s): 39.90, 43.50
Current Gain/Loss: - 1.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/02 update: The Japanese NIKKEI fell lower on Wednesday but shares of SNE held up reasonably well. Traders bought the dip here in the U.S. near the $36.00 level. I remain bullish on the stock but readers may want to wait for a bounce or even a close over $37.00 before initiating positions.

FYI: The Point & Figure chart for SNE is bullish with a $53 target.

Current Position: long SNE stock @ $36.72

- or -

Long the April $38 calls (SNE1116D38) Entry @ $0.85

Entry on March 1 at $36.72
Earnings Date 05/12/11 (unconfirmed)
Average Daily Volume: 862 thousand
Listed on February 28th, 2010


UnitedHealth Group - UNH - close: 43.56 change: +1.11

Stop Loss: 41.95
Target(s): 44.75
Current Gain/Loss: + 5.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/02 update: It was a bullish day for UNH. Shares outperformed the market with a +2.6% gain. This helps alleviate the recently bearish trend of lower highs we've been seeing but I remain cautious on the stock. 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: 30.71 change: -0.02

Stop Loss: 29.90
Target(s): 34.50, 37.50
Current Gain/Loss: - 2.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/02 update: It was a quiet session for WYN. I don't see any changes from my prior comments. Wait for a dip or bounce near $30.00 as our next bullish entry point.

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