Editor's Note:
Technology stocks underperformed on Monday, led by a -2.7% sell-off in the semiconductor sector. Outside of the chip sector losses were generally mild but if the market continues to decline tomorrow we could see several candidates hit our stop losses.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 16.25 change: -0.33

Stop Loss: 15.95
Target(s): 18.50, 19.75
Current Gain/Loss: - 7.9%
2nd Position Current Gain/Loss: - 3.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: The situation is not shaping up well for our AA play. The consolidation is narrowing with a slightly bearish trend of lower highs. AA looks like it wants to breakdown under support near $16.00. If the market does move lower tomorrow odds are very good we will get stopped out at $15.95. I am not suggesting new positions at this time.

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


Arch Coal Inc. - ACI - close: 35.13 change: -0.86

Stop Loss: 31.95
Target(s): 39.50, 42.50
Current Gain/Loss: + 1.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/07 update: Hmm... the action in ACI was not that encouraging. Shares rallied toward Friday's high but failed. At the end of the day shares had created a bearish engulfing candlestick pattern, which is normally seen as a potential bearish reversal but usually needs to see confirmation. I would still be tempted to buy ACI (or calls) on a dip or bounce near $34.00. More conservative traders might want to consider a stop loss closer to $34.00. Our multi-week targets are $39.50 and $42.50.
FYI: The Point & Figure chart for ACI is bullish with a $40 target.

Current Position: Long ACI stock @ 34.76

- or -

Long the April $35 calls (ACI1116D35) Entry @ $1.75

03/03 ACI gapped open at $34.76 (trigger was $34.75)

Entry on March 3 at $34.76
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on March 2nd, 2010


ACI Worldwide Inc. - ACIW - close: 30.46 change: -1.10

Stop Loss: 27.80
Target(s): 33.00, 34.75
Current Gain/Loss: + 2.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: Ouch! ACIW was a big underperformer with a -3.4% loss. Shares did bounce at round-number support near $30 intraday. Technically this could be used as a new bullish entry point but I'd wait to see if the major averages breakdown or not. It's certainly possible that ACIW pulls back toward $28.00 instead. Our bullish 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: 23.73 change: -0.62

Stop Loss: 22.85
Target(s): 25.90, 27.85
Current Gain/Loss: - 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: There was no follow through on ANN's breakout above technical resistance. I remain very cautious here. 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: 53.11 change: -0.69

Stop Loss: 50.90
Target(s): 54.90, 57.50
Current Gain/Loss: + 2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: BAX dipped to short-term support near $53 on Monday. I would still consider new positions on a dip in the $52.50-52.00 zone but readers may want to inch up their stops a little bit more. 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

03/05 New stop loss @ 50.90

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: 7.47 change: -0.06

Stop Loss: 6.85
Target(s): 7.80, 8.90
Current Gain/Loss: + 3.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: BSX delivered a quiet session with shares trading in a 20-cent range. I would wait for another dip or bounce from its 50-dma around $7.30 before initiating new 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


Cabot Microelectronics - CCMP - close: 48.30 change: -1.56

Stop Loss: 47.95
Target(s): 54.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
03/07 update: Semiconductor stocks underperformed on Monday thanks to an industry downgrade. Shares of CCMP plunged toward the bottom of its $48-50 trading range. The stock is sitting on short-term support and aggressive traders may want to take advantage of this move and buy CCMP or calls right here. Officially the newsletter is waiting for a breakout over resistance a $50.00 with a trigger to open positions at $50.25. Our target is $54.75.

FYI: The most recent data listed short interest at 13% of CCMP's small 22.75 million share float. That raises the chances for a short squeeze.

Trigger @ 50.25

Suggested Position: Buy CCMP stock @ $50.25

- or -

Buy the April $50 calls (CCMP1116D50) current ask $2.10

- or -

Buy the April $55 calls (CCMP1116D55) current ask $0.40

Entry on March x at $xx.xx
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume: 211 thousand
Listed on March 5th, 2010


Gildan Activewear - GIL - close: 30.80 change: -0.18

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:
03/07 update: GIL is not seeing a lot of movement yet. Shares still look poised for a dip toward $30.00. I am suggesting we wait and use a trigger to buy a dip at $30.35 with a stop loss at $28.99. Alternatively readers could wait for a breakout past $32.50.

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: 51.93 change: -0.88

Stop Loss: 49.90
Target(s): 54.75, 59.00
Current Gain/Loss: + 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: Traders bought the intraday dip near INTU's 20-dma but shares still underperformed with a -1.6% loss. I am growing cautious here. INTU could be headed for the $50 area. Let's hold off on 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

03/03 New stop loss @ 49.90

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


Jos. A Bank Clothiers Inc. - JOSB - close: 45.34 change: -0.56

Stop Loss: 44.75
Target(s): 49.85, 52.25
Current Gain/Loss: - 1.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/07 update: JOSB opened at $45.99 and then fell toward the bottom of its trading range and support near $45.00. Technically this dip as a new entry point to launch positions but readers may want to wait for a bounce over $46 first. We have a stop loss at $44.75 so if the market breaks down from here we'll probably get stopped out quickly.

The earnings date at the end of March is not yet confirmed but it does put a four to five week time frame on this trade.

FYI: The most recent data listed short interest at almost 25% of JOSB's 27.3 million-share float. There is definitely room for some short covering here. Plus, the Point & Figure chart for JOSB is bullish with a $62 target.

- Small Bullish Positions -

Current Position: Long JOSB stock @ $45.99

- or -

Long the April $50 calls (JOSB1116D50) Entry @ $0.95

Entry on March 7 at $45.99
Earnings Date 03/30/11 (unconfirmed)
Average Daily Volume: 355 thousand
Listed on March 5th, 2010


Lincare Holdings Inc. - LNCR - close: 29.44 change: -0.36

Stop Loss: 28.45
Target(s): 29.90, 31.50
Current Gain/Loss: + 3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: LNCR erased most of Friday's gains but volume was pretty light today. I don't see any changes from my weekend comments. Our final target is $31.50. 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

03/05 New stop loss @ 28.45, Adjusted target to $31.50
03/01 The exit number below is 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: 26.74 change: -0.77

Stop Loss: 25.95
Target(s): 29.90, 33.50
Current Gain/Loss: - 3.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: Chip stocks underperformed after the group was downgraded before the opening bell. MXIM lost -2.79% but did rally off its intraday low near $26.25. More conservative traders might want to inch up their stop loss. I am not suggesting new positions at this time.

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: 48.93 change: -0.62

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: -2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: I am starting to grow concerned that over the last few days OMC has been showing a similar pattern. Traders are selling into strength each morning and the stock is closing near its lows for the session. Odds are growing that OMC will test support near $48.00. I am not suggesting new positions at this time.

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: 43.55 change: -1.06

Stop Loss: 42.65
Target(s): 49.75
Current Gain/Loss: - 3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: SIG was showing some volatility today with the stock almost testing both sides of its trading range (approximately $43.00-45.50). I am not suggesting new bullish positions at this time but nimble traders could try and buy this dip near $43.00.

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: 35.16 change: -0.79

Stop Loss: 34.80
Target(s): 39.90, 43.50
Current Gain/Loss: - 4.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/07 update: The action in SNE today was definitely bearish. The stock broke down under several short-term moving averages. SNE looks like it will test its 100-dma tomorrow. The question is will it gap open up or down tomorrow. The Japanese market might drop following the weakness in the U.S. on Monday. If the NIKKEI index closes with losses then shares of SNE could gap open lower tomorrow. Let's wait and see where SNE closes tomorrow before we consider new positions.

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


Wyndham Worldwide - WYN - close: 31.42 change: -0.28

Stop Loss: 29.90
Target(s): 34.50, 37.50
Current Gain/Loss: - 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/07 update: Monday was a quiet session for WYN with the stock moving sideways. I don't see any changes from my weekend comments. Readers might want to wait for WYN to breakout past the $32.00 level first.

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


ZOLL Medical Corp. - ZOLL - close: 45.94 change: -0.36

Stop Loss: 43.95
Target(s): 49.80, 53.50
Current Gain/Loss: - 1.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/07 update: ZOLL did not show much volatility today. Shares merely drifted sideways. Considering the action in the stock market odds are growing that ZOLL might provide us an entry point near $45.00 soon. Let's wait for that dip to initiate new positions. Or you could wait for ZOLL to rally past the $47.00 level. More conservative traders might want to use a stop closer to $44.75.

FYI: The Point & Figure chart for ZOLL is bullish with a $55 target. ZOLL does have options but the spreads are too wide. You'll also find it interesting that the most recent data listed short interest in ZOLL at 10% of the very small 21.5 million-share float.

Suggested Position: Long ZOLL stock @ $46.54

Entry on March 4 at $46.54
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 180 thousand
Listed on March 3rd, 2010