Editor's Note:
Financials were some of the market's best performers on Tuesday. The sector helped lift the market off its morning lows. We saw GIL hit our buy-the-dip entry point.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 16.49 change: +0.24

Stop Loss: 15.95
Target(s): 18.50, 19.75
Current Gain/Loss: - 6.5%
2nd Position Current Gain/Loss: - 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: AA bounced from support near $16.00 again but the consolidation pattern has a bearish trend of lower highs. I remain very cautious here. 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: 34.62 change: -0.51

Stop Loss: 31.95
Target(s): 39.50, 42.50
Current Gain/Loss: - 0.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/08 update: Yesterday I suggested readers buy a dip near $34.00 and that's what ACI provided today. Shares slipped to $34.15 intraday. We might see ACI test the $34.00 region again tomorrow. 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: 31.30 change: +0.84

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:
03/08 update: ACIW produced a strong bounce (+2.7%) off support near the $30 level. I would hesitate to buy it now. Shares might provide another entry point near $30.00 again. 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: 23.83 change: +0.10

Stop Loss: 22.85
Target(s): 25.90, 27.85
Current Gain/Loss: - 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: ANN is still churning sideways. More conservative traders may want to cut their losses early. 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: 53.05 change: -0.06

Stop Loss: 50.90
Target(s): 54.90, 57.50
Current Gain/Loss: + 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: BAX did not see much of a bounce today but shares eked out a +0.4% gain. I suspect this stock is still headed for the $52.50-52.00 zone. 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: 7.63 change: +0.16

Stop Loss: 6.85
Target(s): 7.80, 8.90
Current Gain/Loss: + 5.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: BSX was showing some relative strength with a +2.1% gain. The stock is now testing resistance near $7.70 again. 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


Cabot Microelectronics - CCMP - close: 49.17 change: +0.87

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

Comments:
03/08 update: There is no change from my prior comments. I am suggesting a breakout trigger to open bullish 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: 30.83 change: +0.03

Stop Loss: 28.99
Target(s): 34.85, 38.00
Current Gain/Loss: + 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: Our buy-the-dip entry point has been hit. GIL slipped to $30.25 intraday. Our trigger to open positions was at $30.35. If you missed it we might get another shot as GIL could retest the $30 level again soon. We're suggesting a stop loss at $28.99.

Current Position: long GIL stock @ 30.35

- or -

Long the April $30 call (GIL1116D30) Entry @ $1.60

03/08 Triggered $ 30.35
03/01 Adjusted buy-the-dip trigger to $30.35
03/01 Adjusted stop loss to $28.99

chart:

Entry on March 8 at $30.35
Earnings Date 05/12/11 (unconfirmed)
Average Daily Volume: 634 thousand
Listed on February 28th, 2010


Intuit - INTU - close: 52.11 change: +0.18

Stop Loss: 49.90
Target(s): 54.75, 59.00
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: The rebound in INTU was relatively underwhelming. I remain cautious on this stock. 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: 46.30 change: +0.96

Stop Loss: 44.75
Target(s): 49.85, 52.25
Current Gain/Loss: + 0.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/08 update: JOSB is bouncing from support near $46.00. I would wait for dips near $45 or wait for a breakout past $48 before considering new positions.

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: 29.68 change: +0.24

Stop Loss: 28.45
Target(s): 29.90, 31.50
Current Gain/Loss: + 4.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: LNCR managed to hit a new multi-month high before paring its gains. I am not suggesting new positions at this time. Our final target is $31.50 but LNCR has to breakout past $30 first.

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: 26.79 change: +0.05

Stop Loss: 25.95
Target(s): 29.90, 33.50
Current Gain/Loss: - 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: Bears tried to take chip stocks lower again this morning but MXIM rallied off its lows. Sadly the actual gains were not that impressive. 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: 49.31 change: +0.38

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: -1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: There is no change from my prior comments. OMC still looks vulnerable here. 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: 43.53 change: -0.02

Stop Loss: 42.65
Target(s): 49.75
Current Gain/Loss: - 3.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: SIG did not see much of a bounce. Readers should remain defensive. I am not suggesting new bullish positions at this time.

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: 35.32 change: +0.16

Stop Loss: 34.80
Target(s): 39.90, 43.50
Current Gain/Loss: - 3.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/08 update: SNE bounced from its 100-dma near $35.00. I'd prefer to wait for shares to rally over $35.50 before considering new bullish 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: 31.52 change: +0.10

Stop Loss: 29.90
Target(s): 34.50, 37.50
Current Gain/Loss: + 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08 update: Yet another quiet session for WYN. The stock continues to drift sideways in a narrow range. Readers might want to wait for WYN to breakout past the $32.00 level before initiating new positions.

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: 45.47 change: -0.47

Stop Loss: 43.95
Target(s): 49.80, 53.50
Current Gain/Loss: - 2.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/08 update: If you missed buying the dip today the afternoon intraday bounce in ZOLL looks like it could be a bullish entry point. However, readers may want to wait and see if the rebound has any follow through first. 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