Editor's Note:
A drop in the SOX index could portend further weakness for the NASDAQ. Evidently investors were unhappy with Texas Instruments' (TXN) mid-quarter update last night. Traders sold the news and the SOX plunged -3%. Our MXIM play was stopped out. We also saw our SNE trade get stopped out. Meanwhile our BSX trade hit our first profit target.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 16.30 change: -0.19

Stop Loss: 15.95
Target(s): 18.50, 19.75
Current Gain/Loss: - 7.6%
2nd Position Current Gain/Loss: - 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Nothing has changed for AA. Shares are still consolidating sideways with a new bearish trend of lower highs. Readers may want to consider an early exit now to cut their losses. 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: 33.95 change: -0.67

Stop Loss: 31.95
Target(s): 39.50, 42.50
Current Gain/Loss: - 2.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/09 update: Coal stocks were down today and ACI was no exception. The action this week is painting a big bearish reversal on ACI's weekly chart. On a short-term basis ACI is testing its 50-dma. I would be tempted to buy a bounce from here but definitely keep your position size small and consider raising your stop losses significantly. The low today was $33.70. More conservative traders might want to consider a stop loss closer to today's low. 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: 31.45 change: +0.15

Stop Loss: 27.80
Target(s): 33.00, 34.75
Current Gain/Loss: + 6.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Wednesday was a very quiet day for ACIW. Shares traded in a 60-cent range. I would hesitate to buy the stock 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: 24.40 change: +0.57

Stop Loss: 22.85
Target(s): 25.90, 27.85
Current Gain/Loss: + 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: I cannot explain the relative strength in ANN (+2.3% today) other than a reaction to the slow decline in oil prices. Or maybe it is optimism ahead of ANN's earnings report that comes out Friday morning. That's right. Our time is up. We need to exit this trade tomorrow, Thursday, at the closing bell so we can avoid earnings on Friday morning.

Small Positions

Current Position: Long ANN stock @ $23.86

- or -

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

03/09 Prepare to exit on Thursday @ the close
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: 53.08 change: +0.03

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:
03/09 update: BAX spent the whole session oscillating on either side of $53.00. There is no change from my prior comments. I am not suggesting new bullish positions at these levels. 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: 7.78 change: +0.15

Stop Loss: 7.19
Target(s): 7.80, 8.90
Current Gain/Loss: + 7.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Target achieved. BSX displayed relative strength and rallied toward resistance at $8.00 this morning. The intraday high was $7.96 and our first target to take profits was hit at $7.80. Please note our new stop loss at $7.19. I am not suggesting new positions at this time. BSX might see a correction toward its 10-dma. 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

03/09 New stop loss @ 7.19
03/09 1st Target Hit (+8.0%), Option @ $0.88 (+100%)

chart:

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


Citigroup Inc. - C - close: 4.65 change: +0.01

Stop Loss: 4.47
Target(s): 4.95, 5.40
Current Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
03/09 update: Citigroup opened at $4.67 and spent the session consolidating sideways. There is no change from my Tuesday night comments. Readers can open positions now or look for a potential dip into the $4.55-4.50 zone as a bullish entry point.

Small Bullish Positions

Current Position: Long Citigroup stock @ $4.67

- or -

Long the May $4.50 calls (C1121E4.5) Entry @ $0.32

Entry on March 9 at $ 4.67
Earnings Date 04/18/11 (unconfirmed)
Average Daily Volume: 460 million
Listed on March 8th, 2010


Cabot Microelectronics - CCMP - close: 48.39 change: -0.78

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

Comments:
03/09 update: CCMP's bounce from support near $48 didn't make it very far. 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: 30.91 change: +0.08

Stop Loss: 28.99
Target(s): 34.85, 38.00
Current Gain/Loss: + 1.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: It was a relatively quiet day for GIL. The stock consolidated under short-term resistance near $31.00. Readers can still wait to buy dips near $30 or wait for a breakout past the highs near $32.33.

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

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: 51.66 change: -0.45

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:
03/09 update: Traders bought the dip in INTU near $51.00 again. Unfortunately the stock acts like it's about to breakdown. We might see an entry point near $50.00 soon although there is a good chance that if INTU breaks down from its current trading range it will also trade under the $50.00 mark and stop us out. More aggressive traders could widen their stop loss. A lot of the short-term technicals are starting to turn bearish on INTU. No new positions at this time.

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: 45.70 change: -0.60

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:
03/09 update: JOSB's bounce from the bottom of its trading range is losing steam too. Shares are poised to retest support near $45.00 again. Nimble traders may want to buy a dip near $45 or wait for the bounce gain.

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: 30.14 change: +0.46

Stop Loss: 28.75
Target(s): 29.90, 31.50
Current Gain/Loss: + 6.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Healthcare stocks continue to perform well as investors look for safe haven trades. LNCR outperformed with a +1.5% gain and a breakout over round-number resistance at $30.00. I am raising our stop loss to $28.75.

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

03/09 New stop loss @ 28.75
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


Omnicom Group Inc. - OMC - close: 49.38 change: +0.07

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: -1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: It was another quiet day for OMC but traders did buy the dip this morning. I remain cautious here. No 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: 43.64 change: +0.11

Stop Loss: 42.65
Target(s): 49.75
Current Gain/Loss: - 3.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: There is nothing new to report on for SIG. The stock is consolidating sideways near support at $43.00. 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


Wyndham Worldwide - WYN - close: 31.58 change: +0.06

Stop Loss: 29.90
Target(s): 34.50, 37.50
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: There is no change from my prior comments. WYN spent the day moving sideways. 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: 44.70 change: -0.77

Stop Loss: 43.95
Target(s): 49.80, 53.50
Current Gain/Loss: - 3.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/09 update: Uh-oh! Our ZOLL play could be in trouble. The stock has closed under its early March lows. Readers may want to consider an early exit now to cut their losses. I am not suggesting new bullish positions. If ZOLL doesn't rebound quickly the newsletter might exit early.

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


CLOSED BULLISH PLAYS

Maxim Integrated Products - MXIM - close: 25.76 change: -1.03

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:
03/09 update: Semiconductor stocks were hammered on Wednesday. The SOX index lost -3%. The most obvious culprit was TXN's mid-quarter update last night. TXN narrowed its guidance and evidently investors were unhappy with the news. TXN fell -3.1% and drug the rest of the chip stocks down with it. MXIM really underperformed with a -3.8% loss. Shares broke support near $26. and its 50-dma. Our stop loss was hit at $25.95.

Closed Position: Long MXIM stock @ $27.68, Exit @ $25.95 (-6.2%)

- or -

April $30 calls (MXIM1116D30) Entry @ $0.35, Exit @ $0.07 (-80%)

chart:

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


Sony Corp. - SNE - close: 34.99 change: -0.33

Stop Loss: 34.80
Target(s): 39.90, 43.50
Current Gain/Loss: - 5.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/09 update: I could not find any reasons behind the weakness in SNE today. The Japanese NIKKEI index actually rallied on Wednesday. The yen currency did not see any big moves. You could blame the morning spike in oil but that quickly faded. Whatever the cause, shares of SNE gapped open lower at $34.99 and quickly hit our stop at $34.80.

Closed Position: long SNE stock @ $36.72, Exit @ 34.80 (-5.2%)

- or -

April $38 calls (SNE1116D38) Entry @ $0.85, Exit @ 0.16 (-81%)

chart:

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