Editor's Note:
The market's major indices bounced back from the edge of the cliff on Friday. Gains were somewhat muted and left stocks in a precarious position. The larger trend is up but there was a lot of technical damage done last week and several technical indicators have rolled over into bearish signals. Investors will want to play defensively here. Keep your position size small. If you're trading options don't forget that March options expire in five trading days.

-James

Current Portfolio:


BULLISH Play Updates

ACI Worldwide Inc. - ACIW - close: 30.57 change: +0.16

Stop Loss: 27.80
Target(s): 33.00, 34.75
Current Gain/Loss: + 3.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: Friday was another quiet session for ACI. Traders bought the dip again at the rising 20-dma. I would consider small bullish positions here but if you do then consider a stop loss closer to the $30 level (maybe under $29.80). 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

chart:

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


Baxter Intl. - BAX - close: 52.60 change: +0.49

Stop Loss: 50.90
Target(s): 54.90, 57.50
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: BAX briefly traded under short-term support near $52.00 before rebounding. I remain cautious on the stock and would not launch new positions here. There is still a good chance BAX will test the $51 area.

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

chart:

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: 7.51 change: +0.07

Stop Loss: 7.19
Target(s): 7.80, 8.90
Current Gain/Loss: + 4.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: BSX delivered a bounce from very short-term support near $7.40. More conservative traders might want to raise their stop loss (maybe near the $7.35 area). 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

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: 4.57 change: +0.03

Stop Loss: 4.47
Target(s): 4.95, 5.40
Current Gain/Loss: - 2.1%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
03/12 update: Bingo! Just as we expected, shares of Citigroup dipped toward support near $4.50. Traders were ready and bought the dip. I would still consider new positions now but C does have a short-term trend of lower highs. Readers may want to wait for a rally or close over $4.65 or $4.70 before initiating positions.

Small Bullish Positions

Current Position: Long Citigroup stock @ $4.67

- or -

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

chart:

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


Gildan Activewear - GIL - close: 31.04 change: +0.56

Stop Loss: 28.99
Target(s): 34.85, 38.00
Current Gain/Loss: + 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: Hmm... GIL was showing relative strength on Friday with a +1.8% gain. I didn't see any headlines behind the move. The stock has broken some very short-term resistance. I am a little hesitant to open new positions here. More conservative traders might want to raise their stops toward the $29.50 or $29.90 levels to reduce their risks. Currently our stop is 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


Henry Schein Inc. - HSIC - close: 67.49 change: -0.42

Stop Loss: 67.75
Target(s): 74.75, 79.00
Current Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see trigger

Comments:
03/12 update: The situation does not look very good for HSIC. The stock appears to be in the process of breaking its bullish up trend. I want to give HSIC one more day to recover back above the $68 level. Otherwise we will drop it as a bullish candidate. Currently our trade is still unopened and we're waiting for a breakout over resistance at $70.00. Our trigger to initiate positions is at $70.25. If triggered our first target is $74.75. Our second, longer-term target is $79.00. FYI: HSIC does have options but the spreads are too wide.

Trigger @ 70.25

Suggested Position: Buy HSIC stock @ $70.25

chart:

Entry on March xxth at $ xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 530 thousand
Listed on March 9th, 2010


Jos. A Bank Clothiers Inc. - JOSB - close: 47.14 change: -0.08

Stop Loss: 44.75
Target(s): 49.85, 52.25
Current Gain/Loss: + 2.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/12 update: JOSB is hovering just under resistance at the $48.00 level. If you're looking for a new bullish entry point I would wait for a breakout past $48.00. Our targets are $49.85 and $52.25.

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

chart:

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: 29.73 change: -0.00

Stop Loss: 28.75
Target(s): 29.90, 31.50
Current Gain/Loss: + 4.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: There is nothing new to report on for LNCR. Shares closed unchanged on Friday after seeing an intraday rally fail under the $30.00 level. The overall trend remains higher but I am not suggesting new 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

03/09 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.

chart:

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: 49.46 change: +0.80

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: -1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: OMC erased Thursday's losses with a +1.6% gain on Friday. Traders bought the dip twice last week near the $48.30 mark. Friday's move also produced a bullish engulfing candlestick pattern but this needs to see some confirmation. No new positions at this time.

Current Position: Long OMC stock @ $50.04

- or -

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

chart:

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: 44.02 change: +0.16

Stop Loss: 42.65
Target(s): 49.75
Current Gain/Loss: - 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12 update: SIG is still hovering near support around $43 and its 50-dma. I remain cautious on SIG and would hesitate to open new bullish positions.

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.

chart:

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: 31.29 change: +0.20

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

Comments:
03/12 update: WYN managed a bounce on Friday. Shares filled the gap from Thursday morning and then stalled. Big picture the trend is up but I am a little hesitant to open new positions here.

Current Position: Long WYN stock @ $31.45

- or -

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

chart:

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


BEARISH Play Updates

Overseas Shipholding Group - OSG - close: 33.14 change: +1.13

Stop Loss: 34.25
Target(s): 27.75, 25.25
Current Gain/Loss: - 2.9%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below

Comments:
03/12 update: OSG opened higher with a gap up at $32.20 on Friday morning. Shares dipped back to $31.80 and then proceeded to rally toward its Wednesday highs. I would still consider new bearish positions here but readers might want to lower their stop loss closer to the $34.00 level. Currently our stop is at $34.25.

Our plan was to use small positions to limit our risk. We can add to our position when OSG breaks down under $31.40. The P&F chart is forecasting a $25 target. I am suggesting we set our exit targets at $27.75 and $25.25.

- Small Bearish Positions -

Current Position: Short OSG stock @ $32.20

- or -

Long the April $30 PUTS (OSG1116P30) Entry @ $0.75

chart:

Entry on March 11 at $32.20
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume: 705 thousand
Listed on March 10th, 2010


CLOSED BULLISH PLAYS

Arch Coal Inc. - ACI - close: 32.48 change: +0.33

Stop Loss: 31.95
Target(s): 39.50, 42.50
Current Gain/Loss: - 8.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
03/12 update: Coal stocks continued to sink on Friday morning and while ACI managed a bounce the stock broke support intraday. Shares actually gapped open lower at $31.67, under our stop loss of $31.95.

Closed Position: Long ACI stock @ 34.76, Exit @ 31.95 (-8.8%)

- or -

April $35 calls (ACI1116D35) Entry @ $1.75, Exit @ $0.61 (-65%)

03/11 Gap down/Stopped out @ 31.67 (-8.8%), Option @ -65%
03/03 ACI gapped open at $34.76 (trigger was $34.75)

chart:

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


Cabot Microelectronics - CCMP - close: 47.25 change: -0.18

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

Comments:
03/12 update: CCMP failed to recover from Thursday's sell-off. The breakdown under support at $48.00 is bearish. CCMP might find additional support at its 50-dma near $46.00 so readers may want to keep this stock on their watch list. Our plan was to buy a breakout over resistance at $50.00, which may not happen any time soon. I am dropping CCMP as a bullish candidate.

Our play never opened.

chart:

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