NEW DIRECTIONAL CALL PLAYS

Apple Inc. - AAPL - close: 190.01 change: +3.98 stop: 184.75

Why We Like It:
AAPL is breaking out from a three-week consolidation and looks ready to lead the market higher. The next level of significant resistance is the $200 mark and AAPL could easily produce pre-earnings run up to this psychological level.

I'm suggesting bullish positions now or on a dip in the $187-185 zone. We'll use a stop loss at $184.75. Our first target to take profits (I'd exit 2/3rds of our position) is at $199.50. We will cautiously set a secondary target at $210. The P&F chart is currently forecasting a $231 target.

FYI: We will exit ahead of the October 19th earnings report. October options expire after Friday October 16th. Aggressive traders could play the October calls and I'd use the $190 strike. The rest of us will want to consider November calls and I'd use the $200 strike.

Suggested Options:
October or November calls. If you play October be sure to exit before they expire.

BUY CALL OCT 190*APV-JR open interest=28733 current ask $3.95
BUY CALL OCT 200 APV-JT open interest=33556 current ask $0.91

BUY CALL NOV 190 APV-KR open interest=4475 current ask $10.10
BUY CALL NOV 200*APV-KT open interest=10860 current ask $5.95

Annotated Chart:

Picked on   October 06 at $190.01
Change since picked:       + 0.00
Earnings Date            10/19/09 (confirmed)
Average Daily Volume =       17.8 million  
Listed on   October 06, 2009         


Express Scripts - ESRX - close: 78.04 change: +1.17 stop: 74.90

Why We Like It:
ESRX is bouncing from support near $75.00 and technical indicators are turning positive again. Shares are already inside a long-term up trend from their March lows. The $80.00 level is resistance but I strongly suspect that with a positive market ESRX will breakout to new highs. I'm suggesting bullish positions now. We'll use a stop under support at $75.00. Our first target is $82.50. Our second target is $84.95.

Suggested Options:
I am suggesting the November calls. My preference is the $80 strike.

BUY CALL NOV 80.00 XTQ-KP open interest=1723 current ask $3.10

Annotated Chart:

Picked on   October 06 at $ 78.04
Change since picked:       + 0.00
Earnings Date            10/28/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 06, 2009         


Gold ETF - GLD - close: 102.28 change: +2.46 stop: 97.40

Why We Like It:
Gold has broken out to new all-time highs and the GLD gold ETF has finally broken out past resistance at the $100 mark. I would prefer to buy call son a dip near $100.00 but we may not get that opportunity so I'm suggesting small positions now (1/2 to 1/4 your normal size).

The weekly chart has an inverse head-and-shoulders pattern that is forecasting a huge upward target around $130ish but that could take several months to be achieved. Short-term (several weeks) I'm looking for a move to $109.90 as our first target. We'll set a second target soon.

Suggested Options:
I'm suggesting the November and January strikes. My preference is the NOV 105s and the 2010 January 110s.

BUY CALL NOV 105 GCZ-KA open interest=3012 current ask $2.45

BUY CALL JAN 110 GCZ-AF open interest=67133 current ask $3.00

Annotated Chart:

Picked on   October 06 at $102.28
Change since picked:       + 0.00
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009