Apple Inc. - AAPL - cls: 140.77 change: -0.15 stop: 133.69
The action in AAPL today should make you cautious. The stock under performed the rally yesterday and shares under performed again today. There was a minor gap higher at the open but after trading sideways all day AAPL spiked lower late in the session before bouncing from the $139.40 region. This is not the sort of bullish follow through we should be seeing on top of yesterday's breakout past $140. The trend is still bullish but momentum indicators are starting to suggest problems ahead. More conservative readers may still want to consider a tighter stop loss. We have two targets. Our first, more conservative target is the $144.75-145.00 range. Our second, more aggressive target is the $149.00-150.00 range. We do have a very wide (aggressive) stop loss because the markets and AAPL have been so volatile. The P&F chart is still bullish with a $180 target. We do not want to hold over the mid October earnings report.
Picked on September 17 at $140.25
Broadcom - BRCM - cls: 36.09 change: -0.22 stop: 33.95
BRCM also under performed the market today. Shares traded toward resistance near $37.00 and then reversed lower. We warned readers that the $37 level would probably be resistance and more conservative traders may want to wait for BRCM to trade over $37.00 before considering new bullish positions. A bounce from here near $36.00 or a rebound on a test of the $35.00 level could be used as alternative entry points. Our target is the $39.85-40.00 range. The Point & Figure chart is bullish with a $49 target.
Picked on September 12 at $ 35.85
Citigroup - C - clos: 48.27 change: -0.10 stop: 44.49
Shares of C experienced some minor profit taking after yesterday's big gain. The stock hit the $49.00 level this morning and then turned south. Yet traders bought the dip near its 50-dma around $47.75. Our initial target is the $49.85-50.00 range but we might decide later to add a more aggressive target at the 200-dma.
Picked on September 16 at $ 46.64
Intl. Bus. Mach.- IBM - cls: 116.67 chg: +0.04 stop: 113.90
IBM did not see much follow through higher today but the overall trend still looks bullish. We would only suggest new positions here if you believe the market rally will continue and that IBM can push past resistance near $119-120. The stock has already hit our $118-120 target range. Our second, more-aggressive target is the $124.00-125.00 zone. FYI: The Point & Figure is very bullish with a $177 target.
Picked on August 26 at $113.24
Stryker - SYK - cls: 68.68 change: +0.50 stop: 65.90
SYK is still rebounding. We don't see any changes from our Tuesday comments. More aggressive traders might want to consider new positions on SYK right here. We are going to stick to our plan and wait for a new relative high. We're suggesting readers use a trigger to buy calls at $70.65. If triggered at $70.65 our target is the $74.90-75.00 range. Given the length of SYK's consolidation we would actually aim higher, maybe the $77.50-80.00 range, but we don't have much time and plan to exit ahead of the mid October earnings report. The P&F chart is bullish with an $83 target.
Picked on September xx at $ xx.xx <-- see TRIGGER
Thornburg Mtg - TMA - cls: 13.50 chg: +0.04 stop: 10.90
The mortgage lenders are still under performing. TMA displayed some strength this morning but it quickly faded. This may turn out to be a more aggressive play and readers will want to consider a tighter stop loss. We have two targets for TMA. Our first target is the $16.25-16.50 zone. Our second target is the $17.50-19.00 range. The P&F chart has reversed into a new buy signal with a $19.50 target. We do not want to hold over the mid October earnings report.
Picked on September 16 at $ 13.63
(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)
AutoZone - AZO - cls: 114.54 change: +1.42 stop: n/a
Shares of AZO were upgraded to a "strong buy" this morning. The news pushed shares higher at the open and the stock hit an intraday high of $117.09. We're quickly running out of time with the September strikes and readers may want to exit early to try and salvage some capital. We are adjusting our targets to breakeven. We listed two strangles. The first strangle was with the September $115 calls (AZO-IC) and the September $105 puts (AZO-UA) with an estimated cost of $2.50. We want to sell if either option hits $2.50 or higher. Our second combo suggested the September $120 calls (AZO-ID) and the September $100 puts (AZO-UT) with an estimated cost of $0.95. We would sell if either option hits $0.95.
Picked on September 16 at $109.90
Bear Stearns - BSC - cls: 115.64 chg: -3.56 stop: n/a
A negative earnings report from Morgan Stanley (MS) prompted some profit taking in BSC. The stock lost almost 3% today but not before hitting a new relative high at $122 this morning. Tomorrow is the big day for BSC. Earnings for BSC are due out on September 20th before the market open. Wall Street expects a profit of $1.98 a share. We're not suggesting new positions at this time. Currently our strangle involves the October $115 call (BSC-JC) and the October $95 put (BVD-VS). Our estimated cost was $9.50 and we want to sell if either option hits $14.00 or more. The company is expected to report earnings on September 20th. This should be considered a more aggressive play.
FYI: Good news! Last week we switched our strangle from September strikes to October strikes due to a move in BSC's earnings report date. The call side of our September strangle actually hit our target this morning. The options we suggested were the Sep. $115 calls and Sep. $95 puts. Our estimated cost was $4.40. We wanted to sell if either option hit $7.85. The September $115 calls hit an intraday high of $8.00 today.
Picked on September 09 at $105.37
Diamonds - DIA - cls: 138.16 chg: +0.81 stop: n/a
The market continues to rally but time is running away from us with these September options. Traders might want to consider an early exit and salvage some capital here. We're not suggesting new plays at this time. Our DIA strangle play suggested using the September $137 call (DAZ-IG) and the September $127 put (DAW-UW) with an estimated cost of $2.05. We want to sell if either option rises to $3.10 or more. We have two trading days left before September options expire. FYI: The September $137 calls traded to an intraday high of $1.95 today.
Picked on August 30 at $132.57
Dow Jones Industrial Avg. - DJX - cls: 138.16 chg: +0.77 stop: n/a
The DJIA and DJX continue to march higher. The 1/100th version of the DJIA is the DJX. We're not suggesting new positions after the Fed meeting tomorrow. We listed two separate strategies. Our September strangle suggested the September $137 calls (DJY-IG) and the September $132 puts (DJW-UB) with an estimated cost of $1.25. We want to sell if either option hits $2.00. Our October strangle suggested the October $137 calls (DJY-JG) and the October $132 puts (DJW-VB) with an estimated cost of $4.75. We want to sell if either option hits $6.75. FYI: The September $137 calls hit an intraday high of $1.70.
Picked on September 16 at $134.43
Lehman Brothers - LEH - cls: 64.11 chg: -0.38 stop: n/a
After yesterday's 10% gain LEH experienced some profit taking but not before spiking to an intraday high of $66.98. The September $65 call spiked to an intraday high of $2.10 but we were aiming for $2.50. Considering our time left we're adjusting our target to $1.95. More conservative traders might want to get out around breakeven. We're not suggesting new positions at this time. This is an aggressive play since the September options expire in three days. We suggested the September $65 calls (LES-IM) and the September $55 puts (LES-UK). Our estimated cost was $1.55.
Picked on September 16 at $ 59.50
S&P 100 Index - OEX - cls: 713.53 chg: + 3.45 stop: n/a
We only have two days left on the September options so readers might want to get conservative with their targets. We've been aiming for $19.50 but the September 700 calls (OEX-IT) hit a high of $18.30 today. We're not suggesting new positions at this time. Our strangle strategy suggested using the September 700 call (OEZ-IT) and the September 660 put (OEY-UL) with an estimated cost of $14.30. We are adjusting our target to sell if either option hits $19.50 or more.
Picked on August 30 at $680.46
Financial SPDR - XLF - cls: 35.15 chg: +0.22 stop: n/a
Financial stocks continued to rally and the XLF hit an intraday high at $35.67 before running into resistance at its 100-dma. We only have two days left so readers might want to adjust their targets to breakeven. We're not suggesting new positions at this time. We were aggressive and suggested the September options, which expire in two days. Our suggested strangle used the September $35 calls (XLF-II) and the September $33 puts (XLF-UG) with an estimated cost of $0.65. We want to sell if either option hits $0.95 or higher. FYI: The $35 calls hit $0.70 intraday.
Picked on September 16 at $ 33.98
Manitowoc - MTW - cls: 44.09 change: +2.24 stop: 37.48
Target achieved. The rally in MTW continued. Shares spiked higher this morning and hit an intraday high of $44.96. Our target was the $44.00-45.00 range. The action in the stock looks like there was news but we can't find anything in the news that might account for today's 5.3% gain.
Picked on September 05 at $ 40.13 *split adjusted