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Play Updates

Two Targets Hit, The Rest Moving Sideways

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CALL Play Updates

Amazon.com - AMZN - close: 53.18 change: +0.55 stop: 48.24 *new*

AMZN almost hit our first target today. The stock rallied to $54.77 and we are aiming for $54.95. Shares pared their gains but did out perform the broader market. I would not be surprised to see a dip back toward the $52-51 zone before AMZN continues higher. We are raising the stop loss to $48.24.

Our first target is $54.95. Our second target is $59.50. More aggressive traders may want to aim for the 100-dma. FYI: The P&F chart is bullish with a $73 target.

Picked on December 13 at $ 51.25
Change since picked:      + 1.93
Earnings Date           01/28/09 (unconfirmed)
Average Daily Volume =      12.9 million  


Caterpillar - CAT - close: 44.65 change: +0.85 stop: 39.95

CAT continued to rally and managed to hit new relative highs over round-number resistance at $45.00 before trimming its gains. Bulls will note that CAT did out perform the S&P 500 today. If CAT does dip look for a pull back near $43.00 or $42.00 as a new entry point to buy calls.

Our target is $49.50. The Point & Figure chart is bullish with a $58 target.

Picked on December 16 at $ 43.80
Change since picked:      + 0.85
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =      13.4 million  


China Mobile Ltd. - CHL - close: 53.89 change: -1.33 stop: 51.90

After yesterday's big surge higher CHL hit some profit taking today. Overall we don't see any changes from our previous comments. If you have not taken profits yet I strongly suggest you do so now. Our secondary target is $57.00.

Note: I was unable to find an earnings date for CHL, which does raise our risk since we prefer to avoid holding over an earnings report.

Picked on December 03 at $ 47.11 /gap down entry
Change since picked:      + 6.78 /originally listed at $47.85
Earnings Date           00/00/08 (unconfirmed)
Average Daily Volume =       3.9 million  


Covance Inc. - CVD - close: 42.78 change: +1.78 stop: 38.75 *new*

CVD showed some relative strength today with a 4.3% gain and a breakout to new relative highs. Volume was strong on the rally, which is bullish. We are raising our stop loss to $38.75. We have two targets. Our first target is $46.00. Our second target is $49.50. Don't forget that CVD has a relatively high amount of short interest at 7% of the 62 million-share float.

Picked on December 15 at $ 41.55 *triggered     
Change since picked:      + 1.23
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       1.2 million  


Express Scripts - ESRX - close: 59.41 change: -1.95 stop: 56.95

ESRX took a step back today following yesterday's breakout from what appears to be a bull-flag pattern. The short-term trend is still bullish but ESRX has resistance near $61.50. Readers may want to wait and watch for a bounce near $58.00 before initiating new bullish positions. Our target is $64.00.

Picked on December 06 at $ 59.36 /gap higher entry 
Change since picked:      + 0.05 /originally listed at $58.58
Earnings Date           02/19/09 (unconfirmed)
Average Daily Volume =       3.1 million  


FTSE/Xinhau China Index - FXI - close: 30.76 chg: -0.41 stop: 28.65

The rally in FXI stalled today. We don't see any changes from our previous comments. Shares might dip back toward the bottom of its trading range of the 10-dma near $29.50. A bounce from its 10-dma could be used as a new entry point to buy calls. FXI has already hit our first target and we are now aiming for $32.50 just under the 100-dma.

Picked on December 03 at $ 26.27 /gap down entry point
Change since picked:      + 4.49 /originally listed at $27.25
Earnings Date           00/00/00
Average Daily Volume =      51.2 million  


Google Inc. - GOOG - close: 315.24 change: -10.04 stop: 299.90

GOOG delivered an impressive rally (or short squeeze) yesterday and gave most of it back today with a 3% drop. The stock is back under its 50-dma again and looks like it could be headed for the simple 10-dma near $305. Wait for a bounce before considering new bullish positions.

We have two strategies listed on GOOG. One is a directional call play with an exit target at $360.00.

Our second strategy is a naked put play where we sell the naked put and then buy it back for less and our target to exit the naked put play is $350. The suggested put to sell was the January $350 put (GGD-MJ).

Picked on December 13 at $315.76
Change since picked:      - 0.52
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       7.2 million  


Jacobs Engineering - JEC - close: 50.10 change: +1.16 stop: 44.95 *new*

Target achieved! JEC rallied to $51.75 and met resistance at its simple 100-dma. Our first target to take profits was the $51.00 mark. I hope readers took some money off the table. JEC could dip back toward $45.00 and still maintain its bullish trend. We're raising our stop loss to $44.95. More conservative traders will want to exit completely right here. Our second target will be $54.90. *Note - I want to reiterate that readers should definitely take some money off the table here. The more I look at JEC's technical indicators and the falling volume numbers the more I think it could see a sharp retracement.

Chart:
JEC

Picked on December 12 at $ 44.60 *gap down entry
Change since picked:      + 5.50
Earnings Date           01/21/09 (unconfirmed)
Average Daily Volume =       3.0 million  


Perini Corp. - PCR - close: 23.21 change: +0.85 stop: 19.95

PCR is another winner. The stock showed relative strength with a 3.8% gain. We don't see any changes from our prior comments on Tuesday night. We have two targets. Our first target is $24.90. Our second target is $27.00. PCR could be a short squeeze candidate. The most recent data listed short interest at more than 11% of the small 27.7 million-share float. The P&F chart is bullish with a $36 target.

Picked on December 16 at $ 22.36
Change since picked:      + 0.00
Earnings Date           02/26/09 (unconfirmed)
Average Daily Volume =       1.0 million  


NYSE Euronext - NYX - close: 29.10 change: -0.84 stop: 27.25

The NYX spent the entire session churning sideways in a narrow range. Odds are decent the stock will retest prior resistance at support near $28.00 so look for a dip there as a new entry point.

Our target is the $32.50 mark or the simple 100-dma (currently 33.04), whichever one the stock hits first. FYI: The P&F chart is bullish with a $43 target.

Picked on December 16 at $ 28.10 *triggered     
Change since picked:      + 1.84
Earnings Date           02/09/09 (unconfirmed)
Average Daily Volume =       5.8 million  


Texas Industries - TXI - close: 36.31 change: +1.06 stop: 31.25

TXI also out performed the S&P 500 today with a 3% gain. Unfortunately the rally stalled near its early December highs. I wouldn't be surprised to see another dip toward the 10-dma again (near $33.50). The stock is also a candidate for a short squeeze. The most recent data listed short interest at more than 20% of the very small 21 million-share float. We have two targets. Our first target is $39.50. Our second target is $43.00.

Picked on December 13 at $ 34.43
Change since picked:      + 1.88
Earnings Date           01/08/09 (unconfirmed)
Average Daily Volume =       745 thousand 


ExxonMobil - XOM - close: 81.06 change: -2.08 stop: 78.45

This is an amazing world we live in. OPEC announced it would cut production by 2.2 million barrels a day starting in January and crude oil went down on the news. Shares of XOM followed with a 2.5% decline. At this point I would wait for a bounce near $80.00 or maybe $79.00 before considering new bullish positions in XOM.

Our target is $89.50. There is some resistance at $85.00 but I would expect XOM to push through it. FYI: The P&F chart is bullish with a $98 target.

Picked on December 16 at $ 82.25 *triggered     
Change since picked:      - 1.19
Earnings Date           02/05/09 (unconfirmed)
Average Daily Volume =        56 million  


PUT Play Updates

*Currently we do not have any put play updates*


Strangle & Spread Play Updates

Ultra S&P500 ProShares - SSO - close: 26.64 change: -0.49 stop: n/a

The market struggled to breakout past its December highs. The S&P 500 traded sideways to down. The SSO failed to breakout past its 50-dma. We only have two days left before our December options expire.

We're not suggesting new strangles at this time.

Note: The SSO is an ultra-long ETF that typically moves twice the daily performance of the S&P 500 index.

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.

-December Strangle Details-
We suggested readers buy the December $30.00 call (SOJ-LD) and the December $20.00 put (SOJ-XT). Our estimated cost is $3.75. We want to sell if either option hits $6.00.

Picked on November 12 at $ 24.84
Change since picked:      + 1.80
Earnings Date           00/00/00
Average Daily Volume =       126 million  


CLOSED BULLISH PLAYS

Priceline.com - PCLN - close: 70.31 change: +2.91 stop: 59.75

Target achieved! PCLN continues to out perform the market. Shares hit an intraday high of $70.91. Our secondary target to exit was $69.90. Our play is closed but we would keep PCLN on a watch list to see if shares offer another entry down the road.

Chart:
PCLN

Picked on December 06 at $ 61.60 /gap open higher
Change since picked:      + 8.71 /originally listed at $60.46
Earnings Date           02/12/09 (unconfirmed)
Average Daily Volume =       1.8 million  


CLOSED STRANGLE & SPREAD PLAYS

SPDR GOLD Trust - GLD - close: 85.43 change: +0.97 stop: n/a

The U.S. dollar continued to plummet on Wednesday and that lifted gold prices. The GLD gapped open higher at $85.26 and rallied to almost $87 before trimming its gains. As of last night our plan was to exit at 10:30 a.m. if the December $75 call did not hit our target of $9.90. That wasn't a problem. The option (GVD-LW) opened at $10.10 and traded to $11.28 at its highs. -December Strangle-

Summary:
We suggested readers buy the December $75 call (GVD-LW) and the December $70 puts (GVD-XR). Our estimated cost was $6.30. We want to sell if either option hits $9.90.

Chart:
GLD

Picked on November 09 at $ 72.50
Change since picked:      +12.93
Earnings Date           00/00/00
Average Daily Volume =      19.3 million  


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