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Play Updates

Two Plays Triggered Today

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CALL Play Updates

Alcon Inc - ACL - close: 86.10 change: +0.27 stop: 83.75

ACL is still trading sideways but if you look at the intraday chart the action is starting to turn bullish. Aggressive traders might want to jump in here and consider a tight stop under today's low (84.80). Otherwise lets stick to our weekend comments and wait for a rise over $87.00 as our next bullish entry point. If ACL can push past the $89-90 zone it would be a bullish breakout past the neckline of an inverse head-and-shoulders pattern with a potential bullish target of $110 or more. This coincides with the Point & Figure chart's bullish target of $110. Our upside target is $99.00.

Picked on December 22 at $ 85.25 *triggered     
Change since picked:      + 0.85
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       840 thousand 


Caterpillar - CAT - close: 42.34 change: -0.38 stop: 39.95

We remain cautious on CAT and would not open new positions at this time. The stock was higher this morning but gave into market weakness only to rebound late in the day. More conservative traders could raise their stops toward last week's low around $40.60. We're going to keep our stop under clearly defined support at $40.00 for now. 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:      - 1.46
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =      13.4 million  


Energizer Holdings - ENR - close: 50.16 change: +0.56 stop: 46.99

ENR displayed some relative strength. The early morning rally attempt at $50.00 failed but ENR did not see the same midday sell-off that the market did. Shares slowly ground their way higher and eventually broke through resistance this afternoon. Our suggested entry point to buy calls was at $50.05 so the play is now open.

We have two targets. Our first target is $54.50. Our second target is $59.00. The Point & Figure chart is already bullish with a $68.00 target.

Chart:
ENR

Picked on December 29 at $ 50.05 *triggered     
Change since picked:      + 0.11
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       798 thousand 


Lockheed Martin - LMT - close: 80.54 change: -0.57 stop: 77.45

The weakness in the markets worked for us with LMT today. The stock dipped to $79.86 and bounced. Our suggested entry point was to buy calls on a pull back into the $80.00-79.00 zone. The play is now open.

Our target is $84.90. More aggressive traders may want to aim higher. FYI: The P&F chart is bullish with a $90 target.

Chart:
LMT

Picked on December 29 at $ 80.00 *triggered     
Change since picked:      + 0.54
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       2.8 million  


Sunoco Inc - SUN - close: 42.49 change: -0.04 stop: 39.85

Rising tensions in the Middle East sent oil and natural gas futures higher. This lifted the energy sector and SUN, a refiner, rallied to $43.99 intraday. The trend is up but we would wait for another dip or bounce in the $40.75-40.00 zone before considering new bullish positions.

The P&F chart is very bullish with a $54 target. Our target is $47.00.

Picked on December 20 at $ 42.30
Change since picked:      + 0.19
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       4.2 million  


PUT Play Updates

AvalonBay - AVB - close: 55.15 change: -1.89 stop: 61.65 *new*

Target achieved. AVB sank to $54.00 intraday and our first target to take profits was $55.10. The stock managed to recover off its lows and settle with a 3.3% loss. We are adjusting the stop loss down to $61.65. More conservative traders may want to use a tighter stop near $60.00 instead. We're not suggesting new bearish positions at this time but another failed rally in the $59-60 zone would be an entry point to buy puts.

We have two targets. Our first target is $55.10. Our second target is $50.55. FYI: The Point & Figure chart currently points to $50.00.

Chart:
AVB

Picked on December 24 at $ 57.98 *gap down entry
Change since picked:      - 2.83
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       3.5 million  


Avon Products - AVP - close: 22.50 change: -0.18 stop: 24.05

AVP is still churning sideways but it's doing so with a bearish trend of lower highs. This remains an entry point to buy puts. I don't see any changes from our weekend comments.

More conservative traders may want to wait for a drop under $22.00 before initiating positions. The simple 50-dma overhead at $23.50 offers technical resistance and more conservative traders may want to tighten their stops closer to $23.50.

We have two targets. Our first target is $20.25. Our second target is $18.60. FYI: The Point & Figure chart is bearish with an $11 target.

Picked on December 23 at $ 22.46
Change since picked:      + 0.04
Earnings Date           02/05/09 (unconfirmed)
Average Daily Volume =       4.6 million  


Franklin Resources - BEN - close: 59.49 change: +0.06 stop: 63.11

It was a relatively quiet day for BEN. The stock slipped to $57.84 and then bounced back to unchanged on the session. We are suggesting readers buy puts now but you could also look for a failed rally at $60.00 or under $61.50 as a new bearish entry point to buy puts.

More conservative traders may want to wait for a little more confirmation with a low under $57.40 as your entry. We have two targets. Our first target is $55.25. Our second target is the $50.50 mark since the $50.00 level could offer support.

Picked on December 27 at $ 59.64
Change since picked:      + 0.06
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       1.4 million  


Equinix Inc. - EQIX - close: 51.03 change: -1.27 stop: 52.75

EQIX fell toward the $50.00 level but support there did not break. I do expect that EQIX will break down through round-number support and we'll be ready.

Our suggested entry point to buy puts is $49.75. If triggered we have two targets. Our first target is $45.05. Our second target is $40.50. More aggressive traders may want to aim lower.

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           02/11/09 (unconfirmed)
Average Daily Volume =       990 thousand 


Capital One Financial - COF - close: 29.31 chg: -0.17 stop: 31.51

Shares of COF are still asleep. The stock looks poised to move lower and we would still consider put positions now. However, you could wait for a drop under $28.75 as an alternative entry point. We don't see any changes from our weekend comments.

Our first target is $25.50. Our second target will be a new relative low at $21.00. FYI: The P&F chart is bearish with a $17 target.

Picked on December 23 at $ 29.38 /gap higher entry
Change since picked:      - 0.07
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       8.5 million  


Google Inc. - GOOG - close: 297.42 change: -2.94 stop: 311.00

After 30 minutes of hugging the $300 level, shares of GOOG dropped sharply toward last week's lows around $290. The stock bounced and managed to end the day with a 1% loss. I don't see any changes from our weekend comments. If you don't want to buy puts here then look for a failed rally in the $300-305 zone. More conservative traders could wait for a drop under $290.00 to initiate positions. We're going to play with what is a very tight stop for GOOG at $311. If you really want to tighten your risk then try a stop around $307. Our first target is $281.00. Our second target is $265. More aggressive traders could aim for $250. The Point & Figure chart points to $252.

Picked on December 27 at $300.36
Change since picked:      - 2.94
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       5.4 million  


CLOSED BULLISH PLAYS

Research In Motion - RIMM - close: 38.81 change: -2.04 stop: 39.45

RIMM was a huge laggard for tech-related stocks today. Shares plunged right from the open and fell past the $40.00 level to end with a 5% loss. RIMM hit our stop loss at $39.45 closing the play. One idea to consider is some sort of neutral strategy like a straddle or a strangle if RIMM bounces back to $40.00 or tests the December lows near $35.00.

Chart:
RIMM

Picked on December 22 at $ 41.50 /stopped out 39.45
Change since picked:      - 2.69
Earnings Date           12/18/08 (confirmed)
Average Daily Volume =        25 million  


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