CALL Play Updates

Alcon Inc. - ACL - close: 115.67 change: -0.36 stop: 113.75 *new*

ACL temporarily dipped under support at $115.00 but the stock was rebounding higher into the close. While I'm cautious on the broader market this move in ACL looks like a new entry point to buy calls. The low was $113.90. I'm raising our stop loss to $113.75. Our first target is $119.90. Our second target is $124.50.

Picked on     June 25 at $115.25 *triggered    
Change since picked:      + 0.42
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       688 thousand 
Listed on  June 24, 2009         


Becton Dickinson - BDX - close: 70.33 change: +1.28 stop: 67.75

BDX displayed some relative strength with a bounce from its intraday low at $68.75. Shares closed up 1.8% and back above its exponential 200-dma and above the $70.00 mark. I'm saying the same thing I said in the ACL update. I'm worried about the broader market (S&P500) and think it will head lower but this looks like a new bullish entry point in BDX. More conservative traders may want to raise their stop loss toward today's low.

Our first target to take profits is $74.90. Our second target is $79.00. Currently the Point & Figure chart is bullish and forecasts an $86 target.

Picked on     June 25 at $ 70.51 *triggered     
Change since picked:      - 0.18
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on  June 18, 2009         


Bunge Limited - BG - close: 58.96 change: -1.11 stop: 58.49

I don't see any changes from my weekend comments. BG is still slipping lower. The stock is on the verge of breaking its 50-dma and its longer-term up trend. More aggressive traders might want to consider bearish plays on a breakdown under $57.00, under the 100-dma or the $55.00 level (depending on your level of risk). We're still waiting for a break higher with a trigger at $62.55.

If triggered at $62.55 our first target is $67.45. Our second target is $69.95. More aggressive traders may want to aim for the $74-75 zone but we plan to exit ahead of the late July earnings report.

Picked on     June xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.7 million  
Listed on  June 27, 2009         


Covance Inc. - CVD - close: 48.07 change: -0.43 stop: 45.90

The short-term action in CVD still looks a little bearish even though the bullish trend of higher lows is still in place. Traders need to decide... do you keep your stop loss under clearly defined support at $46.00 or do you adjust your stop for the bullish trend of higher lows. If you choose the trend of higher lows then you may want to raise your stop loss to $46.45ish or toward today's low near $46.86. I am not suggesting new bullish positions at this time. Our first target is $52.40. Our second target is $57.00 but we may run out of time.

Picked on     June 25 at $ 48.28
Change since picked:      - 0.21
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       654 thousand
Listed on  June 25, 2009         


Quest Diagnostic - DGX - close: 55.90 chg: +0.90 stop: 53.40

DGX delivered a bounce gaining 1.6% but I hesitate to open new positions at this time. Wait for a dip or a bounce near the $54.00 level before considering new call positions. Our first target to take profits is $58.25. Our second target is $59.90. More aggressive traders may want to aim higher. The Point & Figure chart has a new triple-top breakout buy signal with a $75 target. We do not want to hold over the late July earnings report.

Picked on     June 24 at $ 54.28
Change since picked:      + 1.62
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on  June 24, 2009         


Express Scripts - ESRX - close: 66.65 change: +0.40 stop: 63.75

ESRX also displayed some relative strength but the bounce was pretty meager. I would expect a dip back toward the $65.00 level, which should be support. More conservative traders might want to consider a stop loss closer to $65.00. Our first target is $69.90. Our second target is $74.75.

Picked on     June 22 at $ 65.25
Change since picked:      + 1.40
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       3.7 million  
Listed on  June 18, 2009         


Edwards Lifesciences - EW - close: 66.12 change: -0.00 stop: 64.85

EW closed unchanged on Monday, which is somewhat encouraging. Fine tuning our strategy a bit let's look for a bounce over $67.00 or a bounce from $65.00 as our next entry point. Bear in mind that if the S&P 500 really begins to breakdown I do not expect EW to hold the current up trend.

The Point & Figure chart is bullish with an $84.00 target. Our target is $74.00. We will plan to exit ahead of the July 20th earnings report.

Picked on     June 30 at $ 68.03
Change since picked:      - 1.91
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       369 thousand 
Listed on  June 30, 2009         


Euro Currency ETF - FXE - close: 139.81 chg: -0.19 stop: 137.90

Some strength in the U.S. dollar this morning sent the FXE lower but intraday the trend was higher following the morning gap down. Look for another rise past $140.00 as a new entry point to buy calls. Our first target is $144.50. Our second target is $148.50. The P&F chart is bullish with a $168 target.

Picked on     June 23 at $140.76
Change since picked:      - 0.95
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Lorillard Inc. - LO - close: 69.68 change: +1.73 stop: 67.30

Investors were turning more defensive this morning and shares of LO shot higher posting a 2.5% gain. Unfortunately resistance at $70.00 held strong. The intraday high was $70.05. We have a trigger to buy calls at $70.10. If triggered our first target is $74.00. Our second target is $76.75. FYI: The Point & Figure chart is very bullish and currently forecasts a $92 target.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on  July 01, 2009         


Millicom Intl. - MICC - close: 57.07 change: +0.53 stop: 53.95

Right on cue MICC dipped to $55.00 and traders bought the dip near its rising 50-dma. This looks like a new bullish entry point. More conservative traders may want to consider a stop loss closer to $55.00. Our first target is $59.95. Our second target is $64.50. We only have about two weeks before MICC's earnings so we may not reach the second target.

Picked on     June 25 at $ 56.37
Change since picked:      + 0.70
Earnings Date           07/21/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  June 25, 2009         


PUT Play Updates

Agrium Inc. - AGU - close: 39.11 change: -1.26 stop: 41.65

Our put play on AGU is now open. The stock slipped to $38.30 this morning. Our trigger to buy puts was at $38.75. I am adjusting our exit strategy. We want to take some profits at $35.10. We'll exit completely at $31.00.

FYI: Readers should note that AGU is trying a hostile takeover for CF Industries, which is itself trying a hostile takeover of Terra Industries.

Chart:

Picked on     July 06 at $ 38.75 *triggered     
Change since picked:      + 0.36
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       4.2 million  
Listed on  June 30, 2009         


Autozone Inc. - AZO - close: 153.02 change: +3.02 stop: 155.25

AZO displayed some relative strength with a sharp bounce off its lows this morning. Shares should have short-term resistance at $154.00 and then again near $155.00. The Point & Figure chart is forecasting a drop to $134. I'm suggesting bearish positions now with a stop at $155.25 or you can wait for the bounce to roll over before launching new positions. Our first target is $141.00. Our second target is $132.50.

Picked on     July 04 at $150.00
Change since picked:      + 3.02
Earnings Date           09/22/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  July 04, 2009         


Core Labs - CLB - close: 81.69 change: -1.11 stop: 88.30

Weakness in crude oil futures weighed heavily on the energy sector. Shares of CLB gapped open lower at $81.00 and traded sideways the rest of the session. CLB is arguably short-term oversold. Look for a bounce near $85.00 as a new entry point to buy puts. Our first target is $80.25. Our second target is $76.00. FYI: The P&F chart is bearish and forecasts a $71 target.

Picked on     July 01 at $ 83.16 /gap down entry
                              /originally listed at 84.53
Change since picked:      - 1.47
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       232 thousand 
Listed on  July 01, 2009         


Compass Minerals Intl. - CMP - cls: 53.82 change: -1.58 stop: 56.26

The morning sell-off in stocks saw CMP gapped open lower at $52.76 and dip to $52.25 before bouncing. Our trigger to buy puts just happened to be $52.25 so the play is now open. I would expect the bounce to continue so look for CMP to trade near $55.00 or even $55.00 (so that it fills the gap) and then open new put positions. Our first target is $47.50. Our second target is $43.00.

Chart:

Picked on     July 06 at $ 52.25 *triggered     
Change since picked:      + 1.57
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009         


Costco - COST - close: 45.70 change: +1.06 stop: 46.10

COST was showing some significant strength with a 2.3% gain and a bullish engulfing candlestick pattern. Fortunately we're still on the sidelines. Our plan is to buy puts with a breakdown under $44.00 (trigger 43.90). If triggered our target is $40.25.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           10/08/09 (unconfirmed)
Average Daily Volume =      4.75 million  
Listed on  July 04, 2009         


Freeport McMoran - FCX - close: 45.94 change: -3.78 stop: 53.01

Target achieved! FCX hit our first target at $45.25 a lot fast than expected. Unfortunately shares also gapped open lower this morning so our entry point wasn't $49.72 but $47.92 (that's not a typo). Shares should have short-term support at $45.00 so I'd expect a bounce now probably back toward $49.00, which is where we can use a failed rally to open new positions again. Our second target is $41.00.

Chart:

Picked on     July 04 at $ 47.92 /gap down entry
                               /originally listed at $49.72
Change since picked:      - 1.98
                               /1st target hit @ 45.25 (-5.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =        18 million  
Listed on  July 04, 2009         


L-3 Comm. - LLL - close: 66.02 change: +0.27 stop: 70.25 *new*

LLL hit another new relative low at $64.51 this morning. Shares were looking a little oversold so the bounce this afternoon is not surprising. Look for the bounce to reach the $68.00 level. I'm lowering our stop loss down to $70.25. LLL has already hit our first target at $66.00. Our second target is $61.00.

Picked on     June 16 at $ 71.75
Change since picked:      - 5.73
                               /1st target hit @ 66.00 (-8.0%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       976 thousand  
Listed on  June 16, 2009         


MetLife Inc. - MET - close: 28.86 change: +0.82 stop: 30.35

MET also managed a little bit of an oversold bounce after Thursday's sell-off. That's okay. My weekend comments suggested using a bounce into the $29.50-30.00 zone as a entry point to buy puts. Our first target is $25.25. Our second target is $21.75.

Picked on     July 04 at $ 28.04
Change since picked:      + 0.82
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       7.4 million  
Listed on  July 04, 2009         


NII Holdings - NIHD - close: 18.83 change: +0.22 stop: 20.10

Nothing has changed from our weekend comments on NIHD. I'm suggesting put positions now or on a bounce back toward the $19.50 region. Our first target is $16.15.

Picked on     July 04 at $ 18.61
Change since picked:      + 0.22
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       2.9 million  
Listed on  July 04, 2009         


United Parcel Serv. - UPS - close: 49.14 change: +0.54 stop: 51.55

The transports delivered a nice bounce off their intraday lows and UPS did the same. The stock could try bouncing back to its 200-dma again. Wait for the bounce to fail there and use it as a new entry point to buy puts.

Our first target to take profits is $45.50. We do not want to hold over the late July earnings report.

Picked on     June 26 at $ 49.50 *triggered     
Change since picked:      + 0.36
Earnings Date           07/23/09 (confirmed)
Average Daily Volume =       5.2 million  
Listed on  June 17, 2009         


Weyerhaeuser - WY - close: 29.99 change: +0.48 stop: 31.51

Lack of follow through on WY's breakdown from Thursday has me turning slightly more cautious. The trend is still very bearish but we have a relatively tight stop loss. I could see WY traded up towards $30.75 to fill the gap down on Thursday. Look for an entry point there (near 30.75) or wait for the bounce to roll over first and then enter positions. Our first target is $26.00. Our second target is $23.00. The P&F chart points to a $24 target.

Picked on     July 04 at $ 29.51
Change since picked:      + 0.48
Earnings Date           07/31/09 (unconfirmed)
Average Daily Volume =       2.1 million  
Listed on  July 04, 2009         


Wynn Resorts - WYNN - close: 32.69 change: -0.72 stop: 37.65

Gambling stocks were weak with the DJUSCA index losing 3.3%. WYNN was leading the way lower this morning with a drop to $31.82 but shares pared their losses by the close. The 100-dma might offer WYNN a little support. I'm not suggesting new positions at this time. Our first target is $30.25. Our second target is $26.00.

Picked on     June 22 at $ 34.28
Change since picked:      - 1.59
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 22, 2009