Editor's Note:

Stocks have continued to show weakness. The S&P 500 is now testing the neckline (support) on its bearish head-and-shoulders pattern. A breakdown from here would be extremely bearish and forecast a drop toward the 810-800 zone. More conservative traders may want to consider exiting any (and all) bullish positions right now to preserve capital.


CALL Play Updates

Alcon Inc. - ACL - close: 115.36 change: -0.31 stop: 113.75

ACL is still clinging to the $115.00 level but it the S&P 500 breaks down we should be stopped out pretty quickly. I am not suggesting new positions at this time. Our first target is $119.90. Our second target is $124.50.

Picked on     June 25 at $115.25 *triggered    
Change since picked:      + 0.11
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       688 thousand 
Listed on  June 24, 2009         


Becton Dickinson - BDX - close: 69.41 change: -0.92 stop: 68.70 *new*

The market's widespread weakness is very worrisome. More conservative traders may want to abandon ship right here. I'm raising our stop loss to $68.70, just under Monday's low. I am not suggesting new positions at this time.

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:      - 1.10
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on  June 18, 2009         


Covance Inc. - CVD - close: 47.16 change: -0.91 stop: 46.45 *new*

I think more conservative traders may want to exit early here. I'm not suggesting new positions. We are going to raise our stop loss to $46.45. 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:      - 1.12
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       654 thousand
Listed on  June 25, 2009         


Quest Diagnostic - DGX - close: 55.87 chg: -0.03 stop: 53.85 *new*

I am concerned about DGX. The stock tried to rally and failed. The move this morning was enough to fill the gap down from Thursday. More conservative traders may want to exit early. I'm raising our stop loss to $53.85. We do not want to open new positions at this time.

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:      + 1.59
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on  June 24, 2009         


Express Scripts - ESRX - close: 66.99 change: +0.34 stop: 64.75 *new*

The relative strength in ESRX is encouraging but I doubt it will hold if the S&P 500 really breaks the 880 level. I'm not suggesting new positions and I'm raising the stop loss to $64.75. Our first target is $69.90. Our second target is $74.75.

Picked on     June 22 at $ 65.25
Change since picked:      + 1.74
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       3.7 million  
Listed on  June 18, 2009         


Edwards Lifesciences - EW - close: 65.28 change: -0.84 stop: 64.85

I'm saying the same thing here that I'm saying in most of the bullish call plays. More conservative traders will want to seriously consider an early exit right now. If the S&P 500 breaks down then EW will most likely follow. Shares of EW are already on the verge of breaking down form a very large bearish-wedge pattern. Nimble traders may want to use our stop loss at $64.85 as an entry point to buy puts.

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:      - 2.75
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       369 thousand 
Listed on  June 30, 2009         


Euro Currency ETF - FXE - close: 139.11 chg: -0.70 stop: 137.90

I believe the U.S. dollar will continue to weaken for weeks and months to come but short-term the dollar is showing strength. The action in the FXE over the last few days is starting to look like a short-term bearish breakdown. Today looks like a failed rally at the $140 level. I am now suggesting new bullish positions at this time.

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:      - 1.65
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Lorillard Inc. - LO - close: 68.23 change: -1.45 stop: 67.30

LO continues to churn under resistance at $70.00. 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         


Visa - V - close: 59.71 change: -0.96 stop: xx.xx

*Strategy Change*

As expected shares of Visa have continued to slip. The plan was to buy calls at $58.00 because the stock should have support at $57.50. However, I want to make it very clear that if the S&P 500 breaks down under 880 there is no guarantee that Visa will hold support at 57.50. At this time I am removing our trigger. We will not open positions in Visa at this time. We'll wait and watch and see what happens over the next day or two. If V can bounce from $57.50 then great. Nimble traders may want to jump in on the bounce with a very tight stop.

Effectively we're moving V to an active watch list and we'll be looking for an entry point but for now we have no entry point.

Picked on     July xx at $ xx.xx <-- Wait for a new entry point
Change since picked:      + 0.00
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       7.7 million  
Listed on  July 04, 2009         


PUT Play Updates

Agrium Inc. - AGU - close: 37.47 change: -1.64 stop: 41.65

AGU has accelerated lower and posted a 4.1% loss closing at new two-month lows. 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.

Picked on     July 06 at $ 38.75 *triggered     
Change since picked:      - 1.28
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       4.2 million  
Listed on  June 30, 2009         


Autozone Inc. - AZO - close: 150.74 change: -2.28 stop: 155.25

There is no change from my previous comments. I'm still suggesting new bearish positions. More conservative traders may want to wait for a drop under $148 to open positions. Our first target is $141.00. Our second target is $132.50.

Picked on     July 04 at $150.00
Change since picked:      + 0.74
Earnings Date           09/22/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  July 04, 2009         


Core Labs - CLB - close: 81.45 change: -0.24 stop: 88.30

Oil service stocks continue to weaken as crude oil futures slip lower. CLB only lost 0.2% but the bounce rolled over under $83.00. I'm not suggesting new put positions at these levels. 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:      - 1.71
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       232 thousand 
Listed on  July 01, 2009         


Compass Minerals Intl. - CMP - cls: 52.56 change: -1.26 stop: 56.26

The oversold bounce in CMP failed near $54.00 and its simple 200-dma. I am suggesting new put positions at this time. Our first target is $47.50. Our second target is $43.00.

Picked on     July 06 at $ 52.25 *triggered     
Change since picked:      + 0.31
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009         


Costco - COST - close: 44.54 change: -1.16 stop: 46.10

Yesterday's bullish reversal-looking bouncing in COST has failed. More aggressive traders may want to buy puts now. Our plan is to buy puts at $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: 45.00 change: -0.94 stop: 53.01

FCX is giving us another chance to take profits near $45.00 if you haven't done so already. I am not suggesting new positions at these levels. Our second target is $41.00.

Picked on     July 04 at $ 47.92 /gap down entry
                               /originally listed at $49.72
Change since picked:      - 2.92
                               /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: 64.01 change: -2.01 stop: 68.55 *new*

Shares of LLL are accelerating lower. The stock gave up another 3% on above average volume. I am lowering our stop loss to $68.55. 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:      - 7.74
                               /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: 27.34 change: -1.52 stop: 30.35

So far so good. MET gave up more than 5.2% today and closed at new six-week lows. Keep a wary eye on the 100-dma, which might be support. Our first target is $25.25. Our second target is $21.75.

Picked on     July 04 at $ 28.04
Change since picked:      - 0.70
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       7.4 million  
Listed on  July 04, 2009         


NII Holdings - NIHD - close: 18.45 change: -0.38 stop: 20.10

NIHD lost 2% and produced another lower high as shares fade the 200-dma. I would still consider new positions at this time. Our first target is $16.15.

Picked on     July 04 at $ 18.61
Change since picked:      - 0.16
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       2.9 million  
Listed on  July 04, 2009         


United Parcel Serv. - UPS - close: 47.72 change: -1.42 stop: 51.55

The transports reversed yesterday's gains and sank under short-term support. UPS followed suit and gave up 2.8%.

Our first target to take profits is $45.50. I am setting a secondary target at $43.00. We do not want to hold over the late July earnings report.

Picked on     June 26 at $ 49.50 *triggered     
Change since picked:      - 1.78
Earnings Date           07/23/09 (confirmed)
Average Daily Volume =       5.2 million  
Listed on  June 17, 2009         


Weyerhaeuser - WY - close: 27.86 change: -2.13 stop: 31.51

Investors were unhappy to hear the news that WY was slashing its quarterly dividend from 25 cents to 5 cents. The stock gapped open lower and lost more than 7% by the closing bell. 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:      - 1.65
Earnings Date           07/31/09 (unconfirmed)
Average Daily Volume =       2.1 million  
Listed on  July 04, 2009         


Wynn Resorts - WYNN - close: 30.75 change: -1.94 stop: 37.65

Readers may want to start taking profits in our WYNN put play right now. Shares lost 5.9% and broke down under their 100-dma. Our first target is officially at $30.25 but traders may want to start taking money off the table early. Our second target is $26.00.

Picked on     June 22 at $ 34.28
Change since picked:      - 3.53
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 22, 2009         


CLOSED BULLISH PLAYS

Bunge Limited - BG - close: 56.08 change: -2.88 stop: 58.49

Our bullish play on BG never opened. The stock never made it past resistance near $62.00. Our trigger to buy calls was at $62.55. The stock has now broken its bullish trend. I would expect a bounce from the 100-dma, where it's at right now, but we can use the bounce as an opportunity for bearish plays. The $60-62 zone should be new overhead resistance.

Chart:

Picked on     June xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00             *never opened*
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.7 million  
Listed on  June 27, 2009         


Millicom Intl. - MICC - close: 56.27 change: -0.80 stop: 53.95

I'm suggesting an early exit in MICC. If the S&P 500 breaks down the European stocks are going to accelerate to the downside even faster. Exit any MICC bullish positions and we can watch it for a better entry point down the road.

Chart:

Picked on     June 25 at $ 56.37
Change since picked:      - 0.10<-- early exit (- <1%)
Earnings Date           07/21/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  June 25, 2009