CALL Play Updates

Quest Diagnostic - DGX - close: 56.07 chg: +0.20 stop: 53.85

DGX showed some relative strength by trading sideways all day and avoiding the market's morning swoon. 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:      + 1.79
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on  June 24, 2009         


Express Scripts - ESRX - close: 66.66 change: -0.33 stop: 64.75

ESRX managed a sharp rebound near lunchtime and rallied off its 20-dma. 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:      + 1.41
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       3.7 million  
Listed on  June 18, 2009         


Edwards Lifesciences - EW - close: 66.09 change: +0.81 stop: 64.85

EW almost erased yesterday's losses. The stock actually gapped higher this morning before fading under its 10-dma. I couldn't find any news to account for the gap open and spike toward $66.50. I don't see any changes from my previous comments. I'm not suggesting new positions. Nimble traders may want to use our stop loss at $64.85 as an entry point switch directions and 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:      - 1.94
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       369 thousand 
Listed on  June 30, 2009         


Euro Currency ETF - FXE - close: 138.80 chg: -0.31 stop: 137.90

The FXE dipped toward its simple 50-dma and found very short-term support at $138.30. This currency ETF then produced a tiny little double bottom before rebounding higher this afternoon. I'm still not suggesting new positions at this time. Look for a new bounce over $140.00 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:      - 1.96
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

The idea that investors would buy more defensive, high-yielding names during a market pull back is not proving to be true in shares of LO. The stock has failed at resistance near $70.00 and under performed today. We're still waiting for a breakout over resistance.

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         


UltraShort SP& 500 - SDS - cls: 60.16 chg: +0.16 stop: 55.90

Our new call play on the SDS has been triggered. When the S&P 500 broke support the SDS broke through resistance and hit our trigger at $60.50. The late day reversal lower is a little bit concerning but we knew this was going to be a volatile trade, which is why we have a wide stop loss. Readers may want to watch for a dip or a bounce near $58.00 as a potential entry point.

I'm repeating myself but the SDS can be volatile and readers may want to trade half or less than their normal position size. Our first target to take profits is the $64.00 level. Our second target is the $67.00 level. My time frame is several weeks (toward August option expiration) but traders might want to buy September calls instead.

Chart:

Picked on     July 08 at $ 60.50 *triggered     
Change since picked:      - 0.34
Earnings Date           00/00/00
Average Daily Volume =        40 million  
Listed on  July 07, 2009         


Visa - V - close: 59.49 change: -0.22 stop: xx.xx

So far shares of Visa have done exactly what we expected. They broke support at $60.00 only to find support in the $58.00-57.50 zone and rebound. This looks like a bullish entry point but I want to take a wider view of the market. The S&P 500 broke support today and while it did bounce off its lows it did not reclaim that support. For now we have no entry point for Visa but I might be tempted to buy calls if Visa can traded above $62.00.

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: 36.73 change: -0.74 stop: 41.65

AGU continues to hit new lows and sank to $36.12 intraday. Our first target is $35.10. Our second target is $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:      - 2.02
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       4.2 million  
Listed on  June 30, 2009         


Core Labs - CLB - close: 82.60 change: +1.15 stop: 88.30

Caution! While oil continued to slide to new relative lows many of the oil stocks did not. The oil service sector actually managed a bounce, which is extremely surprising. CLB hit our first target at $80.25 but then rallied. Today's move has actually produced a bullish engulfing (reversal) pattern. Now it needs confirmation but bearish traders should be on the defensive. I am lowering our stop loss to $85.25. Our second target is $76.00.

Chart:

Picked on     July 01 at $ 83.16 /gap down entry
                              /originally listed at 84.53
Change since picked:      - 0.56
                              /1st target hit @ 80.25 (-3.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       232 thousand 
Listed on  July 01, 2009         


Compass Minerals Intl. - CMP - cls: 52.06 change: -0.50 stop: 56.26

CMP is still sinking but it produced a nice bounce off its lows. Watch for a failed rally near $54.00 as a new entry point. Our first target is $47.50. Our second target is $43.00.

Picked on     July 06 at $ 52.25 *triggered     
Change since picked:      - 0.19
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009         


Costco - COST - close: 46.02 change: +1.48 stop: 46.10

COST still can't make up its mind, up one day down the next, etc. The stock displayed impressive relative strength with a 3.3% gain. Tomorrow brings the monthly same-store sales numbers to retail could see some volatility tomorrow.

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: 45.10 change: +0.10 stop: 50.51 *new*

Has FCX bottomed? I don't think so but shares are bouncing from a test of technical support at the 100-dma. An analyst upgrade to a "buy" this morning doesn't hurt. A failed rally in the $48-50 zone can be used as a new entry point to buy puts. I'm lowering our stop loss to $50.51. Shares of Alcoa (AA) are up in afterhours action tonight following a better than expected earnings report. This could give FCX a lift tomorrow. FCX has already hit our first target at $45.25. 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: 63.97 change: -0.04 stop: 68.55

It was a quiet session for LLL, which traded sideways around the $64.00 level. We're not suggesting new positions at this time. 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:      - 7.78
                               /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: 26.90 change: -0.44 stop: 30.35

MET dipped under technical support at its 100-dma intraday but found short-term strength at the $26.00 level. I would watch for a bounce or failed rally near $29.00 as a new entry point. Our first target is $25.25. Our second target is $21.75.

Picked on     July 04 at $ 28.04
Change since picked:      - 1.14
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       7.4 million  
Listed on  July 04, 2009         


NII Holdings - NIHD - close: 18.36 change: -0.09 stop: 20.10

Wednesday was a mild session for NIHD with shares trading sideways in a narrow range. I don't see any changes from my prior comments but readers might want to watch for another failed rally at its 200-dma as a new entry point. 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         


Sears Holdings - SHLD - close: 59.01 change: -0.74 stop: 65.60

SHLD under performed the market and its peers in the retail sector. The RLX index actually gained 2% on the session thanks to strength in WMT and the one-dollar style stores. Nothing has changed from my previous comments on SHLD. I'm suggesting we open this play in two parts. Buy half your put position now and then buy the second half if the stock bounces back into the $62.00-64.00 zone. Our first target is $55.10. Our second target is $50.50. FYI: The market will get the monthly same-store retail sales numbers tomorrow. The retail sector could see some volatility.

Picked on     July 07 at $ 59.75
Change since picked:      - 0.74
Earnings Date           08/27/09 (unconfirmed)
Average Daily Volume =       1.2 million  
Listed on  July 07, 2009         


United Parcel Serv. - UPS - close: 47.88 change: +0.16 stop: 51.55

The transports rebounded from their lows and back to positive territory by the closing bell. UPS followed suit. The larger trend is bearish. Readers may want to watch for another failed rally near $50.00 or its 200-dma before launching new positions.

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:      - 1.62
Earnings Date           07/23/09 (confirmed)
Average Daily Volume =       5.2 million  
Listed on  June 17, 2009         


Weyerhaeuser - WY - close: 27.68 change: -0.18 stop: 31.51

WY hit new relative lows on strong volume today. I am not suggesting new positions at this time. 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:      - 1.83
Earnings Date           07/31/09 (unconfirmed)
Average Daily Volume =       2.1 million  
Listed on  July 04, 2009         


Wynn Resorts - WYNN - close: 29.91 change: -0.84 stop: 35.25 *new*

Target hit! WYNN has exceeded our first target to take profits at $30.25. While the close under $30.00 is very bearish I would be careful. The DJUSCA gambling index is down about 7 days in a row and testing technical support near its 100 and 200-dma. If the sector index bounces WYNN will probably follow.

I am lowering our stop loss to $35.25. Broken support near $34.00 should be new overhead resistance. Our second target is $26.00.

Chart:

Picked on     June 22 at $ 34.28
Change since picked:      - 4.37
                               /1st target hit @ 30.25 (-11.7%)
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 22, 2009         


CLOSED BULLISH PLAYS

Alcon Inc. - ACL - close: 112.50 change: -2.86 stop: 113.75

No one should be surprised that ACL has hit our stop. We've been raising the stop for just this occasion - the S&P 500 breaking support at 880. ACL hit our stop at $113.75 and made it to $110.28 before bouncing.

Chart:

Picked on     June 25 at $115.25 *triggered    
Change since picked:      - 1.50<-- stopped out @ 113.75 (-1.3%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       688 thousand 
Listed on  June 24, 2009         


Becton Dickinson - BDX - close: 68.67 change: -0.74 stop: 68.70

Yesterday's failed rally in BDX was worrisome and we raised our stop last night. The stock continued to slip and closed the play at $68.70. BDX eventually hit its 200-dma before trying to bounce this afternoon.

Chart:

Picked on     June 25 at $ 70.51 *triggered     
Change since picked:      - 1.81<-- stopped @ 68.70 (-2.5%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on  June 18, 2009         


Covance Inc. - CVD - close: 46.44 change: -0.72 stop: 46.45

We also raised our stop on CVD yesterday on concerns the S&P 500 would break support. The stock dipped to its 200-dma and broke support at $46.00 before trimming its losses. Our play was stopped at $46.45.

Chart:

Picked on     June 25 at $ 48.28
Change since picked:      - 1.83<-- stopped out @ 46.45 (-3.7%)
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       654 thousand
Listed on  June 25, 2009         


CLOSED BEARISH PLAYS

Autozone Inc. - AZO - close: 155.33 change: +4.59 stop: 155.25

AZO does not want to cooperate. The recent failed rally and bear-flag style consolidation has been broken. The stock broke through resistance at $154.00 and traded past a handful of moving averages to hit our stop loss at $155.25. FYI: The P&F chart still points to a $134 target.

Chart:

Picked on     July 04 at $150.00
Change since picked:      + 5.25<-- stopped out @ 155.25 (+3.5%)
Earnings Date           09/22/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  July 04, 2009