CALL Play Updates

Apple Inc. - AAPL - close: 175.16 change: +1.44 stop: 164.00

Another new high for the market and another new 2009 high for AAPL. Shares hit $175.65. I am not suggesting new bullish positions at this time. More conservative traders may want to raise their stop loss closer to $170.00. AAPL has already hit our first target at $174.00. Our second and final target is $179.00. FYI: The P&F chart points to a $231 target.

Picked on   August 26 at $166.50 *(small positions 1/2 to 1/4)
Change since picked:      + 8.66
                             /1st target hit @ 174.00 (+4.5%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =        14 million  
Listed on August 25, 2009         


Alcon Inc. - ACL - close: 134.77 change: +0.21 stop: 129.49

The trend for ACL is up but I'm starting to worry. Shares have been sliding sideways the last two days and under performing the rest of the market. I am not suggesting new positions at this time. Wait for ACL to test the $132 region and then look to buy calls on a bounce. Our first target is $142.50. Our second target is $148.00.

Picked on September 10 at $136.75
Change since picked:       - 1.98
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009         


Allegheny Tech. - ATI - close: 34.13 change: +0.41 stop: 29.85

ATI is still slowly inching higher. The stock added another 1.2% and hit a new relative high at $34.60. I am not suggesting new bullish positions at this time. ATI has already hit our first target at $33.85. Our second and final target is $38.00 but that might be a little too optimistic. ATI has produced an inverse (bullish) H&S pattern, which would suggest a $38 target but it could take a few weeks to get there.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      + 3.88
                               /1st target hit @ 33.85 (+11.9%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


CF Industries - CF - close: 87.88 change: +0.63 stop: 83.49

After three days of consolidating sideways it looks like CF is hinting the next move is higher. More aggressive traders may want to consider bullish positions on a move over $89.00. I'd prefer to buy calls on a dip near $85.00 but we may not see that opportunity. Our first target to take profits is at $92.50. Our second target is $98.00. FYI: The P&F chart has a quadruple-top bullish breakout buy signal with a $99 target.

FYI: Agrium (AGU) is trying to buy CF but CF keeps rejecting the offer calling it too late. At the same time CF is trying to buy Terra Industries (TRA) and TRA keeps rejecting the offer calling it too low. Eventually one of these companies is going to give up or they're finally going to make a big enough offer or somebody else might step in and start bidding. There is a risk that someone bids too much and the market could think they overpaid, which might push the stock lower. This M&A dance has been going on for months and it will probably continue for months so I'm not expecting it to have much short-term impact on the stock. However, it's worth noting that CF recently filed a lawsuit to force TRA to hold their annual shareholder meeting. This way CF can try and vote some members onto the board of directors.

Picked on September 05 at $ 85.93
Change since picked:       + 1.95
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        653 thousand 
Listed on September 05, 2009         


Compass Minerals - CMP - close: 58.64 chg: +0.64 stop: 54.75 *new*

CMP is bouncing back to the top of its five-day trading range. The short-term trend has a very hard to see pattern of higher lows but it suggests the next move will be a breakout over resistance near $59.00. Please note our new stop at $54.75. Officially our first target to exit is $59.75. Our second and final target is $64.00. FYI: The Point & Figure chart has turned bullish with a $69 target.

Picked on September 03 at $ 55.55
Change since picked:       + 3.09
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Danaher Corp. - DHR - close: 67.93 change: -0.01 stop: 62.95 *

The rally in DHR looks like it's losing some steam and shares are due for a pull back. Look for a dip back toward $65.00 as a new bullish entry point. Our first target is $69.50. The Point & Figure chart is bullish with a $77 target.

Currently we only have half a position open to limit our risk given the aggressive entry point.

Picked on September 05 at $ 66.37 (buy 1/2 position)
               /originally listed at $65.76, gap higher entry @ 66.37
Change since picked:       + 1.56
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on September 05, 2009         


Diamond Offshore - DO - close: 94.69 change: +0.59 stop: 87.75

The U.S. dollar has slipped to new lows and crude oil is bouncing from its trendline of support. Meanwhile DO is still rebounding from its recent test of the $92.00 level. I am altering our strategy. Originally we wanted to either buy calls on a breakout at $96.00 or a dip at $90.25. The recent action looks strong enough that I'd buy calls on DO right here at $94.69. More conservative traders who'd rather see a breakout over resistance can wait for the move over $96.00. I'm suggesting small positions at least 1/2 to 1/4 your normal trade.

We will take some money off the table at $99.90 (1st target). Our second target is $104.50. More aggressive traders can aim for $110. The P&F chart is forecasting a $114 target.

Picked on September 15 at $ 94.69 *adjusted entry point
Change since picked:       + 0.00
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on September 12, 2009         


Factset Research - FDS - close: 61.37 chg: +0.82 stop: 56.45 *new*

FDS continues to extend its gains. The stock hit $61.52 this afternoon. The stock looks very short-term overbought and I am suggesting readers start taking profits now. Officially our first target to exit is $62.00. Our second target is $64.75. The point and figure chart is bullish with a $76 target. I am raising our stop loss to $56.45. Please note that FDS is due to report earnings on September 22nd and we'll plan to exit the day before the company announces.

Picked on September 08 at $ 57.55
Change since picked:       + 3.82
Earnings Date            09/22/09 (confirmed)
Average Daily Volume =        331 thousand 
Listed on September 05, 2009         


General Dynamic - GD - close: 63.13 change: +0.03 stop: 57.85

The recent action in GD continues to grow more bullish with a short-term trend of higher lows. Yet the S&P 500 and the defense indices are looking more overbought and due for a dip. Aggressive traders might want to consider small positions in GD if the stock breaks out over $64.00. I'm sticking to our plan and waiting to buy calls on a dip at $61.00.

Our first target is $64.90. Our second target is $69.00. Investors with a longer-term time frame may want to aim a lot higher. GD has produced an inverse H&S pattern that is forecasting an $85

Picked on September xx at $ xx.xx <-- TRIGGER @ 61.00
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        2.3 million  
Listed on September 09, 2009         


Goldman Sachs - GS - close: 176.66 change: -1.05 stop: 164.90

The last three trading days have seen GS struggle with the $178.00 level. Could this be new short-term resistance? Is the stock about to correct? If shares do pull back I'd look for support near $170.00 or the $167 level. Such a dip can be used as a new bullish entry point. Our first target to take profits is at $179.00. Our second target is $184.00. The $185-190 zone looks like potential resistance.

FYI: The Point & Figure chart is bullish with a $228 target. Remember, we want to trade small position sizes.

Picked on September 8 at $166.75
Change since picked:      + 9.91
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       8.8 million  
Listed on August 29, 2009         


Genesse & Wyoming - GWR - close: 32.50 change: +0.09 stop: 28.90

The rally in the railroad stocks has paused for a bit and GWR is drifting under resistance near $33.00. Upon further review of the daily chart a move over $33.00 or $33.25 might be a new bullish entry point for GWR but if you buy calls there I'd raise your stop loss. Our first target is $32.90. More conservative traders may want to take profits now. Our second and final target is $34.75.

FYI: We want to use small position sizes to limit our risk.

Picked on   August 15 at $ 28.66 /gap down entry
                               /originally listed at $29.30
Change since picked:      + 3.84
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 89.23 change: -0.07 stop: 84.75

GWW continues to trade sideways in the $88.00-90.00 range. I am not suggesting new positions until GWW trades at $90.35 or higher. I'm starting to wonder if GWW will be pinned to the $90.00 level for September option expiration this Friday. Our first target is $93.50. Our second target is $97.50.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 3.23
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


iShares Financials - IYF - close: 52.23 change: +0.14 stop: 49.49

It took almost all day but IYF finally managed to breakout to new relative highs over $52.60. Our trigger was to buy very small call positions on the IYF at $52.60 so the trade is open. Our first target is $57.00. Our second target is $60.00.

Chart:

Picked on September 15 at $ 52.60 *triggered  
Change since picked:       - 0.37
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Mettler Toledo - MTD - close: 91.21 change: +0.99 stop: 85.95 *new*

The rally in MTD is starting to gather strength now that shares have cleared the $90.00 level. I am upping our stop loss to $85.95. I'm not suggesting new positions at this time. Our first target is $93.50. Our second target is $99.00. I am labeling this an aggressive play because volume is pretty light for this stock.

Picked on   August 27 at $ 88.50 *triggered  (1/4 normal size)
Change since picked:      + 2.71
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Newmarket Corp. - NEU - close: 90.82 change: +2.17 stop: 84.40 *new*

NEU hit a new 52-week high with its breakout over round-number resistance at $90.00. The high today was $91.72. More conservative traders may want to start exiting positions now. Our second and final target to exit is $92.50. More aggressive traders can aim for $99 but keep in mind that the all-time high was April 2008 at $93.90. Please note our new stop loss at $84.40. FYI: The Point & Figure chart is bullish with a $116.00 target.

Picked on   August 24 at $ 84.33 <- buy half now 8/24/09
                    /originally listed at $83.54, gapped higher @ 84.33
Change since picked:      + 6.74
                               /take profits @ 87.97 (+4.3%)

Picked on September 1 at $ 80.50 *triggered 2nd half
Change since picked:      +10.57
                               /take profits @ 87.97 (+9.2%)
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       141 thousand 
Listed on August 24, 2009         


Occidental Petrol. - OXY - close: 78.02 change: +1.03 stop: 72.50 *new*

The bounce in crude oil on Tuesday helped fuel new highs for some of the oil stocks. OXY tagged $78.50 this afternoon. I am raising our stop loss to $72.50. Our second and final target is $79.85. More aggressive traders could aim for the $83-84 zone.

Picked on   August 27 at $ 72.00 *triggered         
Change since picked:      + 6.02
                    /1st target exceeded, gap higher @ 77.23 (+7.2%)
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       5.0 million  
Listed on August 26, 2009         


PPG Inds. Inc. - PPG - close: 59.41 change: +1.50 stop: 54.40 *new*

PPG displayed some relative strength with a 2.5% rally and a new 2009 high. Shares hit $59.60. Our first target to take profits is at $59.80. I am upping our stop loss to $54.40. Currently we do have a second target at $63.00 but I'd exit at least half our position at $59.80.

Picked on   August 28 at $ 55.65
Change since picked:      + 3.76
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


SPX Corp. - SPW - close: 63.41 change: -1.31 stop: 57.25

After several days of gains SPW finally hit some profit taking. I am suggesting traders buy calls on a dip at $60.50. If triggered our first target is $64.00. Our second target is $67.50.

Picked on September xx at $ xx.xx <-- TRIGGER @ 60.50
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        570 thousand 
Listed on September 12, 2009         


State Street (Bank) STT - close: 53.18 change: -0.12 stop: 49.45

STT under performed the banking sector and the broader market. I am raising our stop loss to $49.90. Readers may want to wait for a new relative high as an entry point (maybe $54.25 or $54.85, and aim for the second target at 59.80).

Our first target is $55.00. Our second target is $59.80. Currently the Point & Figure chart is bullish with a $62 target.

Picked on   August 31 at $ 52.00 
Change since picked:      + 1.18
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 27.70 change: -1.06 stop: 27.49

Obama spoke on healthcare reform in front of cheering labor unions and the healthcare stocks tumbled in response. UNH lost 3.6% and appears to have broken down from its recent sideways consolidation. Nimble traders may want to consider puts.

Right now the plan is to buy calls on a breakout with a trigger at $30.55. If triggered our first target to take profits is $34.50. Our second target is $37.50. My time frame is about eight weeks once triggered.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 30.55
Change since picked:      + 0.00
Earnings Date           10/20/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 29, 2009         


Union Pacific - UNP - close: 63.61 change: +0.83 stop: 59.40

UNP is bouncing back above the $63.00 level, which offers us another entry point to buy calls. Our first target is $69.00. FYI: The P&F chart is currently bullish with an $88 target.

Picked on September 09 at $ 63.00
Change since picked:       + 0.61
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on September 05, 2009         


U.S. Oil Fund - USO - close: 36.70 change: +0.99 stop: 34.49

Another new 2009 low for the dollar helped lift oil from its trendline of support. The USO gained 2.7%. I am suggesting readers use the bounce as a new bullish entry point to buy calls. Our upside target is $39.95.

Picked on   August 31 at $ 36.50 
Change since picked:      + 0.20
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


Waters Corp. - WAT - close: 53.64 change: -0.76 stop: 49.30

WAT is still seeing some profit taking and drawing closer to our trigger at $53.10. If triggered our first target is $59.50.

Picked on September xx at $ xx.xx <-- TRIGGER 53.10
Change since picked:       + 0.00
Earnings Date            10/20/09 (unconfirmed)
Average Daily Volume =        809 thousand 
Listed on September 12, 2009         


PUT Play Updates

*Currently we do not have any put play updates*


Strangle & Spread Play Updates

(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.)

Cigna Corp. - CI - close: 31.39 change: -0.69 stop: n/a

Obama's new push today to revive the government-run healthcare option has sent healthcare stocks lower. CI lost 2.1%. I'm not suggesting new strangle positions at this time unless the stock retests the $30.00 region.

The options I suggested were the October $35 calls (CI-JG) and the October $25 puts (CI-VE). Our estimated cost was $1.20. We want to sell if either option hits $2.50 or higher. The closer we can open this trade to $30.00 the better.

Picked on September 08 at $ 29.40
Change since picked:       + 1.99
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 08, 2009         


Research In Motion - RIMM - close: 83.14 chg: +1.73 stop: n/a

We might just luck out after all thanks to relative strength in RIMM. The stock added another 2.1%. The September $80 calls hit $3.60 this afternoon. More conservative traders may want to consider an early exit. We only have three days left and any dip toward $80 will make this call value vanish. Given our time frame I am lowering our exit target to $5.00 or more. If either option hits $5.00 we want to cash in and exit. I'm not suggesting new positions at this time.

The options suggested were the September $80 calls (RFY-IP) and the September $70 puts (RFY-UN). Our estimated cost was $2.64.

Picked on   August 25 at $ 75.56
Change since picked:      + 7.58
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


Schlumberger - SLB - close: 59.83 change: +0.02 stop: n/a

The action in SLB was disappointing. A rally in crude oil was not enough to fuel an move in SLB. We only have three days left and need to see a charge toward $62.50. I'm not suggesting new strangle positions.

The options we suggested were the September $60.00 calls (SLB-IL) and the September $45.00 puts (SLB-UI). Our estimated cost is $1.00 and we want to sell if either option hits $2.50 or higher.

Picked on   August 15 at $ 52.00 /gap down entry Aug. 17th
Change since picked:      + 7.83
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009         


CLOSED BULLISH PLAYS

Fedex - FDX - close: 79.53 change: +0.65 stop: 71.75

Target achieved. FDX extended its gains and hit $80.00 midday. Our second and final target to exit was $79.75. Our play is closed but I'd keep FDX on your watch list for a dip back toward $73 to fill the gap.

Chart:

Picked on September 04 at $ 70.55 *triggered
Change since picked:       + 9.20 <-- 2nd target hit (+13.0%)
                  /1st target exceeded, gap higher @ 75.95 (+7.6%)
Earnings Date            09/17/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on September 03, 2009