The market's rally allowed seven of our plays to hit upside targets including one of our strangles.


CALL Play Updates

Alcon Inc. - ACL - close: 136.93 change: +2.16 stop: 129.49

ACL is looking stronger. I've been expecting a dip towards $132.00. Now I would consider small bullish positions right here. Our first target is $142.50. Our second target is $148.00.

Picked on September 10 at $136.75
Change since picked:       + 0.18
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009         


Allegheny Tech. - ATI - close: 35.67 change: +1.54 stop: 30.99 *new*

ATI continues to show strength with a 4.5% rally but the stock is also looking overbought. I am lowering our second target from $38.00 to $37.00. I'm raising our stop loss to $30.99.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      + 5.42
                               /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: 89.20 change: +1.32 stop: 83.49

CF appears to be breaking out from its recent sideways consolidation. 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:       + 3.27
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        653 thousand 
Listed on September 05, 2009         


Compass Minerals - CMP - close: 59.10 chg: +0.46 stop: 54.75

CMP has managed to close above short-term resistance at $59.00. 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:       + 3.55
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Danaher Corp. - DHR - close: 68.34 change: +0.41 stop: 62.95

Yesterday the rally in DHR hinted at a pull back. The stock has managed to close at a new relative high today. I am not suggesting new bullish positions at this time. 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:       + 1.97
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on September 05, 2009         


Diamond Offshore - DO - close: 96.85 change: +2.16 stop: 87.75

Another drop in the dollar helped boost crude oil and the oil service stocks rallied. DO gained 2.2% and closed over resistance in the $95-96 zone. The plan was to use small position sizes.

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:       + 2.16
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on September 12, 2009         


Factset Research - FDS - close: 62.25 chg: +0.88 stop: 57.45 *new*

Target achieved. The two-week rally in FDS has been almost non stop and shares gained another 1.4%. The stock hit $62.27 this afternoon. Our first target to take profits was $62.00. I strongly recommend that readers consider taking money off the table if you have not done so. Our second and final target is $64.75 but I would seriously consider a complete exit right here. FDS looks that overbought. I'm raising our stop loss to $57.45.

Please note that FDS is due to report earnings on September 22nd and we'll plan to exit the day before the company announces.

Chart:

Picked on September 08 at $ 57.55
Change since picked:       + 4.70
                               /1st target hit @ 62.00 (+7.7%)
Earnings Date            09/22/09 (confirmed)
Average Daily Volume =        331 thousand 
Listed on September 05, 2009         


General Dynamic - GD - close: 63.29 change: +0.16 stop: 57.85

GD is still struggling with resistance near $63.50. Our plan is 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: 179.87 change: +3.21 stop: 166.45 *new*

Target achieved. GS has rallied to another new 2009 high and closed at its highs for the session. Our first target to take profits was at $179.00. I am raising our stop loss to $166.45. I am not suggesting new bullish positions at this time. Our second and final 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.

Chart:

Picked on September 8 at $166.75
Change since picked:      +13.12
                             /1st target hit @ 179.00 (+7.3%)
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       8.8 million  
Listed on August 29, 2009         


Genesse & Wyoming - GWR - close: 32.45 change: -0.05 stop: 28.90

The railroad stocks are under performing the market. I am suggesting readers take profits right here right now. We can keep a fraction of our position open and aim for the second target at $34.75.

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

Chart:

Picked on   August 15 at $ 28.66 /gap down entry
                               /originally listed at $29.30
Change since picked:      + 3.79
                              /take profits 09/16/09 @ 32.45 (+13.2%)
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 90.79 change: +1.56 stop: 87.40 *new*

GWW has finally broken out above resistance at $90.00 and provided us a new entry point on the move over $90.35. I am raising our stop loss to $87.40. Our first target is $93.50. Our second target is $97.50.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 4.79
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


iShares Financials - IYF - close: 53.92 change: +1.69 stop: 49.49

Money came rushing into the banking stocks when fund managers feared they would run away from them. The IYF surged to new 2009 highs. Our first target is $57.00. Our second target is $60.00.

Picked on September 15 at $ 52.60 *triggered  
Change since picked:       + 1.32
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Mettler Toledo - MTD - close: 92.37 change: +1.16 stop: 86.95 *new*

MTD is also hitting new highs for the year. Readers may want to start taking profits now. Our first target is $93.50. I'm raising our stop loss to $86.95. 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:      + 3.87
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Occidental Petrol. - OXY - close: 79.15 change: +1.13 stop: 73.75 *new*

OXY is inching closer and closer to $80.00. More conservative traders may want to start taking profits now. I'm upping our stop loss to $73.75. 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:      + 7.15
                    /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: 59.89 change: +0.48 stop: 54.95 *new*

Target exceeded. PPG gapped open higher at $60.05. Our first target to take profits was at $59.80. Shares look short-term overbought and due for a dip. I'm raising our stop loss to $54.95. We still have a second target at $63.00. I am not suggesting new positions at this time.

Chart:

Picked on   August 28 at $ 55.65
Change since picked:      + 3.24
                             /1st target exceeded @ 60.05 (7.9%)
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


SPX Corp. - SPW - close: 63.45 change: +0.04 stop: 57.25

It's hard to go down with the market marching to new highs on a regular basis. I still don't want to chase this move in SPW so we wait for a dip to $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         


SOHU.com Inc. - SOHU - close: 70.92 change: +2.19 stop: 63.25

This looks like a short squeeze in SOHU. The stock has now rallied past its June highs and potential resistance at $70.00. I am raising our trigger to buy the dip from $67.00 to $67.50.

Our first target is $72.50. Our second target is $77.00.

Picked on September xx at $ xx.xx <-- TRIGGER @ 67.50
Change since picked:       + 0.00
Earnings Date            10/26/09 (unconfirmed)
Average Daily Volume =        577 thousand 
Listed on September 15, 2009         


State Street (Bank) STT - close: 54.70 change: +1.52 stop: 49.45

STT has been lagging some of its peers. The banking indices and bank ETFs are hitting new 2009 highs. STT is still under resistance near $55.00.

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:      + 2.70
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 29.29 change: +1.59 stop: 27.49

Healthcare stocks rallied with the market today. The Senate finance committee released their $856 billion version of a healthcare reform bill that did not have a government-run option in it.

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: 63.20 change: -0.41 stop: 59.40

The railroad stocks have been under performing the rest of the market. UNP still looks like it wants to run higher. However, I would start scaling out of bullish positions now. There are too many bullish candidates to tie our money up in a sector that's not moving. If we don't see a close over $64.00 tomorrow I'll probably cut UNP from the play list. 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:       + 0.20
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on September 05, 2009         


U.S. Oil Fund - USO - close: 37.43 change: +0.73 stop: 34.49

A bigger than expected draw down in oil inventories and more weakness in the dollar was enough to push crude oil and the USO higher. Our upside target is $39.95.

Picked on   August 31 at $ 36.50 
Change since picked:      + 0.93
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


Waters Corp. - WAT - close: 54.81 change: +1.17 stop: 49.30

Fund managers are chasing performance and WAT is bouncing earlier than expected. I am raising our trigger to buy calls on WAT from $53.10 to $53.50. If triggered our first target is $59.50.

Picked on September xx at $ xx.xx <-- TRIGGER 53.50
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: 32.54 change: +1.15 stop: n/a

CI saw some weakness this morning but traders bought the dip near its rising 10-dma. The stock ended the session up 3.6% at a new 2009 high. I'm not suggesting new strangle positions at this time.

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:       + 3.14
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 08, 2009         


Research In Motion - RIMM - close: 84.16 chg: +1.02 stop: n/a

We have two days left before September options expire and the market looks overbought. I STRONGLY suggest readers consider taking profits right here! The September $80 calls hit $4.79 intraday and they're currently trading at $4.10/4.20 bid/ask. 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. We want to sell if either option hits $5.00 or more.

Picked on   August 25 at $ 75.56
Change since picked:      + 8.60
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


CLOSED BULLISH PLAYS

Apple Inc. - AAPL - close: 181.87 change: +6.71 stop: 164.00

Target achieved. AAPL was a market leader today with the stock gapping open higher at $177.99 and shooting to $182.75 intraday. Our second and final target to take profits was at $179.00. The play is closed. I would keep AAPL on your watch list for a correction.

Chart:

Picked on   August 26 at $166.50 *(small positions 1/2 to 1/4)
Change since picked:      +12.50<-- 2nd target @ 179.00 (+7.5%)
                             /1st target hit @ 174.00 (+4.5%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =        14 million  
Listed on August 25, 2009         


Newmarket Corp. - NEU - close: 91.91 change: +1.09 stop: 84.40

Target achieved. NEU rallied to $92.70 this afternoon. Our second and final target to exit was $92.50. I would keep NEU on your watch list for another opportunity should shares correct.

Chart:

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:      + 8.17<--2nd target hit @ 92.50 (+9.6%)
                               /take profits @ 87.97 (+4.3%)

Picked on September 1 at $ 80.50 *triggered 2nd half
Change since picked:      +12.00<--2nd target hit @ 92.50 (+14.9%)
                               /take profits @ 87.97 (+9.2%)
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       141 thousand 
Listed on August 24, 2009         


CLOSED STRANGLE & SPREAD PLAYS

Schlumberger - SLB - close: 62.41 change: +2.58 stop: n/a

Target achieved. SLB rallied to new relative highs. The September $60 calls hit $2.70 this afternoon. Our plan was to exit if either option hit $2.50 or higher.

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.

Chart:

Picked on   August 15 at $ 52.00 /gap down entry Aug. 17th
Change since picked:      +10.41
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009