We had three more bullish candidates hit our targets but stocks look tired and traded off their highs for the day.


CALL Play Updates

Alcon Inc. - ACL - close: 139.71 change: +2.78 stop: 129.49

There was no slow down for ACL today. Shares shot to new 2009 highs with a 2% gain. The stock is nearing potential resistance at $140 so don't be surprised to see a dip back toward $136.00. Our first target is $142.50. Our second target is $148.00.

Picked on September 10 at $136.75
Change since picked:       + 2.96
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009         


Allegheny Tech. - ATI - close: 35.25 change: -0.24 stop: 30.99

After a multi-day rally ATI is due for a dip and today's 0.6% decline may not be enough. Shares should have technical support near $33.00 and price support near $32.00. ATI has already exceeded our first target. We're currently aiming for $37.00.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      + 5.18
                               /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: 90.06 change: +0.86 stop: 84.75 *new*

CF shot higher past the $90.00 level hitting an intraday and new 2009 high at $91.55. I am not suggesting new bullish positions at this time but we are raising the stop loss to $84.75. 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:       + 4.13
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        653 thousand 
Listed on September 05, 2009         


Compass Minerals - CMP - close: 58.17 chg: -0.93 stop: 54.75

Target achieved. CMP rallied to resistance near $60.00 and hit $59.95 before paring its gains. Our first target to take profits was at $59.75. The failed rally at $60.00 does look like a short-term bearish reversal and I would expect a dip back toward the $56 or $55 levels. Our second and final target is $64.00. FYI: The Point & Figure chart has turned bullish with a $69 target.

Chart:

Picked on September 03 at $ 55.55
Change since picked:       + 2.62
                               /1st target hit @ 59.75 (+7.5%)
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Danaher Corp. - DHR - close: 68.61 change: +0.27 stop: 62.95

DHR resisted any profit taking with another gain. The stock looks overbought and due for a pull back. 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:       + 2.24
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on September 05, 2009         


Diamond Offshore - DO - close: 95.36 change: -1.49 stop: 87.75

Crude oil reversed from its early highs and oil service stocks hit some profit taking. DO gave up 1.5%. I am not suggesting new positions at this time. Look for a dip near $92.00 as a potential entry point. 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:       + 0.67
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on September 12, 2009         


Factset Research - FDS - close: 62.35 chg: +0.10 stop: 57.45

FDS is still showing relative strength with another gain. We should expect profit taking any day now. I'm not suggesting new positions at this time. FDS has already exceeded our first target at $62.00. Our second and final target is $64.75.

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:       + 4.80
                               /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: 64.43 change: +1.14 stop: 57.85

Defense stocks were some of the best performers on Thursday. GD broke through resistance to hit new 2009 highs. Aggressive traders may want to consider positions here. I'm more concerned about how overbought the S&P 500 is. Thus I'm suggesting readers wait and stick to the plan 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: 181.46 change: +1.59 stop: 166.45

GS continues to defy gravity and posted another gain. Today's close over $180 is technically bullish but the stock looks very overbought from its September lows near $158. 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. Remember, we want to trade small position sizes.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on September 8 at $166.75
Change since picked:      +14.71
                             /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: 31.72 change: -0.73 stop: 28.90

Railroad stocks continue to under perform. GWR gave up 2.2%. I am not suggesting new bullish positions at this time. Our second target to exit is $34.75.

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

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 15 at $ 28.66 /gap down entry
                               /originally listed at $29.30
Change since picked:      + 3.07
                              /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: 89.97 change: -0.82 stop: 87.40

After the bullish breakout yesterday GWW hit some profit taking but bulls were buying the dip this afternoon. Another move over $90.35 can be used as a new bullish entry point. Our first target is $93.50. Our second target is $97.50.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 3.97
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


Intl. Bus. Mach. - IBM - close: 121.88 chg: +0.06 stop: 117.75

IBM displayed some relative strength with another gain. Odds are pretty good that IBM will retest the $120 level as support. More patient traders might want to wait for a dip closer to $120 to open call positions. Our first target to take profits is at $126.00. Our second target is $129.75. We will plan to exit ahead of IBM's earnings report in mid October.

Picked on September 16 at $121.82
Change since picked:       + 0.06
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        5.3 million  
Listed on September 16, 2009         


iShares Financials - IYF - close: 53.70 change: -0.22 stop: 49.49

Stocks look a little overbought. Readers may want to wait for a dip back toward the $52.50-52.00 zone and buy calls again there. Our first target is $57.00. Our second target is $60.00.

Picked on September 15 at $ 52.60 *triggered  
Change since picked:       + 1.10
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Mettler Toledo - MTD - close: 92.92 change: +0.55 stop: 86.95

Target achieved! MTD rallied to $93.58 before trimming its gains. Our first target to take profits was at $93.50. I am not suggesting new bullish positions at this time. Our second target is $99.00. I am labeling this an aggressive play because volume is pretty light for this stock.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Chart:

Picked on   August 27 at $ 88.50 *triggered  (1/4 normal size)
Change since picked:      + 4.42
                             /1st target hit @ 93.50 (+5.6%)
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Occidental Petrol. - OXY - close: 78.64 change: -0.51 stop: 73.75

Crude oil reversed from its intraday highs and OXY followed suit. I am not suggesting new positions at this time. OXY has already exceeded our first target. Our second and final target is $79.85. More conservative traders may want to exit early right now.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 27 at $ 72.00 *triggered         
Change since picked:      + 6.64
                    /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: 59.28 change: -0.61 stop: 54.95

PPG is seeing some profit taking after a nice run from its September lows. I am not suggesting new positions at this time. PPG has exceeded our first target. Our second target is $63.00.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 28 at $ 55.65
Change since picked:      + 3.63
                             /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: 63.51 change: +0.06 stop: 57.25

Nothing has changed. We're still waiting for a pull back. The plan is to buy calls 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         


SOHU.com Inc. - SOHU - close: 70.90 change: -0.02 stop: 63.25

We are waiting for a pull back in SOHU. Our plan is to buy calls on a dip at $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: 53.79 change: -0.91 stop: 49.45

Target achieved. STT hit our first target at $55.00. However, the stock reversed at this level of resistance. I'm not suggesting new bullish positions at this time.

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

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Chart:

Picked on   August 31 at $ 52.00 
Change since picked:      + 1.79
                             /1st target hit @ 55.00 (+5.7%)
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 29.34 change: +0.05 stop: 27.49

UNH rallied toward resistance at $30.00 and stalled.

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         


U.S. Oil Fund - USO - close: 37.49 change: +0.06 stop: 34.49

USO posted another gain but oil traded off its intraday highs. If the dollar continues to bounce the USO will probably retest the trendline of support. I'm not suggesting new bullish positions at this time. Our upside target is $39.95.

Picked on   August 31 at $ 36.50 
Change since picked:      + 0.99
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


Waters Corp. - WAT - close: 55.59 change: +0.78 stop: 49.30

WAT is showing a lot more relative strength than expected. Shares have broken out to new relative highs. We're still sitting on the sidelines waiting for a dip. Our plan is to buy calls at $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: 32.60 change: +0.06 stop: n/a

There is no change from my prior comments on CI. 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:       + 3.20
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 08, 2009         


Research In Motion - RIMM - close: 82.70 chg: -1.46 stop: n/a

Our strangle play is out of time. We have to exit at the closing bell tomorrow. More conservative traders may want to exit at the open to preserve any remaining capital. The September $80 calls are trading at $2.70bid/2.75ask. You could exit now and recoup our entry cost.

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:      + 7.14
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


CLOSED BULLISH PLAYS

Union Pacific - UNP - close: 62.35 change: -0.85 stop: 59.40

The railroad sector continues to show relative weakness. We're dropping UNP as a bullish candidate.

Chart:

Picked on September 09 at $ 63.00
Change since picked:       - 0.65<-- exit early (-1.0%)
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on September 05, 2009