The market recovered from its intraday lows and we're raising a few stops toward today's low.


CALL Play Updates

Apollo Group - APOL - close: 74.81 change: -0.58 stop: 71.90

It was a volatile session for APOL with the stock trading in a $4.30 range. Shares almost hit our stop loss at $71.90 but managed to rebound from $71.93. I remain cautious here and I'm not suggesting new positions at this time.

APOL is due to report earnings on Oct. 27th after the market's closing bell. We'll plan to exit on Tuesday at the close to avoid holding over earnings if APOL hasn't hit our target by then. Our first target is $79.90.

Picked on   October 14 at $ 75.25
Change since picked:       - 0.44
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        2.6 million  
Listed on   October 13, 2009         


AvalonBay - AVB - close: 73.63 change: +2.67 stop: 69.95

AVB didn't let me down with a dip to $70.00 and a big bounce. Traders can use this rebound as a new bullish entry point to buy calls.

Our first target is $77.75. More aggressive traders could aim higher but we don't want to hold over the early November earnings report.

Picked on   October 08 at $ 72.60
Change since picked:       + 1.03
Earnings Date            11/04/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on   October 07, 2009         


Ultra Oil & Gas ProShares - DIG - close: 38.47 change: +0.58 stop 32.90

The market recovered a lot sooner than expected. I don't want to chase the DIG at these levels. Wait for a pull back toward $35.00. I'm suggesting a trigger at the $35.00 level. If triggered at $35.10 our first target is $39.50. Our second target is $43.50.

FYI: The DIG is an ultra-long ETF so it should have twice the volatility as a normal sector ETF.

Picked on   October xx at $ xx.xx <--  TRIGGER @ 35.00
Change since picked:       + 0.00
Earnings Date            00/00/00
Average Daily Volume =        4.3 million  
Listed on   October 17, 2009         


Dril-Quip, Inc. - DRQ - close: 54.60 change: +0.45 stop: 49.45

DRQ rallied off its lows to a 0.8% gain but I remain cautious here. More conservative traders may want to exit early now. I'm not suggesting new positions at this time.

DRQ has already hit our first target at $53.00. Our second target is $57.00.

Picked on September 28 at $ 48.50
Change since picked:       + 6.10
                              /1st target hit @ 53.00 (+9.2%)
Earnings Date            11/10/09 (unconfirmed)
Average Daily Volume =        282 thousand 
Listed on September 26, 2009         


EOG Resources - EOG - close: 91.45 change: -1.49 stop: 89.15 *new*

EOG under performed its peers today. The stock gapped open lower thanks to an analyst downgrade this morning. Shares dipped to $89.23 and pared its losses. I am raising our stop to $89.15. I'm not suggesting new positions at this time.

EOG has exceeded both our first and second targets. Our third and final target is $99.00. We do not want to hold over the early November earnings report.

Picked on   October 07 at $ 85.24 /gap higher entry
                               /originally listed at $84.71
Change since picked:       + 6.21
                              /1st target hit @ 89.90 (+5.4%)
                             /2nd target hit @ 94.75 (+11.1%)
Earnings Date            11/03/09 (unconfirmed)
Average Daily Volume =        2.9 million  
Listed on   October 07, 2009         


Express Scripts - ESRX - close: 81.48 change: +0.86 stop: 79.85 *new*

ESRX bounced along with the rest of the market but shares are stuck in an $80-82 trading range. I am raising our stop loss to $79.85. I'd keep my position size small. Our second target is $84.95. We plan to exit ahead of the October 28th earnings report.

Picked on   October 06 at $ 77.42 /gap down entry
                              /originally listed at $78.04
Change since picked:       + 4.06
                             /1st target hit @ 82.50 (+6.6%)
Earnings Date            10/28/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 06, 2009         


Flowserve - FLS - close: 106.19 change: -0.19 stop: 102.45 *new*

I am somewhat optimistic for tomorrow. FLS bounced twice near the $103.75 level today. More conservative traders may want to raise their stop loss toward the $103.75 area. I'm upping our stop to $102.45. Our first target is $109.75.

We will plan to exit ahead of the October 28th earnings report.

Picked on   October 12 at $102.60
Change since picked:       + 3.59
Earnings Date            10/28/09 (confirmed)
Average Daily Volume =        1.2 million  
Listed on September 19, 2009         


Gold ETF - GLD - close: 103.92 change: +0.17 stop: 97.40

Gold didn't move much today. An early morning rally in the dollar sent gold lower but the dollar strength faded and gold bounced back into positive territory.

If you're looking for new positions consider waiting for a dip near $100, which should offer support. Our plan calls for small positions to limit risk.

Our first target is $109.90. We are still contemplating a second, longer-term target.

Picked on   October 06 at $102.28
Change since picked:       + 1.63
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


Intercontinental Exchange - ICE - close: 106.56 chg: +0.13 stop: 94.90

There is no change from my prior comments. I'm still waiting for a dip back toward $100, which should be support.

Use a trigger at $101.00 to buy calls. We'll use a stop at $94.90. Our first target is $109.75. Our second target is $114.75. More aggressive traders could aim higher but we want to exit ahead of the November 3rd earnings report.

Picked on   October xx at $ xx.xx <-- TRIGGER @ $101.00
Change since picked:       + 0.00
Earnings Date            11/03/09 (confirmed)
Average Daily Volume =        1.3 million  
Listed on   October 17, 2009         


Mobile Telesys - MBT - close: 53.70 change: -0.66 stop: 49.75

MBT traded sideways in a narrow range following yesterday's rebound. Readers may want to exit early right here. I'm not suggesting new positions.

Our second target is $59.00. We do not want to hold positions over the early November earnings report.

Picked on   October 12 at $ 50.15
Change since picked:       + 3.55
                            /1st target hit @ 54.50 (+8.6%)
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   October 10, 2009         


Transocean Ltd. - RIG - close: 92.75 change: +1.17 stop: 89.45 *new*

Traders bought the dip in RIG near $90.00. This bounce looks like another entry point to buy calls. I am raising our stop loss to $89.45. Our target is $99.50.

Picked on   October 15 at $ 90.94 /gap down entry
                             /originally listed at $91.48
Change since picked:       + 1.81
Earnings Date            11/04/09 (confirmed)
Average Daily Volume =        4.1 million  
Listed on   October 15, 2009         


Waters Corp. - WAT - close: 57.30 change: -0.84 stop: 55.90

WAT under performed today. Shares really fell this morning and the bounce off its intraday lows was kind of anemic. I am not suggesting new positions and more cautious traders may want to exit early now. Our target to exit is $59.50.

The plan was to use small position sizes (1/2 to 1/4 our normal size) to minimize risk. We do not want to hold over the October 27th earnings report.

Picked on September 28 at $ 55.43 *new entry
Change since picked:       + 1.87
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        809 thousand 
Listed on September 12, 2009         


PUT Play Updates

BIOGEN IDEC - BIIB - close: 47.23 change: +0.80 stop: 50.65

I am a little surprised that the BTK biotech index and BIIB were not weaker today given the big drop in AMGN shares. AMGN disappointed Wall Street with its earnings results last night and AMGN sold off hard. As one of the biggest biotechs I was expecting it to have more influence on the sector. Instead shares of BIIB produced an oversold bounce. Look for a failed rally near $49.00 as a new entry point for bearish positions.

Our first target to take profits is at $44.50. Our second target is $40.50. FYI: The P&F chart is bearish with a $36 target.

Picked on   October 03 at $ 48.89
Change since picked:       - 1.66
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        2.6 million  
Listed on   October 03, 2009         


Netease.com - NTES - close: 37.55 change: -0.48 stop: 41.65

NTES sank to $36.40 before bouncing. Shares do look a little oversold. Watch for a bounce back toward its 10-dma.

Our first target is $35.25. Our second target is $33.00, just above the simple 200-dma. We want to exit ahead of the mid November earnings report. FYI: The P&F chart is bearish with a $25 target.

Picked on   October 17 at $ 38.47
Change since picked:       - 0.92
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on   October 17, 2009