Gold hit another new high and stocks continued to bounce off their November lows. We have three new stop losses tonight.


CALL Play Updates

Gold ETF - GLD - close: 107.43 change: +0.45 stop: 99.75

Gold futures hit a new all-time high over $1,100 an ounce on Friday. This lifted the price of GLD to an all-time high of $108.04 on Friday morning. The trend is up but gold and the GLD look a little short-term overbought here. I am not suggesting new positions at this time.

We want to take profits at $109.90. If you have the November calls you will want to exit completely. If you own the January calls I'd sell part of your position. Our second target is $119.00.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   October 06 at $102.28
Change since picked:       + 5.15
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


Parker Hannifin - PH - close: 56.14 change: -0.49 stop: 52.39

PH is still marching higher but shares pared their gains on Friday. Volume has been declining on the rally and that's worrisome. I would wait for a new bounce near the $54.00 level or the 50-dma before launching new positions.

Our first target is $58.50. We will cautiously set a second target at $62.00 but the $60.00 level could prove to be strong resistance. I would use small positions.

Suggested Options:
If PH provides a new entry point I'd consider the December calls.

Annotated Chart:

Picked on  November 03 at $ 55.25
Change since picked:       + 0.89
Earnings Date            01/20/09 (unconfirmed)
Average Daily Volume =        1.6 million  
Listed on  November 03, 2009         


UltraShort Treasury ETF - TBT - close: 47.69 change: -0.13 stop: 44.90*new*

The trend off the October low is still up but the TBT just failed at technical resistance on Friday. Shares hit the 100-dma and 200-dma near $48.50 and reversed. I would expect another pull back toward the $46.00 level in the next day or two. I'm upping our stop loss to $44.90.

Our first target is $54.50. Our second target is $58.50. Our time frame is several weeks (possibly year end).

Suggested Options:
Use another bounce near $46 as an entry point. I'm suggesting the 2010 January calls.

Annotated Chart:

Picked on   October 26 at $ 47.89 (1/2 position)
Change since picked:       - 0.20

2nd entry on   October 30 at $ 45.50 (1/2 position)
Change since picked:          + 2.29

Earnings Date            --/--/--
Average Daily Volume =        6.0 million  
Listed on   October 26, 2009         


PUT Play Updates

BIOGEN IDEC - BIIB - close: 45.76 change: +1.37 stop: 47.25

Biotech stocks bounced sharply last week. BIIB is no exception. The rally on Thursday and Friday was almost enough to fill the gap down from mid October.

Looking more closely at BIIB something happened on Friday afternoon in the last hour. Shares rallied from $44.75 to $46.50 in just a few minutes on a surge of volume. The high on Friday was $46.47. More conservative traders might want to consider adjusting their stops toward that high.

I'm not suggesting new positions at this time. BIIB has already hit our first target. Our second and final target to exit is $40.50.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   October 03 at $ 48.89
Change since picked:       - 3.13
                               /1st target hit @ 44.50 (-8.9%)
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        2.6 million  
Listed on   October 03, 2009         


Bank of Montreal - BMO - close: 46.59 change: -0.80 stop: 50.15 *new*

Financials are still under performing the rest of the market. BMO has failed three times now under its 10-dma. Path of least resistance should be lower but the sector could reverse if the S&P 500 continues to inch higher. Considering the divergence between banks and the market I'm hesitant to open new positions. Our first target is $42.75. Our second target is $40.50. Please note our new stop loss at $50.15.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   October 27 at $ 47.37
Change since picked:       - 0.78
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


Intuitive Surgical - ISRG - close: 256.00 change: -3.91 stop: 261.00

ISRG surged to resistance near $260 on Thursday. The stock spiked to $260.91 on Friday morning but failed to hit our stop loss. The play is still open. Aggressive traders may want to buy new puts here. I would hesitate to open new positions with the S&P 500 looking poised to march higher this week.

Remember, this is an aggressive trade. ISRG can be very volatile and options aren't cheap. I would use very small positions about 25% your normal trade size. Our first target is $226.00. Our second target is $202.00.

Suggested Options:
I'm not suggesting new positions at this time.

Annotated Chart:

Picked on   October 31 at $246.35
Change since picked:       + 9.65
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        939 thousand 
Listed on   October 31, 2009         


Russell 2000 iShares - IWM - close: 58.08 change: +0.04 stop: 62.55

IWM is getting closer. Shares hit $58.58 on Friday. Our plan is to use a trigger at $59.00 to open bearish positions. More conservative traders may want to wait for a failed rally type of pattern before initiating positions. If triggered at $59 our first target is $55.50. Our second target is $52.00 or the 200-dma, whichever the IWM hits first.

Suggested Options:
I'm suggesting the December puts. My preference is the $60 strike.

Annotated Chart:

Picked on  November xx at $ xx.xx <-- TRIGGER @ 59.00
Change since picked:       + 0.00
Earnings Date            --/--/--
Average Daily Volume =       54.5 million  
Listed on  November 02, 2009         


iShares Transports - IYT - close: 68.90 chg: +0.77 stop: 70.16 *new*

Transports continue to rally. Friday's gain after Thursday's inside day is bullish. Yet the IYT stalled near its 50-dma. Shares should have resistance near $70.00. A failed rally near here could be a great entry point for new positions. I'm inching our stop loss down to $70.16. IYT has already hit our first target. Our second and final target is $62.00.

Suggested Options:
If IYT rolls over under $70 I'd use the December puts.

Annotated Chart:

Picked on   October 24 at $ 68.29
Change since picked:       + 0.61
                              /1st target hit @ 65.25 (-4.4%)
Earnings Date            --/--/--
Average Daily Volume =        664 thousand 
Listed on   October 24, 2009         


Life Tech. - LIFE - close: 49.64 change: -0.06 stop: 50.10

I'm about ready to give up on LIFE as a bearish candidate but thus far resistance at $50.00 is holding. If I had to place a new bet today I'd bet shares breaking out over $50.00 and thus stopping us out. More conservative traders may want to go ahead and exit early. I'm not suggesting new positions at this time. The $45 and $44 levels remain support. Our target was $41.00.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   October 28 at $ 45.83 /gap down entry point 10/29/09
                              /originally listed at $46.61
Change since picked:       + 3.81
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 28, 2009         


Precision CastParts - PCP - close: 99.52 change: +0.09 stop: 100.55

PCP has bounced back to resistance near $100 and its 30 and 40-dma. This could be a brand new entry point to buy puts but I'd like to see shares start to roll over first. If you want to see a little confirmation first then look for a dip under $98.00 to launch new positions.

I'm suggesting small positions about 50% your normal trade size. Our only target is $90.25. More aggressive traders may want to aim lower but I'm concerned about the trendline off the March lows, which could be strong support.

Suggested Options:
I was suggesting the November puts but November options expire in two weeks. If you're starting new positions I'd probably opt for December puts.

Annotated Chart:

Picked on   October 31 at $ 95.53
Change since picked:       + 3.99
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        1.3 million  
Listed on   October 31, 2009         


Research In Motion - RIMM - close: 58.72 change: +0.93 stop: 62.65

The trend in RIMM is still down but more conservative traders may want to exit early or adjust their stops down toward Wednesday's high near $60.60. I am not suggesting new positions at this time. If RIMM closes over $60.00 again I'll close this play. The stock has already hit our first target. We're currently aiming for $53.00.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   October 28 at $ 62.93 /gap open entry    
Change since picked:       - 4.21
                               /1st target hit @ 58.55 (-6.9%)
Earnings Date            12/17/09 (unconfirmed)
Average Daily Volume =       17.9 million  
Listed on   October 26, 2009         


CLOSED BEARISH PLAYS

UltraDow30 - DDM - close: 40.41 change: +0.22 stop: 41.26

The Dow Jones Industrial Average is probably the most bullish of the major indices. The DJIA's close over 10,000 and the DDM's close over $40.00 is short-term bullish. I'm giving up and suggesting an early exit.

Chart:

Picked on   October 31 at $ 37.82 (1/2 position size)
Change since picked:       + 2.59 <- early exit (+6.8%)
Earnings Date            --/--/--
Average Daily Volume =        3.2 million  
Listed on   October 31, 2009