CALL Play Updates

Arch Cap Group - ACGL - close: 69.73 change: +0.92 stop: 66.90

ACL continued to bounce and posted a 1.3% gain. Shares are nearing the $70.00 level and could see resistance near the 2009 highs in the $70.50-71.00 zone but the trend is up and I'm expecting a bullish breakout higher. Our target is the $74.00 level and our time frame is several weeks.

Picked on  November 07 at $ 68.81
Change since picked:       + 0.92
Earnings Date            10/26/09 (confirmed)
Average Daily Volume =        444 thousand 
Listed on  November 07, 2009         


Canadian Nat. Res. - CNQ - close: 67.99 change: +2.85 stop: $61.95

CNQ was one of the market's better performers today with a 4.3% rally. Unfortunately, shares gapped open higher at $67.74 so they didn't move much after the gap. The drop in the dollar should keep commodity stocks trending higher. I am suggesting readers wait for a dip near $66.00 to launch new positions.

I'm adjusting our target to $74.00.

Chart:

Picked on  November 09 at $ 67.74 *gap open higher entry
                          /original trigger was $66.05
Change since picked:       + 0.25
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  November 07, 2009         


Gold ETF - GLD - close: 108.19 change: +0.76 stop: 99.75

Weakness in the dollar continues to lift gold prices. Gold futures almost hit $1,110.00 an ounce this morning. The GLD spiked to $108.75. 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.

Picked on   October 06 at $102.28
Change since picked:       + 5.91
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


Parker Hannifin - PH - close: 57.46 change: +1.32 stop: 52.39

PH extends its gains with another +2.3% rally on Monday. I am not suggesting new bullish positions at these levels.

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.

Picked on  November 03 at $ 55.25
Change since picked:       + 2.21
Earnings Date            01/20/09 (unconfirmed)
Average Daily Volume =        1.6 million  
Listed on  November 03, 2009         


UltraShort Treasury ETF - TBT - close: 47.61 change: -0.08 stop: 44.90

All the action was in stocks and currencies today. The bond market didn't move much and the TBT just drifted sideways. I would expect another pull back toward the $46.00 level in the next day or two.

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

Picked on   October 26 at $ 47.89 (1/2 position)
Change since picked:       - 0.28

2nd entry on   October 30 at $ 45.50 (1/2 position)
Change since picked:          + 2.21

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


PUT Play Updates

BIOGEN IDEC - BIIB - close: 45.41 change: -0.35 stop: 47.25

The BTK biotech index is up three days in a row and up five out of the last six sessions. BIIB failed to participate in the rally on Monday. The stock slipped to $44.91 before paring its intraday losses.

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.

Picked on   October 03 at $ 48.89
Change since picked:       - 3.48
                               /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: 48.80 change: +2.21 stop: 50.15

The banks were very strong today and BMO has broken out higher from its recent sideways consolidation. More conservative traders will want to seriously consider an early exit right now. The rally today stopped at BMO's 50-dma and I still see potential resistance near $50.00 so the newsletter isn't exiting yet. I'm not suggesting new positions at this time. Our first target is $42.75. Our second target is $40.50.

Picked on   October 27 at $ 47.37
Change since picked:       + 1.43
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


Russell 2000 iShares - IWM - close: 59.22 change: +1.14 stop: 62.55

Does this rally have legs? Is this just another short squeeze? The big caps are leading the market's rally. The small cap Russell 2000 index is nearing resistance at its 50-dma and the 600 level. Our plan was to buy puts on a bounce in the IWM at $59.00, which was hit today. More conservative traders may want to adjust their stop loss down closer to $60.00. Readers might want to wait for the rally to stall and roll over first before initiating new positions. Our first target is $55.50. Our second target is $52.00 or the 200-dma, whichever the IWM hits first.

Chart:

Picked on  November 09 at $ 59.00
Change since picked:       + 0.22
Earnings Date            --/--/--
Average Daily Volume =       54.5 million  
Listed on  November 02, 2009         


Life Tech. - LIFE - close: 49.87 change: +0.23 stop: 50.10

Resistance at the $50.00 level must be tougher than I previously expected. The market surged higher today but LIFE remains trapped under $50.00. I'm not suggesting new positions and if the technology sector can rally tomorrow I would expect LIFE to hit our stop loss and close this play. More conservative traders will want to consider an early exit now.

Picked on   October 28 at $ 45.83 /gap down entry point 10/29/09
                              /originally listed at $46.61
Change since picked:       + 4.04
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 28, 2009         
Whirlpool - WHR - close: 73.54 change: +2.72 stop: 74.10

WHR erased a large chunk of Friday's losses with a bounce back toward short-term resistance near $74.00. Our plan hasn't changed. I'm suggesting a trigger at $69.75 to buy puts. If shares can close over $74.00 I'll drop it as a bearish candidate.

If triggered our first target to take profits is at $65.25. Our second and final target is $61.50.

Picked on  November xx at $ xx.xx <-- TRIGGER @ 69.75
Change since picked:       + 0.00
Earnings Date            02/09/10 (unconfirmed)
Average Daily Volume =        1.7 million  
Listed on  November 07, 2009         


CLOSED BEARISH PLAYS

Intuitive Surgical - ISRG - close: 264.11 change: +8.11 stop: 261.00

Technology stocks were pretty strong today and ISRG managed a 3.1% rally. The stock hit our stop loss early this morning at $261.00 ending the trade.

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         


iShares Transports - IYT - close: 70.15 chg: +1.25 stop: 70.16

The transport definitely participated in today's widespread rally and the IYT broke through resistance near its 50-dma and the $70.00 level. Shares hit our stop loss at $70.16.

Chart:

Picked on   October 24 at $ 68.29
Change since picked:       + 1.87 <--stopped @ 70.16 (+2.7%)
                              /1st target hit @ 65.25 (-4.4%)
Earnings Date            --/--/--
Average Daily Volume =        664 thousand 
Listed on   October 24, 2009         


Precision CastParts - PCP - close: 101.70 change: +2.18 stop: 100.55

Industrial and cyclical stocks were doing very well and PCP gained 2.19% with a bullish breakout over round-number resistance at $100.00. Shares hit our stop loss at $100.55 early in the session.

Chart:

Picked on   October 31 at $ 95.53
Change since picked:       + 5.02 <-- stopped @ 100.55 (+5.2%)
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        1.3 million  
Listed on   October 31, 2009         


Research In Motion - RIMM - close: 61.56 change: +2.84 stop: 62.65

Shares of RIMM were downgraded this morning but that didn't stop shares from surging 4.8%. The close over $60.00 is short-term bullish and this weekend I said we'd close this play if RIMM closes above $60.

Chart:

Picked on   October 28 at $ 62.93 /gap open entry    
Change since picked:       - 1.37 <-exit early @ 61.56 (-2.1%)
                               /1st target hit @ 58.55 (-6.9%)
Earnings Date            12/17/09 (unconfirmed)
Average Daily Volume =       17.9 million  
Listed on   October 26, 2009