CALL Play Updates

Arch Cap Group - ACGL - close: 69.49 change: -0.24 stop: 66.90

The stock market rally stalled and that left ACGL drifting under round-number resistance at $70.00. Look for a dip or a bounce near $68.50-68.00 as a new bullish entry point. Our target is the $74.00 level and our time frame is several weeks.

Picked on  November 07 at $ 68.81
Change since picked:       + 0.68
Earnings Date            10/26/09 (confirmed)
Average Daily Volume =        444 thousand 
Listed on  November 07, 2009         


Canadian Nat. Res. - CNQ - close: 67.50 change: -0.49 stop: $61.95

CNQ almost filled the gap from Monday morning, which was what we were expecting. The low was $66.22. Readers can buy this bounce but CNQ may still retest the $66.00-65.50 zone before actually moving higher. Our upside target is $74.00.

Picked on  November 09 at $ 67.74 *gap open higher entry
                          /original trigger was $66.05
Change since picked:       - 0.24
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  November 07, 2009         


Deere & Co - DE - close: 48.35 change: -0.13 stop: 46.85

There is no change from my Monday night comments. We're waiting for a bullish breakout over major resistance at $50.00. I'm suggesting a trigger to buy calls at $50.25. If triggered our first target is $54.90. Our second target is $59.00. Keep in mind that we'll plan to exit ahead of DE's earnings report later in the month.

Picked on  November xx at $ xx.xx <-- TRIGGER @ 50.25
Change since picked:       + 0.00
Earnings Date            11/25/09 (unconfirmed)
Average Daily Volume =        6.2 million  
Listed on  November 09, 2009         


Essex Property - ESS - close: 80.39 change: +0.72 stop: 76.40

ESS displayed some relative strength and hit new six-week highs. The stock hit our trigger to buy calls at $80.65 so the play is open. Our first target is $86.00. Our second target is $92.50.

Chart:

Picked on  November 10 at $ 80.65
Change since picked:       - 0.26
Earnings Date            02/03/10 (unconfirmed)
Average Daily Volume =        500 thousand 
Listed on  November 09, 2009         


Gold ETF - GLD - close: 108.39 change: +0.20 stop: 99.75

A minor bounce in the dollar sparked some profit taking in gold this morning. The GLD recovered from its intraday lows to close in positive territory. I am not suggesting new positions at this time.

Please note that I'm adjusting our first target to $109.50. 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:       + 6.11
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


Parker Hannifin - PH - close: 57.15 change: -0.31 stop: 52.90 *new*

It was a quiet day for PH. I would look for support near $55.00 or $54.00. The 50-dma has risen to $53.00 so I'm raising the stop loss to $52.90.

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:       + 1.90
Earnings Date            01/20/09 (unconfirmed)
Average Daily Volume =        1.6 million  
Listed on  November 03, 2009         


UltraShort Treasury ETF - TBT - close: 47.93 change: +0.32 stop: 44.90

The TBT displayed some minor strength today. Shares gapped open lower but recovered to close in positive territory. If you're looking for a new entry point consider waiting for a dip or bounce near $46.00.

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:       + 0.04

2nd entry on   October 30 at $ 45.50 (1/2 position)
Change since picked:          + 2.53

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


PUT Play Updates

BIOGEN IDEC - BIIB - close: 45.51 change: +0.10 stop: 47.25

The rally attempts in BIIB continue to struggle. Shares hit $46.15 this morning. I don't see any changes from my prior comments.

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:       - 3.38
                               /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: 49.12 change: +0.32 stop: 50.15

Banking stocks were some of the worst performers today and yet BMO managed to post a 0.6% gain. I remain very cautious here and more conservative traders will want to consider an early exit. Today's close over the 50-dma is short-term bullish. I'm still expecting round-number resistance at $50.00. 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:       + 1.75
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


Russell 2000 iShares - IWM - close: 58.85 change: -0.37 stop: 62.55

The Russell 2000 index was the worst performer among the major indices. Shares of IWM failed to see any follow through higher as they stalled under resistance. I would still consider small bearish positions here.

More conservative traders may want to adjust their stop loss down closer to $60.00. Our first target is $55.50. Our second target is $52.00 or the 200-dma, whichever the IWM hits first.

Picked on  November 09 at $ 59.00
Change since picked:       - 0.15
Earnings Date            --/--/--
Average Daily Volume =       54.5 million  
Listed on  November 02, 2009         


Whirlpool - WHR - close: 73.90 change: +0.36 stop: 74.10

WHR spent the day churning under resistance at $74.00. I don't see any changes from my prior comments. 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

Life Tech. - LIFE - close: 50.51 change: +0.64 stop: 50.10

Shares of LIFE finally broke through resistance at $50.00 and managed to close over this psychological level. Our stop loss was hit at $50.10. More agile traders may want to consider bullish positions given the breakout.

Chart:

Picked on   October 28 at $ 45.83 /gap down entry point 10/29/09
                              /originally listed at $46.61
Change since picked:       + 4.27 <-- stopped @ 50.10 (+9.3%)
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 28, 2009