CALL Play Updates

Apple Inc. - AAPL - close: 211.72 change: -3.31 stop: 203.99

After a $9 gain yesterday it's not that surprising to see some profit taking today. AAPL dipped to $209.50 before bouncing off its lows. I remain bullish but we only have a few days left. AAPL is due to report earnings on January 25th and we do not want to hold over the report.

This was an aggressive bullish trade and the plan was to use small positions (1/4 to 1/2 your normal trade size). Our first target to exit is $219.50. Our second target is $224.50.

Entry  on   January 13 at $210.65 
Change since picked:       + 1.07
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =       17.1 million  
Listed on   January 13, 2010         


AvalonBay Commty. - AVB - close: 79.08 change: -1.81 stop: 77.90

Shares of AVB were downgraded this morning, which explains the stock gapping open lower. The stock dipped toward short-term support near $78.00 and its 40-dma before bouncing. We're still on the sidelines waiting for a breakout. Our plan is to buy calls if AVB hits $82.05. If triggered our first target is $87.50. We will plan to exit ahead of the early February earnings report.

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 82.05  
Change since picked:       + 0.00   
Earnings Date            02/03/10 (confirmed)
Average Daily Volume =        1.4 million    
Listed on   January 09, 2010         


FUQI Intl. - FUQI - close: 19.18 change: -1.25 stop: 18.99

It was an ugly day for Chinese stocks. China actually started the worldwide sell-off when news hit that the Chinese government was telling banks to curb their lending. China is trying to slow down their economy to avoid it overheating and avoid any problems with inflation. Unfortunately China's growth has been a fundamental part of the worldwide rally in stocks so naturally stocks soured on this news.

Shares of FUQI gapped open lower near support at $20.00 but it didn't last. The stock broke down under $20.00, under its 50-dma and under its 200-dma. More conservative traders will want to exit immediately! Our stop loss has not been hit yet and it's possible that investors overreacted and Chinese stocks could see an oversold bounce tomorrow. I am not suggesting new positions at this time.

This was a very aggressive trade and I suggested very small positions. Our target to exit is $24.75.

Entry  on   January 06 at $ 20.51   (small positions 1/4) 
Change since picked:       - 1.33       
Earnings Date            03/31/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on   January 04, 2010         


Joyg Global - JOYG - close: 58.08 change: -1.85 stop: 57.75

If China is trying to slow down its economy then that would mean demand for commodities should slow. Commodities, commodity-related stocks (like the miners) were hit pretty hard on Wednesday. Shares of JOYG dipped to $57.30 before paring its losses to just 3%. We're still on the sidelines. Our plan is to buy calls at $61.51.

If triggered our first target to take profits is at $64.95. Our second target is $69.00. FYI: The Point & Figure chart's long-term target is $79.00. We do not want to hold over the early March earnings report.

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 61.51
Change since picked:       + 0.00
Earnings Date            03/03/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on   January 19, 2010         


TORO Co. - TTC - close: 42.30 change: -0.75 stop: 41.40

TTC lost 1.7% and dipped toward its rising 30-da. I've been suggesting readers wait for a dip or a bounce near $42.00 before launching new positions. That could happen tomorrow. Our exit target is $45.90. We don't want to hold over the February earnings report. The plan calls for small positions to limit our risk.

Entry  on   January 07 at $ 42.60 (small positions)
Change since picked:       - 0.30      
Earnings Date            02/18/10 (unconfirmed)
Average Daily Volume =        289 thousand     
Listed on   January 05, 2010         


Yanzhou Coal Mining. - YZC - close: 22.89 change: -0.92 stop: 22.50

I'm surprised that YZC did not hit our stop loss today. In the FUQI update above I discussed why Chinese stocks had a bad day. Commodity stocks suffered the worst on fears that demand would slow down if China slowed its economic growth. Shares of YZC gapped open lower at $23.41 and fell to $22.59 intraday. Our stop has not been hit at $22.50. Speaking of stops I'm adjusting our stop loss to $22.45 just in case YZC wants to tag $22.50 as round-number support first. Shares were starting to rebound late in the session. It's certainly possible investors overreacted and Chinese stocks could bounce back tomorrow but I am not suggesting new positions at this time. Our first target to take profits is at $26.50.

Entry  on   January 19 at $23.77 /gap down entry
                            /originally listed at $23.93
Change since picked:       - 0.88
Earnings Date            (Unknown)
Average Daily Volume =    444,000  
Listed on   January 17, 2010         


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

Express Scripts - ESRX - close: 88.83 change: -2.17 stop: 87.45

It was a disappointing session for ESRX. The stock acted like it wanted to go higher these last few days. Yet when the market ticked lower the stock plunged from nearly $92.00 to a low of $87.24 midday. Our stop loss was hit at $87.45 closing this trade. Readers may wan to keep ESRX on their watch list since the stock did not break the longer-term up trend. We might jump back in if ESRX can early the $92.50 level.

Chart:

Entry  on   January 09 at $ 91.65 (small positions)    
Change since picked:       - 4.20 <-- stopped out @ 87.45 (-4.5%)
Earnings Date            02/24/10 (unconfirmed)
Average Daily Volume =        2.6 million      
Listed on   January 09, 2010         


L-3 Communications - LLL - close: 88.16 change: -1.38 stop: 87.85

LLL had grown overbought so when stocks began to correct shares were a target for profit taking. LLL broke short-term support near $88.00 and hit our stop loss at $87.85 closing this play.

Chart:

Entry  on  December 28 at $ 86.80
Change since picked:       + 1.05 <-- stopped @ 87.85 (+1.2%)
                            /1st target hit @ 89.95 (+3.6%)
Earnings Date            01/28/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on  December 26, 2009         


UnitedHealth Group - UNH - close: 34.55 change: -0.58 stop: 31.95

Target achieved. Once again it looks like investors are selling the news. Healthcare stocks rallied on Tuesday on expectations that Republican Scott Brown would win in Massachusetts. Brown did win, which should make it tougher for Democrats to enact any serious healthcare reform. Healthcare stocks sold off on the news. Yet UNH gapped open at $35.94 and hit $36.07 before reversing. Our second and final target was hit at $36.00. The play was closed.

Chart:

Entry  on  December 10 at $ 30.31    
Change since picked:       + 5.69 <- 2nd target hit @ 36.00 (+18.7%)
Earnings Date            01/21/10 (unconfirmed) 
Average Daily Volume =        819 thousand      
Listed on  December 10, 2009         


CLOSED BEARISH PLAYS

Interoil Corp. - IOC - close: 81.38 change: +8.56 Stop: 76.50

IOC exploded higher today on news that the company's Antelope-2 test well in Papua New Guinea did indeed test positive for oil. IOC is still testing whether this is a commercially viable location to begin commercial drilling. Now I don't know if it was just a coincidence or because of the news this morning but IOC was also upgraded this morning and given a $165 price target. The combination of the news had IOC gapping open higher at $75.14 and quickly hitting our stop loss at $76.50.

Chart:

Entry  on   January 19 at $74.01 /gap down entry
Change since picked:      + 2.46 <-- stopped out @ 76.50 (+3.3%)
Earnings Date           (Unknown)
Average Daily Volume =        1.1 million  
Listed on   January 17, 2010