Stocks are rolling over and for a handful of our plays this is a new entry point.


CALL Play Updates

Autozone Inc - AZO - close: 164.24 change: +1.17 stop: 159.40 *new*

AZO displayed some relative strength today with a 0.7% gain. Yet the rally stalled this morning near its highs from last week. I'm bullish on AZO but we're running out of time. We want to exit ahead of the March 2nd earnings report. Please note that I am raising our stop loss to $159.40.

Given our time frame I'm reducing our targets down to one. Plan to exit at $167.50.

Entry  on  February 16 at $161.75 (small positions)
Change since picked:       + 2.49
Earnings Date            03/02/10 (unconfirmed)
Average Daily Volume =        538 thousand 
Listed on  February 13, 2010         


Celgene Corp. - CELG - close: 59.14 change: -0.54 stop: 53.90 *new*

CELG produced another failed rally near $60.50 today. This is the fourth day in a row the stock has failed at this level. I suspect the pull back might be a little deeper than we previously planned. I'm adjusting our entry point to buy calls from $58.00 down to $56.50. I'm moving the stop loss to $53.90 so it's under the February low. If triggered at $56.50 our first target is $62.50. Our second, longer-term multi-week target is $69.00.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 56.50
Change since picked:       + 0.00
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        3.6 million  
Listed on  February 20, 2010         


Colgate Palmolive - CL - close: 81.89 change: -0.19 stop: 78.85

CL is still consolidating sideways between $81 and $82.50. There is no change from my prior comments. Readers can choose to try and buy dips in the $81-80 zone or look for a breakout over $82.75. Our target to exit is $86.00.

Entry  on  February 20 at $ 81.75 
Change since picked:       + 0.33
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  February 20, 2010         


Sina Corp. - SINA - close: 36.96 change: -0.90 stop: 34.95

SINA produced the correction we were looking for and shares hit our trigger to buy calls at $36.50. The low today was $36.28 and SINA bounced off its simple 200-dma. If you missed the entry point I would still consider buying calls now. Our first target to take profits is at $39.95.

Chart:

Entry  on  February 22 at $ 36.50
Change since picked:       + 0.46
Earnings Date            03/15/10 (unconfirmed)
Average Daily Volume =        1.4 million  
Listed on  February 18, 2010         


TEVA Pharmaceuticals - TEVA - close: 59.45 change: -0.42 stop: 56.40

It shouldn't be a surprise to see TEVA step back with shares facing resistance at $60.00 and the market slipping lower. If this stock corrects any further we could see a dip toward $58.00-57.00 or its 50-dma. Wait for the dip or buy the bounce after the dip occurs. Our first target is $64.00.

Entry  on  February 20 at $ 58.74 
Change since picked:       + 0.71
Earnings Date            05/05/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 20, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 197.06 change: -3.36 stop: 206.26

Entry point alert! Yesterday I reiterated my suggestion to open new put positions on a drop below $198.50. AAPL obliged us with a 1.6% decline and a close under its 100-dma. However, instead of buying the March $180 puts I am suggesting the March $190 puts (current ask $2.91).

Our first target to take profits is at $182.50. Our second target is $165.00 although we might exit at the 200-dma. The plan was to use small positions to limit our risk.

Entry  on   January 28 at $201.08 (small positions)/gap open entry
Change since picked:       - 4.02
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Abbott Labs - ABT - close: 53.97 change: -0.43 stop: 55.05

ABT is retreating and the stock has fallen under several key moving averages but I remain cautious on the stock. No new positions at this time.

Our first target was $50.15. More aggressive traders can target the 200-dma or support near $48.00.

Entry  on  February 10 at $ 52.80
Change since picked:       + 1.17
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        7.5 million  
Listed on  February 09, 2010         


Franklen Resources Inc. - BEN - close: 100.03 change: -1.33 stop: 104.26 *new*

BEN's bounce is rolling over as we expected. The low today was $99.61. If you don't want to buy puts now then look for a new decline under $99.50 as your entry point. Our exit target is $95.00. Please note our new stop at $104.26.

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       + 0.44 
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


Goldman Sachs - GS - close: 156.70 change: -0.01 stop: 156.05

GS was showing some relative strength this morning but the rally reversed at $160 resistance. The stock eventually closed nearly unchanged on the session. The bad news for shareholders is that the move does look like a failed rally. More aggressive traders may want to go ahead and buy puts now. I am sticking to our plan outlined below:

We have two triggers on GS. One trigger at $147.45 to buy puts. Another trigger at $163.00 to buy calls.

If triggered at $147.45 we'll use a stop loss at $156.06 and our first target will be $138.00. I'm suggesting the March $140 puts.

If triggered at $163.00 to buy calls we'll use a stop loss at $155.75 and our target will be $177.50. I'm suggesting the March $170 calls.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 147.45
Change since picked:       + 0.00
Earnings Date            04/13/10 (unconfirmed)
Average Daily Volume =         17 million  
Listed on  February 00, 2010         


Intl. Bus. Mach. - IBM - close: 126.46 change: -0.39 stop: 130.51

There is no change for us with IBM. The stock is still bouncing around the $126-128 zone. Technically today does look like another failed rally under resistance. Readers can open positions now or wait for a new drop under $126.00. More conservative traders may want to consider a stop loss closer to $128.00. Our first target is $122.00. Our second target is the 200-dma.

Entry  on  February 18 at $127.00
Change since picked:       - 0.54
Earnings Date            04/20/10 (unconfirmed)
Average Daily Volume =        8.2 million  
Listed on  February 03, 2010         


JPMorgan Chase - JPM - close: 39.88 change: -0.97 stop: 41.65

Entry point alert! JPM's bullish breakout over resistance has reversed with today's 2.3% decline. More conservative traders may want to lower their stop toward today's high of $41.25. I am suggesting the March $40.00 puts (current ask $1.40). Our first target to take profits is at $35.25. Our second target is $32.00.

Entry  on   January 26 at $ 38.44 
Change since picked:       + 1.44
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 58.53 change: -1.40 stop: 61.55 *new*

Shares of MCK under performed the market with a 2.3% decline. I could not find any news to account for the gap down this morning. Volume was slightly above average on the drop. I don't see any changes from my prior comments but we will adjust the stop loss down to $61.55 (still above the 50-dma). Our first target to take profits will be $54.00.

Entry  on   January 30 at $ 58.82 
Change since picked:       - 0.29
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


SIEMENS - SI - close: 86.21 change: -2.04 stop: 92.05

The oversold bounce in SI is rolling over and shares are testing their 200-dma again. I don't see any changes from my prior comments. SI has already hit our first target at $87.55. Our second and final target is $81.00.

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 8.13
                            /1st target hit @ 87.55 (-7.1%)
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        368 thousand 
Listed on   January 26, 2010         


United Technology - UTX - close: 67.79 change: -0.61 stop: 69.26

This looks like a new entry point in UTX. The oversold bounce is rolling over under resistance near the 50-dma. Readers can launch new put positions now. More conservative traders could take profits early near support at $65.00. Our target to take profits is $61.00 near the rising 200-dma.

Entry  on  February 04 at $ 66.38 
Change since picked:       + 1.41
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 04, 2010