There was no follow through on Tuesday's market decline, which might embolden bullish traders


CALL Play Updates

Autozone Inc - AZO - close: 164.96 change: +0.72 stop: 159.40

AZO is still looking strong but we've only got three days left for this play to work. AZO remains under short-term resistance near $166.00. I am not suggesting new positions at this time. We want to exit ahead of the March 2nd earnings report. Our target to exit is $167.50.

Entry  on  February 16 at $161.75 (small positions)
Change since picked:       + 3.21
Earnings Date            03/02/10 (unconfirmed)
Average Daily Volume =        538 thousand 
Listed on  February 13, 2010         


Celgene Corp. - CELG - close: 59.49 change: +0.35 stop: 53.90

CELG did not see any follow through on yesterday's bearish reversal. I still think we should wait for a dip but more aggressive traders could try buying calls on a breakout over the $60.50 level. Right now our plan is to buy calls on a dip at $56.50. 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: 82.96 change: +1.07 stop: 79.75 *new*

CL displayed some relative strength with a 1.3% gain and a new relative high. I am raising our stop loss to $79.75. Our target to exit is $86.00.

Entry  on  February 20 at $ 81.75 
Change since picked:       + 1.40
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  February 20, 2010         


Sina Corp. - SINA - close: 36.92 change: -0.04 stop: 34.95

Uh-oh! There was no follow through on SINA's bounce off the 200-dma from yesterday. Shares actually tested this support again today. The lack of a rebound is bearish and more conservative traders may want to abandon ship. I'm not suggesting new positions at this time. Wait for a new rise over $37.60 before considering new bullish positions. Our first target to take profits is at $39.95.

Entry  on  February 22 at $ 36.50
Change since picked:       + 0.42
Earnings Date            03/15/10 (unconfirmed)
Average Daily Volume =        1.4 million  
Listed on  February 18, 2010         


TEVA Pharmaceuticals - TEVA - close: 59.56 change: +0.11 stop: 56.40

TEVA tried to breakout over the $60.00 level and hit $60.14 but couldn't hold it. I don't see any changes from my prior comments. If this stock 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:       + 0.82
Earnings Date            05/05/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 20, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 200.66 change: +3.60 stop: 206.26

AAPL managed to erase yesterday's losses and reclaim the $200 level with today's 1.8% bounce. If this stock closes over $202.50 again odds are good we'll get stopped out. Be careful.

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:       - 0.42
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Abbott Labs - ABT - close: 54.33 change: +0.36 stop: 55.05

There is no change from my prior comments. I remain very cautious on ABT and I'm tempted to close it early but shares remain under resistance at $55.00. 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:       + 1.53
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        7.5 million  
Listed on  February 09, 2010         


Franklen Resources Inc. - BEN - close: 101.65 change: +1.62 stop: 104.26

Financial stocks were some of the best performers today after Bernanke reinforced the view that rates would remain low a long time. Shares of BEN erased yesterday's losses with a 1.6% gain. More conservative traders may want to tighten their stops even further. I'm keeping our stop above the 50-dma. No new positions at this time. Our exit target is $95.00.

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       + 2.06 
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


Caterpillar - CAT - close: 56.96 change: +0.30 stop: 59.01

CAT's bounce was pretty meager and fueled by light volume. I remain short-term bearish and would still consider new put positions at current levels. I do consider this an aggressive trade since CAT might have some support in the $56-55 zone.

Our target to exit is $51.00. Please note that the $54.00 level might offer some support.

Entry  on  February 23 at $ 56.66 
Change since picked:       + 0.30
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =         12 million  
Listed on  February 23, 2010         


Australian Dollar ETF - FXA - close: 89.50 change: +0.49 stop: 90.60

The FXA gapped open higher but it didn't make much progress after that. I would still open bearish positions in the $89.00-90.00 zone. The FXA has demonstrated resistance at the $90.50 level. Our time frame is several weeks and I'm suggesting the April or June puts. There is potential support at the 200-dma near $86.00 but I'm setting our first target at $83.00. Our second target at $80.00.

Entry  on  February 23 at $ 89.23 /gap higher entry
Change since picked:       + 0.27
Earnings Date            --/--/--
Average Daily Volume =        200 thousand 
Listed on  February 23, 2010         


Goldman Sachs - GS - close: 158.33 change: +1.63 stop: 156.05

GS is still inching higher but remains inside the $160-150 trading range. There is no change from my prior comments. 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: 127.59 change: +1.13 stop: 130.11 *new*

Our aggressive bearish play on IBM is not panning out. The stock temporarily traded above resistance near $128.00 this morning. Shares actually look poised to breakout higher. I am suggesting more conservative traders exit early now! We will lower our stop loss to $130.11 although if IBM closes above $128.00 we'll probably close this trade. No new positions at this time. Our first target is $122.00. Our second target is the 200-dma.

Entry  on  February 18 at $127.00
Change since picked:       + 0.59
Earnings Date            04/20/10 (unconfirmed)
Average Daily Volume =        8.2 million  
Listed on  February 03, 2010         


JPMorgan Chase - JPM - close: 40.85 change: +0.97 stop: 41.65

The choppiness and indecision continues. Yesterday JPM was down 97 cents. Today it's up 97 cents. More conservative traders will want to consider an early exit right here and now. I am not suggesting new bearish positions at this time. 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:       + 2.41
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 59.27 change: +0.74 stop: 61.55

MCK gained 1.2% on its short-term oversold bounce. Look for a new lower high in the $60-61 zone. Our first target to take profits will be $54.00.

Entry  on   January 30 at $ 58.82 
Change since picked:       + 0.45
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


SIEMENS - SI - close: 86.93 change: +0.72 stop: 92.05

Shares of SI are still churning sideways. I don't see any changes from my prior comments. I am not suggesting new positions at this time. 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:       - 7.41
                            /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: 68.62 change: +0.83 stop: 69.26

Lack of follow through on yesterday's decline is a warning sign for us. I am not suggesting new positions at this time. Our target to take profits is $61.00 near the rising 200-dma.

Entry  on  February 04 at $ 66.38 
Change since picked:       + 2.24
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 04, 2010         


Walter Energy - WLT - close: 77.80 change: +0.47 stop: 81.25

Shares of WLT gapped open higher at $78.01 but the rally didn't get very far. I'm still bearish but this remains an aggressive trade. Our target is $72.00. More aggressive traders could aim lower. Keep in mind that WLT can be a volatile stock. I would keep positions small to limit your risk.

Entry  on  February 23 at $ 78.01 /gap open higher
Change since picked:       - 0.21
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  February 23, 2010