CALL Play Updates

Autozone Inc - AZO - close: 166.00 change: -.15 *Close Play*

Autozone earnings are Tuesday and the game plan has been to close this position on Monday. AZO reached a new 10-month high on Friday. If the market cooperates we could see another bounce over $166 on Monday and give us a perfect exit on the play. We will exit on Monday, March 1st at the closing bell.

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         
Chart of AZO


Colgate Palmolive - CL - close: 82.97 change: -.17 stop: 80.75 *NEW*

No real change in CL on Friday and the trend remains intact. The surge to new relative highs continues to be bullish.

Our target to exit is $85.00.

Entry  on  February 20 at $ 81.75 
Change since picked:       + 1.65
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  February 20, 2010         
Chart of CL


Sina Corp. - SINA - close: 37.83 change: +0.261 stop: 35.90

Traders did buy the dip at $36.00 near its 200-dma on Thursday. The bounce off its lows is encouraging but shares remain stuck in their sideways consolidation. The Chinese market has rebounded to six-week resistance highs that have held more than once. With earnings on Wednesday we need to exit this position on Tuesday at the close.

Currently we have a target to take profits at $39.95. James has a second target at $41.75 but we'll need to keep a wary eye on possible resistance at the 50 and 100-dma ($41).

Entry  on  February 22 at $ 36.50
Change since picked:       + 0.71
Earnings Date            03/03/10 (confirmed)
Average Daily Volume =        1.4 million  
Listed on  February 18, 2010         
Chart of SINA


TEVA Pharmaceuticals - TEVA - close: 60.01 change: -0.27 stop: 58.75 *NEW*

Shares of TEVA continue to show relative strength. TEVA traded at the highs again on Friday but gave up a little ground at the close. I am raising our stop loss to our entry point at $58.74. Our target to exit is $64.00.

Entry  on  February 20 at $ 58.74 
Change since picked:       + 1.54
Earnings Date            05/05/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 20, 2010         
Chart of TEVA


PUT Play Updates

Franklin Resources Inc. - BEN - close: 101.72 change: +1.55 stop: 102.51

BEN rallied from the dip on Thursday and continued to rally on Friday. I am not convinced BEN is going lower and I agree with the current stop at $102.51. The trend in BEN is changing from bearish to neutral and a breakout over $102 would be bullish. However, it is at the point where a failure could occur. This should be a make or break week. I raised the exit target to support.

We are not suggesting new bearish positions in BEN at this time. Our exit target is $96.50. *NEW*

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       + 0.58 
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         
Chart of BEN


Caterpillar - CAT - close: 57.05 change: +0.26 stop: 59.01

CAT is an aggressive put. If the global economy is recovering then CAT should lead the advance. However, if the recovery is losing traction CAT should also lead the way down. I am encouraged that the Thursday rally did not exceed the highs from Tuesday. This suggests sellers are following the price down. We are not suggesting new positions at this time. This is an aggressive short-term trade. Our target to exit is $52.50. *NEW*

Entry  on  February 23 at $ 56.66 
Change since picked:       + 0.13
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =         12 million  
Listed on  February 23, 2010         
Chart of CAT


Australian Dollar ETF - FXA - close: 89.83 change: -0.39 stop: 90.60

The rebound in the FXA on Friday was short covering before the weekend after the big dip recovery on Thursday. The 50-dma is strong resistance at 89.86. The FXA is in a trend of lower highs and lower lows. Our time frame for the Australian dollar to decline is several weeks so you'll need to exercise some patience. There is possible support at the 200-dma but our first target is $83.00. Our second, longer-term target is $80.10.

Entry  on  February 23 at $ 89.23 /gap higher entry
Change since picked:       - 0.12
Earnings Date            --/--/--
Average Daily Volume =        200 thousand 
Listed on  February 23, 2010         
Chart of FXA


Mckesson Corp. - MCK - close: 59.15 change: +0.01 stop: 59.75 *NEW*

Thus far MCK hasn't seen much follow through on Tuesday's decline but shares are still building a trend of lower highs and lower lows. The lackluster bounce gives credibility to this put play. The first target to exit is $55.55 and just above the 200-dma.

Entry  on   January 30 at $ 58.82 
Change since picked:       + 0.32
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         
Chart of MCK


SIEMENS - SI - close: 86.27 change: +.80 stop: 89.75 *NEW*

Siemens posted another nice gain on Friday but finished with another lower high. With oil prices at resistance at $80 the odds are good they will decline next week and take Siemens down with them. Support has firmed at $84 but the next retest could be from a lower high and that might cause some buyers to rethink their position.

More conservative traders may want to take profits early right now since SI is bouncing from its February lows and possible support. Officially our second and final target is $81.00.

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 8.88
                            /1st target hit @ 87.55 (-7.1%)
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        368 thousand 
Listed on   January 26, 2010         
Chart of SI


CLOSED BULLISH PLAYS

Celgene Corp. - CELG - close: 59.49

Cancel this potential trade. The trigger point was never reached. I would rather not buy a potential breakout here and with the market showing signs of stress I don't want to buy a dip in a stock ripe for profit taking.