Editor's Note:

The stock market has produced a three-day gain but equities closed well off their highs for the day. The move looks like a failed rally at resistance. We want to raise our stop losses on almost all of our bullish candidates in case the profit taking continues tomorrow.

-James

Current Portfolio:


CALL Play Updates

Celgene Corp. - CELG - close: 63.97 change: +0.87

Stop Loss: 61.25
Target(s): 69.00
Current Option Gain/Loss: +11.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: CELG popped higher at the open at $64.50 but the rally petered out near $65. Shares ended the session up +1.3%. I am not suggesting new positions at this time. The market looks vulnerable to further profit taking. Look for CELG to find support near $62.00. Yesterday's low was $61.41. We will raise our stop loss to $61.25.

- Suggested Positions -

Long OCT $65 call (CELG1122J65) Entry $1.53

09/27 new stop loss @ 61.25

Entry on September 26 at $63.03
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on September 22, 2011


Cerner Corp. - CERN - close: 72.88 change: +1.58

Stop Loss: 69.50
Target(s): 74.90, 78.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: Our new trade on CERN is open. Unfortunately, the gap open higher this morning puts us at a disadvantage. CERN opened at $72.79, our new entry point. The rally failed at $74.39 and shares retreated to close up +2.2%. If the stock market pulls back then we should look for CERN to test the $71.25 area or the $70.00 level. We will try and reduce our risk by moving the stop loss up to $69.50.

- Suggested Positions -

Long OCT $75 call (CERN1122J75) Entry $1.95

09/27 new stop loss @ 69.50

Entry on September 27 at $72.79
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on September 26, 2011


Check Point Software - CHKP - close: 54.56 change: +1.15

Stop Loss: 50.80
Target(s): 55.75 , 57.75
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: CHKP managed to post a +2.1% gain but shares could not close above resistance at the bottom of its gap down near $55.00 nor resistance at its 50-dma or 100-dma in the same area. It's probably time to look for a dip. If the market pulls back I'm looking for CHKP to test the $53.00-52.00 zone.

FYI: The high today was $55.34. Our first target is $55.75.

- Suggested Positions -

Long OCT $55 call (CHKP1122J55) Entry $1.80

09/26 trade opened.

Entry on September 26 at $53.00
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on September 20, 2011


Dollar Tree Inc. - DLTR - close: 75.71 change: -1.77

Stop Loss: 74.75
Target(s): 79.75, 82.50
Current Option Gain/Loss: Oct$77.50: -37.0% & Nov$80: -17.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: Warning! DLTR just produced a bearish engulfing reversal candlestick pattern. The stock rallied to $79.35 this morning only to give back all of its gains and more to close down -2.2%.

The relative weakness is a mystery. The stock garnered some positive analyst comments this morning. Given DLTR's weakness today we are turning more cautious and moving our stop loss higher to $74.75. This way if DLTR breaks down under the $75.00 level we'll get stopped out. More aggressive traders will want to consider leaving their stop under last week's low, which would give DLTR another chance to find support in the $74.00-73.50 area.

- Suggested Positions -

Long OCT $77.50 call (DLTR1122J77.5) Entry $2.70

- or -

Long NOV $80.00 call (DLTR1119K80) Entry $2.90

09/27 new stop loss @ 74.75, DLTR showing relative weakness today

Entry on September 26 at $76.51
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on September 24, 2011


Hansen Natural Corp. - HANS - close: 90.39 change: -0.06

Stop Loss: 86.90
Target(s): 94.75, 99.00
Current Option Gain/Loss: -24.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: The trading in HANS today was a bit disappointing. Our trade was opened this morning when HANS gapped higher at $92.17. The stock failed twice in the $93.30 area and shares retreated back toward support/resistance at the $90.00 level. While $90.00 should be support I am reluctant to buy the dip. However, we can launch new call positions if both HANS and the S&P 500 index both open positive tomorrow morning.

Please note that we are raising our stop loss to $86.90. More conservative traders may want to raise their stop even higher. This stock can be volatile so we do want to keep our position size small.

- Suggested Positions - (Small Positions)

Long OCT $95 call (HANS1122J95) Entry $3.50

09/27 new stop loss @ 86.90

Entry on September 27 at $92.17
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on September 26, 2011


Hewlett Packard - HPQ - close: 23.59 change: +0.88

Stop Loss: 21.45
Target(s): 29.50
Current Option Gain/Loss: +15.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: HPQ was an outperforming stock today with a +3.78% gain. Shares had been up +7.8% intraday. If the market contracts tomorrow there is a good chance that HPQ will see another dip into the $22.50-22.00 zone. Readers might want to raise their stop loss toward the $22.00 level. Last week's low was $21.50 so we're raising our stop to $21.45.

I am not suggesting new positions at current levels. Our multi-week target is $29.50.

- Suggested Positions -

Long 2012 Jan. $24 call (HPQ1221A24) Entry $2.14

09/27 new stop loss @ 21.45

Entry on September 23 at $22.52
Earnings Date 11/21/11 (unconfirmed)
Average Daily Volume = 26.6 million
Listed on September 22, 2011


iPath Copper ETN - JJC - close: 44.12 change: +0.85

Stop Loss: 41.75
Target(s): 46.50, 49.75
Current Option Gain/Loss: Oct$45: +66.6% & Dec$45: +32.5%
Time Frame: 10 weeks
New Positions: Yes, see below

Comments:
09/27 update: Commodities and metals produced a big bounce this morning. The JJC gapped open higher at $44.78 and rallied just over $45 before starting to see some profit taking. Shares settled with a +1.9% gain. Volume was once again very, very strong at 770 thousand versus normal volume of 267K.

There is a decent chance that the JJC might see some profit taking tomorrow. Look for another bounce near $42.00 before considering new positions. Cautious traders will want to seriously consider taking some profits right now! We will try and reduce our risk by raising the stop loss to $41.75. More aggressive traders will want to leave their stop under yesterday's low of $41.16.

Earlier Comments:
I'm setting our targets are $46.50 and $49.75. We prefer the December $45 calls but I'm listing October calls for more aggressive traders.

- Suggested Positions -

Long OCT $45 call (JJC1122J45) Entry $0.75

- or -

Long DEC $45 call (JJC1117L45) Entry $2.00

09/27 new stop loss @ 41.75
09/27 Consider taking profits now:
bid Oct. $45 call @ 1.25 (+66.6%), bid Dec. $45 call @ 2.65 (+32.5%)
09/26 new stop loss @ 40.95

Entry on September 26 at $41.92
Earnings Date --/--/--
Average Daily Volume = 267 thousand
Listed on September 24, 2011


ishares Silver ETF - SLV - close: 31.17 change: +1.40

Stop Loss: 28.75
Target(s): 34.50, 37.75
Current Option Gain/Loss: Nov$32: +83.0% & Jan$35: +44.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
09/27 update: SLV is another commodity winner. Shares gapped higher at $32.02. My quote feed says the high today was $32.61, which would have placed it near the gap down high on Sep. 23rd. Yet looking at the intraday chart I do not see the SLV trading above $32.05. Volume was very strong at 64.6 million shares, which is 40 million more than normal.

The SLV might see some profit taking. We are going to try and reduce our risk by raising the stop loss to $28.75. I would consider a dip or a bounce near the $30.00 or $29.00 levels as a new entry point.

NOTE: Cautious traders may want to take profits now!

Earlier Comments:
Our targets are $34.50 and $37.75. We might consider a higher target for the January calls. Keep in mind that the 200-dma and the $38.00 level could be new resistance.

- Suggested Positions - (Small Positions)

Long NOV $32 call (SLV1119K32) Entry $1.36

- or -

Long 2012 Jan $35 call (SLV1221A35) Entry $1.58

09/27 new stop loss @ 28.75
09/27 readers may want to take profits now:
bid Nov $32 call @ 2.49 (+83.0%), bid on Jan $35 call @ 2.29 (+44.9%)

Entry on September 26 at $27.51
Earnings Date --/--/--
Average Daily Volume = 24.4 million
Listed on September 22, 2011


Whole Foods Market - WFM - close: 70.94 change: -0.63

Stop Loss: 67.45
Target(s): 73.00, 77.50
Current Option Gain/Loss: OCT$70: +11.6% & NOV$72.50: +10.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/27 update: Hmm... the action in WFM today is very troubling. The stock market produced a big intraday rally and yet WFM could not reach its highs from last week. The stock failed twice near $72.70. This almost looks like a very short-term, intraday bearish double top. The fact that WFM closed in negative territory while most of the market closed in the green is also a concern.

I am not suggesting new positions at this time. There is a good chance that WFM will retest the $70.00 level soon and we might see it test the $68.00 area. I would consider a dip or a bounce near $68.00 as a new entry point. Please note that we're raising our stop loss to $67.45.

- Suggested Positions - (Small Positions)

Long OCT $70 call (WFM1122J70) Entry $3.18

- or -

Long NOV $72.50 call (WFM1119K72.5) Entry $4.10

09/27 new stop loss @ 67.45
09/26 new stop loss @ 65.90

Entry on September 26 at $69.10
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on September 22, 2011


Watson Pharmaceuticals - WPI - close: 72.10 change: +0.74

Stop Loss: 69.75
Target(s): 74.75, 78.50
Current Option Gain/Loss: Oct$75: + 0.0% & NOV$75: - 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/27 update: WPI ended the session with a +1% gain but all of that was achieved with the stock's gap open this morning. WPI managed to churn sideways so it avoided most of the market's afternoon decline. Yet if the market continues to retreat tomorrow then we should expect WPI to dip toward the $70.00 level. We will try and reduce our risk by moving the stop loss to $69.75. I am not suggesting new positions at current levels.

- Suggested Positions -

Long OCT $75 call (WPI1122J75) Entry $1.00

- or -

Long NOV $75 call (WPI1119K75) Entry $2.10

09/27 new stop loss @ 69.75

Entry on September 26 at $71.26
Earnings Date 11/01/11 (confirmed)
Average Daily Volume = 1.4 million
Listed on September 24, 2011