Editor's Note:

Is the market rebound losing steam? The U.S. market ignored another bullish day for European and Asian markets on Wednesday.

We are removing CLX, CUB, IYT, and VMC. None of these trades have opened yet.

FDX was stopped out.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 81.00 change: -0.90

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings on May 1st
New Positions: see below

Comments:
04/24/13: I could not find any news to explain the spike down at the open in AMT today. Shares erased yesterday's gain with a 90-cent decline. Technically today's pullback has created a bearish engulfing candlestick reversal pattern. Odds are good we'll see AMT test its 10-dma near $80.50 and likely the $80.00 level.

Earlier Comments:
Let's not forget that the plan is to exit prior to earnings on May 1st. Readers may want to start raising their stop loss. The Point & Figure chart for AMT is bullish with a $94 target.

- Suggested Positions -

Long May$80 call (AMT1318E80) entry $2.05

Entry on April 11 at $80.25
Average Daily Volume = 2.2 million
Listed on April 09 2013


Gilead Sciences - GILD - close: 53.33 change: -0.72

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: -34.5%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/24/13: GILD stumbled today with a -5.1% decline. Biotechs in general were weak. Last night biotech giant Amgen (AMGN) reported earnings that beat estimates by 12 cents but the revenue number was a miss. It looks like traders decided to sell the AMGN earnings news and like a virus the selling spread to other biotechs. AMGN lost -6.9% for the session.

Looking at GILD the stock looks vulnerable with the failed rally near $55.00 just yesterday. Now shares have fallen to support near $50.00. More conservative traders may want to abandon ship now.

Earlier Comments:
I do consider this a more aggressive entry point. More conservative traders may want to wait for a pullback near the $50.50-50.00 zone as an alternative entry point. Our target is $56.50 but we'll plan on exiting prior to the May 2nd earnings report.

- Suggested Positions -

Long May $52.50 call (GILD1318e52.5) entry $1.94

Entry on April 15 at $52.25
Average Daily Volume = 11.7 million
Listed on April 13 2013


PUT Play Updates

Atlas Air Worldwide - AAWW - close: 38.72 change: +0.13

Stop Loss: 39.25
Target(s): 33.50
Current Option Gain/Loss: -44.1%
Time Frame: exit PRIOR to earnings in early May
New Positions: see below

Comments:
04/24/13: AAWW is still trying to bounce. Shares briefly traded above their 10-dma before paring their gains. The high today was near the $39.00 level. We are turning more defensive here and adjusting the stop loss down to $39.25. I am not suggesting new positions at this time.

- Suggested Positions -

Long May $37.50 PUT (AAWW1318Q37.5) entry $1.70

04/24/13 new stop loss @ 39.25

Entry on April 17 at $38.00
Average Daily Volume = 262 thousand
Listed on April 16 2013


Agrium Inc. - AGU - close: 92.37 change: +1.68

Stop Loss: 92.05
Target(s): 85.25
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on May 9th
New Positions: Yes, see below

Comments:
04/24/13: AGU and its rivals (POT, CF, and MOS) were all outperformers today. I looked at news on all of them and could not find any headlines to explain the industry-wide rally today. They were all up strongly at the open so something had to happen or someone said something bullish for the group.

Right now AGU managed to close above short-term technical resistance at its 10-dma. If this bounce continues we will likely drop AGU as a bearish candidate. Tomorrow could be interesting. Potash Corp. (POT) is due to report earnings tomorrow morning before the opening bell and their results should influence the whole group.

Earlier Comments:
I am suggesting a trigger to buy AGU puts at $89.75. If triggered our target is $85.25. More aggressive traders could certainly aim lower. The Point & Figure chart for AGU is bearish with an $82 target.

NOTE: AGU could see some volatility when investors react to earnings from its rivals. POT is due to report earnings on April 25th. CF reports in early May.

Trigger @ 89.75

- Suggested Positions -

buy the May $90 PUT (AGU1318Q90)

Entry on April -- at $---.--
Average Daily Volume = 1.5 million
Listed on April 23 2013


S&P500 ETF - SPY - close: 157.88 change: +0.10

Stop Loss: 160.50
Target(s): 150.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/24/13: Wednesday proved to be a quiet day for the U.S. market. The SPY closed virtually unchanged on the session. Is the market's upward momentum losing steam again?

Currently the plan is to use a trigger at $157.00 to buy put options on the SPY. Use a stop loss at $160.50. The target is $150.25.

This is a much more aggressive entry point since the S&P 500's trend is still higher. Traders will want to strongly consider limiting your position size to reduce your exposure.

Trigger @ 157.00

- Suggested Positions -

buy the May $155 PUT (SPY1318Q155) current ask $1.04

04/23/13 adjust strategy: new trigger @ $157.00,
new stop loss @ 160.50, new target @ 150.25
adjust option strike to 2013 May $155 put

Entry on April -- at $---.--
Average Daily Volume = 130 million
Listed on April 18 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 52.70 change: +0.33

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: +0.0% or Jan's: -3.4%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
Please review our original play description on this page here.

- Suggested Positions -

Long 2013 Jul $55 call (CBI1320G55) Entry $2.20*

- or -

Long 2014 Jan $60 call (CBI1418A60) Entry $2.90*

*option entry price is an estimate since the option did not trade at the time our play opened.

Entry on April 22 at $51.53
Average Daily Volume = 2.5 million
Listed on April 20 2013


CLOSED BULLISH PLAYS

Clorox Co. - CLX - close: 87.42 change: -2.06

Stop Loss: 87.95
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 1st
New Positions: see below

Comments:
04/24/13: CLX is not cooperating. Shares turned sharply lower on Wednesday, without any apparent catalyst for the decline. The stock broke through short-term technical support at its 20-dma and now the up trend appears to be in jeopardy.

Our trade has not opened yet with a trigger to buy calls at $90.25. We are removing CLX as an active candidate.

Trade did not open.

04/24/13 removed from the play list.

chart:

Entry on April -- at $---.--
Average Daily Volume = 738 thousand
Listed on April 20 2013


CLOSED BEARISH PLAYS

Cubic Corp - CUB - close: 41.69 change: +0.79

Stop Loss: 41.60
Target(s): 37.15
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early May
New Positions: Yes, see below

Comments:
04/24/13: Shares of CUB are not cooperating either. The stock shot higher today and outpaced the market with a +2.2% gain. Our trade has not opened yet with a trigger to buy puts at $39.90. We're removing CUB as a bearish candidate.

Trade did not open.

04/24/13 removed from the newsletter

chart:

Entry on April -- at $---.--
Average Daily Volume = 112 thousand
Listed on April 22 2013


FedEx Corp. - FDX - close: 94.46 change: +1.29

Stop Loss: 95.25
Target(s): 86.50
Current Option Gain/Loss: -59.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/24/13: I warned readers last night that thanks to a new seven-year $10.5 billion deal with the U.S. postal service that shares of FDX were going to rally today. As expected the stock gapped open higher. Our stop loss was hit at $95.25.

- Suggested Positions -

May $92.50 PUT (FDX1318Q92.5) entry $2.12 exit $0.85 (-59.9%)

04/24/13 stopped out
04/23/13 FDX trading higher after hours on news, the stock will likely hit our stop loss tomorrow morning.
04/20/13 new stop loss @ 95.25
04/18/13 trade opened on gap down at $93.18, trigger was $93.50

chart:

Entry on April 18 at $93.18
Average Daily Volume = 3.3 million
Listed on April 15 2013


Dow Jones Transportation ETF - IYT - close: 108.70 chg: +0.67

Stop Loss: 107.05
Target(s): 100.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/24/13: The transportation sector continues to bounce. There is a chance that the IYT fails right here near its simple 30-dma or it fails near the short-term trend of lower highs. We're not going to wait for a breakdown any longer. Our trade has not opened yet and we're removing IYT as an active candidate.

Trade did not open.

04/24/13 removed from the newsletter

chart:

Entry on April -- at $---.--
Average Daily Volume = 904 thousand
Listed on April 17 2013


Vulcan Materials - VMC - close: 47.76 change: +0.78

Stop Loss: 47.55
Target(s): 40.25
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early May
New Positions: see below

Comments:
04/24/13: VMC is still bouncing and added +1.6% today. This relative strength is not helpful since we're looking for a breakdown below support. The intermediate trend for VMC is still bearish with a pattern lower highs and lower lows. Yet short-term traders are buying this dip.

Our trade has not opened yet with a trigger at $44.90. We are removing VMC as a candidate but I would keep an eye on it for a breakdown below support near $45.00.

Trade did not open.

04/24/13 removed from the newsletter

chart:

Entry on April -- at $---.--
Average Daily Volume = 581 thousand
Listed on April 18 2013