Editor's Note:

There were a lot of investors, both big and small, that were short stocks (and the market) going into this week. A lot of them were still short this morning. When the global markets around the world began to rally and the U.S. markets opened higher there was a rush for the exits that never slowed down. We had several bearish plays get stopped out.


BULLISH Play Updates

Double-Long Oil ETN - DXO - close: 3.74 change: +0.29 stop: 3.28

Crude oil has finally begun to bounce thanks to a breakdown in the dollar. The DXO gained 8.4% and is now challenging its 10-mda and will soon challenge its 200-dma.

Our first target is $3.90. Our second target is $4.20. We want to exit the majority of our position at the first target. FYI: Keep an eye on the U.S. dollar. A weak dollar should boost oil prices.

Entry on      July 09 at $ 3.48 /gap down entry
                              /originally listed at $3.60
Change since picked:     + 0.27   			
Earnings Date          00/00/00 
Average Daily Volume:      12.4 million 
Listed on  July 09, 2009    


MEDNAX Inc. - MD - close: 42.85 change: +0.19 stop: 41.90 *new*

We should be careful here. The market soared almost 3% today and MD only gained 0.44%. That's a warning. I am raising our stop loss to $41.90. Our first target is $47.40.

Entry on      July 01 at $43.01 *triggered       
Change since picked:     - 0.16   			
Earnings Date          08/03/09 (unconfirmed)    
Average Daily Volume:       367 thousand
Listed on  June 30, 2009    


Morgan Stanley - MS - close: 28.80 change: +0.92 stop: 25.95 *new*

Readers may want to start taking profits in MS right here above $28.00. The stock hit $29.33 this afternoon and pared its gains to just 3.2%. Shares already look short-term overbought. I'm not suggesting new bullish positions and we're raising the stop loss to $25.95. MS has exceeded our first target at $27.75. Our second target is $29.75. We don't want to hold over the late July earnings so the play may close early.

--New Trade, buy dip @ 25.25 --
Entry on      July 08 at $25.25 *triggered       
Change since picked:     + 3.55
                              /1st target hit @ 27.75 (+9.9%)
Earnings Date          07/22/09 (unconfirmed)    
Average Daily Volume:      29.4 million 
Listed on  June 23, 2009    


NATCO Group - NTG - close: 33.40 change: +1.53 stop: 29.75

Energy stocks were in rally mode with the market and oil both rising sharply. NTG gapped open at $32.56 (our trigger was 32.55) and the stock eventually closed with a 4.8% gain. More conservative traders may want to consider adjusting their stop loss a little higher. If you did not open positions this morning I would wait for a dip before launching new plays. There is some resistance at $34.00 but our target is $37.50. We do not want to hold over the early August earnings report.

chart:

Entry on      July 15 at $32.56 *triggered/gap higher entry
Change since picked:     + 0.84   			
Earnings Date          08/03/09 (unconfirmed)    
Average Daily Volume:       270 thousand
Listed on  July 14, 2009    


Ross Stores - ROST - close: 43.14 change: +1.30 stop: 39.95 *new*

ROST is soaring to new all-time highs. The stock gained 3.1% today. I am raising our stop loss to $39.95. Our first target is $45.75. Our second target is $49.45. My time frame is about six weeks.

Entry on      July 13 at $41.60 
Change since picked:     + 1.54   			
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       2.4 million 
Listed on  July 13, 2009    


Tupperware - TUP - close: 28.09 change: +0.73 stop: 24.95

No luck. We were betting on a pull back before TUP moved higher. Our entry point is at $26.50. More aggressive traders may want to chase it here. I'm suggesting readers wait. Our target is $29.75. The Point & Figure chart is very bullish with a $56 target but we don't want to hold over earnings.

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/22/09 (confirmed)    
Average Daily Volume:       521 thousand
Listed on  July 14, 2009    


Western Digital - WDC - close: 27.69 chg: +1.41 stop: 24.60

Tech stocks were leaders thanks to Intel's better than expected earnings report. WDC gapped open higher at $27.09 and rallied to new multi-month highs. Our first WDC target is $29.75.

Entry on      June 25 at $26.10 *triggered       
Change since picked:     + 1.59   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       4.6 million 
Listed on  June 24, 2009    


BEARISH Play Updates

Gamestop - GME - close: 21.64 change: +0.01 stop: 22.65

GME continues to under perform. The stock rallied to resistance at $22.00 and failed. This could be another entry point but I hesitate to launch new bearish trades with the market melting higher.

GME has now hit our first target at $22.05 and our second target at $20.25. We are now aiming for our third and final target at $18.15.

Entry on      June 02 at $24.32 
Change since picked:     - 2.68
                              /1st target hit @ 22.05 (-9.3%)
                             /2nd target hit @ 20.25 (-16.7%)
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       6.3 million 
Listed on  June 02, 2009    


Gen-Probe - GPRO - close: 39.85 change: +0.06 stop: 43.55

GPRO is under performing as well. The stock tried to breakout over $40.00 but reversed and barely closed in positive territory. I'm not suggesting new positions at this time. Our first target is $38.05. Our second target is $35.25. FYI: The P&F chart is bearish with a $32.00 target.

Entry on      June 23 at $42.03 /gap higher entry
                             /originally listed at $41.64
Change since picked:     - 2.18   			
Earnings Date          07/30/09 (unconfirmed)    
Average Daily Volume:       449 thousand
Listed on  June 23, 2009    


Humana Inc. - HUM - close: 28.52 change: +0.24 stop: 31.05

The plan is to open bearish positions on a bounce into the $29.50-30.00 zone. Our target is $25.25.

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          08/03/09 (confirmed)    
Average Daily Volume:       3.1 million 
Listed on  July 14, 2009    


Intl. Speedway - ISCA - close: 25.41 chg: +0.77 stop: 27.05

The ISCA has bounced back toward resistance near $25.50 but it has also rallied back above its 50-dma and 200-dma. I am tempted to launch new bearish positions right here but I would hesitate with the market in rally mode.

I'm suggesting a stop loss at $27.05 but more conservative traders may want to try a stop closer to $26.00. Our first target is $22.10. Our second target is $20.25. My time frame is six to eight weeks.

Entry on      July 09 at $24.75 *triggered       
Change since picked:     + 0.66   			
Earnings Date          07/07/09 (confirmed)    
Average Daily Volume:       342 thousand
Listed on  July 08, 2009    


Medtronic Inc. - MDT - close: 34.54 change: +0.79 stop: 35.20

The bounce continues and MDT has now cleared its 200-dma and the $34.00 level. I'm not suggesting new positions at this time. We'll wait and watch for a failed rally in the $34.00-35.00 zone. More conservative traders may want to just exit early right now and step to the sidelines to wait for a new entry point. Our first target to take profits is $30.10. Our second target is $28.25.

Entry on      July 11 at $32.80 
Change since picked:     + 1.74   			
Earnings Date          08/18/09 (unconfirmed)    
Average Daily Volume:       6.3 million 
Listed on  July 11, 2009    


Raytheon - RTN - close: 44.52 change: +0.29 stop: 45.75

Is the rally in RTN running out of steam? The S&P 500 gains nearly 3% but RTN only gains 0.6%. The stock should have resistance near $45.00 and again near $45.50. Wait for this bounce to roll over before considering new bearish trades. Our first target is $40.25. The P&F chart is very bearish with a $13 target.

Entry on      June 24 at $44.22 
Change since picked:     + 0.30  			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       3.5 million 
Listed on  June 24, 2009    


Walgreen Co. - WAG - close: 29.99 change: +0.59 stop: 30.51

More conservative traders may want to exit early right here. WAG still has resistance at its 50-dma and it failed to close over $30.00 today but the stock looks poised to move higher. I am not suggesting new bearish positions at this time. Our first target is $26.10.

Entry on      July 11 at $28.84 
Change since picked:     + 1.15   			
Earnings Date          09/21/09 (unconfirmed)    
Average Daily Volume:       8.4 million 
Listed on  July 11, 2009    


Homebuilders ETF - XHB - close: 11.90 change: +0.51 stop: 12.10

The short-covering was widespread in the homebuilders. The XBH soared 4.4% and is now testing resistance near $12.00 and its 200-dma. I am not suggesting new positions at this time. Our target is $10.10. I am setting a secondary target at $9.10 but I strongly suggest readers take some money off the table at $10.10.

Entry on       May 23 at $11.96 
Change since picked:     - 0.06   			
Earnings Date          00/00/00
Average Daily Volume:        10 million 
Listed on   May 23, 2009    


CLOSED BULLISH PLAYS

3x Energy Bear ETF - ERY - close: 22.31 change: -2.69 stop: 23.30

The rally in oil stocks was strong enough to send the ERY to a 10.7% loss. We were stopped out at breakeven (23.30). ERY had exceeded our first target at $27.40.

chart:

Entry on      July 02 at $23.30 *triggered       
Change since picked:     + 0.00<-- stopped out @ 23.30
                              /1st target hit @ 27.40 (+17.5%)
Earnings Date          00/00/00 
Average Daily Volume:       4.0 million 
Listed on  July 01, 2009    


CLOSED BEARISH PLAYS

DuPont - DD - close: 26.26 change: +1.43 stop: 26.26

The market's widespread rally sent DD to a 5.5% gain. The stock barreled past resistance at $26.00 at $26.25 and at a handful of major moving averages. This is a big bullish breakout for this stock.

chart:

Entry on      June 16 at $25.20 
Change since picked:     + 1.06 <-- stopped out @ 26.26 (+4.2%)
Earnings Date          07/21/09 (confirmed)    
Average Daily Volume:       9.1 million 
Listed on  June 16, 2009    


iShares Mexico - EWW - close: 37.61 change: +2.17 stop: 38.05

The EWW still has serious resistance at $38.00 but the sheer volume behind today's rally and bullish breakout over resistance is a reason to exit. Normal volume is 3.9 million shares and today EWW traded over 11 million. Exit early!

chart:

Entry on      June 22 at $34.92 
Change since picked:     + 2.69<-- exit early (+7.7%)
Earnings Date          00/00/00 
Average Daily Volume:       3.9 million 
Listed on  June 22, 2009    


iShares Materials - MXI - close: 47.14 change: +2.14 stop: 47.50

It's time to exit early our MXI play. Commodities were very strong and with the dollar breaking down the rally could continue. MXI had exceeded our first target at $44.00.

chart:
P>

Entry on      June 16 at $47.55 
Change since picked:     - 0.41 <-- exit early (-0.0%)
                              /1st target hit 44.00 (-7.4%)
Earnings Date          00/00/00 
Average Daily Volume:       170 thousand
Listed on  June 16, 2009    


PACCAR Inc. - PCAR - close: 31.56 change: +1.22 stop: 31.26

The market's short covering was very sharp this morning and PCAR quickly broke through the $31.00 level and hit our stop loss.

chart:

Entry on      July 08 at $28.90 *triggered       
Change since picked:     + 2.36<-- stopped out @ 31.26 (+7.4%)
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       4.1 million 
Listed on  July 07, 2009    


Steel Index - SLX - close: 42.72 change: +2.81 stop: 42.65

We were correct in expecting a bounce in the SLX but it looks like our stop loss was too tight. Shares hit our trigger to short the SLX at $41.50 and then our stop loss to cover at $42.65 in the same day.

chart:

Entry on      July 15 at $41.50 *triggered       
Change since picked:     + 1.15 <-- stopped out @ 42.65 (+2.7%)
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       297 thousand
Listed on  July 06, 2009    


TTM Tech. - TTMI - close: 9.04 change: +0.46 stop: 9.01

Semiconductors helped lead the market higher thanks to Intel's earnings report. TTMI immediately spiked higher this morning and broke through the $9.00 level closing this play.

chart:

Entry on      July 11 at $ 8.25 
Change since picked:     + 0.76<-- stopped out @ 9.01 (+9.2%)
Earnings Date          07/29/09 (unconfirmed)    
Average Daily Volume:       378 thousand
Listed on  July 11, 2009    


S&P Retail SPDRs - XRT - close: 28.62 change: +0.82 stop: 28.45

The retail stocks have continued to rally in spite of terrible same-store sales numbers and a struggling consumer. The XRT broke out to new four-week highs and hit our stop loss at $28.45.

chart:
P>

Entry on      July 07 at $26.07 
Change since picked:     + 2.38<-- stopped out @ 28.45 (+9.1%)
Earnings Date          00/00/00 
Average Daily Volume:        19 million 
Listed on  July 07, 2009