Losses were mild on Wednesday as the intraday bounce has already begun to roll over.


BULLISH Play Updates

China Mobile Ltd. - CHL - close: 48.20 chg: -0.01 stop: 47.90

The Chinese Shanghai index managed a bounce but the Hong Kong Hang Seng index posted another large decline. CHL is based in Hong Kong and traded on the Hong Kong exchange. Thus I'm surprised that shares of CHL didn't show more weakness today. The stock briefly dipped under support at $48.00 and hit $47.93 before bouncing. The trend is down and if the Hong Kong market drops again I'd bet on us being stopped out tomorrow. However, until that happens this dip to support near $48.00 and its 200-dma is a bullish entry point. Our first target is $54.00. Our second target is $58.00. Our time frame is several weeks.

Entry on    August 31 at $48.73 /gap down entry point
Change since picked:     - 0.53   			
Earnings Date          00/00/?? (unconfirmed)    
Average Daily Volume:       2.3 million 
Listed on  August 29, 2009    


Capstone Turbine - CPST - close: 1.36 change: -0.02 stop: 0.94

CPST is still showing some strength by resisting any serious profit taking. Currently our plan is to buy the stock on a dip at $1.05.

CPST's P&F chart is bullish with a $2.88 target. I'm setting our first target to take profits at $1.50. We'll tentatively set a second target at $1.85. Remember, just because the stock is "cheap" don't go overboard.

Entry on    August xx at $xx.xx <-- TRIGGER @ 1.05
Change since picked:     + 0.00   			
Earnings Date          11/09/09 (unconfirmed)    
Average Daily Volume:       4.8 million 
Listed on  August 29, 2009    


Ford Motor Co. - F - close: 7.03 change: -0.21 stop: 7.39

Ford briefly traded under $7.00 and bounced from its rising 50-dma at $6.87. The short-term trend is still down. We have a buy-the-dip trigger at $6.50 with a stop loss at $5.99 using small position sizes. We also have a breakout trigger at $7.85 with a stop loss at $7.39. If triggered at $7.85 our first target is just under the old highs at $8.80. Our second target is $9.40.

Entry on    August xx at $xx.xx <-- TRIGGER @ 7.85 or $6.50
Change since picked:     + 0.00   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:        90 million 
Listed on  August 27, 2009    


IDEX Corp. - IEX - close: 26.41 change: +0.15 stop: 25.40

IEX traded under its 50-dma this morning but managed a bounce. The 0.5% gain is a show of relative strength. I still hesitate to open new bullish positions given the wider market's recent weakness. Our first target is $29.85. My time frame is six to eight weeks.

Entry on    August 17 at $26.10 *triggered         
Change since picked:     + 0.31   			
Earnings Date          07/20/09 (confirmed)    
Average Daily Volume:       570 thousand
Listed on  July 25, 2009    


J.P.Morgan Chase - JPM - close: 40.86 change: -0.81 stop: 39.90 *new*

As expected JPM is contracting and looks headed for the $40.00 level. I'm actually adjusting the stop loss to $39.90 so we don't get stopped out on a minor dip under the $40.00 mark (of course you could argue 10 cents is a pretty minor dip). A bounce from $40 can be used as a new bullish entry point. Our plan was to use smaller position sizes (1/2 to 1/4 our normal size). Our target is $47.40. My time frame is about six weeks.

Entry on    August 21 at $43.50 *triggered (1/2 to 1/4 normal size)
Change since picked:     - 2.64   			
Earnings Date          07/16/09 (confirmed)    
Average Daily Volume:        55 million 
Listed on  July 18, 2009    


Microsoft - MSFT - close: 23.86 change: -0.14 stop: 22.75

MSFT is dipping toward its 50-dma near $23.75. I wouldn't bet on this moving average holding as support. Look for a dip towards $23.00. MSFT moves slowly so there's no big rush to jump in. Currently our target is $27.75.

Entry on      July 27 at $23.00
Change since picked:     + 0.86   			
Earnings Date          07/23/09 (confirmed)    
Average Daily Volume:        58 million 
Listed on  July 23, 2009    


Playboy Ent. - PLA - close: 2.57 change: -0.05 stop: 2.45

Odds are growing that PLA will test the $2.50 level. Wait for a dip or a bounce at $2.50 as our next entry point.

Our first target to take profits is at $3.30. Our second target is $3.95. FYI: The Point & Figure chart is bullish with a $7.50 target.

Entry on September 01 at $ 2.65
Change since picked:     - 0.08   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       370 thousand
Listed on  August 29, 2009    


Raytheon Co. - RTN - close: 46.28 change: -0.28 stop: 46.40

There is no change from my previous comments on RTN. The plan is to buy a breakout over resistance. Our trigger to buy the stock is at $48.65. We'll use a stop loss under the recent low. If triggered our first target is $52.50. Our second target is $54.85.

FYI: If RTN breaks down under $45.00 we may want to consider bearish trades.

Entry on    August xx at $xx.xx <-- TRIGGER 48.65
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:       2.7 million 
Listed on  August 22, 2009    


Ship Finance Intl. - SFL - close: 11.86 change: -0.39 stop: 11.70

SFL is now down seven days in a row. You'd think the stock would see an oversold bounce by now. Shares broke the $12.00 level but managed to hold at its 50-dma near $11.80. If there is any follow through tomorrow we'll most likely get stopped out at $11.70. I'm not suggesting new bullish positions at this time. Our first target is $14.80. Our second target is $17.00. Our time frame is several weeks.

Entry on    August 27 at $12.80 *triggered
Change since picked:     - 0.94   			
Earnings Date          11/27/09 (unconfirmed)    
Average Daily Volume:       499 thousand
Listed on  August 25, 2009    


Superior Energy - SPN - close: 17.64 change: -0.36 stop: 17.59

SPN is still slipping lower. Shares also fell to their 50-dma. The low today was $17.61. If there is any market weakness tomorrow we'll probably get stopped out. I'm not suggesting new positions at this time. Our first target to take profits is at $19.90. Our second and final target is at $21.75. I fully expect SPN to find resistance near $20.00 and its exponential 200-dma so the second target could take a while.

*New entry point*
Entry on    August 27 at $18.42 *new entry       
Change since picked:     - 0.78   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       927 thousand
Listed on  August 24, 2009    


TEVA Pharmaceuticals - TEVA - close: 50.53 change: -0.56 stop: 48.95

TEVA is giving in to some profit taking. The stock has broken very short-term support at $51.00 and broken down under its 40 and 50-dma. The next level of support is the $50.00 mark. I'm not suggesting new bullish positions at this time. Our first target is $54.75. Our second target is $59.50. Our time frame is eight to ten weeks.

Entry on    August 17 at $50.50 *triggered                
Change since picked:     + 0.03   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  August 05, 2009    


BEARISH Play Updates

Akamai Tech. - AKAM - close: 17.12 chg: +0.28 stop: 18.60 *new*

AKAM dipped to $16.76 before bouncing. If the oversold bounce continues watch for a potential failure in the $17.75-18.00 zone. I am not suggesting new positions at this time. Our first target is $16.25. More aggressive traders may want to aim lower.

Entry on    August 11 at $18.44 
Change since picked:     - 1.32   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:      10.4 million 
Listed on  August 11, 2009    


Electronic Arts - ERTS - close: 18.21 change: +0.39 stop: 19.55

ERTS almost erased yesterday's losses. A failed rally in the $18.50-19.00 zone can be used as a new entry point for bearish positions. Our first target to take profits is at $17.05. Our second and final target is at $16.15. FYI: The P&F chart is currently bearish with a $14 target.

Entry on    August 29 at $18.31 /gap down entry
                              /originally listed at $18.76
Change since picked:     - 0.10   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       9.3 million 
Listed on  August 29, 2009    


Goodrich Petrol. - GDP - close: 21.43 change: -1.01 stop: 25.26

The sell-off continues with GDP losing another 4.5% on above average volume. The stock might see a bounce near its July low near $21.00. You may not want to chase it at this point so wait for a failed bounce. The Point & Figure chart is bearish with a $10 target. I'm setting our first target at $20.25. Our second target is $18.50.

Warning - Readers need to be aware that I'm not the only one that thinks GDP is going lower. The most recent data listed short interest at more than 25% of the 24 million share float. That's a lot of interest and a small float, which equals high-risk! Instead of trying to short GDP you might want to consider put options, which have limited risk.

Entry on September 01 at $22.44 
Change since picked:     - 1.01   			
Earnings Date          11/04/09 (unconfirmed)    
Average Daily Volume:       524 thousand
Listed on September 01, 2009    


Northwest Pipe Co. - NWPX - close: 30.78 change: -0.95 stop: 33.55

The sell-off in NWPX is picking up speed. Shares actually gapped open lower at $31.42. We've adjusted our entry point. If you don't want to chase an eight-day decline then look for a bounce or failed rally near $32.50-33.00. Our first target is $28.00. Our second target is $25.50. The P&F chart is bearish with a $25 target. FYI: Instead of trying to short NWPX readers may want to consider buying put options, which have limited risk.

Entry on September 01 at $31.42 /gap down entry
                             /originally listed at $31.73
Change since picked:     - 0.64   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:        57 thousand
Listed on September 01, 2009    


CLOSED BULLISH PLAYS

Oil States Intl. - OIS - close: 28.62 change: +0.20 stop: 27.95

The market weakness this morning was enough to push OIS under the $28.00 level and hit our stop loss. I'd keep OIS on your watch list. A bounce from its longer-term trendline of support (near its 50-dma) should be another entry point for bullish positions.

chart:

Entry on    August 21 at $30.20 *triggered          
Change since picked:     - 2.25<-- stopped out @ 27.95 (-7.4%)
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       738 thousand
Listed on  August 13, 2009