Stocks had reached overbought conditions and this two-day decline is normal.

Editor's Note:

Tomorrow morning is shaping up to be another downer. RIMM reported earnings tonight after the bell. The company beat on the bottom line but revenues missed and management offered somewhat disappointing guidance. The stock was down more than $10 after hours trading between $73-74. HPQ offered some bullish comments as they reaffirmed their earnings guidance but the RIMM news and investors' reaction to it will surely pressure the market lower on Friday.


BULLISH Play Updates

Airgas Inc. - ARG - close: 48.02 change: -0.89 stop: 44.75

ARG slipped to $47.54 this morning. If the market continues to lower tomorrow morning, and I expect it will, then ARG should hit our trigger to buy the stock at $47.25. More conservative traders may want to consider adjusting their entry point toward $46.50 instead.

If triggered our first target is $52.45. Our second target is $54.85. More aggressive traders could aim higher. The Point & Figure chart is bullish and predicting a $74 target.

Entry on September xx at $xx.xx <-- TRIGGER @ 47.25
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on September 19, 2009    


BE Aerospace - BEAV - close: 19.57 change: -1.20 stop: 17.90 *new*

A downgrade accelerated the profit taking in BEAV and the stock lost 5.7%. I would look for a dip in the $18.70-18.25 zone. I'm raising the stop loss to $17.90. Our first target is $22.25.

Entry on September 12 at $19.19 
Change since picked:     + 0.38   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       834 thousand
Listed on September 12, 2009    


China Mobile Ltd. - CHL - close: 50.39 chg: -1.43 stop: 47.90

CHL plunged back toward round-number support at $50.00. We can still buy a bounce from here.

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:     + 1.66  			
Earnings Date          00/00/?? (unconfirmed)    
Average Daily Volume:       2.3 million 
Listed on  August 29, 2009    


Carpenter Tech. - CRS - close: 24.47 change: -0.72 stop: 21.45

More conservative traders may want to exit early now. I'm expecting a correction toward the $22.50 region. CRS has already hit our first target. Our secondary target is $27.40.

Entry on September 05 at $21.45 /gap higher entry
                             /originally listed at $20.92
Change since picked:     + 3.02
                             /1st target hit @ 24.90 (+16.0%)
Earnings Date          10/28/09 (unconfirmed)    
Average Daily Volume:       536 thousand
Listed on September 05, 2009    


Darden Restaurants - DRI - close: 35.44 chg: +0.36 stop: 33.95

DRI's rebound from its intraday lows near $34.60 looks like a new bullish entry point. However, readers need to consider that DRI is due to report earnings soon and we plan to exit in front of the report. That only gives us a couple of days. Our first target is the $39.40 mark.

Entry on September 05 at $34.82 
                              /originally listed at $34.41
Change since picked:     + 0.62   			
Earnings Date          09/29/09 (confirmed)    
Average Daily Volume:       2.6 million 
Listed on September 05, 2009    


E M C Corp. - EMC - close: 17.16 change: +0.06 stop: 15.24

EMC is showing relative strength by not participating in the market's decline. We still don't want to chase the current rally in this stock. Our trigger to buy EMC is at $15.75. Our target to exit is $18.00. We'll plan to exit ahead of the late October earnings report.

Entry on September xx at $xx.xx <-- TRIGGER @ 15.75
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:      19.6 million 
Listed on September 09, 2009    


General Electric - GE - close: 16.58 change: -0.42 stop: 14.75

GE lost 2.4% and shares do appear to have formed a bearish double top. More conservative traders may want to exit completely right now. I am not suggesting new positions at this time.

GE has already hit our first target. We're currently aiming for $18.50. I do consider this an aggressive trade so we want to keep our positions small.

Entry on September 14 at $15.49 /gap higher entry
                             /originally listed at $15.35
Change since picked:     + 1.09
                            /1st target hit @ 17.25 (+11.3%)
Earnings Date          10/16/09 (confirmed)    
Average Daily Volume:        83 million 
Listed on September 14, 2009    


Starwood Hotels - HOT - close: 32.09 change: -0.74 stop: 28.95

HOT is slowly slipping lower. The plan is to buy HOT at $31.00. If triggered our first target is $34.75. Our second target is $37.50. FYI: the Point & Figure chart is bullish with a $53 target. Plus HOT has above average short interest (more than 15% of the float) that can keep the rally going as bears cover their positions.

Entry on September xx at $xx.xx <-- TRIGGER @ 31.00
Change since picked:     + 0.00   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       3.4 million 
Listed on September 19, 2009    


IDEX Corp. - IEX - close: 27.56 change: -0.64 stop: 26.75

IEX broke down under the $28.00 level, no surprise there, but shares did find some support at the 50-dma. I don't see any changes from my prior comments.

More conservative traders may want to exit completely right here. I'm not suggesting new positions at this time. Our first target has still not been hit at $29.85. Our second target is $32.00. The P&F chart is forecasting a $39 target.

Entry on    August 17 at $26.10 *triggered         
Change since picked:     + 1.46   			
Earnings Date          07/20/09 (confirmed)    
Average Daily Volume:       570 thousand
Listed on  July 25, 2009    


J.P.Morgan Chase - JPM - close: 44.37 change: -0.69 stop: 41.90

JPM should find some short-term support in the $44.00-43.00 zone. Look for a bounce as a new entry point. We want to sell half at $47.40. We'll sell the second half at $49.80.

Our plan was to use smaller position sizes (1/2 to 1/4 our normal size). We plan to exit ahead of the mid October earnings report.

Entry on    August 21 at $43.50 *triggered (1/2 to 1/4 normal size)
Change since picked:     + 0.87   			
Earnings Date          10/14/09 (confirmed)    
Average Daily Volume:        55 million 
Listed on  July 18, 2009    


Kirby Corp. - KEX - close: 36.81 change: -0.66 stop: 35.85

KEX is slipping closer toward $36.00 as we expected. Wait for a bounce before considering new bullish positions. Our first target to take profits is at $39.95. Our second and final target is $42.40. FYI: The P&F chart is bullish with a $57 target.

Entry on September 08 at $37.70 /triggered/gap higher entry
Change since picked:     - 0.89   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       310 thousand
Listed on September 05, 2009    


Koppers Holdings - KOP - close: 30.90 change: -0.47 stop: 27.45

KOP is now down five days in a row but shares still haven't hit our trigger at $30.10. More cautious traders may want to use a trigger closer to $29.00 instead.

Our first target is $34.50. Our second target is $37.50 but it could take several weeks to get there. FYI: The P&F chart has a new triple-top breakout buy signal.

Entry on September xx at $xx.xx <-- TRIGGER @ 30.10
Change since picked:     + 0.00   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       159 thousand
Listed on September 16, 2009    


Microsoft - MSFT - close: 25.94 change: +0.23 stop: 22.95

MSFT is showing relative strength with another gain and a new closing high for the year. I'm not suggesting new bullish positions at this time. Our target is $27.75.

Entry on      July 27 at $23.00
Change since picked:     + 2.94   			
Earnings Date          07/23/09 (confirmed)    
Average Daily Volume:        58 million 
Listed on  July 23, 2009    


NII Holdings - NIHD - close: 29.76 change: -0.46 stop: 24.90

The pull back in NIHD still has further to go. I'm suggesting a trigger at $26.75 with a stop loss at $24.90. If triggered our first target is $31.00. FYI: The P&F chart is very bullish with a $57 target.

Entry on September xx at $xx.xx <-- TRIGGER @ 26.75
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:       3.4 million 
Listed on September 23, 2009    


Pride Intl. Inc. - PDE - close: 29.50 change: -0.70 stop: 26.40

Oil stocks are sliding as crude oil pulls back sharply. We're still waiting for a deeper pull back.

A dip near $27.00 would be a 61.8% Fibonacci retracement of the August-September rally. The plan is to buy PDE at $27.65. Our first target is $30.45. Our second target is $33.45. We'll plan to exit ahead of the late October earnings report.

Entry on September xx at $xx.xx <-- see TRIGGER @ 27.65
Change since picked:     + 0.00   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       3.7 million 
Listed on September 12, 2009    


Playboy Ent. - PLA - close: 2.90 change: -0.11 stop: 2.59

Lack of follow through on yesterday's big intraday bounce is bearish. I would expect another dip toward the $2.70-2.60 zone.

Our second target remains the $3.95 level. FYI: The Point & Figure chart is bullish with a long-term $7.50 target.

Entry on September 01 at $ 2.65
Change since picked:     + 0.23 
                            /take profits 09/16/09 (+17.7%)
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       370 thousand
Listed on  August 29, 2009    


Rockwell Automation - ROK - close: 42.74 change: -1.32 stop: 39.95

I've been suggesting readers look for a dip near $42.00. ROK looks like it will hit $42 tomorrow. Our first target is the $49.00 mark. Our time frame is several weeks. FYI: The Point & Figure chart is bullish with a $61 target.

Entry on September 10 at $43.71 /gap higher entry
                           /originally listed at $43.15
Change since picked:     - 0.97   			
Earnings Date          11/10/09 (unconfirmed)    
Average Daily Volume:       1.4 million 
Listed on September 10, 2009    


Schlumberger - SLB - close: 59.16 change: -1.10 stop: 56.95

Watch the $58.00-57.00 zone for support. We can buy a bounce in that area. The stock has already hit our first target. Our second target is $67.50.

Entry on September 05 at $56.93 /gap higher entry
                             /originally listed at $55.87
Change since picked:     + 2.23
                             /1st target hit @ 62.50 (+9.7%)
Earnings Date          10/23/09 (unconfirmed)    
Average Daily Volume:       8.7 million 
Listed on September 05, 2009    


Market Vectors: Steel - SLX - close: 52.66 change: -1.61 stop: 47.49

So far so good. We're still waiting for a dip near $50.00.

I'm suggesting readers buy the SLX at $50.25. We'll use a stop loss at $47.49 just in case it tries to fill the gap from September 8th. If triggered our first target is $54.75. Our second target is $59.50. Our time frame is several weeks.

Entry on September xx at $xx.xx <-- TRIGGER @ 50.25
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:       309 thousand
Listed on September 19, 2009    


TEVA Pharmaceuticals - TEVA - close: 50.75 change: +0.14 stop: 49.75

Traders continue to buy dips near $50.00. Today the low was $50.25. I'm still bullish on this stock but readers may want to wait for the S&P 50 bounce first. 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:     + 0.25   			
Earnings Date          11/03/09 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  August 05, 2009    


Ultra(Long) Financials - UYG - close: 5.76 change: -0.25 stop: 5.40

We're watching the $5.60-5.50 zone for short-term support and a potential entry point. UYG has already hit our first target. Our second target is $7.00.

This can be a very volatile security. It's not for the faint of heart.

Entry on September 03 at $ 5.29 
Change since picked:     + 0.47
                             /1st target hit @ 6.00 (+13.4%)
Earnings Date          00/00/00 
Average Daily Volume:      47.8 million 
Listed on September 03, 2009    


BEARISH Play Updates

*We currently do not have any bearish play updates*


CLOSED BULLISH PLAYS

Agrium Inc. - AGU - close: 51.28 change: -1.04 stop: 48.90

We were expecting a dip toward $50.00 but AGU overshot to the downside. Shares slipped past their 30-dma and 40-dma to hit $48.84. Our stop loss was tagged at $48.90 closing the play.

chart:

Entry on September 08 at $50.65 /gap higher entry  
Change since picked:     - 1.75 <-- stopped @ 48.90 (-3.4%)
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       1.9 million 
Listed on September 05, 2009    


Helmerich & Payne Inc. - HP - close: 37.35 change: -1.23 stop: 37.15

Oil continued to slide lower and that weighed on the oil stocks. HP traded under $37.15 several times today only to find support at $37.13. Our play is closed. Look for a better entry point near $35.00.

chart:

Entry on September 21 at $38.93 (1/2 a position)
Change since picked:     - 1.78<-- stopped @ 37.15 (-4.5%)
Earnings Date          11/19/09 (unconfirmed)    
Average Daily Volume:       1.2 million 
Listed on September 21, 2009