The market reacted sharply to the preliminary GDP report this morning. It could be just a one-day move.


BULLISH Play Updates

UltraShort Russell - TWM - close: 30.42 change: -1.22 stop: 28.49

The small cap Russell 2000 was one of the most oversold of the major indices. Yet today's 2.4% bounce failed to breakout side of yesterday's trading range. It's a nice move higher but it doesn't change much. The TWM chopped off 3.8% but the short-term trend is still up.

I am not suggesting new positions at this time. The TWM has already hit our first target at $31.90. We're currently aiming for our second target at $34.50.

This is the ultra-short (double short) ETF on the Russell 2000 index that seeks to deliver twice the inverse of the daily performance of the Russell 2000.

Entry on   October 24 at $28.41 
Change since picked:     + 2.01
                            /1st target hit @ 31.90 (+12.2%)
Earnings Date          00/00/00 
Average Daily Volume:       4.2 million 
Listed on   October 24, 2009    


BEARISH Play Updates

Navistar Intl. - NAV - close: 33.95 change: +0.99 stop: 38.25 *new*

NAV rebounded 3% but the trend is still down. I would remain bearish until we see a move over $36.00. More conservative traders may want to move their stops closer toward $36.00. I am dropping our stop to $38.25. Our first target is $30.50. Our second target is $27.75.

FYI: We initiated this play with half a position.

Entry on   October 24 at $35.41 (buy half a position)
Change since picked:     - 1.46   			
Earnings Date          12/30/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on   October 24, 2009    


NASDAQ OMX Group - NDAQ - close: 18.96 chg: +0.71 stop: 20.65

NDAQ's oversold bounce produced a 3.8% gain. Keep an eye on the $19.50-20.00 zone, which should be overhead resistance. Our target to take profits is at $17.85. We'll plan to exit ahead of the November 5th earnings report.

Entry on   October 26 at $19.45
Change since picked:     - 0.49   			
Earnings Date          11/05/09 (confirmed)    
Average Daily Volume:       2.8 million 
Listed on   October 24, 2009    


Netlogic Micro. - NETL - close: 39.41 change: +1.25 stop: 42.65

The oversold bounce in NETL produced a 3.2% gain. Watch the $40-42 zone for resistance.

This is going to be a very short-term play. NETL reports earnings on November 3rd. We'll plan to exit ahead of the report. Our first target is $35.25.

Entry on   October 27 at $39.53 
Change since picked:     - 0.12   			
Earnings Date          11/03/09 (confirmed)    <-- amc -->
Average Daily Volume:       392 thousand
Listed on   October 27, 2009    


SL Green Realty - SLG - close: 39.41 change: +1.45 stop: 43.65

SLG's rebound, while impressive with a 3.8% gain, failed to reclaim resistance near $40.00 and its 50-dma. A failed rally in the $40-42 zone can be used as a new entry point. Our first target is $35.25. Our second target is $33.00.

This stock can be somewhat volatile. I'm suggesting small position sizes.

Entry on   October 27 at $39.59 
Change since picked:     - 0.18   			
Earnings Date          10/26/09 (confirmed)    
Average Daily Volume:       2.1 million 
Listed on   October 27, 2009    


Steel Dynamics - STLD - close: 13.95 change: +0.31 stop: 16.21

The rebound in STLD was very anemic. The stock rolled over midday under the $14.20 level. I'm not suggesting new positions at this time. Our target to take profits is at $12.60.

Entry on   October 24 at $15.03 
Change since picked:     - 1.08   			
Earnings Date          10/19/09 (confirmed)    
Average Daily Volume:       8.0 million 
Listed on   October 24, 2009    


Western Digital Corp. - WDC - close: 35.01 change: +1.43 stop: 36.55

Perfect! Last night I suggested waiting for a bounce or failed rally near $35.00 and we got it. I would actually focus on the $35.00-36.00 zone, which should be resistance. Traders can open bearish positions now or wait for the stock to roll over first.

I suggested traders start positions about 1/4 (25%) of their normal trade size. Our initial target is the $30.50 mark. Our second target is $27.75.

Entry on   October 28 at $33.58 
Change since picked:     + 1.43   			
Earnings Date          10/22/09 (confirmed)    
Average Daily Volume:       4.2 million 
Listed on   October 28, 2009    


Financial SPDRs - XLF - close: 14.74 change: +0.59 stop: 15.51

Financial stocks were some of the best performers today. That could mean they saw the most short covering. I would watch for a failed rally in the $15.00-15.20 zone as a new entry point for bearish positions. Our target is $13.10.

Entry on   October 26 at $14.71 (small positions) 
Change since picked:     + 0.03   			
Earnings Date          --/--/-- 
Average Daily Volume:       102 million 
Listed on   October 26, 2009