BULLISH Play Updates

Reynolds American - RAI - close: 48.38 chg: -0.10 stop: 47.40

The current bounce in RAI is definitely losing steam. More conservative traders may want to start scaling out of positions early especially if RAI fails to rally tomorrow. I'm not suggesting new positions at this time. There is resistance at $50.00 but I'm keeping the target at $53.50.

Entry on   October 29 at $48.63 (small positions)
Change since picked:     - 0.25   			
Earnings Date          10/22/09 (confirmed)    
Average Daily Volume:       1.5 million 
Listed on   October 29, 2009    


UltraShort Russell - TWM - close: 32.21 change: +0.11 stop: 28.49

The small cap Russell 2000 index continues to under perform. Yet even the Russell managed to trim its losses today. The TWM rallied to $33.22 on the intraday weakness. I am lowering our second and final exit target down from $34.50 to $34.00. I am not suggesting new positions at this time but the TWM might be an ETF we trade in an out of over the next few weeks.

Entry on   October 24 at $28.41 
Change since picked:     + 3.80
                            /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

Emerging Market iShares - EEM - close: 38.13 change: +0.56 stop: 40.25

The market was strong this morning on a stronger dollar and strong economics. This led the EEM to gap open higher at $38.13. Unfortunately for the bulls the rally didn't stick. I remain bearish and would still consider new positions now (only small positions though, 25% normal size). If the EEM bounces and begins to roll over under $40.00 we'll consider doubling down by adding similar sized position.

Our first target to take profits is at $33.55. Our second target is $31.00.

Entry on   October 31 at $38.13 /gap open entry
                   /originally listed at $37.57 (1/4 position size)
Change since picked:     + 0.00   			
Earnings Date          --/--/-- 
Average Daily Volume:        77 million 
Listed on   October 31, 2009    


Navistar Intl. - NAV - close: 33.49 change: +0.35 stop: 38.05

Volume was very light compared to what NAV has been seeing these last few weeks. The stock traded sideways on Monday. More conservative traders may want to use a stop closer to $36.00 instead. 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:     - 1.92   			
Earnings Date          12/30/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on   October 24, 2009    


Netlogic Micro. - NETL - close: 38.32 change: +0.31 stop: 40.25

Tomorrow is our last day for NETL. We want to exit at the closing bell to avoid holding over earnings. I am inching our exit target from $35.55 to $36.15 should the stock trend lower tomorrow.

Entry on   October 27 at $39.53 
Change since picked:     - 1.21   			
Earnings Date          11/03/09 (confirmed)    <-- amc -->
Average Daily Volume:       392 thousand
Listed on   October 27, 2009    


Ross Stores - ROST - close: 44.79 change: +0.78 stop: 46.55

Retail stocks managed to perform relatively well in spite of news that CIT Group, a major lender to vendors who service 300,000 retailers, filed for bankruptcy today. Shares of ROST out performed its peers with a 1.7% bounce. The stock gapped open and changed our entry point. I remain bearish and would still open new positions here. Our target to exit is $40.25. We will plan to close this play ahead of the earnings report.

Entry on   October 31 at $44.29 /gap open entry
                           /originally listed at $44.01
Change since picked:     + 0.50   			
Earnings Date          11/19/09 (confirmed)    
Average Daily Volume:       2.1 million 
Listed on   October 31, 2009    


Steel Dynamics - STLD - close: 13.48 change: +0.09 stop: 15.26

STLD is still hovering around technical support at its 200-dma. The stock is short-term oversold and due for a bounce. More cautious traders may want to take profits right now. I'm not suggesting new positions at this time. Please note our new stop loss at $15.26. Our target to take profits is at $12.60.

Entry on   October 24 at $15.03 
Change since picked:     - 1.55   			
Earnings Date          10/19/09 (confirmed)    
Average Daily Volume:       8.0 million 
Listed on   October 24, 2009    


Seagate Technology - STX - close: 14.16 change: +0.21 stop: 15.55

STX managed a 1.5% bounce. I would still consider new bearish positions right here but more patient traders might want to wait for a failed rally near $15.00 to open positions. I'm suggesting small bearish positions now (50% your normal trade size).

Our first target is $12.05. Our second target is $10.50.

Entry on   October 31 at $13.95 (small positions 1/2)
Change since picked:     + 0.21   			
Earnings Date          10/21/09 (confirmed)    
Average Daily Volume:        13 million 
Listed on   October 31, 2009    


Western Digital Corp. - WDC - close: 34.12 change: +0.44 stop: 35.65

WDC ended the session up 1.3% but the bounce failed to close over resistance near $35.00.

I suggested traders start positions about 1/4 (25%) of their normal trade size. I would actually add to positions (another 1/4 position) at these levels. Our initial target is the $30.50 mark. Our second target is $27.75.

Entry on   October 28 at $33.58 
Change since picked:     + 0.54   			
Earnings Date          10/22/09 (confirmed)    
Average Daily Volume:       4.2 million 
Listed on   October 28, 2009    


Financial SPDRs - XLF - close: 14.17 change: +0.12 stop: 15.51

The XLF dipped toward technical support at its rising 100-dma and exponential 200-dma near $13.70 before eventually bouncing. I wouldn't be surprised to see a rebound toward $15.00 before the XLF rolled over again. Our target is $13.10.

Entry on   October 26 at $14.71 (small positions) 
Change since picked:     - 0.54   			
Earnings Date          --/--/-- 
Average Daily Volume:       102 million 
Listed on   October 26, 2009    


CLOSED BEARISH PLAYS

NASDAQ OMX Group - NDAQ - close: 18.06 chg: -0.90 stop: 20.65

Target achieved. NDAQ slipped to $17.63 midday. Our target to exit was $17.85. Readers may want to keep NDAQ on their watch list for a failed rally under $20.00 as another bearish entry point.

chart:

Entry on   October 26 at $19.45
Change since picked:     - 1.60 <-- target hit @ 17.85 (-8.2%)
Earnings Date          11/05/09 (confirmed)    
Average Daily Volume:       2.8 million 
Listed on   October 24, 2009