I'm filling in for James tonight but will pick up where he left off with his commentary from last night.

Stocks rallied right into the close today and that looks bullish. Think of it as a mirror version of the selloff into the close on Wednesday which looked bearish.


BULLISH Play Updates

Southern Copper Corp. - PCU - close: 33.95 change: +0.91 stop: 30.95

The action in PCU was worrisome yesterday and I can't say I feel much better about it today, even though it added almost a dollar to its price. The quick high this morning and then a retest of it into the close is leaving some negative divergences. Shares once again have stalled at the $34.00 level. At this time I would look for another bounce in the $31.00-32.00 zone before launching new positions. Our target is $39.50.

Commodity-related stocks are bound to be volatile with the dollar moving so much (although it was flat today). I'm suggesting small positions (25% to 50% your normal size).

Entry on  November 04 at $33.80
Change since picked:     +0.15   			
Earnings Date          10/22/09 (confirmed)    
Average Daily Volume:       3.5 million 
Listed on  November 03, 2009    


UltraShort Russell - TWM - close: 30.10 change: -1.98 stop: 28.49

Naturally with the strong market rally, and even stronger small cap rally, our TWM play suffered. But not much below today's low at 29.41 is the 50-dma.

TWM has already hit our first target. We're currently aiming for $34.00.

Entry on   October 24 at $28.41 
Change since picked:     + 1.69
                            /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: 39.7 change: +0.80 stop: 40.25

Yesterday readers were warned to expect a bounce and we got one. Its price pattern looks very similar to our major averages. I would consider new positions here, especially since the stop is relatively close for a limited risk. Our plan called for very small positions (25% of normal size).

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:     + 1.57   			
Earnings Date          --/--/-- 
Average Daily Volume:        77 million 
Listed on   October 31, 2009    


Navistar Intl. - NAV - close: 34.84 change: +0.65 stop: 38.05

NAV made a lower high today and while it rallied it looks to be underperforming the broader market which is exactly what we want to see. This continues to look like a new bearish entry point. More conservative traders may want to use a stop closer to today's high of $35.30 or yesterday's high of $36.25. 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 (half a position)
Change since picked:     - 0.57   			
Earnings Date          12/30/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on   October 24, 2009    


Ross Stores - ROST - close: 45.54 change: +0.66 stop: 46.55

ROST looks like NAV with a lower high today than yesterday's and it looks weaker than the broader market. Its 50-dma is at 46.45, 0.10 below our stop so if a bounce approaches that level you can consider another entry for this play.

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:     + 1.25   			
Earnings Date          11/19/09 (confirmed)    
Average Daily Volume:       2.1 million 
Listed on   October 31, 2009    


Seagate Technology - STX - close: 15.37 change: +0.65 stop: 15.55

CSCO's earnings report got the techs feeling good and STX rallied with them, closing above its 50-dma and coming within 0.04 of our stop. It settled into the close, unlike the broader averages so our play will be dependent on an immediate selloff tomorrow.

I remain bearish on STX but we're at risk of getting stopped out on an opening pop higher. Resistance at $15.50 held so it was an opportunity to try a new entry, as it will be tomorrow if we don't get stopped out. The plan was to use small positions (50%) to limit risk. 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:     + 1.42   			
Earnings Date          10/21/09 (confirmed)    
Average Daily Volume:        13 million 
Listed on   October 31, 2009    


Toro Co. - TTC - close: 40.03 change: +1.51 stop: 38.25

TTC closed near its October highs and looks poised to continue higher. Our play hasn't been triggered yet so we're still watching this one. I'm sticking to our plan, which is to wait for a drop under support with a trigger to open bearish plays at $35.75.

If triggered at $35.75 our target is $30.50. I am suggesting small positions to limit risk.

Entry on  November xx at $xx.xx <-- TRIGGER @ 35.75
Change since picked:     + 0.00   			
Earnings Date          12/08/09 (unconfirmed)    
Average Daily Volume:       293 thousand
Listed on  November 31, 2009    


Western Digital Corp. - WDC - close: 35.21 change: +1.42 stop: 35.65

WDC and STX are in the same boat and both rallied with the techs today. WDC also closed above its 50-dma and came close to our stop. As the day wore on the rally was petering out so it's a good place to try a new entry, especially since the stop is so tight.

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:     + 1.63   			
Earnings Date          10/22/09 (confirmed)    
Average Daily Volume:       4.2 million 
Listed on   October 28, 2009    


Financial SPDRs - XLF - close: 14.37 change: +0.36 stop: 15.51

Banks continue to whip up and down and not go anywhere. Only with some afternoon buying did the banks finally join today's bullish party. Their lack of participation in the broader market rally is bearish and with our stop above the 50-dma I would consider a new bearish entry on any rally attempt in the banks. The XLF has potential support at its rising 100-dma and exponential 200-dma, both coinciding at 13.74 so instead of a new entry now, wait for that support level to break. Our target is $13.10.

Entry on   October 26 at $14.71 (small positions) 
Change since picked:     - 0.34   			
Earnings Date          --/--/-- 
Average Daily Volume:       102 million 
Listed on   October 26, 2009