The action in the markets today was bearish. This looks like a new entry point for some of our bearish trades.


BULLISH Play Updates

Best Buy Inc. - BBY - close: 41.84 change: -0.41 stop: 39.40

The earnings report from Wal-Mart (WMT) this morning was mixed. There was some good news in there but it failed to inspire any strength for the retailers. Shares of BBY shed 0.9% and look like they could dip back toward $40.00. At this point, with the S&P 500 starting to roll over under resistance, I would wait for a dip or better yet a bounce from the $40.00 level on BBY before initiating new positions.

Our first target is $46.00. Our second target is $49.80. Our time frame is several weeks.

Entry on  November 10 at $42.20
Change since picked:     - 0.36   			
Earnings Date          12/15/09 (unconfirmed)    
Average Daily Volume:       5.1 million 
Listed on  November 09, 2009    


Baker Hughes Inc. - BHI - close: 41.43 change: -1.79 stop: 40.49

The bounce in the dollar and a rise in oil inventories sent crude oil futures lower. This drug the energy stocks down and BHI lost 4.1%. Shares are close to testing technical support at the exponential 200-dma. More aggressive traders might want to put their stop under the $40.00 mark and its 100-dma but if we see BHI trade under the November low we'll want to exit. I'm not suggesting new positions at this time. Our first target is $47.00. Our second target is $49.85.

Entry on  November 09 at $43.06 
Change since picked:     - 1.63   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       5.6 million 
Listed on  November 09, 2009    


Potlatch Corp. - PCH - close: 29.28 change: -0.65 stop: 27.95

PCH is retreating from resistance near $30.00. I don't see any changes from my Wednesday night comments.

I'm suggesting a trigger to buy PCH at $30.30. If triggered our first target to take profits is at $33.60. We will cautiously set a secondary target at $35.75. FYI: The Point & Figure chart is bullish with a $56 target.

Entry on  November xx at $xx.xx <-- TRIGGER @ 
Change since picked:     + 0.00   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:           thousand
Listed on  November 11, 2009    


Southern Copper Corp. - PCU - close: 33.95 change: -1.07 stop: 31.75 *new*

Commodities were lower on a stronger dollar and that sparked profit taking in the miners. PCU lost 3.0%. Technical support at the 50-dma has risen to $31.93. I am raising our stop loss to $31.75. I'm not suggesting new bullish positions at this time. Our target is $39.50.

I suggested 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    


Polaris Industries - PII - close: 45.26 change: -1.21 stop: 41.80

Shares of PII lost 2.6% and are back to testing the $45.00 level. I would expect a dip toward $44.00 and possibly the 50-dma near $42.50. This dip toward short-term support could be an entry point but with the S&P 500 rolling over under the 1100 level I'd wait for signs of a bounce in shares of PII before launching new positions.

Our target to exit is $49.65. I consider this an aggressive play and suggest smaller position sizes.

Entry on  November 09 at $45.15
Change since picked:     + 0.11   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       516 thousand
Listed on  November 07, 2009    


Travelers Companies - TRV - close: 53.14 change: -1.17 stop: 49.75

TRV is starting to correct. Broken resistance near $52.00 should be new support. I'm suggesting readers use a trigger to buy the dip at $52.15. If triggered our target is $57.40.

Entry on  November xx at $xx.xx <-- TRIGGER @ 52.15
Change since picked:     + 0.00   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  November 07, 2009    


Wyndham Worldwide - WYN - close: 18.81 change: -0.44 stop: 16.40

After five up days in a row WYN was due for a down one. Look for support near $18.50 and near $18.00. The $20.00 level could offer some round-number resistance but I'm setting our first target at $21.00. FYI: The point & figure chart is bullish with a $27 target. Our time frame is several weeks.

The plan was to use small positions (1/2 a position).

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked:     - 0.07   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       3.5 million 
Listed on  November 10, 2009    


Yanzhou Coal Mining - YZC - close: 17.98 change: -0.06 stop: 14.95

Upward momentum in YZC is waning. I would expect a correction soon.

There is no change from my prior comments. We don't want to chase the rally in YZC. I'll keep our trigger to buy a dip at $16.35 for now but we'll probably end up adjusting it higher. Our target is $19.95. Our time frame is several weeks.

Entry on  November xx at $xx.xx <-- TRIGGER @ 16.35
Change since picked:     + 0.00   			
Earnings Date          04/10/10 (unconfirmed)    
Average Daily Volume:       418 thousand
Listed on  November 07, 2009    


BEARISH Play Updates

Activision-Blizzard - ATVI - close: 11.44 change: +0.06 stop: 11.85

ATVI's new "Call of Duty, Modern Warfare 2" has set new opening day sales records. In the first 24 hours the company sold about 4.7 million copies worth $310 million in the U.S. and the U.K. That's the biggest opening day draw for any event in entertainment history.

This amazing feat added 6 cents to ATVI's stock price today. The stock is clearly struggling with resistance near $11.75. I remain bearish on it here and would still initiate new positions. (More aggressive traders might want to place their stop just above the $12.00 mark).

Our first target is $10.10. Our second target is $9.25. Our time frame is several weeks.

Entry on  November 11 at $11.20
Change since picked:     + 0.24   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:      17.3 million 
Listed on  November 10, 2009    


Navistar Intl. - NAV - close: 35.41 change: +0.01 stop: 36.55

It was a forgettable session for NAV. The stock barely budged and remains under resistance near $36.00. Instead of waiting for a drop under $34.00 I would be inclined to open new bearish positions on a move under $35.00 or $34.50 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:     - 0.00   			
Earnings Date          12/30/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on   October 24, 2009    


Financial SPDRs - XLF - close: 14.69 change: -0.28 stop: 15.21

Financials are rolling over. This looks like a new bearish entry point on the sector. I'd open small bearish positions now. Our first target is $13.10. Our second target is $12.25.

Entry on   October 26 at $14.71 (small positions) 
Change since picked:     - 0.02   			
Earnings Date          --/--/-- 
Average Daily Volume:       102 million 
Listed on   October 26, 2009