Editor's Note:
Friday's reversal off of the morning lows was nothing short of amazing and I suspect we could get some follow through. I think a dip early in the week could be a buying opportunity and I suggest keeping a tight leash on short positions. Please email me with any questions.

Current Portfolio:


BULLISH Play Updates

Athenahealth, Inc. - ATHN - close 27.86 change -0.05 stop 26.90

Target(s): 28.75 (hit), 29.50, 31.50 (hit), 32.95
Key Support/Resistance Areas: 34.25, 31.75, 30.00, 28.25, 25.75
Current Gain/Loss: -7.90%
Time Frame: 1 to 2 weeks
New Positions: No

Comments:
8/28: ATHN squeezed out a gain on Friday but it would have been nice to see a better effort considering the broader market reversal. Technically ATHN has formed the handle on a bullish cup and handle formation. Now we need follow through this week.

8/26: ATHN hit our lowered target of $28.75 but sold off and gave back all of yesterday's gains. The stock is still above the lows from Tuesday so I am sticking with it here to see if things reverse higher. I want to caution readers that if we get weakness in the broader market tomorrow we could get stopped out.

8/25: We are moving in the right direction with ATHN. Let's see where this bounce takes the stock, however, the broader market is weak so readers may want to consider looking for an exit using the above targets.

Current Position: Long ATHN stock, entry was at $30.25

Options Traders: Long September $31.00 CALL

Annotated chart:

Entry on August 16, 2010
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 767,000
Listed on August 14, 2010


The Andersons, Inc - ANDE - close 37.02 change +0.47 stop 34.45

Target(s): 38.90, 40.50, 41.50
Key Support/Resistance Areas: 41.50, 40.50, 39.20, 38.00, 35.50
Current Gain/Loss: +0.00%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
8/28: ANDE is hanging tough and maintaining its upward trend line with the 20-day SMA acting as support. I'm looking for the stock to break out higher and move up towards our targets.

8/26: ANDE is bouncing perfectly off of its upward trend line and 20-day SMA and it did again today. My comments from the past few days remain valid.

8/25: ANDE is hanging tough and if it breaks above $37.50 to $38.00 our targets should easily be reached.

8/24: ANDE surged +3.44% higher today on a very weak tape in the broader market. We are just about break-even on this trade but I urge readers to be cautious as ANDE can't buck the broader market trend forever. However, if the market bounces from here ANDE should head towards our first target of $38.90 (lowered 25 cents). I want to raise the stop up to $34.45 which is below the 50-day SMA and well below the recent congestion area and key resistance level of $35.50. This should protect us from a head fake lower and protect against a hard reversal.

Current Position: Long ANDE stock, entry was at $37.02

Options Traders: Buy December $40.00 Calls, current ask $2.10

Annotated chart:

Entry on August 19, 2010
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 180,000
Listed on August 18, 2010


Newmont Mining Corp - NEM - close 59.95 change +0.51 stop 58.20

Target(s): 59.30 (hit), 59.85, 60.50
Key Support/Resistance Areas: 62.00, 59.50, 58.16, 55.00, 54.30, 52.30
Current Gain/Loss: +5.64%
Time Frame: Several weeks
New Positions: No

Comments:
8/28: NEM looks poised to reach our targets this week. We currently have a better than a +5% gain so taking profits is an option. My comments from below remain the same.

8/26: NEM is back at our first target and it is time to consider taking profits. This is more of a defensive play so I am comfortable leaving this open to see if we can get more out of the position. I want to raise our stop $58.20 which will lock in a gain on the position. NEM is forming a bull flag on its hourly chart and if it breaks higher our final targets could get hit quickly. I've changed the final target to $60.50. Readers who want to try to get more than this out of the position might want to consider $61.90 which is near the highest all time closing price. I'd rather get out ahead of that.

8/25: NEM is heading back up towards our $59.30 target. I suggest not letting this reverse again. Protect profits.

Current Position: Long NEM stock, entry was at $56.75

Annotated chart:

Entry on August 13, 2010
Earnings 11/3/2010 (unconfirmed)
Average Daily Volume: 7.7 million
Listed on August 10, 2010


Rackspace Hosting, Inc - RAX - close 10.87 change +1.53 stop 17.95

Target(s): 20.75(hit), 21.30, 23.00
Key Support/Resistance Areas: 23.50, 21.40, 20.00, 19.00, 18.00
Current Gain/Loss: +6.21%
Time Frame: 3 to 5 weeks
New Positions: Yes, preferably on a pullback

Comments:
8/27: Wow! RAX surged nearly +8% higher on Friday and is approaching our 2nd target. I think this stock has the potential of reaching its 52-week highs near our final target of $23.00. RAX is also being talked about as a potential takeover target in the cloud computing space which is why I have suggested the December options, i.e. to give this time to work. Readers may want to consider taking some profits off of the table and keeping the remainder of your position open to see if RAX rewards us.

8/26: RAX printed highs not seen since April and briefly broke out of its ascending triangle. My comments from the play release remain the same. Let's stick with the plan. Readers might want to consider new positions if RAX prints $19.00.

8/25: M&A activity is heating up in the tech sector. Dell and Hewlett-Packard are in a bidding war over a 3Par at a huge 160% premium over its closing price just a couple of weeks ago. Whoever loses the bid will most likely be looking for a similar firm to acquire and there seems to be none better than RAX. Regardless of whether RAX fits the bill for an acquisition they are in the red hot cloud computing industry which is outperforming the broader market. I suggest we take advantage of the momentum and initiate long positions now. Technically, RAX is above all of its moving averages and is forming an ascending triangle. Our stop will be $17.95 and I have three targets with the most aggressive being the YTD highs near $23.00. I envision this trade lasting several weeks or more but if the stock surges we won't hesitate to book profits.

Current Position: Long RAX stock, entry was at $19.65

Options Traders: Long December $21.00 CALL

Annotated chart:

Entry on August 25, 2010
Earnings 11/9/2010 (unconfirmed)
Average Daily Volume: 1.75 million
Listed on August 25, 2010


BEARISH Play Updates

Automatic Data Processing - ADP - close: 39.36 change: +0.61 stop: 41.26

Target(s): 38.85, 37.25, 36.50, 34.00
Key Support/Resistance Areas: 41.00, 39.00, 37.30
Current Gain/Loss: -1.57%
Time Frame: Several weeks
New Positions: Yes

Comments:
8/28: ADP looks ready to bounce along side the broader market. The stock closed right on a steep downtrend line but I think it's only a matter of time before it's broken. Readers may want to consider using a tighter stop or simply exiting positions. Our official stop is above the 20 and 50-day SMA's but a tighter stop of $40.10 could be used. I've also listed a target near breakeven ($38.85) on the trade. ADP could show some weakness early in the week and this could be used a logical exit point as it is an intraday support level.

8/26: We are right back to where we started with ADP. The stock continues to look vulnerable and ready to break. If the broader market is weak ADP should follow.

8/25: ADP continues to look vulnerable but we may need to be patient until the broader market finishes this bounce which should be short lived. There is plenty of overhead resistance.

8/24: We were triggered on our short entry in ADP at $38.75. This is the lowest close since 10/8 and the stock looks vulnerable. I've added $37.25 as a first target because it is near a long term upward trend line and prior swing low from 9/3/09.

Current Positions: Short ADP stock, entry was at $38.75

Option Traders: Long November $37.00 puts

Annotated chart:

Entry on August 24, 2010
Earnings Date 10/28/10 (unconfirmed)
Average Daily Volume: 3.2 million
Listed on August 19, 2010


Chesapeake Energy - CHK - close 20.81 change +0.74 stop 21.60

Target(s): 19.70 (hit), 19.10, 18.25
Key Support/Resistance Areas: 22.50, 21.60, 20.30, 19.65, 18.75, 18.00
Current Gain/Loss: +0.00% Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
8/28: My comments from below about CHK violating the prior days candlesticks is not a good sign for this short position. Our stop is $21.60 so we won't get hurt too bad if we are taken out but readers should be aware that Friday's pattern can be considered a reversal pattern. In hindsight, we should have taken the +5% gain we had from the breakdown on 8/25. Nice job to readers that did.

8/26: Natural gas inventories continue to be bearish and the early strength in CHK was sold right into. The stock printed a nasty candlestick, closing at its lows for the day. However, if this candlestick is violated it is a bullish signal so I want to tighten the stop to $21.60. I am still bearish on CHK but want to protect against a hard reversal. The stop is also quite a bit higher and above the recent downtrend line and 20-day SMA. I wouldn't want to be involved if CHK trades this high. I am also adjusting the 2nd and 3rd target slightly higher.

8/25: CHK traded right down to its 52-week low which was the target I suggested taking profits at last night. CHK still looks weak but I believe the stock may bounce here with the broader market. If things turn back down CHK should break these levels.

Current Position: Short CHK stock, entry was at $20.81

Options Traders: Long October $20.00 PUTS

Annotated chart:

Entry on August 16, 2010
Earnings: 11/2/2010 (unconfirmed)
Average Daily Volume: 10 million
Listed on August 14, 2010


Con-way Inc. - CNW - close: 27.96 change: +0.76 stop: 31.55

Target(s): 28.25, 26.75, 25.50
Key Support/Resistance Areas: 25.00, 28.00, 32.00
Current Gain/Loss: N/A
Time Frame: Several Weeks
New Positions: Yes, trigger 29.70

Comments:
8/28: I think CNW bounces higher from here with the broader market so we may get filled after all. However, I want to increase the trigger to $29.70 which is close to filling a gap down on 8/11. Our stop is above the 50-day SMA. I am looking for CNW to turn back down at $29.70 to test $28.25 which will produce about a +5% gain.

8/25 & 8/26: My comments remain the same from below. Let's see if CNW gives us an entry on a bounce in the coming days.

8/24: CNW managed to gain +1.33% to close at $27.52. This stock is shortable on strength but we are still waiting on our trigger. The plan is to initiate bearish positions if CNW can bounce to $29.20. The stock is still very oversold with its recent decline from $35.00. A normal 38.2% Fibonacci retracement and the declining 20-day SMA are near $29.80. If the stock can manage to bounce to $29.20 I would be short seller.

Suggested Position: Short CNW stock if it trades to $29.70

Annotated chart:

Entry on August xx
Earnings Date 11/03/10 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on August 7, 2010


HNSI, Inc - HNSI - close 27.61 change +0.71 stop 29.11

Target(s): 26.70, 26.40, 25.80, 25.05, 23.75
Key Support/Resistance Areas: 28.90, 27.25, 25.80, 200-SMA, 23.50, 22.00
Current Gain/Loss: -1.51%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
8/28: HSNI may bounce with the broader market but I will be surprised if it takes out the downtrend line from its April highs. I have tightened the targets significantly and suggest readers take a small gain or tighten stops to protect the gains should HSNI reach them.

8/26: The early rally in HSNI was sold into and the stock closed near its lows of the day. I am looking for a breakdown towards its 200-day SMA.

8/25: HSNI hit our target on the late day rally so we are short the stock. I believe this rally will be short lived and the stock should turn back lower in the coming days. My comments from the pay release are below.

8/24: Retailers are weak and HSNI looks like it is headed to test its 200-day SMA and possibly its recent swing lows. The stock has made a great comeback off of its 2009 lows but the selling has picked back up in recent weeks. The stock lost -5.3% today on strong volume and I expect it to continue if the broader market cooperates. I would like to see a retracement of some of today's gains to initiate short positions but if the stock breaks down I also suggest initiating short positions. Let's use triggers on a bounce to $27.20 or a breakdown to $25.69. More nimble traders can initiate positions now. We'll keep a tight stop at $29.11 which is above the downtrend line and Monday's high. If we get filled at $27.20 our first target is nearly 8% lower and above the 200-day SMA. HSNI closed below its 20, 50, and 100 day SMA's today.

Current Position: Short HSNI stock, entry was at $27.20

Options Traders: Long October $25.00 PUTS

Annotated chart:

Entry on August xx
Earnings: 11/11/2010 (unconfirmed)
Average Daily Volume: 495,000
Listed on August24, 2010


Starbucks Corp. - SBUX - close: 23.47 change: +0.20 stop: 25.05

Target(s): 22.20, 21.30, 20.00
Key Support/Resistance Areas: 25.00, 23.50, 22.00, 21.00, 20.00
Current Gain/Loss: -0.73%
Time Frame: Several weeks
New Positions: Yes

Comments:
8/28: My best guess is that SBUX has some unhappy shareholders at higher prices which should keep bounces in the stock in check. There is a lot of congestion overhead but we may need to exhibit some patience through a bounce.

8/26: SBUX filled the gap I referred to yesterday and it was immediately sold into. Now we need follow through and weakness in the broader market should get things moving lower in earnest. I've adjusted our first target up 10 cents. This is prior resistance form last fall which should provide support. If we breakdown before bouncing I would be taking profits or tightening stops to protect them at this level.

8/25: The rally in SBUX may have been short covering today and the stock could fill the gap down from yesterday before the selling resumes. There is plenty of overhead resistance to keep bounces in check.

Current Position: Short SBUX stock, entry was at $23.30

Options Traders: Long October $23.00 puts

Annotated chart:

Entry on August 24, 2010
Earnings Date 11/04/10 (unconfirmed)
Average Daily Volume: 8.0 million
Listed on August 19, 2010


CLOSED BULLISH PLAYS

UltraShort Semiconductor ETF - SSG - close: 18.92 change: -0.70 stop: 18.40

Target(s): 20.40, 21.45, 22.00
Key Support/Resistance Areas: 22.00, 20.00, 19.00, 17.00
Final Gain/Loss: +3.82%
Time Frame: 4 to 6 weeks
New Positions: Closed

Comments:
NOTE: This is a bearish trade using a long position in an inverse ETF. Since we are bullish on the inverse ETF it is listed as a bullish trade.

8/28: The broader market weakness (strength in SSG) was very short lived as I suspected in Thursday's update. But hopefully readers were ready to sell when our $20.40 target was hit because things reversed fast. So we'll take a small gain of +3.8%. Readers who have positions I would honor stops as I think SSG could head back to test its 50-day SMA near $17.00. Friday's reversal was nothing short of amazing and I suspect there could be follow through.

8/26: SSG bounced back today gaining +3.4%. If there is market weakness tomorrow it could get ugly and be quick. On the other hand if we bounce it could spur short covering (bad for SSG) and we could get stopped out. Our initial plan was for this trade to last several weeks but the market is oversold and we are approaching support levels. If we go lower it could be quick with a swift reversal and I would rather be selling SSG on strength rather than weakness. I've offered two additional targets for readers looking to book nice gains if there is weakness. Our stop is in the right place.

8/25: Unfortunately, we were triggered at $19.65 as opposed to the pullback to $17.80. We have tight stop so if the Semi's bounce much more there is good chance we will get taken out. I like this ETF on weakness but will suggest stepping aside and possible entering at a lower price if our stop is hit.

Closed Position: Long SSG stock at $20.40, entry was at $19.65

Annotated chart:

Entry on August 25, 2010
Earnings Date: N/A
Average Daily Volume: 178,000
Listed on August 21, 2010


CLOSED BEARISH PLAYS

SPDR Retail ETF - XRT - close 36.52 change -0.46 stop 38.62

Target(s): 36.00 (hit), 35.25, 34.65
Key Support/Resistance Areas: 39.00, 38.00, 37.60, 36.50, 35.80, 35.00
Final Gain/Loss: +4.05%
Time Frame: 1 to 2 weeks
New Positions: Closed

Comments:
8/28: Once again you had to be ready to sell at $36.00 which is where XRT reversed on Friday. I suggested we protect profits down here so we have another small gain of +4%. I do believe XRT will turn back down but probably not before heading higher. A test of the 200-day SMA is probably another good shorting opportunity.

8/26: The selling resumed in XRT today and there is plenty of resistance overhead. $36.00 is still a valid target and I would be protecting profits if XRT gets down there again.

8/25: XRT printed a bullish engulfing candlestick today and closed the gap lower from yesterday. In this case I believe the selling will resume. My comments from below remain the same.

8/24: XRT hit our first target of $36.00 this morning and bounced. I see no reason the ETF won't trade down to its July lows which are just below our second target of $35.25. Let's move our stop down to $38.62.

Closed Position: Short XRT stock at $36.00, entry was at $37.52

Annotated chart:

Entry on August 17, 2010
Earnings: 11/2/2010 (unconfirmed)
Average Daily Volume: 12 million
Listed on August 16, 2010