Current Portfolio:


BULLISH Play Updates

The Andersons, Inc - ANDE - close 35.88 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: -3.08%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
8/31: ANDE closed relatively flat on the day. The stock remains above the key support level in the $35.00 to $35.50 area which is the logical area for a bounce back higher. This area is not a bad place to consider new bullish positions.

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.

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

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

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


Rackspace Hosting, Inc - RAX - close 19.69 change -0.71 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: +0.20%
Time Frame: 3 to 5 weeks
New Positions: Yes, preferably on a pullback

Comments:
8/31: RAX experienced a set-back today when Benchmark Co. cut its rating to hold from buy. The firm reiterated their price target of $22. RAX closed at $19.69 and if it goes to $22.00 we will be happy campers. Once this selling subsides RAX should turn back up. The stock is maintaining its primary upward trend line and is still above all of its major moving averages. For options traders we have December strikes so time is on our side for now. Readers may want to consider this pullback as an entry point.

8/28: 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.

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

Options Traders: Long December $21.00 CALL

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: 38.61 change: -0.22 stop: 40.75 *NEW*

Target(s): 38.85 (hit), 38.05, 37.25, 36.50
Key Support/Resistance Areas: 41.00, 39.00, 37.30
Current Gain/Loss: +0.36%
Time Frame: Several weeks
New Positions: Yes

Comments:
8/31: ADP is moving slow and I am concerned of a broader market bounce in equities. We have a small gain in this trade and I suggest readers use caution. I've added a target of $38.05 and have lowered the stop to $40.75.

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.

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

Option Traders: Long November $37.00 puts

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 20.68 change -0.15 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: +0.62% Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
8/31: CHK has printed two topping tail candlesticks off of the 20-day SMA from below and a downward trend line. This is a bearish signal but we will most likely need more weakness in the market for CHK to move lower.

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.

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

Options Traders: Long October $20.00 PUTS

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


HNSI, Inc - HNSI - close 26.29 change +0.11 stop 28.11 *NEW*

Target(s): 25.80 (hit), 25.40, 25.05, 23.75
Key Support/Resistance Areas: 28.90, 27.25, 25.80, 200-SMA, 23.50, 22.00
Current Gain/Loss: +3.35%
Time Frame: 1 to 2 weeks
New Positions: Yes, preferably on strength

Comments:
8/31: HSNI hit our $25.80 target this afternoon before bouncing and closing in positive territory. I want to tighten the stop to $28.11 to protect against a more meaningful bounce. I've added $25.40 as a target with $25.05 as the next target which is just above the stock's 200-day SMA. I would be taking profits or tightening stops to protect them as these levels approach. $25.80 is still a valid target and could be construed as a double bottom play by some traders so readers should still consider taking profits here as well.

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.

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

Options Traders: Long October $25.00 PUTS

Entry on August 25, 2010
Earnings: 11/11/2010 (unconfirmed)
Average Daily Volume: 495,000
Listed on August 24, 2010


Starbucks Corp. - SBUX - close: 22.98 change: -0.45 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: +1.37%
Time Frame: Several weeks
New Positions: Yes

Comments:
8/31: SBUX shed almost -2% today. Volume was much higher than in recent days when the stock was drifting higher. If there is broader market weakness in the coming days SBUX could quickly trade down to our targets. Otherwise, there is a bunch overhead congestion which should keep bounces in check.

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.

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

Options Traders: Long October $23.00 puts

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

Athenahealth, Inc. - ATHN - close 26.94 change -0.25 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: -11.07%
Time Frame: 1 to 2 weeks
New Positions: No

Comments:
8/30: ATHN traded to our stop this afternoon so we are flat the position for a loss. We could have closed this position early on in the trade for a +4% gain and again on Thursday for a much smaller loss so this is a frustrating result. But we must honor our stops and will live to fight another day. It appears ATHN wants to head for its 50-day SMA which is at $26.23 and another -2.5% from current levels.

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.

Closed Position: Long ATHN stock at $26.90, entry was at $30.25

Annotated chart:

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


China Agritech, Inc - CAGC - close 16.72 change +0.74 stop 15.23

Target(s): 17.70, 18.35, 19.40
Key Support/Resistance Areas: 19.60, 18.50, 16.00, 15.35
Final Gain/Loss: -8.75%
Time Frame: 1 to 2 weeks
Comments:
8/31: Ouch! CAGC sold off -8.50% today and hit our stop so we are flat the position for a loss. I could not find any specific news that caused the sell-off. Volume was heavier than normal so it appears an institution was unloading a position. When the selling stops there could be another long opportunity but for now we must step aside.

8/28: The agriculture space continues to garner much attention throughout the world as commodity and food prices are increasing at a rapid pace, mainly from emerging markets. CAGC is a Chinese company in this space and the stock is forming a nice cup and handle pattern. CAGC is finding support at its 20 and 200-day SMA's and I believe it will bounce higher with the broader markets in the coming days and weeks. I'm not looking to hit a home run with this trade but our targets range from +6% to +16% higher. All of them are achievable with broader market strength which I think we will see, at least over the next week or two. Our stop is below the recent swing low, the upward trend line from 7/20 and the aforementioned SMA's. More nimble traders may want to try to time an entry in the $16.25 area.

Closed Position: Long CAGC stock at $15.23, entry was at $16.69

Annotated daily chart:

Entry on August xx
Earnings 11/11/2010 (unconfirmed)
Average Daily Volume: 1.2 million
Listed on August 28, 2010


Newmont Mining Corp - NEM - close 59.92 (on 8/30) change +0.51 stop 58.20

Target(s): 59.30 (hit), 59.85 (hit), 60.50 (hit)
Key Support/Resistance Areas: 62.00, 59.50, 58.16, 55.00, 54.30, 52.30
Final Gain/Loss: +6.61%
Time Frame: Several weeks
New Positions: No

Comments:
8/30: NEM hit our final target of $60.50 on 8/30 so we are flat the position for gain. NEM continued surging higher today so please protect profits.

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.

Closed Position: Long NEM stock at $60.50, 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


CLOSED BEARISH PLAYS

Con-way Inc. - CNW - close: 26.21 change: -0.80 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 - never opened
Time Frame: Several Weeks
New Positions: Dropped

Comments:
8/31: CNW is simply not bouncing and I do not want to chase the stock at these levels. We've had this play open too long so I am dropping it as a candidate.

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.

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

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