Current Portfolio:


BULLISH Play Updates

The Andersons, Inc - ANDE - close 36.99 change -0.52 stop 34.45

Target(s): 38.95, 39.90, 41.50
Key Support/Resistance Areas: 41.50, 40.50, 39.20, 38.00, 35.50
Current Gain/Loss: -0.08%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
9/7: ANDE keeps getting smacked down at $37.50. If it breaks out our targets could be reached quickly and I suggest using any breakout to take profits or tighten stops to protect them.

9/4: My comments below remain the same. I'm looking for ANDE to breakout higher but there could be some weakness early this week but I do not expect too much.

9/1: ANDE remains in a high tight bull flag. If the broader market strength continues the stock should break higher and head towards our targets. All of my comments below remain the same.

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


Brocade Communications - BRCD - close 5.91 change +0.30 stop 4.95

Target(s): 5.95, 6.20, 6.50
Key Support/Resistance Areas: 6.60, 6.20, 6.00, 5.75, 5.40, 5.00
Time Frame: 1 to 3 weeks

Comments:
9/7: BRCD came with 4 cents of reaching our trigger to enter long positions. The stock turned on a dime and closed +7% off of its lows. I suggest we look for a retracement to $5.75 and use it as our trigger to enter long positions. This is a 50% retracement of today's +5% gains.

9/4: Data center networking and storage is the hot technology sector as of late with M&A activity continuing to gain energy. Companies like Dell, HPQ, and MSFT have cash and want to expand their services. Companies like BRCD are good takeover targets. BRCD has been pummeled since its highs near $10 in late 2009 and now trades at a discounted PE when compared to many of its peers. Technically, the stock has broken through and closed above two primary downtrend trend lines. I suggest readers initiate long positions on any weakness in the stock early this week. Our official trigger will be $5.46 which is also near its recent upward trend line and a prior resistance level. There has also been a huge amount of call buying in the September and October strikes over the past few days. Our stop is $4.95. NOTE: This is a cheap stock so expect volatility. We are looking for a 50 cent to 1 dollar move higher.

Suggested Position: Long BRCD stock if it trades to $5.75

Options Traders: Buy October $6 CALL, current ask $0.23

Entry on September XX
Earnings 11/23/10 (unconfirmed)
Average Daily Volume: 12.7 million
Listed on September 4, 2010


Coeur d'Alene Mines - CDE - close 17.91 change +0.23 stop 15.90

Target(s): 18.95, 19.95
Key Support/Resistance Areas: 20.00, 19.00, 17.80, 16.70
Current Gain/Loss: +0.06%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
9/7: CDE broke out today so we are long the stock at $17.90. I expect any pullbacks in the stock to be bought and with broader market strength the stock could trade up towards our targets relatively quick.

9/4: We missed our lower trigger to enter long positions in CDE by 17 cents. CDE proceeded to close +4% off of its lows on Friday. The chart looks strong and the story is solid with silver breaking out to new 52-week highs and approaching new all-time highs. Let's move up the lower trigger to $17.10. We may get a pullback early this week to take advantage of it. The breakout trigger at $17.90 also remains.

9/2: Demand for industrial metals such as silver is increasing and prices are rising. CDE has broken out of a longer term downtrend line from its October highs and price is now consolidating above it. The stock is forming a bull flag and is above all of its moving averages. I suggest we buy CDE on a breakout if it trades to $17.90 or on pullback to $16.90 which is just above the stock's 200-day SMA. Our initial stop will be $15.90 but it will be adjusted once we are in the position.

Suggested Position: Long CDE stock if it trades to $17.90 or $17.10

Options Traders: Buy October $18 CALL, current ask $1.25

Entry on September 7, 2010
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on September 1, 2010


Dr. Pepper Snapple Group - DPS - close 38.19 change -0.11 stop 35.93

Target(s): 38.85, 39.95
Key Support/Resistance Areas: 40.00, 38.90, 37.25, 36.25
Time Frame: 1 to 2 weeks

Comments:
9/7: DPS came with 3 cents of our trigger to enter long positions before reversing. I've raised the trigger to $37.90 and am looking for a move up towards it its 52-week highs.

9/4: We missed our trigger to enter long positions by 7 cents on Thursday. DPS has proceeded to gain almost $1 since that low. I expect some weakness early this week which should give us another opportunity to enter long positions. In a strong market DPS should easily retest its 52-week highs. Let's move the trigger up to $37.85 which is Friday's low and just above the 50-day SMA.

9/1: DPS has been a relative strong performer throughout the recent market sell-offs and has also been the subject of takeover chatter in recent months. Technically, the stock has formed rounded bottom over the past month which signals a shift from sellers to buyers. The stock is on the verge of breaking out higher and I suggest readers initiate long positions in the stock on any weakness using $37.30 as a trigger. Our targets are +4% and +7% higher. Our stop is below the recent swing low at $35.93.

Suggested Position: Long DPS stock if it trades to $37.90

Entry on September XX
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on August 31, 2010


Rackspace Hosting, Inc - RAX - close 20.07 change -0.72 stop 17.95

Target(s): 20.75(hit), 21.30, 23.00
Key Support/Resistance Areas: 23.50, 21.40, 20.00, 19.50, 19.00, 18.00
Current Gain/Loss: +2.14%
Time Frame: 3 to 5 weeks
New Positions: Yes

Comments:
9/7: RAX drifted lower all day and broke an intraday trend line. However, RAX closed above the pivotal $20.00 support level and also has all of its major moving averages below. New positions can be considered now, especially on any further weakness. The next level of support below $20.00 is near $19.50.

9/4: RAX consolidated gains today and finished relatively flat after selling off early in the session. New positions can be considered on pullbacks. I've added a $21.95 target and I think this will get hit later this week after a possible dip early.

9/2: This marks the second time our first target has been hit. My comments from remain the same. Also, if tomorrow's employment report is bad readers should consider closing positions.

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


Ultrashort MSCI Europe - EPV - close 19.53 change +0.77 stop 17.78

Target(s): 19.40 (hit), 19.75, 20.20
Key Support/Resistance Areas: 18.00, 19.40, 20.25, 20.60
Current Gain/Loss: +3.33%
Time Frame: 1 week
New Positions: Aggressive traders only

Comments:
NOTE: This is an double inverse ETF and a bearish play on European equities. Expect volatility and use small position size to manage risk.

9/7: EPV gained +4% today due to the weakness in European equities. Our first target has been hit. I've adjusted the next two targets and suggest readers take profits or tighten stops as they approach.

9/4: We got the pullback in EPV and are playing for bounce in the ETF which means European equities need to pullback. I've listed three immediate targets above which are areas readers should use to take profits or tighten stops to protect them. These levels could come fast so be ready or simply place GTC orders to take profits. Our most aggressive target is near the 20-day SMA.

Current Position: Long EPV stock, entry was at $18.90

Entry on September, 3, 2010
Earnings N/A
Average Daily Volume: 259,000
Listed on August 31, 2010


BEARISH Play Updates

Automatic Data Processing - ADP - close: 39.68 change: -0.40 stop: 40.16 *NEW*

Target(s): 39.75 (hit), 39.45, 39.20, 38.85 (hit)
Key Support/Resistance Areas: 41.00, 39.00, 37.30
Current Gain/Loss: -2.40%
Time Frame: Several weeks
New Positions: No

Comments:
9/7: ADP lost -1% today and closed just above its 20-day SMA. Our immediate target has been hit. I do not think this weakness will last too long so I have tightened the stop to just above today's highs. My comments from below remain valid. We've got 3 tight near term targets and I suggest being ready to close positions or tighten stops as they approach.

9/4: ADP opened at its highs and sold off the remainder the day on Friday. Buyers stepped in late but and the stock gained less than 1% while the broader indexes performed much better. Nonetheless, we need to look for an exit in this trade as I have been advocating the past several days (see below). $38.85 was probably the right exit on 8/31 but we need to adjust now. I've listed 3 tight near term targets. I suggest being ready to close positions or tighten stops as they approach.

9/1: ADP double topped with the high on 8/23 before pulling back. My comments from below remain valid in regard to exercising caution with this trade. Our stop is above the 20-day and 50-day SMA so we need this bounce to be short lived if our targets are going to be met.

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.

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