Current Portfolio:


BULLISH Play Updates

The Andersons, Inc - ANDE - close 35.75 change -1.24 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: -3.43%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
9/8: The smack down at $37.50 in ANDE continued today as the stock closed -3.35% lower. ANDE remains above the key $35.50 support level but we are getting whipsawed as the stock is trading in a high tight $2 wide bull flag. Today's price action has me concerned but the set-up remains in tact and readers may want to consider new positions and take advantage of today's weakness.

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.

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 5.87 change -0.04 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:
9/8: BRCD came within 6 cents today of reaching our trigger to enter long positions. Patience should payoff and I suggest we leave our trigger at $5.75. I'm looking for BRCD to consolidate some the recent gains and make another leg higher.

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 17.81 change -0.10 stop 15.90

Target(s): 18.95, 19.95
Key Support/Resistance Areas: 20.00, 19.00, 17.80, 16.70
Current Gain/Loss: -0.50%
Time Frame: 1 to 3 weeks
New Positions: Yes, preferably on pullbacks

Comments:
9/8: CDE is also consolidating some of its recent gains and I expect pullbacks to get bought. Silver has traded to highs not seen early 2008 which is good for CDE. Our first target is $18.95 which will give us a nearly a +6% gain is reached.

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 38.13 change -0.06 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:
9/8: Our trigger to enter long positions at $37.90 is just above the 50-day SMA, while prior resistance at $37.60 is just below. We are looking for a move back towards the stock's 52-week highs.

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


Power-One, Inc - PWER - close 10.92 change +0.17 stop 9.68

Target(s): 12.50, 11.60
Key Support/Resistance Areas: 13.00, 11.75, 50-day, 9.50
Time Frame: 1 to 3 weeks

Comments:
9/8: We are waiting to be triggered on PWER. I suggest we move the trigger to enter long positions up to $10.75. The stock has several upward trend lines, the 20-day SMA, and rising 50-day SMA as support below and I want to give us the best chance at getting filled.

9/7: Take a look at the grey volume bars on the chart below. It is clear PWER is being accumulated with institutional money as the price has risen over the past 18 months. I like PWER's business and believe this stock will continue to get bought if the market cooperates. I suggest readers use a trigger of $10.75 to enter long positions and target a move back towards the stock's recent high. This is above the stock's upward trend line and the 50-day SMA. Our initial stop will be below both of these at $9.68.

Suggested Position: Long PWER stock if it trades to $10.55

Options Traders: Buy October $11.00 CALL, current ask $1.10

Entry on September XX
Earnings 10/21/10 (unconfirmed)
Average Daily Volume: 5.3 million
Listed on September 7, 2010


Rackspace Hosting, Inc - RAX - close 20.43 change +0.36 stop 17.95

Target(s): 20.75(hit), 21.30, 21.95, 23.00
Key Support/Resistance Areas: 23.50, 21.40, 20.00, 19.50, 19.00, 18.00
Current Gain/Loss: +3.97%
Time Frame: 3 to 5 weeks
New Positions: Yes

Comments:
9/8: RAX double bottomed with yesterday's lows and closed almost +2% higher on the day. We are looking for a continuation of the recent move higher and if the broader market cooperates I'm looking for RAX to hit our 2nd target of $21.30 and possibly $21.95 this week. As these targets approach be ready to take profits or tighten stops to protect them.

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 19.15 change -0.38 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: +1.32%
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.

9/8: EPV gave back some of the gains from yesterday as European equities recovered from early losses due to a favorable bond auction in Portugal. If there is weakness in Europe tomorrow or Friday our more aggressive targets could get hit fairly quick. $19.40 is also still a valid target and I suggest readers take profits or tighten stops as targets approach.

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


CLOSED BEARISH PLAYS

Automatic Data Processing - ADP - close: 39.66 change: +0.32 stop: 40.16 *NEW*

Target(s): 39.75 (hit), 39.45 (hit), 39.20, 38.85 (hit)
Key Support/Resistance Areas: 41.00, 39.00, 37.30
Final Gain/Loss: -1.81%
Time Frame: Several weeks
New Positions: No

Comments:
9/8: Our $39.45 target was reached so our short ADP position has been closed. For readers who still have positions you may want to stick with the position with a tight stop but I suggest trailing it down if ADP goes lower. I'm just not confident the selling will continue, rather I think pullbacks will get bought. Our tightened stop at $40.16 looks correct to me. A looser stop above the primary downtrend line could be considered but this is almost +4% higher than current levels. I would rather not sit and wait through a bounce.

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.

Closed Position: Short ADP stock at $39.45, entry was at $38.75

Annotated chart:

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