Editor's Note:
Good evening. I think we are going to see this volatility continue. Tuesday's losses were reversed today and I would not be surprised if today's gains are reversed tomorrow. Staying nimble and working both sides of the market is the right strategy. Our short XLNX play looks promising tomorrow for a solid move lower (see play update for details). We also have several positions still waiting to be triggered which could happen at any time. Please email me with any questions.

Current Portfolio:


BULLISH Play Updates

Boyd Gaming - BYD - close 7.74 change -0.13 stop 7.28

Target(s): 8.65, 8.95, 9.20
Key Support/Resistance Areas: 9.60, 9.25, 8.75, 8.00, 7.40
Current Gain/Loss: -5.61%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
10/20: BYD is finding support at its 20-day SMA and key long support/resistance level in the $7.40 to $7.60 area. This is a logical place to for the stock to make a higher low and head back to at least retest its recent highs. If it does this we can book a decent in the +5% range. I've added a lower target to reflect this strategy. Launching new bullish positions at these levels with tight stop below makes sense a lot of sense to me.

10/19: BYD looked promising this morning but completely lost it in the afternoon. I suggest we keep our stop in place for now and not panic out of the position. BYD is still above the 20-day and 50-day SMA's and has support near current levels.

10/18: I do not see many changes from James' comments below. BYD experienced a relief rally after the Thursday/Friday sell-off. Broken support near $8.00 was a key level that BYD will have to contend with on bounces. Readers may want to consider exiting positions early or tightening stops to the $7.45 area to protect capital, especially considering the overbought broader market conditions.

Current Position: Long BYD stock, entry was at $8.20

Entry on October 14, 2010
Earnings 10/27/10 (unconfirmed)
Average Daily Volume: 1.8 million
Listed on October 9, 2010


Companhia Brasileira de Distribuicao - CBD - cls: 37.14 chg: -0.12 stop: 34.75

Target(s): 39.00
Key Support/Resistance Areas: 35.00, 36.50, 39.00
Current Gain/Loss: +1.06%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
10/20: CBD has made a series of higher lows since the stock slit on Monday. Now we need the stock to follow through higher and retest its highs.

10/19: CBD traded right down to our trigger of $36.75 and bounced nicely. The comments below all remain valid.

10/18: We are waiting to be triggered at $36.75 which I expect to happen in the coming days. This is a prior long term resistance area which should now be support. The comments from the play release below remain the same.

10/16: Shares of Brazilian grocery food chain CBD appear to be in breakout mode. The Brazilian economy continues to grow and the surging middle class likes to spend. This has pushed CBD toward all-time highs. Now normally I wouldn't list a stock in the $70s as a PremierInvestor play. However, CBD will see a 2-for-1 split on Monday morning (Oct. 18th). The stock should open around $38.20. I am suggesting we look to buy CBD on a pull back. Broken resistance near $73.50 (post-split will be $36.75) should be new support. Thus, use a trigger at $36.75 to open bullish positions. We'll use a stop loss at $34.75 since the $70 level (post-split: $35) should be additional support.

If triggered our first target is $39.00 (pre-split $78.00). Our second, longer-term target is $42.00. The inverse (bullish version) head-and-shoulders pattern would suggest a bullish target of $88 (post-split would be $44). The Point & Figure chart is very bullish with a price target of $101.00 (post-split $50.50).

Current Position: Long CBD stock, entry was at $36.75

Entry on October 19, 2010
Earnings Date 11/10/10 (unconfirmed)
Average Daily Volume: 545,000
Listed on October 16th, 2010


Hansen Natural Corp. - HANS - close: 49.73 change: -0.27 stop: 44.95

Target(s): 50.00, 52.50,
Key Support/Resistance Areas: 45.00, 47.50, 50.00, etc.
Current Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below for details

Comments:
10/18 & 10/19 & 10/20: We are waiting for our trigger at $48.25. I like the set-up and suggest we remain patient. We could get a pullback in the coming days and using the dips as buying opportunities is the right strategy.

10/16: HANS is probably best known for their Monster brand energy drinks. The stock has been a monster in its own right and shares have been a popular momentum trade over the years. Well once again shares of HANS are surging higher. We'd like to hop on board but we don't want to chase it at these levels. I'm suggesting a trigger to buy the stock (or call options) at $48.25 since broken resistance at $48.00 should be new support. I'm suggesting a stop loss at $44.95 but we may want to raise the stop closer to the rising 50-dma (technical support) currently near 46.20.

If triggered at $48.25 our first target is $51.00. Our second target is $52.50. FYI: The point & figure chart is very bullish and is forecasting a long-term target of $78.

Suggested Position: BUY the stock at $48.25

- or -

BUY the November $50.00 calls (on a dip at $48.25).

Entry on October xx
Earnings Date 11/04/10 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on October 16, 2010


Itron, Inc - ITRI - close 60.69 change +0.32 stop 57.45

Target(s): 63.00, 64.00, 65.00, 66.00
Key Support/Resistance Areas: 66.00, 64.00, 60.50, 59.00, 57.00
Current Gain/Loss: +0.73%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
10/20: I don't see many changes to my comments below. Look for a move back up to $63.00 which when is we will begin to tighten stops and look for a possible break out higher. ITRI may want to test its 50-day SMA which is near $59.00 so we may need to exhibit some patience.

10/19: The correction came a little faster than I anticipated but ITRI hit our trigger of $60.25 to enter long positions. I am a little concerned about the strength of today's sell-off and we may need to exhibit some patience in the coming days. Tighter stops could be considered at $58.45. When the selling subsides ITRI should move back to the $63.00 level with ease and I would target incremental $1 moves higher from there, possibly all the way up to $66.00. I would view any further dips as buying opportunities with tighter stops.

Current Position: Long ITRI stock, entry was at $60.25

Entry on October 19, 2010
Earnings 10/27/2010 (unconfirmed)
Average Daily Volume: 412,000
Listed on October 4, 2010


Jeffries Group, Inc - JEF - close 23.83 change +0.29 stop 22.75

Target(s): 25.10, 25.75
Key Support/Resistance Areas: 25.85, 25.25, 24.25, 23.50, 23.00
Current Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see entry point below

Comments:
10/21: JEF closed above its 50-day SMA for the first time in a month which should provide support on a pullback. We are likely going to get triggered to launch bullish positions tomorrow on a breakout. Readers may want to consider an entry on a dip to the 50-day (currently $23.50) as the stock keeps getting bought, but I would keep a tight leash on the trade.

10/19: Investment Banks are beginning to trade well, especially those that have little risk exposure to mortgage backed securities like many of the money center banks. JEF should do well in this era of corporate advisory services and M&A activity. JEF could even be a takeover candidate themselves. I like JEF to trade higher as long as the stock breaks out above today's highs. Technically, The volume patterns look good and JEF has closed above short term resistance from the past couple of weeks at $23.50 for two consecutive days. I suggest we enter long positions if the stock trades to $23.91 which is above today's highs. Our stop will be $22.75 and our targets are near the September and August highs, which are +5% and +7.5% from our trigger.

Suggested Position: Long JEF stock if it trades to $23.91
Options Traders: Buy December $24.00 CALL, current ask $1.10

Entry on October xx
Earnings Date 1/20/11 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on October 19, 2010


Mylan Inc. - MYL - close: 18.98 change: +0.15 stop: 18.45

Target(s): 19.80, 20.45, 21.00, 22.00
Key Support/Resistance Areas: 18.50, 19.00, 20.00, 20.50
Current Gain/Loss: -1.40%
Time Frame: 4 to 6 weeks
New Positions: Neutral

Comments:
10/20: MYL is playing moving average ping pong, bouncing back and forth between the 200-day (above) and rising 20-day (below). The stock is hanging tough and looks bullish. Now we need follow through.

10/19: I could not find any follow-up news to my 10/18 comments. MYL is hanging tough and is holding onto its upward trend line that began on 8/31 and its 20-day SMA. I've adjusted the targets slightly.

10/18: MYL got hit hard today on news that a preliminary injunction against GlaxoSmithKline and Apotex pertaining to the generic drug Paxil CR was denied in US District Court of New Jersey. After the initial reaction the selling subsided and MYL bounced after the company said they are appealing the decision. Regardless of the outcome, this is a new development and readers should use caution, especially considering the overbought broader market conditions. Our stop is in the right place if MYL breaks lower as this will signal a break in trend.

10/16: MYL is a short squeeze candidate. Bigger picture the generic drug makers are facing a potential boom for the next few years as more brand name drugs lose their patent protection. On a short-term basis MYL just broke out over heavy resistance at $19.00 and its 200-dma following news the FDA has approved to generic versions of Merck's Hyzaar and Cozaar blood pressure drugs. Now don't get too excited here since TEVA has already begun selling generic versions of these drugs months ago but it does mean MYL can try and grab its slice of the pie. Technically MYL is seeing a bullish breakout and could see a short squeeze. The most recent data available listed short interest at almost 29% of the 260 million-share float.

I do consider this an aggressive trade so keep your positions somewhat smaller. Buy the stock now (or the calls) and target a move to $20.00, $21 and beyond. FYI: The P&F chart is forecasting at $33 target.

Current Position: Long MYL stock, entry was at $19.25
Options Traders: Long November $20.00 calls

Entry on October 18, 2010
Earnings Date 10/28/10 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on October 16, 2010


PerkinElmer, Inc - PKI - close 23.10 change +0.38 stop 22.05

Target(s): 23.60, 24.25, 24.85
Key Support/Resistance Areas: 25.40, 24.40, 23.30, 22.50
Current Gain/Loss: +0.00%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
10/20: We are right back to where we started with PKI and are breakeven on the trade as the stock rebounded nicely today. My comments below remain valid.

10/19: Our +2% gain in PKI has turned into a loss with today's -3.4% decline. PKI has broken through its upward trend line from the July lows and its 20-day SMA, so now we have to turn to support levels. The stock has support at $22.50 and the rising 50-day and 200-day SMA's at $22.30 and $22.13. I suggest we protect the trade here and lower our stop $22.05 as PKI may be headed to test one of the SMA's just below. If support is not found at one of the three aforementioned levels the new stop still keeps losses relatively small while giving the trade room to work. Conservative traders may want to consider exiting positions now.

10/18: PKI regained all of Friday's losses and closed at new multi-month closing highs that haven't been seen since early May. However, the broader market is overbought so readers should use caution. Tighter stops in the $22.75 area could be considered to limit downside risk. James' comments below remain valid.

Current Position: Long PKI stock, entry was at $23.10

Entry on October 12, 2010
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 1.4 million
Listed on October 11, 2010


Thompson Creek Metals - TC - close 11.06 change +0.30 stop 10.45

Target(s): 11.10 (hit), 11.75 (hit), 12.40
Key Support/Resistance Areas: 12.60, 11.80, 11.00, 10.55
Current Gain/Loss: -0.81%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
10/20: TC recovered nicely but the stock still has a lot of work to do to regain the losses from Tuesday. Unfortunately we do not have a good reference to raise the stop just yet. Let's see how much more we can get out of the position and keep looking for areas to move up the stop. All of the targets above remain valid.

10/18: TC drifted sideways in a fairly tight range on Monday. The stock closed near its highs and continues to look bullish, however, be aware of some possible profit taking in the coming days which I would use an opportunity to launch new positions. If TC breaks above last week's highs there is little resistance until the $12.50 area which is just above our final target. Tighter stops could be considered in the $10.80 area to limit downside risk.

10/16: There is no change from my Thursday comments on TC. The stock saw a little volatility on Friday morning but consolidated sideways into the weekend. A pull back toward the $11.15-11.00 zone should be a new bullish entry point.

10/13: TC hit our first target at $11.75.

Current Position: Long TC stock, entry was at 11.15

Options Traders: Long November $11.00 CALL

Entry on October 12, 2010
Earnings 10/4/2010 (unconfirmed)
Average Daily Volume: 1.7 million
Listed on October 9, 2010


TJX Companies - TJX - close 44.56 change -0.64 stop 43.35

Target(s): 46.95, 48.20
Key Support/Resistance Areas: 48.50, 47.00, 45.40, 43.50
Current Gain/Loss: Unopened
Time Frame: 2 to 4 weeks
New Positions: Yes, see entry point below

Comments :
10/20: TJX is forming a nice bullish high and tight ascending triangle. We are playing the breakout with a trigger of $45.52.

10/19: I suggest we play this conservative and keep the set-up in place with a breakout trigger of $45.52. A dip towards $43.75 would catch my eye as another possible bullish entry point.

10/18: TJX has been consolidating above its rising 20-day SMA for the past couple of weeks and is forming an ascending triangle along the way. Resistance is $45.40 and I suggest readers use a breakout to enter long positions. Let's use a trigger of $45.52 and target a move back towards the stock's 52-week highs. Our targets are $46.95 and $48.20 and our stop is $43.35. More nimble traders may want to try to time an entry on a pullback in the $44.50 area.

Suggested Position: Long TJX stock if it trades to $45.52

Entry on October xx
Earnings Date 11/16/10 (unconfirmed)
Average Daily Volume: 3 million
Listed on October 18, 2010


BEARISH Play Updates

FLIR Systems - FLIR - close 25.42 change +0.35 stop 27.05

Target(s): 24.40, 23.70, 21.60
Key Support/Resistance Areas: 28.00, 27.00, 26.50, 25.50, 24.00
Current Gain/Loss: +1.51%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
10/20: FLIR has a ton of overhead resistance to deal with on any bounces and continues to look bearish. Be ready to take profits or tighten stops to protect them if the stock breaks lower.

10/19: FLIR continues to look vulnerable and if the correction continues our first two targets could be hit relatively quick. I suggest being ready to take profits or tighten stops to protect them as they approach. I've made some adjustments to the targets.

10/18: FLIR has rallied right into resistance (prior support from February) which also happens to be its 20-day SMA. FLIR also has a downtrend line and its declining 50-day SMA just overhead in the $25.25 area. I like new positions here and suggest playing for a pullback of $1.50 to $2.50.

Current Position: Short FLIR stock, entry was at $25.81

Entry on October 15, 2010
Earnings Date 10/21/10 (unconfirmed)
Average Daily Volume: 1.7 million
Listed on October 2nd, 2010


Xilinx, Inc. - XLNX - close 26.33 change -0.00 stop 27.42

Target(s): 25.35, 25.00, 24.60
Key Support/Resistance Areas: 26.75, 26.00, 25.30, 25.00, 24.00
Current Gain/Loss: -0.81%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
10/20: We got what we were looking for in XLNX's earnings report. The company's earnings merely met estimates but revenues missed slightly. More importantly, the company guided sales "flat to down 4%" q/q, which implies revenues of $595M to $620M compared to estimates of $623M. This is not what I would want to hear as a shareholder. On 10/1 Goldman Sachs downgraded this stock and slapped a price target of $22 on it, yet the stock has held its ground, probably because the broader market has also. Today's earnings report may be the catalyst we need for a move lower. At the time of this writing XLNX is down about -1.50% in the after market. I expect there to be a wave a selling at the open tomorrow which should send the stock towards our targets. Be prepared to take profits or tighten stops to protect them. If the broader market is weak the selling could pick up steam.

10/19: This is turning out to be a frustrating trade as the dips in XLNX keep getting bought. The company reports earnings tomorrow after the bell so if you are not comfortable holding positions close them tomorrow. I've adjusted the targets and suggest readers use weakness to consider exiting positions. My comments below have not changed.

10/18: XLNX was down nearly -2.5% in early trading today but the stock found support at its 50/200 day SMA and drifted higher into the close, regaining most of those losses. XLNX has not performed as well as the broader market since its April highs and is at resistance levels. If the broader market corrects here XLNX and the Semi's could fall hard and this is when readers should exit positions and book profits. If XLNX takes out today's lows I believe the selling could quickly gain momentum.

Current Position: Short XLNX stock, entry was at $25.80

Options Traders: Long November $25.00 PUT

Entry on October 7, 2010
Earnings: 10/20/10 (unconfirmed)
Average Daily Volume: 7.3 million
Listed on October 6, 2010