Current Portfolio:


BULLISH Play Updates

Boyd Gaming - BYD - close 8.26 change -0.01 stop 7.42

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: +0.73%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
10/27: BYD was up more than +4% in early trading but the sellers stepped in pushing the stock lower to close virtually unchanged. Our first target was missed by 4 cents. $8.00 and the rising 20-day SMA (just below $8) should offer solid support and any dips. $8.65 and $8.95 are the primary targets. All of my comments below remain valid.

10/26: BYD traded within yesterday's range and is consolidating near its 100-day SMA. I am looking for a continued move higher and view dips as buying opportunities. There is solid support near $8.00.

10/25: Investors liked BYD's earnings report this morning and the stock surged +4.8% higher. $8.00 should now act as support on any dips. Our first target is 12 cents above today's high. Ultimately, I think BYD makes a higher high and trades up towards $8.95, however, a broader market correction could provide some dips which I would view as buying opportunities.

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


Citigroup Inc - C - close 4.17 change -0.01 stop 3.78

Target(s): 4.60, 4.75, 4.90
Key Support/Resistance Areas: 4.30, 4.00
Current Gain/Loss: +0.24%
Time Frame: 3 to 4 weeks
New Positions: Yes

Comments:
10/27: We are long C as of today's open at $4.16. The stock should find support at its rising 20-day SMA which is currently at $4.12, or at $4.00 if that is breached. I view dips as buying opportunities.

10/26: I suggest we open positions in C at current levels tomorrow. Conservative traders may want to wait for a close above $4.30 before launching positions. However, I am comfortable getting the nearly 3% discount at current levels. We'll raise the stop to $3.78. Use small position size to manage risk.

10/25: C is trading very well in comparison to its peers (BAC, JPM) and has been a relative out performer. I think the stock is poised to break over $4.30 and there is limited resistance overhead. I suggest readers initiate long positions on a dip or a breakout. We'll use a trigger of $4.11 on a dip and $4.34 on a breakout. Our initial stop will be $3.60 and it will be adjusted once the position is opened.

Suggested Position: Long C stock
Options Traders: Buy December $4.00 CALL, current ask $0.30

Entry on October xx
Earnings Date More than two months (unconfirmed)
Average Daily Volume: 523 million
Listed on October 25, 2010


Companhia Brasileira de Distribuicao - CBD - cls: 36.72 chg: -0.09 stop: 34.75

Target(s): 39.00
Key Support/Resistance Areas: 35.25, 36.50, 39.00
Current Gain/Loss: +0.16%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
10/27: CBD is finding support at $36.50 and its rising 20-day SMA. I am concerned the stock could break lower with a broader market correction. The next level of support is near $35.25 and its 50-day SMA. I would view dips as buying opportunities.

10/25 & 10/26: CBD has found support at its 20-day SMA and regained all of Friday's losses. However, the stock may be in a bear flag and if the broader market corrects CBD may trade down $35.25 which I view as buying opportunity. Tighter stops could be considered at $35.90 which is below Friday's low.

10/23: CBD has been drifting lower since the stock split on Monday. The stock has support near current levels and down to the $35.00 level. I would view dips as buying opportunities.

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: 50.90 change: -0.52 stop: 46.90

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:
10/27: We need to remain patient and use dips as buying opportunities. $49.25 could also be considered an entry point. This is near the swing low on 10/19 after HANS broke out higher. If readers are considering call positions on a dip I suggest buying the December strikes. I've also raised the stop to $46.90.

10/16: (James) 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 December $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


Jeffries Group, Inc - JEF - close 23.86 change +0.19 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: -0.46%
Time Frame: 3 to 4 weeks
New Positions: Yes

Comments:
10/27: JEF is finding support at its 50 & 100-day SMA's which is the first time the stock has tested these since breaking higher last week. This is a logical spot for JEF to bounce to another high. Our first target is $25.10 but readers may also want to consider $24.65 as a possible exit point. This should produce almost a +3% gain.

10/26: After breaking out on 10/20 JEF has retraced all of the gains and is finding support near its 50-day SMA, which is also at a support level of $23.50. I view this dip as a buying opportunity with a tight stop below. The pullback over the past three days looks like a bull flag to me.

10/25: JEF bounced back today but is struggling at its 200-day SMA. $23.50 offers solid support. My comments from the weekend remain valid.

Current Position: Long JEF stock at $23.97
Options Traders: Long December $24.00 CALL

Entry on October 21, 2010
Earnings Date 1/20/11 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on October 19, 2010


Mylan Inc. - MYL - close: 20.24 change: +0.64 stop: 18.65

Target(s): 19.80 (hit), 20.40, 21.00, 22.00
Key Support/Resistance Areas: 18.50, 19.25, 19.80, 20.50
Current Gain/Loss: +5.14%
Time Frame: 4 to 6 weeks
New Positions: Yes, on pullbacks

Comments:
10/27: MYL made a remarkable +5.7% recovery from its lows today and gained +3.3% on the day. Our current gain is better than 5%. If MYL heads higher before pulling back readers should consider taking profits and possibly re-entering positions on a pullback. $19.80 should offer solid support on dips.

10/26: I do not see many changes from my comments last night. MYL is consolidating near its highs. If the stock can break above $19.80 there is little resistance until $20.50. If our second target of $20.40 is reached I suggest readers use the strength to book gains or tighten stops to protect them.

Note: 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


Patriot Coal - PCX - close 13.48 change -0.20 stop varies

Target(s): 15.25, 15.95
Key Support/Resistance Areas: 15.30, 14.15, 13.00, 12.50
Current Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see entry point below

Comments:
10/27: We are playing for a breakout in PCX with a trigger of $14.17. However, I think readers should consider bullish positions if there is a sell-off in the stock to $12.70, which I am adding as a second trigger. If we are triggered at $12.70 we'll use a stop of $11.80.

10/26: As signs of inflation begin to build momentum so are resource stocks. Many coal stocks have lagged compared to other names in the commodities space, but they are showing signs of momentum. PCX is forming a bullish cup and handle pattern and its volume patterns point to building bullish momentum. The stock surged higher on heavy volume in early October and pulled back on lighter volume. Now the stock is finding support at its rising 20-day SMA. I suggest readers use a trigger of $14.17 to enter bullish positions on a breakout. If the stock pulls back prior to breaking out we may consider a lower entry, perhaps near support at $13.00. We are looking for a move up towards the stock's 200-day SMA, or about $1.00 to $1.75 higher than our current trigger.

Note: I consider this an aggressive trade and readers should expect volatility. Please use proper position size to manage risk.

Trigger: $14.17 (stop = $12.90) - or - $13.70 (stop = $11.80)

Suggested Position: Long PCX stock at at the above triggers
Options Traders: Buy December $14.00 CALL

Entry on October xx
Earnings Date More than two months (unconfirmed)
Average Daily Volume: 3.6 million
Listed on October 26, 2010


PerkinElmer, Inc - PKI - close 23.34 change +0.03 stop 22.32

Target(s): 23.60 (hit), 23.90, 24.40
Key Support/Resistance Areas: 25.40, 24.40, 23.30, 22.50, 22.15
Current Gain/Loss: +1.04%
Time Frame: 1 to 2 weeks
New Positions: Yes, on pullbacks

Comments:
10/26 & 10/27: PKI has found resistance at $23.75 with a possible bearish double top with the highs on 10/13. There is long term support at current levels, the rising 20-day SMA and upward trend line just below (both near $23.15). If our second target of $23.90 is reached I suggest readers use the strength to book gains or tighten stops to protect them.

10/25: PKI reached our first target today. The stock needs to take out today's high or it could pullback as a bearish double top pattern may be forming. There is support at $23.30, the rising 20-day SMA and upward trend line. Tighter stops could be considered near $22.75. I continue to view dips as buying opportunities.

10/23: PKI has bounced back nicely after the sell-off early last week. The stock close above a long term support/resistance level of $23.30 and is now dealing with a two month long congestion area (b/w $23.30 and $24.45) from March/April. I've adjusted the targets and suggest readers use strength as an opportunity to exit positions or tighten stops to protect profits. We've moved the stop up to $22.32.

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


TJX Companies - TJX - close 46.28 change +0.17 stop 44.10

Target(s): 46.70, 47.20, 47.95
Key Support/Resistance Areas: 48.50, 47.00, 45.40, 43.50
Current Gain/Loss: +1.67%
Time Frame: 2 to 4 weeks
New Positions: Yes, on pullbacks

Comments :
10/27: after a pullback to support at $45.40 this morning, TJX closed near the highs from yesterday. The stock continues to look bullish but I am concerned of about the broader market overbought conditions. $46.70 and $47.20 are my primary targets and suggest readers consider taking profits and/or tightening stops if they are reached.

10/26: The breakout continued in TJX today as the stock gained nearly +1%. I don't think we should get too greedy with this trade, rather book a decent gain. As such, I've adjusted the targets slightly and suggest readers consider taking profits and/or tightening if they are reached.

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

Leggett & Platt, Inc. - LEG - close 20.45 change +0.01 stop 21.75

Target(s): 19.80, 19.20
Key Support/Resistance Areas: 22.00, 21.70, 21.50, 21.30, 20.55, 19.70, 19.00
Current Gain/Loss: +0.20%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
10/26 & 10/27: LEG is consolidating near its lows the after post-earnings sell off. Any broader market weakness should send the stock towards our targets in a hurry. I still like new short positions, especially on bounces.

10/25: LEG triggered our entry for bearish positions at 20.49 as the selling continued and the stock broke below Friday's low. We are looking for a quick move towards the July and August lows. I've lowered the stop $21.75 and raised our targets by 10 cents each. My comments from the play release are below.

10/23: Shareholders of LEG have been taken on a wild ride as of late. After plummeting -24% from its May highs to August lows, the stock went up in a straight line until 10/13, gaining +26% along the way. On Thursday after the bell the stock reported earnings and they were terrible. The company missed earnings, missed revenues, and lowered guidance. The company said that "certain markets primarily related to residential furnishings, weakened noticeably in the third quarter and as a result, third quarter sales were lower than those in the second quarter, which rarely occurs." The stock lost -8% on Friday and I do not believe the selling is done. I suggest we capitalize on the momentum and initiate short positions if LEG trades to $21.46 (above Friday's high and near the 200-day SMA) or breaks below $20.49 (below Friday's low). Conservative traders may want to wait for the break down. All of the moving averages are overhead and I suspect there are still many unhappy investors looking to dump the stock. We'll place a tight initial stop overhead at $22.05.

Trigger: $21.46 or $20.49

Suggested Position: Short LEG stock
Options Traders: BUY the December $20.00 PUT, current ask $0.75

Entry on October 25, 2010
Earnings Date: More than two months (unconfirmed)
Average Daily Volume: 1.5 million
Listed on October 23, 2010


Pulte Group, Inc - PHM - close 7.94 change -0.03 stop 8.15 *NEW*

Target(s): 7.85, 7.30, 7.00
Key Support/Resistance Areas: 9.00, 8.00, 7.00, 6.50
Current Gain/Loss: +2.58%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
10/27: This is the lowest close PHM has printed since 8/26. The stock looks like it could crater towards $7.30 but there is support at $7.70 and the housing data is not getting worse, which may be the signs of a bottoming process. I suggest readers protect profits and begin looking for an exit. I've raised the target to $7.85 and suggest we book the small gain if we get there. I'm also going to lower the stop to breakeven at $8.15 and suggest we get out of the way if PHM bounces from here.

10/26: PHM lost -1.73% today and closed below $8.00 for only the second time in past 2 months. Tomorrow before the bell we get a report on new home sales which may end up determining our fate in this trade. If PHM trades down to our first target at $7.75 I suggest readers consider booking the gain, or at least tightening stops to see how much more we can get out of trade. If the stock surges higher our stop is in place. Tighter stops could be considered at $8.25 and $8.40.

10/25: PHM saw a quick spike higher this morning but the sellers showed up and the stock collapsed towards Friday's lows, losing -1.58% on the day. I've added a target of $7.75 and adjusted the remaining targets. I suggest readers tighten stops or exit positions if PHM trades down towards $7.75. This will produce nearly a +5% gain.

10/23: PHM is consolidating below all of its moving averages and feels like it is ready to take a nose dive. On the intraday charts the stock is forming a symmetrical triangle in that prices are coiling for a break out, which in reality could be higher or lower. I expect it to be lower as we are due for healthy broader market correction. However, I've lowered the stop to $8.66 in case we are wrong. $7.70 is an area readers may want to consider exiting positions or tightening stops if PHM gets there.

Note: We will most likely experience some volatility in this trade so please use appropriate position size to manage risk. I also like an option play here so that your risk is better defined.

Current Position: Short PHM stock, entry was at $8.15 Option Traders: Long December $8.00 PUT

Entry on October 21, 2010
Earnings Date 11/3/10 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on October 16th, 2010