Editor's Note:
Market participants are losing patience with the lack of progress in Washington on the debt ceiling deal. Meanwhile today's lackluster Beige book report and bearish durable goods orders failed to inspire anyone.

We had KALU, M, and WNR get stopped out after we recently raised their stop losses.

-James

Current Portfolio:


BULLISH Play Updates

China Sunergy Co. Ltd. - CSUN - close: 1.52 change: -0.07

Stop Loss: 1.48
Target(s): 2.00, 2.25
Current Gain/Loss: - 8.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/27 update: This dip back toward support near $1.50 looks like a new entry point. However, with the ugly market action today I would hesitate to launch new bullish positions. You could go ahead and buy CSUN here since our risk at this level is about 2.6%.

Earlier Comments:
We should consider this an aggressive, higher-risk trade given the trend lower so trade small. Our first target is $2.00. I would expect some resistance at the 50-dma. Our final target is $2.25 but we do not want to hold over the earnings report in mid August.

Current Position: Long CSUN stock @ $1.67

07/27 the dip toward $1.50 looks like a new entry point.

Entry on July 25 at $ 1.67
Earnings Date 08/15/11 (unconfirmed)
Average Daily Volume = 325 thousand
Listed on July 23, 2011


Sandridge Energy, Inc. - SD - close: 11.70 change: -0.31

Stop Loss: 11.20
Target(s): 13.20, 13.90
Current Gain/Loss: - 0.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/27 update: I hope readers were not surprised by the dip in SD today. We were expecting a pull back. I was suggesting we buy dips in the $11.60-11.50 area. Unfortunately now with the market's major indices plunging on Wednesday we may want to hold off and wait before initiating new bullish positions. Nimble traders could try buying a bounce from the $11.50 level.

Earlier Comments:
SD could see a short squeeze. The most recent data listed short interest at almost 10% of SD's 346 million-share float. We do not want to hold over the August 4th earnings report so we don't have much time. FYI: The Point & Figure chart for SD is bullish with a long-term target at $31.

Current Position: Long SD stock @ $11.78

Entry on July 25 at $11.78
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 12.1 million
Listed on July 23, 2011


Vanguard Natural Resources - VNR - cls: 30.01 chg: -0.18

Stop Loss: 28.99
Target(s): 33.25
Current Gain/Loss: - 1.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/27 update: I am impressed that VNR held up as well as it did today. Shares only lost -0.59%. I don't see any changes from my prior comments. More conservative traders may want to exit early now or raise their stops. You could raise your stop to the $29.70 level or closer to the $29.50 level. Currently our stop is at $28.99, under the simple 200-dma. I am not suggesting new bullish positions at this time.

Current Position: Long VNR stock @ $30.61

- or -

Long AUG $30 call (VNR1120H30) Entry @ $1.20

07/19 Play is opened @ 30.61
07/18 The requirements to launch positions was not met. Try again. Both VNR and the S&P 500 need to open higher tomorrow.

Entry on July 19 at $30.61
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 193 thousand
Listed on July 16, 2011


BEARISH Play Updates

Jack Henry & Associates Inc. - JKHY - close: 29.13 change: -0.47

Stop Loss: 30.70
Target(s): 28.10, 26.25
Current Gain/Loss: + 0.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/27 update: Our new bearish play on JKHY is off to a good start. Shares gapped open lower at $29.39 and then fell to a new three-week low on above average volume. The close under potential support at $29.50 is another bearish development.

Earlier Comments:
More conservative traders could try a tighter stop loss (maybe $30.45ish). I do see potential support near $28.00 so we'll set our first target to take profits at $28.10. Our secondary target is $26.25. We do not want to hold over the mid August earnings report so the secondary target is unlikely to get hit. NOTE: The option spreads are too wide to trade options on JKHY. I would keep our position size small. If lawmakers do agree on a debt ceiling deal the entire market could rally.

- small positions -

Current Position: short JKHY @ $29.39

Entry on July 27 at $29.39
Earnings Date 08/16/11 (unconfirmed)
Average Daily Volume = 427 thousand
Listed on July 26, 2011


CLOSED BULLISH PLAYS

Kaiser Aluminum - KALU - close: 53.75 change: -1.77

Stop Loss: 54.25
Target(s): 59.75
Current Gain/Loss: + 1.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
07/27 update: We have been stopped out of KALU at $54.25. The plan was to exit today at the close but the market weakness forced our exit early.

I'd keep KALU on your watch list. We might see another entry point next week. After hours the company reported earnings that wee 10 cents better than expected.

- Small Positions -

closed Position: Long KALU @ $53.56, exit $54.25 (+1.2%)

- or -

AUG $55 call (KALU1120H55) Entry @ $1.30, exit $1.20 (-7.6%)

07/27 stopped out @ 54.25
07/26 new stop loss @ 54.25, prepare to exit tomorrow at the close
07/23 new stop loss @ 53.75
07/23 Prepare to exit on July 27 at the close
07/20 New stop loss @ 52.49

chart:

Entry on July 11 at $53.56
Earnings Date 07/27/11 (confirmed)
Average Daily Volume = 183 thousand
Listed on July 9, 2011


Macy's Inc. - M - close: 29.19 change: -0.73

Stop Loss: 29.25
Target(s): 29.90, 32.25
Current Gain/Loss: + 3.3%
2nd Position Gain/Loss: - 2.0% Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/27 update: The stock market's widespread decline was strong enough to push Macy's through the bottom of its recent trading range. Shares dipped toward $29.00 and its 50-dma. Our stop loss was hit at $29.25. Our plan was to keep positions small to limit our risk.

- small positions -

closed Position: Long M stock @ $28.30, exit 29.25 (+3.3%)

- or -

Aug. $30 call (M1120H30) Entry @ $0.85, exit $0.75 (-11.7%)

- 2nd Position, entry 7/11/11 -

closed position: Long M stock @ $29.86, exit 29.25 (-2.0%)

Aug. $32 call (M1120H32) Entry @ $0.63, exit $0.25 (-60.3%0

07/27 stopped out @ 29.25
07/23 new stop loss @ 29.25
07/16 new stop loss @ 28.90
07/09 new stop loss @ 28.49
07/09 Add 2nd position, buy stock/calls now
07/08 Planned exit. July $29 call @ $1.50 (+167.8%)
07/07 plan on exiting July calls tomorrow at the close
07/02 new stop loss @ 27.90
07/01 1st Target Hit @ 29.90 (+5.6%), options @ +107.1% (July) & +52.9% (Aug)

chart:

Entry on June 28 at $28.30
Earnings Date 08/10/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on June 27, 2011


Western Refining Inc. - WNR - close: 20.36 change: -0.74

Stop Loss: 20.35
Target(s): 22.00, 24.50
Current Gain/Loss: + 4.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/27 update: Last night we raised our stop loss on WNR to $20.35. Today shares dip to $20.20. The five-week rally has lost its momentum. WNR appears to be correcting. I would definitely keep WNR on your watch list. We'll be looking for a new entry point.

closed Position: Long WNR stock @ 19.50, exit $20.35 (+4.3%)

- or -

AUG. $22 call (WNR1120H22) Entry @ $0.65, exit $0.45 (-30.7%)

07/27 stopped out @ 20.35
07/26 new stop loss @ 20.35
07/21 new stop loss @ 19.75
07/20 expect a dip toward the $20.35 area.
07/19 New stop loss @ 18.90. New targets @ 22.00 and $24.50

chart:

Entry on July 11 at $19.50
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on July 9, 2011