Editor's Note:
We have trimmed our play list down significantly as we wait for a resolution in Washington on the debt ceiling extension.

-James

Current Portfolio:


BULLISH Play Updates

China Sunergy Co. Ltd. - CSUN - close: 1.54 change: +0.02

Stop Loss: 1.48
Target(s): 2.00, 2.25
Current Gain/Loss: - 7.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/28 update: CSUN showed a little strength today with a bounce off its low of $1.51. This pull back to support near $1.50 continues to look like an entry point. However, it would not take much to stop us out if the market decided to plunge again thanks to the debt ceiling worries.

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: 11.60 change: -0.10

Stop Loss: 11.20
Target(s): 13.20, 13.90
Current Gain/Loss: - 1.5%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/28 update: I do not see any changes from my prior comments. We can use dips in the $11.60-11.50 zone as a new entry point. Cautious traders may just want to wait until Monday before considering new positions. If we don't see a deal in Washington soon the market-wide weakness will likely push SD to our stop loss at $11.20.

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: 30.27 chg: +0.26

Stop Loss: 28.99
Target(s): 33.25
Current Gain/Loss: - 1.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/28 update: VNR also showed some relative strength today with a +0.8% gain. I don't see any changes from my prior comments but readers may want to wait until Monday before launching new positions. 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: 29.10 change: -0.03

Stop Loss: 30.70
Target(s): 28.10, 26.25
Current Gain/Loss: + 0.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/28 update: Thursday proved to be a quiet day for JKHY. Readers might want to wait for another bounce or failed rally near $30.00 before initiating new bearish positions. The $30.00-30.50 zone should be overhead resistance.

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