Editor's Note:
The market's major indices have broken down under technical support at their 200-dma. Equities seem to be accelerating lower with the S&P 500 down seven days in a row and the DJIA down eight days.

We had SD and UWM get stopped out. I am suggesting an early exit in the VNR trade. Our JKHY short has exceeded out first target.

-James

Current Portfolio:


BULLISH Play Updates

China Sunergy Co. Ltd. - CSUN - close: 1.51 change: -0.03

Stop Loss: 1.48
Target(s): 2.00, 2.25
Current Gain/Loss: - 9.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/02 update: Honestly, I am surprised that CSUN has managed to hold support at the $1.50 level today. The market's widespread sell-off was pretty rough. Granted the current trend in CSUN looks bearish and the pattern of lower highs is suggesting that the stock will breakdown soon. Readers may want to go ahead and exit now. I am not suggesting new positions at this time.

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


EZCorp Inc. - EZPW - close: 31.97 change: -0.90

Stop Loss: 31.49
Target(s): 37.75
Current Gain/Loss: - 5.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/02 update: After yesterday's failed rally move we were expecting another pull back. EZPW dipped toward the $32 level and looks headed for technical support at the 100-dma. Readers may want to consider exiting early since the S&P 500 has broken down under key support. Bullish traders are likely to underperform.

We're not hitting the sell button yet but we will raise our stop loss to $31.49.

Current Position: Long EZPW stock @ $33.93

- or -

Long SEP $35 call (EZPW1117I35) Entry $1.45*

08/02 new stop loss @ 31.49
08/01 *entry price is an estimate. Option did not trade today

Entry on August 1 at $33.93
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 643 thousand
Listed on July 30, 2011


GATX Corp - GMT - close: 37.00 change: -2.37

Stop Loss: 38.15
Target(s): 42.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/02 update: Our new trade in GMT is not open. We wanted to buy the stock if GMT and the S&P 500 opened positive. Both opened lower instead. The Dow Jones Transportation index fell -3.6%, underperforming the major indices. GMT delivered a worse performance with a gap open lower and -6.0% decline. I couldn't find any news behind the relative weakness in this stock.

Please note that I am temporarily removing any entry point strategy. We'll wait and see what happens tomorrow. GMT might test technical support near its 200-dma soon (around the $36 area).

No Entry Point for Tomorrow - Wait and Watch

Entry on August xx at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 754 thousand
Listed on August 1, 2011


Marathon Petroleum Corp. - MPC - close: 42.33 change: -2.64

Stop Loss: 41.85
Target(s): 47.00, 49.75
Current Gain/Loss: - 6.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/02 update: When we launched this play there was no earnings date listed because a date wasn't available. I was surprised to see that MPC announced its Q2 earnings this morning before the bell. Analysts were expecting $1.96 a share. MPC delivered $2.29 with revenues surging +31% to $20.7 billion for the quarter. Investors decided to sell the earnings news and the widespread market decline only exacerbated the move lower. At the end of the day MPC was a big underperformer with a -5.8% decline. Shares are nearing recent support at $42.00 but there is no guarantee it's going to hold. Given the market's weakness more conservative traders may want to exit early immediately. Plus, the last three days have produced a bearish three-candlestick reversal pattern. I am not suggesting new positions at this time.

Current Position: Long MPC stock @ $45.04

- or -

Long SEP $45 call (MPC1117I45) Entry $2.00

08/02 cautious traders may want to exit early now.
08/01 MPC gapped open at $45.04

Entry on August 1 at $45.04
Earnings Date 08/02/11
Average Daily Volume = 4.8 million
Listed on July 30, 2011


BEARISH Play Updates

Jack Henry & Associates Inc. - JKHY - close: 27.17 change: -1.27

Stop Loss: 29.25
Target(s): 28.10, 26.25
Current Gain/Loss: + 7.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/02 update: JKHY has hit our first target at $28.10. Shares opened lower and then plunged to new multi-month lows. The stock closed with a -4.4% decline. Our final target is $26.25. More aggressive traders may want to try and let it run. We are adjusting our stop loss down to $29.25. I am not suggesting new positions at this time.

Earlier Comments:
Our first target to take profits is $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.

- small positions -

Current Position: short JKHY @ $29.39

08/02 new stop loss @ 29.25
08/02 1st target hit @ 28.10 (+4.3%)

chart:

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

Sandridge Energy, Inc. - SD - close: 11.21 change: -0.49

Stop Loss: 11.20
Target(s): 13.20, 13.90
Current Gain/Loss: - 4.9%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
08/02 update: Shares of SD tried to rally again this morning. Unfortunately the rally ran out of steam near $12, which formed another lower high. Shares then accelerated lower and hit our stop loss at $11.20.

closed Position: Long SD stock @ $11.78, exit $11.20 (-4.9%)

chart:

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


Proshares Ultra Russell 2000 ETF - UWM - cls: 40.54 chg: -2.82

Stop Loss: 40.99
Target(s): 50.00
Current Gain/Loss: - 6.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/02 update: The volatility for these leveraged ETFs goes both ways. When the market decided to sell-off shares of the UWM raced lower. Our stop loss was hit at $40.99.

Earlier Comments:
This is an aggressive, higher-risk, speculative trade. We want to keep our position size small to limit our risk.

- SMALL positions -

closed Position: Long UMW @ $43.72, exit 40.99 (-6.2%)

- or -

AUG $45 call (UWM1120H45) Entry $2.05, exit $0.45 (-78%)

08/02 stopped out @ 40.99
07/30 stop loss @ 40.99

chart:

Entry on July 29 at $43.72
Earnings Date --/--/--
Average Daily Volume = 2.1 million
Listed on July 28, 2011


Vanguard Natural Resources - VNR - cls: 30.72 chg: -0.84

Stop Loss: 29.70
Target(s): 33.25
Current Gain/Loss: + 0.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/02 update: I am suggesting investors trade defensively and exit our VNR trade early. We were planning to exit tomorrow at the closing bell but I'd rather exit immediately before the market erases any more gains.

Current Position: Long VNR stock @ $30.61

- or -

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

08/02 exit early
08/01 new stop loss @ 29.70
07/30 new stop loss @ 29.40
07/30 prepare to exit on Aug. 3rd at the close.
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.

chart:

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