Editor's Note:
The stock market reversed higher after plunging to new relative lows this morning. This could be a sign of a short-term bottom. Unfortunately, we had three more bullish plays get stopped out (CSUN, EZPW, and MPC).

-James

Current Portfolio:


BULLISH Play Updates

GATX Corp - GMT - close: 36.89 change: -0.11

Stop Loss: 35.90
Target(s): 40.00, 42.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/03 update: Just as expected, shares of GMT continued to sink. The stock found support near $36.00 and its 200-dma. I am suggesting we buy this intraday bounce from support. We'll use a tight stop loss at $35.90, just under today's low. We only want to open positions if both GMT and the S&P 500 both open in positive territory tomorrow. Our first target is $40.00. Our second, longer-term target is $42.50.

buy GMT if both the stock and the S&P500 open positive tomorrow.

Suggested Position: buy GMT stock @ current levels

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


BEARISH Play Updates

Jack Henry & Associates Inc. - JKHY - close: 27.29 change: +0.12

Stop Loss: 28.75
Target(s): 28.10, 26.25
Current Gain/Loss: + 7.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/03 update: JKHY spiked down to $26.51 before reversing course and closing in positive territory. The intraday reversal combined with the big surge in volume could be signs of a short-term bottom. Conservative traders may want to exit immediately. I am not suggesting new positions. We will lower our stop loss to $28.75.

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

08/03 new stop loss @ 28.75
08/03 intraday reversal higher with volume. Readers may want to exit early
08/02 new stop loss @ 29.25
08/02 1st target hit @ 28.10 (+4.3%)

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

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

Stop Loss: 1.48
Target(s): 2.00, 2.25
Current Gain/Loss: -11.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/03 update: Another market-wide plunge this morning was enough to finally push CSUN under support at $1.50 and hit our stop loss at $1.48. Our attempt to find a bottom in spite of the bearish trend of lower highs did not pan out.

Earlier Comments:
We should consider this an aggressive, higher-risk trade given the trend lower so trade small.

closed Position: Long CSUN stock @ $1.67, exit $1.48 (-11.3%)

08/03 stopped out at $1.48
07/27 the dip toward $1.50 looks like a new entry point.

chart:

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: 32.04 change: +0.07

Stop Loss: 31.49
Target(s): 37.75
Current Gain/Loss: - 7.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/03 update: We were expecting EZPW to dip to last week's lows and its 100-dma. Unfortunately the market's decline was sharp enough that this stock actually hit new relative lows. Our new stop loss was hit at $31.49.

closed Position: Long EZPW stock @ $33.93, exit $31.49 (-7.1%)

- or -

SEP $35 call (EZPW1117I35) Entry $1.45*, exit $0.50 (-65.5%)

08/03 stopped out @ 31.49
08/02 new stop loss @ 31.49
08/01 *entry price is an estimate. Option did not trade today

chart:

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


Marathon Petroleum Corp. - MPC - close: 41.43 change: -0.90

Stop Loss: 41.85
Target(s): 47.00, 49.75
Current Gain/Loss: - 7.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/03 update: Oil stocks were underperformers today thanks to a drop in crude oil prices. MPC was exceptionally volatile. The stock spiked toward $45.50 this morning only to plunge toward $39.00 two hours later. The combination of our less than attractive entry point due to the gap open higher and now this plunge exacerbated our losses.

closed Position: Long MPC stock @ $45.04, exit $41.85 (-7.0%)

- or -

SEP $45 call (MPC1117I45) Entry $2.00, exit 0.75 (-62.5%)

08/03 stopped out at $41.85
08/02 cautious traders may want to exit early now.
08/01 MPC gapped open at $45.04

chart:

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