Editor's Note:
The stock market's early morning gains faded. Investors are worried about the jobs report tomorrow. A disappointing number could spark some serious profit taking across the market.

Our RLD long trade and NAT short trade were stopped out today.

-James

Current Portfolio:


BULLISH Play Updates

Auxilium Pharma - AUXL - close: 16.76 change: -0.25

Stop Loss: 16.45
Target(s): --.--, 18.45
Current Gain/Loss: +3.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/01 update: AUXL is retreating from resistance near $18.00. Our biggest risk now is a gap down at the open tomorrow underneath our stop loss. If the jobs data disappoints then we'll probably see AUXL hit our stop loss.

I am not suggesting new positions at this time.

Given the market's recent volatility we do want to keep our position size small.

Current Position: Long AUXL stock @ $16.13

- or -

Long SEP $17.50 call (AUXL1117I17.5) Entry $0.45

08/30 new stop loss @ 16.45
08/29 new stop loss @ 16.25
08/27 new stop loss @ 15.75
08/27 adjusted target to $18.45.
08/25 Planned exit to sell half. AUXL @ 17.07 (+5.8%)
sold half of Sep. $17.50 call, bid @ 0.60 (+33.3%)
08/24 Take profits (sell half) Tomorrow at the close
08/24 new stop loss @ 15.25
08/23 new stop loss @ 14.95.
08/23 added 2nd target at $19.75

Entry on August 22 at $16.13
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on August 20, 2011


Avon Products Inc. - AVP - close: 22.12 change: +0.44

Stop Loss: 21.40
Target(s): 23.50, 24.40
Current Gain/Loss: + 0.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/01 update: AVP gave up nearly 2% with today's pull back toward support at $22.00. Cautious traders may want to raise their stops to the breakeven mark. I am keeping our stop under the simple 10-dma for now. If AVP can rebound from $22.00 I'd buy it. However, shares will likely gap open up or down on the jobs data tomorrow. If it gaps too high I would not want to chase it.

- small bullish positions -

Suggested Position: Long AVP stock @ $21.91

- or -

Long SEP $23 call (AVP1117I23) entry $0.50

08/23 new stop loss @ 7.55
08/23 adding a 2nd position
08/20 new stop loss @ 7.38

Entry on August 15 at $ 8.46
Earnings Date 11/16/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on August 13, 2011


Limited Brands, Inc. - LTD - close: 37.07 change: -0.67

Stop Loss: 35.75
Target(s): 39.75, 42.25
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/01 update: Before the opening bell LTD reported its August same-store sales numbers. Analysts were expecting +8.0% growth. LTD delivered +11.0% sales growth. Yet this bullish news had no impact on the stock price. Shares declined toward technical support at its 40 and 50-dma. Our new stop is at $35.75.

I am not suggesting new positions at this time.

Earlier Comments:
The $38 and $41 levels might offer some overhead resistance.

Current Position: Long LTD stock @ $37.06

- or -

Long OCT $38 call (LTD1122J38) Entry $1.85*

08/31 new stop loss @ 35.75
08/29 *option did not trade. this is an estimate.

Entry on August 29 at $37.06
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 4.9 million
Listed on August 27, 2011


Peet's Coffee & Tea - PEET - close: 56.30 change: -1.95

Stop Loss: 53.25
Target(s): 62.00
Current Gain/Loss: -0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/01 update: I have been warning readers to expect a dip toward short-term support near $56.00 PEET served up that dip today. The intraday drop was actually to $55.38, near its 10-dma, before the stock pared its losses. I would wait for a bounce from this level before considering new positions. Cautious traders may want to cinch up their stop loss near the $54 level or near today's low.

Earlier Comments:
There is a good chance that PEET could see another short squeeze. The most recent data listed short interest at 23.7% of the very small 12.6 million-share float. I would keep our position size small. We are not trading the options. The spreads are too wide.

Current Position: Long PEET stock @ $56.64

Entry on August 29 at $56.64
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 268 thousand
Listed on August 27, 2011


Steel ETF - SLX - close: 55.09 change: -0.85

Stop Loss: 52.40
Target(s): 54.50, 59.00
Current Gain/Loss: +10.1%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/01 update: There should be no surprise here. I cautioned readers that SLX was overbought. This ETF will see a lot more profit taking tomorrow if the jobs number disappoints.

I am not suggesting new positions at this time.

The plan was to keep our position size small to limit our risk.

Play Triggered.

Suggested Position: Long this ETF @ $50.00

- or -

Long SEP $55 call (SLX1117I55) Entry $0.90

08/31 new stop loss @ 52.40
08/30 new stop loss @ 51.75
08/29 1st target hit at $54.00.
stock position at $54.00 (+8.0%)
08/27 adjusted targets to $54.50 and $59.00
08/26 Play triggered at $50.00
08/25 new strategy: buy a dip at $50.00, new stop 49.40

Entry on August 26 at $50.00
Earnings Date --/--/--
Average Daily Volume = 126 thousand
Listed on August 23, 2011


BEARISH Play Updates

None. No bearish plays currently.


CLOSED BULLISH PLAYS

RealD Inc. - RLD - close: 13.95 change: -0.10

Stop Loss: 13.90
Target(s): 18.00
Current Gain/Loss: - 1.0%
Time Frame: 6 to 10 weeks
New Positions: see below

Comments:
09/01 update: RLD has been a market laggard the last few days. Shares slipped to $13.82 intraday, hitting our stop loss at $13.90. Readers may want to keep this one on their watch list for a close over $15.75 or a new bounce from the $12.00 area.

Earlier Comments:
We want to use small positions to limit our risk.

closed Position: Long RLD stock @ $14.04, exit 13.90 (-1.0%)

- or -

SEP $15.00 call (RLD1117I15) Entry $0.60, exit $0.30 (-50%)

09/01 stopped out at $13.90
08/30 new stop loss @ 13.90
08/27 new stop loss @ 13.75
08/25 planned exit to sell half at the close.
RLD +4.0%, option @ $0.90 (+50%)
08/24 Prepare to take profits early and sell half tomorrow at the closing bell.
08/24 new stop loss at $13.25
08/22 gap open entry at $14.04

chart:

Entry on August 22 at $14.04
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on August 20, 2011


CLOSED BEARISH PLAYS

Nordic American Tanker - NAT - close: 17.83 change: -0.12

Stop Loss: 18.55
Target(s): 12.75, 10.50
Current Gain/Loss: - 8.8%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
09/01 update: All of NAT's closest competitors were down significantly today (between -2.3% and -8%). Yet NAT actually rallied this morning, while its rivals sank. There was no news to explain the rally. It looks like a brief short squeeze that ran out of gas near resistance at $18.00.

Our stop loss was hit at $18.55 closing this trade. I would keep NAT on your watch list. Bearish fundamentals for the shipping industry will reinforce this stock's long-term down trend.

Earlier Comments:
You may want to consider using put options instead since your risk is limited to the cost of the put you purchase.

- small positions -

closed Position: short NAT stock @ $17.05, exit $18.55 (-8.8%)

- or -

OCT $15 PUT (NAT1122V15) Entry $0.75* , exit $0.10 (-86.6%)

09/01 stopped out at $18.55
08/24 NAT provides another entry point with failed rally at $18
08/22 gap open entry @ 17.05
* option entry is an estimate. option did not trade today

chart:

Entry on August 22 at $17.05
Earnings Date 11/07/11 (unconfirmed)
Average Daily Volume = 583 thousand
Listed on August 20, 2011