Editor's Note:
Shares of WBC rallied toward resistance near $50.00 and hit our first exit target at $49.50. The stock has since reversed lower with the rest of the market.

Don't forget that we're planning to exit our GA positions tomorrow.

-James

Current Portfolio:


BULLISH Play Updates

Bon-Ton Stores Inc. - BONT - close: 6.29 change: -0.05

Stop Loss: 5.85
Target(s): 7.50, 8.25
Current Gain/Loss: - 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/08 update: The action in BONT today is almost identical to yesterday. The early morning strength faded and shares drifted lower almost all day long before seeing a bounce in the last half hour of trading.

I would still consider new positions here or you could wait for a dip closer to the $6.00 mark. Today's low was $6.17. Of course we do not know how the market will react to the President's speech tonight. You may only want to start new positions if both BONT and the S&P 500 index both open positive tomorrow morning.

Earlier Comments:
Keep in mind that BONT could see a big short squeeze if the market bounces. The most recent data listed short interest at almost 40% of the very, very small 10 million share float. More aggressive traders may want to put their stop loss under the August 8th low of $5.59.

Current Position: Long BONT stock @ $6.42

Entry on September 7 at $ 6.42
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 311 thousand
Listed on September 3, 2011


Ultra Oil & Gas ETF - DIG - close: 42.01 change: -0.94

Stop Loss: 37.65
Target(s): 44.50, 49.50
Current Gain/Loss: +1.4%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/08 update: The DIG gave back about a third of yesterday's gains after a failed rally near the 30-dma this morning. If the pull back continues then look for support near $40.00. I'd wait for a dip near the $40 area as our next entry point.

Remember, the plan was to keep our position size small.

Current Position: Long DIG @ $41.41

09/07 trade re-opened. DIG at $41.41
09/06 prior trade stopped out. Reload with a new entry point.

Entry on September 7 at $41.41
Earnings Date --/--/--
Average Daily Volume = 1.4 million
Listed on September 6, 2011


Giant Interactive Group Inc. - GA - close: 7.92 change: +0.04

Stop Loss: 7.55
Target(s): 9.30
Current Gain/Loss: -6.3%
2nd position Gain/Loss: -0.0%
Time Frame: exit on Sep. 9th or earlier
New Positions: see below

Comments:
09/08 update: The late afternoon rally in GA failed near $8.00 for the second day in a row. We are now out of time. The plan is to exit all of our bullish GA positions tomorrow. The newsletter will exit tomorrow at the closing bell. Conservative traders will want to exit immediately on Friday morning.

Earlier Comments:
GA does have a big dividend ($3.00) coming up. The shareholder record date is August 31st while the stock will begin trading ex-dividend (-$3.00) on September 12th. We will plan on exiting in front of that ex-dividend date.

Readers should consider this a higher-risk, more aggressive trade. We want to keep our position size small to limit our risk.

Current Position: Long GA stock @ $8.46

- or -

Long SEP $7.50 call (GA1117I7.5) Entry $0.95

- Add 2nd position - entry on 08/24/11

Second Position (small): Long GA stock @ 7.92

Long SEP $7.50 call (GA1117I7.5) Entry $0.65

09/08 prepare to exit tomorrow (Friday) at the close
09/06 intraday low of $7.56
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


MAKO Surgical Corp. - MAKO - close: 37.13 change: -0.87

Stop Loss: 34.85
Target(s): 39.90, 43.75
Current Gain/Loss: -4.2%
Time Frame: 4 to 10 weeks
New Positions: see below

Comments:
09/08 update: MAKO is starting to see some profit taking. Shares lost -2.2% and hit $37.01 at its lows this afternoon. If the market corrects lower on Friday then we could definitely see MAKO retest the $36.00 level or support near $35.00. Readers may want to wait for a dip or a bounce from these levels before considering new positions.

Earlier Comments:
Keep in mind that MAKO could see a short squeeze. The most recent data listed short interest at more than 26% of the small 31.7 million-share float.

FYI: The Point & Figure chart for MAKO is bullish with a $54 target.

SMALL POSITIONS

Current Position: Long MAKO stock @ $38.76

- or -

Long OCT $40 call (MAKO1122J40) Entry $2.10

Entry on September 7 at $38.76
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on September 3, 2011


Peet's Coffee & Tea - PEET - close: 56.81 change: +0.27

Stop Loss: 53.50
Target(s): 62.00
Current Gain/Loss: +0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/08 update: PEET displayed a little bit of relative strength today with a +0.4% gain. Shares did pull back from their highs near the 20-dma this morning. If the market contracts tomorrow we could see PEET retest support near $54 and its 100-dma (if that happens then it looks like PEET is forming a bearish head-and-shoulders pattern).

No new positions right now.

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

09/06 intraday bounce from 100-dma is a new bullish entry point.
09/06 new stop loss @ $53.50

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


Research In Motion - RIMM - close: 31.31 change: -0.59

Stop Loss: 28.90
Target(s): 34.75
Current Gain/Loss: -1.0%
Time Frame: exit before Sep. 15th
New Positions: see below

Comments:
09/08 update: RIMM tried to rally twice this morning but failed both times near the $32.50 mark. Eventually market-wide weakness led RIMM to a -1.8% drop but shares were bouncing off the 10-dma late this afternoon. If RIMM and the S&P 500 index both open positive tomorrow morning then I would consider launching new positions. Otherwise readers may want to wait for a new bounce from the $30.00 mark.

NOTE: We do not want to hold over the Sep. 15th earnings report.

Current Position: Long RIMM stock @ $31.64

- or -

Long OCT $33 call (RIMM1122J33) Entry $2.40

09/07 trade is now open. RIMM gapped open at $31.64
09/06 trade not open yet. try again. New stop @ 28.90

Entry on September 7 at $31.64
Earnings Date 09/15/11 (confirmed)
Average Daily Volume = 26.9 million
Listed on September 3, 2011


Steel ETF - SLX - close: 53.39 change: -0.92

Stop Loss: 49.49
Target(s): 55.90, 59.50
Current Gain/Loss: + 0.2%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/08 update: SLX saw a +8% rally off its intraday lows from Tuesday near $50.00. It's not a surprise to see a little profit taking today (-1.6%). If the market corrects lower tomorrow I would look for the SLX to fill the gap near $52.00-51.75. Wait for a dip or a bounce there as our next entry point.

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

CAUTION: The October options have wide spreads!

Current Position: Long SLX @ $53.25

- or -

Long OCT $55 call (SLX1122J55) Entry $2.50

09/07 trade is re-opened. SLX gaps higher at $53.25
09/06 prior trade stopped out. Reload with a new entry point.

Entry on September 7 at $53.25
Earnings Date --/--/--
Average Daily Volume = 126 thousand
Listed on September 6, 2011


WABCO Holdings - WBC - close: 47.61 change: -0.71

Stop Loss: 43.40
Target(s): 49.50, 54.00
Current Option Gain/Loss: + 2.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/08 update: Target achieved. WBC rallied to $50.00 this morning before reversing lower. Our first target was hit at $49.50. At this point, if the market declines tomorrow, I would not be surprised to see WBC retreat back toward short-term support around the $45 level. Wait for that dip or a bounce near $45.00 before considering new bullish positions.

FYI: This morning WBC announced it had signed a multi-year deal to supply its vacuum pump technology to General Motors (GM) for gasoline direct-injection engines.

Earlier Comments:
Our first target is $49.50. The second, more aggressive target is $54.00.

- Suggested Positions -

current Position: Long WBC stock @ $46.32

09/08 1st target hit at $49.50 (+6.8%)
09/07 trade now open. WBC gaps higher at $46.32
09/06 trade not open yet. Try again. New stop loss 43.40. new targets 49.50 and 54.00

chart:

Entry on September 7 at $46.32
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 900 thousand
Listed on September 3, 2011


BEARISH Play Updates

None. No bearish plays currently.