Editor's Note:
European debt fears jumped on Friday and the stock market dropped in response. The market erased its gain for the week.

-James

Current Portfolio:


BULLISH Play Updates

Bon-Ton Stores Inc. - BONT - close: 6.24 change: -0.05

Stop Loss: 5.85
Target(s): 7.50, 8.25
Current Gain/Loss: - 2.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/10 update: BONT managed to hold its ground on Friday. Shares dipped to $6.07 before paring its losses. The stock ended the session down a nickel. If the stock market opens positive on Monday I would use it as an opportunity to buy BONT.

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

chart:

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: 39.25 change: -2.76

Stop Loss: 37.65
Target(s): 44.50, 49.50
Current Gain/Loss: -5.2%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/10 update: Oil and energy stocks were some of the worst performers on Friday. Shares of DIG were big underperformers with a -6.5% decline. This ETF is nearing the bottom of its recent trading range. We got the dip to $40 and more. At this time I would wait for a new close over the $40.00 level before considering new positions.

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.

chart:

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


MAKO Surgical Corp. - MAKO - close: 35.43 change: -1.70

Stop Loss: 34.85
Target(s): 39.90, 43.75
Current Gain/Loss: -8.5%
Time Frame: 4 to 10 weeks
New Positions: see below

Comments:
09/10 update: Be careful here. I warned readers that MAKO might dip toward support at $35.00 if the market retreated. This pull back to support "should" be a new bullish entry point. However, I would wait to see if both MAKO and the S&P 500 index both open positive on Monday before initiating new bullish 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

chart:

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: 54.91 change: -1.90

Stop Loss: 53.50
Target(s): 62.00
Current Gain/Loss: -3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/10 update: The market's widespread sell-off on Friday pushed PEET to a -3.3% decline. Yet the stock found support again near the $54 area and its rising 100-dma. PEET is getting squeezed between a bullish trend of higher lows and a bearish trend of lower highs.

If this stock and the S&P500 index both open positive on Monday I would consider new positions here. Otherwise readers may want to wait for a breakout past $58.00 or the 50-dma.

NOTE: If you look at the last three weeks you could argue that PEET has formed a bearish head-and-shoulders pattern. A breakdown under $54.00 (or the 100-dma) would qualify as a break through its neckline and forecast a drop toward the $50-49 area.

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

09/10 Caution - PEET has formed a bearish H&S pattern
09/06 intraday bounce from 100-dma is a new bullish entry point.
09/06 new stop loss @ $53.50

chart:

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: 29.68 change: -1.63

Stop Loss: 28.90
Target(s): 34.75
Current Gain/Loss: -6.1%
Time Frame: exit before Sep. 15th
New Positions: see below

Comments:
09/10 update: Friday was a rough day for RIMM. Prior to the open the stock was downgraded and given a $25 price target. Shares gapped open lower at $30.26 and eventually settled with a -5.2% decline. Yet they did not breakdown under the Tuesday low, which is encouraging. I would be tempted to take advantage of this dip and open small bullish positions if RIMM and the S&P 500 index both open positive on Monday. However, do not forget that we want to exit prior to earnings on Sept. 15th. We will have to choose to either exit at the close on Sept. 14th or at the close on the 15th. Earnings are supposed to be announced after the closing bell on the 15th.

Current Position: Long RIMM stock @ $31.64

- or -

Long OCT $33 call (RIMM1122J33) Entry $2.40

09/10 Remember, we want to exit prior to earnings (9/15)
09/07 trade is now open. RIMM gapped open at $31.64
09/06 trade not open yet. try again. New stop @ 28.90

chart:

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: 51.15 change: -2.24

Stop Loss: 49.49
Target(s): 55.90, 59.50
Current Gain/Loss: - 3.9%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/10 update: Friday was another rough day for the industrials. The SLX steel ETF lost -4.1%. The breakdown under $52.00 changes any new entry strategy. I would wait for another bounce from support near $50.00 before considering new bullish positions.

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.

chart:

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


SodaStream Intl. - SODA - close: 38.75 change: -2.13

Stop Loss: 36.95
Target(s): 45.75, 49.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/10 update: Our new trade on SODA is not open yet. The stock opened higher but the S&P 500 did not. Shares of SODA rallied to $42.45 before reversing lower and closing down -8.7% from its Friday morning high. I warned you this was a volatile stock.

The $38.00 level should be short-term support. Shares hit $38.10 on Friday afternoon. We will try to open positions again on Monday. The plan is to launch very small bullish positions if both SODA and the S&P 500 index open positive on Monday morning. Please note that I am adjusting our stop loss to $36.95 since the 10-dma is at $37.11.

If this stock can rally then SODA could see a huge short squeeze. The most recent data listed short interest at more than 75% of the very, very small 14.6 million-share float.

Remember, we want to use small positions to limit our risk.

open bullish positions if SODA and S&P500 index both open positive tomorrow (small positions only)

Suggested Position: buy SODA @ the open

- or -

buy the OCT $45 call (SODA1122J45)

chart:

Entry on September xx at $ xx.xx
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 8, 2011


WABCO Holdings - WBC - close: 45.40 change: -2.21

Stop Loss: 43.40
Target(s): 49.50, 54.00
Current Option Gain/Loss: - 1.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/10 update: The market's sharp decline on Friday pushed WBC to support near $45. We mentioned this possibility on Thursday. The stock actually dipped toward $44.50 before paring some of its losses with a sharp bounce late Friday afternoon. WBC has not yet broken the three-week trend of higher lows. I would use this dip as a new entry point. However, I am suggesting we wait and only launch new positions if both WBC and the S&P 500 index both open positive on Monday morning.

More conservative traders may want to adjust their stop loss closer to the $44.00 level.

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.


CLOSED BULLISH PLAYS

Giant Interactive Group Inc. - GA - close: 7.80 change: -0.12

Stop Loss: 7.55
Target(s): 9.30
Current Gain/Loss: -7.8%
2nd position Gain/Loss: -1.5%
Time Frame: exit on Sep. 9th or earlier
New Positions: see below

Comments:
09/10 update: It was our plan to exit our GA positions on Friday at the close.

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.

closed Position: GA stock @ $8.46, exit $7.80 (-7.8%)

- or -

SEP $7.50 call (GA1117I7.5) Entry $0.95, exit $0.40 (-57.8%)

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

Second Position (small): GA stock @ 7.92, exit 7.80 (-1.5%)

SEP $7.50 call (GA1117I7.5) Entry $0.65, Exit $0.40 (-38.4%)

09/09 exit @ 7.80
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

chart:

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