Editor's Note:
The market's opening drop and its slow fade lower through most of the session was enough to trigger some of our stop losses. Unfortunately the market reversed higher into the close. The only bright spot was a strong performance by STMP.

-James

Current Portfolio:


BULLISH Play Updates

Research In Motion - RIMM - close: 30.17 change: +0.49

Stop Loss: 28.90
Target(s): 34.75
Current Gain/Loss: -4.6%
Time Frame: exit before Sep. 15th
New Positions: see below

Comments:
09/12 update: RIMM gapped open lower at $29.19 and dipped to a new two-week low (29.08) before rebounding back into positive territory. Our stop loss remains at $28.90. I would be tempted to use the afternoon bounce as a new entry point to launch bullish positions. Unfortunately we're almost out of time. 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

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


SodaStream Intl. - SODA - close: 38.84 change: +0.09

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:
09/12 update: Our entry point conditions were not met this morning. I am suggesting we try again. Buy SODA tomorrow but only if SODA and the S&P 500 index both open higher. We'll use a stop at $36.95. You could adjust your stop toward today's low of $37.25 instead.

Earlier Comments:
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)

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


Stamps.com Inc. - STMP - close: 21.16 change: +1.72

Stop Loss: 18.45
Target(s): 22.25, 24.50
Current Gain/Loss: +4.2%
Time Frame: 6 to 10 weeks
New Positions: see below

Comments:
09/12 update: It was a big day for STMP. The stock was showing lots of strength. Our secondary entry point strategy (buy STMP at $20.25) was met at the open. Shares opened at $20.29 and surged to $21.30 intraday. The stock closed up +8.8% with volume more than double the norm.

I would not chase it now. Broken resistance near $20.00 should be new support. Wait for a new dip or bounce near the $20 area.

We are adjusting our stop loss to $18.45.

Current Position: Long STMP stock @ $20.29

- or -

Long OCT $20 call (STMP1122J20) Entry $1.50

09/12 STMP gapped open at $20.29, above our entry point.

Entry on September 12 at $20.29
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 248 thousand
Listed on September 10, 2011


WABCO Holdings - WBC - close: 45.06 change: -0.34

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:
09/12 update: The action in WBC was a bit disappointing. Shares did follow the market higher in the widespread late day bounce but WBC failed to close in positive territory. You could use the late day move as an entry point but keep positions very small. The low today was $43.67. Our stop is at $43.40.

- 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

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

Greif, Inc. - GEF - close: 46.36 change: -1.02

Stop Loss: 50.60
Target(s): 44.00, 40.50
Current Gain/Loss: +1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/12 update: GEF continues to underperform. The stock opened lower at $46.93 and fell to $45.38 intraday. Volume was heavy as GEF closed with a -2.1% decline.

If the market rebounds then look for GEF to retest the $48 level as overhead resistance. A failed rally near $48 (or $50) could be used as a new entry point.

Earlier Comments:
FYI: The Point & Figure chart for GEF is bearish with a $30 target. I am not suggesting the options. The spreads are too wide.

*Small Bearish Positions*

Current Position: short GEF stock @ $46.93

Entry on September 12 at $46.93
Earnings Date 12/07/11 (unconfirmed)
Average Daily Volume = 247 thousand
Listed on September 10, 2011


CLOSED BULLISH PLAYS

Bon-Ton Stores Inc. - BONT - close: 6.08 change: -0.16

Stop Loss: 5.85
Target(s): 7.50, 8.25
Current Gain/Loss: - 8.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/12 update: After several days of holding support at the $6.00 level BONT broke down below this key level today. Shares managed a meager rally at the close but ended the session off -2.5%. I did not find any specific news to account for this relative weakness. We were stopped out at $5.85.

closed Position: Long BONT stock @ $6.42, exit $5.85 (-8.8%)

09/12 stopped out at $5.85

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: 39.66 change: +0.41

Stop Loss: 37.65
Target(s): 44.50, 49.50
Current Gain/Loss: -9.0%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/12 update: The stock market's intraday weakness was too much. The DIG saw a dip to $37.45 this afternoon only to reverse back into positive territory as the market turned higher. Our stop loss was hit at $37.65.

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

closed Position: Long DIG @ $41.41, exit 37.65 (-9.0%)

09/12 stopped out @ 37.65
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: 34.91 change: -0.52

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

Comments:
09/12 update: The market volatility this morning was too much. MAKO gapped open lower at $35.08 and quickly saw a spike down toward $34.00. Our stop loss was hit at $34.85. The stock managed an intraday bounce but failed to close in positive territory.

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.

SMALL POSITIONS

closed Position: Long MAKO stock @ $38.76, exit 34.85 (-10%)

- or -

OCT $40 call (MAKO1122J40) Entry $2.10, exit $1.35 (-35.7%)

09/12 stopped out at $34.85

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: 54.26 change: -0.65

Stop Loss: 53.50
Target(s): 62.00
Current Gain/Loss: -5.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/12 update: PEET managed to limit its losses to -1.1% and it closed near support at $54 and its 100-dma. Yet the intraday volatility stopped us out at $53.50.

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.

closed Position: Long PEET stock @ $56.64, exit 53.50 (-5.5%)

09/12 stopped out at $53.50
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


Steel ETF - SLX - close: 50.82 change: -0.33

Stop Loss: 49.49
Target(s): 55.90, 59.50
Current Gain/Loss: - 7.0%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/12 update: The SLX followed the market lower and by early afternoon it was breaking down under the $50.00 level. Our stop loss was hit at $49.49. Nimble traders may want to reload this trade and buy the afternoon bounce with a stop loss under $49.39. Shares are at the bottom of their trading range and poised to rebound. You can target the $54-56 area.

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

CAUTION: The October options have wide spreads!

closed Position: Long SLX @ $53.25, exit $49.49 (-7.0%)

- or -

OCT $55 call (SLX1122J55) Entry $2.50, exit $1.00* (-60%)

09/12 stopped out @ 49.49
*9/12 option did not trade today, this is an estimate.
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