Editor's Note:
Wednesday could be a volatile session as investors react to the FOMC announcement. Market participants are expecting some sort of stimulus from Ben Bernanke and I am concerned that stocks might see a sell-the-news reaction on Wednesday afternoon.

We had a few of our trades get triggered this morning but nearly all of them followed the market's afternoon declines. Readers need to trade defensively tomorrow.

I am suggesting an early exit on our WBC trade.

-James

Current Portfolio:


BULLISH Play Updates

CBOE Holdings, Inc. - CBOE - close: 27.09 change: -0.15

Stop Loss: 25.85
Target(s): 29.50
Current Gain/Loss: + 2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/20 update: Tuesday was a relatively quiet day for CBOE. The stock did close on its lows for the session but held the $27.00 level. I am not suggesting new positions at this time. A market decline tomorrow would probably push CBOE toward the $26.00 level.

Earlier Comments:
We need to label this as a slightly more aggressive trade. While things look good on a short-term basis the long-term weekly chart is showing potential resistance. Readers may want to wait for a close over that trendline before considering new bullish positions.

Current Position: Long CBOE stock @ $26.43

- or -

Long OCT $27 call (CBOE1122J27) Entry $0.99

09/19 new stop loss @ 25.85
09/17 new stop loss @ 25.40

Entry on September 13 at $26.43
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 703 thousand
Listed on September 12, 2011


Electronic Arts - ERTS - close: 22.91 change: +0.04

Stop Loss: 21.90
Target(s): 24.85
Current Gain/Loss: - 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/20 update: Our new trade on ERTS is open but I am urging caution here. Both the S&P 500 and ERTS opened higher, triggering our bullish position. ERTS opened at $22.93 and rallied to $23.57, a new multi-week high, before reversing course. The move looks like a failed rally or bull-trap pattern. At this point I want to see how ERTS closes tomorrow following the FOMC meeting before initiating new positions. Conservative traders could wait for a new close over $23.00 before initiating positions.

current Position: Long ERTS stock @ $23.93

- or -

Long OCT $24 call (ERTS1122J24) Entry $0.77

09/20 trade opened at $22.93
09/19 new stop loss @ 21.90

Entry on September 20 at $22.93
Earnings Date 11/01/11 (unconfirmed)
Average Daily Volume = 8.6 million
Listed on September 17, 2011


Hansen Medical Inc. - HNSN - close: 4.18 change: -0.02

Stop Loss: 3.95
Target(s): 4.85, 5.20
Current Gain/Loss: - 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/20 update: HNSN rallied to a new six-week high at $4.46 this morning before reversing lower late in the day. I am concerned this might be a failed rally or bull-trap pattern. We are not suggesting new positions at this time. Please note that I am raising our stop loss to $3.95.

Earlier Comments:
The stock can be volatile so we want to keep our position size small.

Current Position: Long HNSN stock @ $4.25

09/20 new stop loss @ 3.95
09/14 new stop loss @ 3.90

Entry on September 14 at $4.25
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 963 thousand
Listed on September 12, 2011


Nordstrom Inc. - JWN - close: 47.49 change: -0.49

Stop Loss: 45.90
Target(s): 51.75
Current Gain/Loss: -1.4%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/20 update: Our new trade on JWN is open but it's not off to a very good start. The stock market's sell-off in the last two hours pulled JWN to a -1.8% decline. At this point I would wait for a bounce from $46.50 or $46.00 before initiating new positions. We have a stop loss at $45.90.

The $50.00 level might offer some round-number, psychological resistance but our final target is $51.75.

Current Position: Long JWN @ $48.17

- or -

Long OCT $50 call (JWN1122J50) Entry $1.96

Entry on September 20 at $48.17
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 19, 2011


NVIDIA Corp. - NVDA - close: 14.75 change: -0.39

Stop Loss: 13.49
Target(s): 16.75, 18.25
Current Gain/Loss: -1.0%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
09/20 update: We have been expecting a pull back in NVDA so today's dip is not a surprise. Shares fell to their simple 10-dma. Yesterday I suggested conservative traders wait for a dip into the $14.50-14.00 zone before launching positions. I still think we'll see NVDA slip into that zone. Cautious traders may want to wait and buy the bounce instead of buying the dip.

Current Position: Long NVDA stock @ $14.91

- or -

Long OCT $15 call (NVDA1122J15) Entry $1.10

- or -

Long 2012 JAN $15 call (NVDA1122A15) Entry $2.28

09/17 added secondary target of $18.25
09/14 new stop loss @ 13.49
09/14 gap open higher entry point @ 14.91

Entry on September 14 at $14.91
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 19.3 million
Listed on September 13, 2011


SodaStream Intl. - SODA - close: 39.98 change: -2.28

Stop Loss: 38.75
Target(s): 45.75, 49.75
Current Gain/Loss: -2.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/20 update: Warning! The rally in SODA failed at $44.00 and shares accelerated lower as the market declined late this afternoon. The close under the $40.00 mark is technically bearish. More conservative traders may want to exit positions now to cut their losses early. Tomorrow afternoon (Wednesday) could be volatile as traders react to the FOMC announcement. If stocks sell-off on the news I would expect SODA to underperform!

No new positions at this time.

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.

Current Position: Long SODA @ $40.84

- or -

Long OCT $45 call (SODA1122J45) Entry $3.00

09/19 new stop loss @ 38.75
09/13 new stop loss at $37.20
09/13 trade is open. SODA @ 40.84

Entry on September 13 at $40.84
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 8, 2011


virgin Media, Inc. - VMED - close: 26.13 change: +0.08

Stop Loss: 24.40
Target(s): 29.50
Current Gain/Loss: -0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/20 update: Our trade on VMED is now open. Shares opened at $26.25 and rallied to $26.92 before giving up almost all of its gains. I am worried that this is a failed rally or bull-trap pattern. Readers could buy a bounce from $26.00 but at this point I'd rather wait and see where shares close tomorrow following the FOMC meeting.

Earlier Comments:
We want to keep our position size small to limit our risk. VMED is facing additional resistance at its 200-dma and near the $28.00 level. We'll start with a multi-week target at $29.50. FYI: The most recent data listed short interest at 14% of the 310 million-share float.

Current Position: Long VMED stock @ $26.25

- or -

Long OCT $27 call (VMED1122J27) Entry $0.85

Entry on September 20 at $26.25
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on September 17, 2011


BEARISH Play Updates

Greif, Inc. - GEF - close: 47.32 change: +0.04

Stop Loss: 49.55
Target(s): 44.00, 40.50
Current Gain/Loss: -0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/20 update: GEF saw a little bit of relative strength today, which was surprising. Overall the larger trend is still down. I am not suggesting new positions at this time.

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

09/19 new stop loss @ 49.55

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

WABCO Holdings - WBC - close: 46.69 change: -1.18

Stop Loss: 46.35
Target(s): 49.50, 54.00
Current Option Gain/Loss: + 0.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/20 update: I am throwing in the towel on WBC. Shares underperformed with a -2.4% drop and the stock looks poised to breakdown under the $46.50 level soon. We want to exit early immediately. I would keep WBC on your radar screen for a close over resistance at $50.00.

- Suggested Positions -

current Position: Long WBC stock @ $46.32, exit $46.69 (+0.8%)

09/20 exit early. WBC @ 46.69
09/15 new stop loss @ 46.35
09/14 new stop loss @ 43.60
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