Editor's Note:
Investors were in a "risk on" mood today in spite of some negative economic data. It seems that market participants came back from the weekend in a hopeful mood over Europe and Greece. Stocks saw a broad-based bounce. All of our bullish trades have been opened.

-James

Current Portfolio:


BULLISH Play Updates

Bristol-Myers Squibb - BMY - close: 30.94 change: +0.05

Stop Loss: 28.90
Target(s): 33.50
Current Gain/Loss: -0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/26 update: Our BMY trade is now open. Shares gapped open higher at $31.15 but after spending the day churning sideways the stock closed near its lows. The larger trend is bullish and I would consider new positions now but more conservative traders may want to wait for a dip near $30.00 as their entry point.

current Position: Long BMY stock @ $31.15

- or -

Long 2012 Jan. $30 call (BMY1221A30) Entry $2.26

09/26 trade opened

Entry on September 26 at $31.15
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 13.6 million
Listed on September 22, 2011


PowerShares Gold Double Long - DGP - close: 52.20 change: -1.79

Stop Loss: 49.40
Target(s): 59.00, 64.00
Current Gain/Loss: +0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
09/26 update: Buy the bounce! DGP is a new trade from this weekend. We wanted to buy this ETF at the open with a stop at $51.45. I did caution readers that gold prices could see another spike down at the open on Monday as investors reacted to the margin hike news. Sure enough, gold and metals did move lower before rebounding intraday as expected. Unfortunately, the DGP opened at $51.96 and then hit our stop loss at $51.45 before bouncing near round-number support at the $50.00 level. This was a loss of -0.9% (less than 1%). In my weekend comments I suggested that if we get stopped out to go ahead and buy the dip near $50.00.

Therefore, I'm reloading this play to buy the DGP tomorrow at the open with a stop loss at $49.40. Today's low was $49.66. Our targets are $59.00 and $64.00.

- Small Positions -

Suggested Position: buy the DGP @ the open

09/26 reload this trade. Buy the open tomorrow, new stop 49.40
09/26 Trade opened on gap down at $51.96.
Trade stopped out at $51.45 (-0.9% loss)

Entry on September xx at $ xx.xx
Earnings Date --/--/--

1st Attempt:

Entry on September 26 at $51.96
Exit on September 26 at $51.45 (-0.9%)


Average Daily Volume = 1.3 million
Listed on September 24, 2011


Energy XXI Ltd. - EXXI - close: 22.63 change: +1.12

Stop Loss: 20.85
Target(s): 25.00
Current Gain/Loss: + 4.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/26 update: EXXI is a volatile stock and shares almost hit our stop loss today. The market's positive open and EXXI's gap open higher at $21.75 triggered our trade. Shares did see an immediate spike down this morning but bounce at $20.95. Shares then rallied +8.0% to close at its highs for the session. Gain on the day was +5.2%.

If you missed our entry point this morning I would still consider new positions now. Just remember to keep positions size small to limit risk.

Earlier Comments:
NOTE: Technically you could argue that EXXI has broken down from a pennant-shaped consolidation pattern. That's bearish and another reason why we want to keep our position size pretty small to limit our risk.

Suggested Position: Long EXXI stock @ $21.75

- or -

Long OCT $23 call (EXXI1122J23) Entry $1.15

Entry on September 26 at $21.75
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 983 thousand
Listed on September 22, 2011


Human Genome Sciences Inc. - HGSI - close: 14.24 change: +0.03

Stop Loss: 12.89
Target(s): 16.25, 17.50
Current Gain/Loss: -0.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/26 update: Trading in HGSI today was disappointing. That may have been due to some bearish analyst comments this morning. The stock opened higher at $14.31, dipped to $13.71 and then bounced back to barely close in positive territory. It's not a very convincing gain with the rest of the market in rally mode.

Readers may want to wait for another bounce from the 10-dma (currently near $13.40) or wait for a new rally past $14.65 before initiating positions.

(Small Positions)

Current Position: Long HGSI @ $14.31

- or -

Long OCT $15 call (HGSI1122J15) Entry $0.83

Entry on September 26 at $14.31
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on September 24, 2011


iShares Russell 2000 ETF - IWM - close: 66.37 change: +1.23

Stop Loss: 63.40
Target(s): 69.75
Current Gain/Loss: +3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/26 update: Small caps continue to bounce. The IWM provided a new entry point with not one but two dips into the $65-64 zone midday before surging toward its highs for the session. The low last week was $63.49. I am raising our stop loss to $63.40. Our first target is $69.75.

Suggested Position: Long IWM @ $64.25

- or -

Long NOV $68 call (IWM1119K68) Entry $2.69

09/26 new stop loss @ 63.40

Entry on September 23 at $64.25
Earnings Date --/--/--
Average Daily Volume = 76.7 million
Listed on September 22, 2011


Red Hat Inc. - RHT - close: 43.49 change: +1.17

Stop Loss: 39.75
Target(s): 46.50, 48.00
Current Gain/Loss: +1.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/26 update: It was a bullish day for RHT and nimble traders got an entry point near $41.50 intraday. Our trade was opened this morning when RHT gapped higher at $42.72. Shares saw a spike down to $41.52 near its 100-dma before reversing higher and breaking out past technical resistance at its simple 200-dma.

Current Position: Long RHT stock @ $42.72

- or -

Long OCT $45 call (RHT1122J45) Entry $1.15

Entry on September 26 at $42.72
Earnings Date 12/21/11 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on September 24, 2011


U.S. Oil ETF - USO - close: 31.47 change: +0.38

Stop Loss: 29.75
Target(s): 34.50
Current Gain/Loss: +2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/26 update: Our USO trade is off to a good start. Shares opened at $30.71, dipped to $30.23 before reversing to end up +1.2%. Shares closed at their highs for the day. I would still consider new positions now.

current Position: Long the USO @ $30.71

- or -

Long NOV $32 call (USO1119K32) Entry $1.81

09/26 trade opened at $30.71
09/24 removed conditional entry, adjusted stop to $29.75.

Entry on September 26 at $30.71
Earnings Date --/--/--
Average Daily Volume = 10.7 million
Listed on September 22, 2011


BEARISH Play Updates

5 Greif, Inc. - GEF - close: 44.04 change: +0.44

Stop Loss: 45.60
Target(s): 44.00, 40.50
Current Gain/Loss: +6.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/26 update: GEF spent Monday churning sideways under resistance near $44.00. Shares did close near their highs for the session and if the market continues to bounce we could see GEF hit our stop loss at $45.60. More conservative traders may want to take profits now and exit early. I am not suggesting new positions at this time.

Earlier Comments:
FYI: The Point & Figure chart for GEF is bearish with a $34 target. I am not suggesting the options. The spreads are too wide.

*Small Bearish Positions*

Current Position: short GEF stock @ $46.93

09/24 new stop loss @ 45.60
09/22 new stop loss @ 46.25
09/22 1st target hit at $44.00 (+6.2%)
09/21 new stop loss @ 48.55
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