Editor's Note:
Shares of Ruger (RGR) misfired as the stock underperformed with a -7.3% drop. Our RGR trade was stopped out.

Commodities were also big losers with metals and oil plunging lower. Readers may want to exit our USO oil trade early.

-James

Current Portfolio:


BULLISH Play Updates

Bristol-Myers Squibb - BMY - close: 30.84 change: -0.40

Stop Loss: 29.90
Target(s): 33.50
Current Gain/Loss: -1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/28 update: BMY was not immune to the market's widespread losses. Shares gave up -1.2%. If the market sell-off continues then look for BMY to retest support near $30.00.

current Position: Long BMY stock @ $31.15

- or -

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

09/27 new stop loss @ 29.90
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: 51.16 change: -3.35

Stop Loss: 49.40
Target(s): 59.00, 64.00
Current Gain/Loss: -7.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
09/28 update: More often than not gold rises when stocks fall because many see it as a safe haven trade. That relationship did not work today. Gold underperformed. The GLD gold ETF lost -2.7% while the double long gold DGP fell -6.1%. FYI: the copper JJC lost -7.1% and the silver SLV fell -7.2%.

The $50.00 level should offer some support for the DGP. I would wait for a bounce from this level before considering new positions.

- Small Positions -

current Position: long the DGP @ $55.26

09/27 trade opened
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 27 at $55.26
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: 22.51 change: -1.07

Stop Loss: 20.85
Target(s): 25.00
Current Gain/Loss: + 3.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/28 update: I cautioned readers that EXXI was a volatile stock. Today's -4.5% decline took a big chunk out of our unrealized gains. The $22.00 and $21.00 levels should offer some support but if the market accelerates lower I would expect EXXI to hit our stop loss.

Earlier Comments:
We wanted to keep our position size small to limit our risk.

Suggested Position: Long EXXI stock @ $21.75

- or -

Long OCT $23 call (EXXI1122J23) Entry $1.15

09/27 readers may want to take profits now
EXXI +8.4%, option bid @ $1.85 (+60.8%)

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: 13.65 change: -0.62

Stop Loss: 12.89
Target(s): 16.25, 17.50
Current Gain/Loss: -4.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/28 update: Traders might want to raise their stop loss. Technically today's decline is a breakdown under its 10-dma, its 40-dma, and under its two-week trendline of higher lows. We are going to keep our stop loss at $12.89 for now. I am not suggesting new positions at this time.

(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: 65.20 change: -2.60

Stop Loss: 63.40
Target(s): 69.75
Current Gain/Loss: +1.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/28 update: Ouch! Today's -3.8% decline took a big chunk out of our gains in IWM. Readers will want to seriously consider an early exit now. I am concerned that yesterday's intraday pull back and today's follow through decline looks like a new bearish reversal. Honestly, I would be tempted to open bearish positions on the IWM at this time with a stop above yesterday's high.

We are not suggesting new bullish positions. Both the ETF position and option position are still positive. I am suggesting we sell half immediately to lower our exposure!

Suggested Position: Long IWM @ $64.25

- or -

Long NOV $68 call (IWM1119K68) Entry $2.69

09/28 Sell HALF of our positions now!
09/27 readers may want to exit/take profits now
IWM (+5.5%), option bid @ $4.35 (+61.7%)
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: 43.65 change: -1.07

Stop Loss: 41.40
Target(s): 46.50, 48.00
Current Gain/Loss: +2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/28 update: RHT is still holding up reasonably well. The stock did gave back -2.3% but it did not breakdown under its 200-dma. If the market sell-off continues then look for support near $42.00.

Current Position: Long RHT stock @ $42.72

- or -

Long OCT $45 call (RHT1122J45) Entry $1.15

09/27 new stop loss @ 41.40

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


Silver Wheaton Corp. - SLW - close: 30.63 change: -2.30

Stop Loss: 30.45
Target(s): 37.00, 41.00
Current Gain/Loss: -10.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/28 update: Our buy the dip trade on SLW is not working. The oversold bounce has already reversed. Silver, gold and copper prices all plunged today. The SLV silver ETF fell -7.2%. Shares of SLW lost -6.9% and is testing the lows on Monday. The low today was $30.48 and our stop loss is at $30.45. I am concerned that SLW might see a gap down at the open tomorrow under our stop loss.

We are not suggesting new positions at this time.

*Small Positions*

current Position: Long SLW stock @ $34.38

- or -

Long OCT $35 call (SLW1122J35) Entry $1.70

09/27 trade opened on gap higher at $34.38

Entry on September 27 at $34.38
Earnings Date 11/08/11 (unconfirmed)
Average Daily Volume = 6.7 million
Listed on September 26, 2011


U.S. Oil ETF - USO - close: 31.25 change: -1.12

Stop Loss: 30.45
Target(s): 34.50
Current Gain/Loss: +1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/28 update: Crude oil was also part of the commodity sell-off. The USO gave up -3.4% as it failed near the 10-dma. Odds are good we could see the USO retest its Monday lows near $30.20 and that would stop us out at $30.45. More conservative traders may want to exit early now!

current Position: Long the USO @ $30.71

- or -

Long NOV $32 call (USO1119K32) Entry $1.81

09/28 Cautious traders may want to exit early now
09/27 new stop loss @ 30.45
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

CSX Corp. - CSX - close: 18.90 change: -0.68

Stop Loss: 20.26
Target(s): 18.10, 16.25
Current Gain/Loss: + 3.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/28 update: Our new bearish trade is off to a good start. Transports under performed with the Dow Transportation index off -2.8%. Shares of CSX fell even more with a -3.4% decline. The stock opened at $19.65 and quickly turned south.

Earlier Comments:
Our first target is $18.10. Our second, much more aggressive target is $16.25, which could take a few weeks to get there.

Current Position: short CSX stock @ $19.65

- or -

Long OCT $20 PUT (CSX1122V20) Entry $1.20

Entry on September 28 at $19.65
Earnings Date 10/18/11 (confirmed)
Average Daily Volume = 12.4 million
Listed on September 27, 2011


CLOSED BULLISH PLAYS

Sturm, Ruger & Co. - RGR - close: 29.06 change: -2.32

Stop Loss: 29.90
Target(s): 36.00
Current Gain/Loss: - 7.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/28 update: RGR has been a big disappointment. Yesterday's breakout over resistance near $32.00 proved to be a bull trap pattern. Today the stock really underperformed with a -7.3% plunge toward technical support at its 50-dma. Our stop loss was hit at $29.90.

closed Position: Long RGR @ 32.25, exit $29.90 (-7.2%)

- or -

NOV $35 call (RGR1119K35) Entry $1.60, exit $0.80 (-50%)

09/28 stopped out at $29.90

chart:

Entry on September 27 at $32.25
Earnings Date 11/02/11 (confirmed)
Average Daily Volume = 428 thousand
Listed on September 26, 2011