Editor's Note:
The stock market's afternoon slide into negative territory reversed late in the day. I suspect the rebound was fueled by end of quarter window dressing. Unfortunately we did see SLW hit our stop loss today.

-James

Current Portfolio:


BULLISH Play Updates

Bristol-Myers Squibb - BMY - close: 31.12 change: +0.28

Stop Loss: 29.90
Target(s): 33.50
Current Gain/Loss: -0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/29 update: It was a relatively quiet day for BMY. Shares dipped toward short-term support in the $3.75 area again before bouncing off these lows. While we're bullish on BMY I'm cautious on the market. I'd prefer to wait for a dip closer to $30.00 before considering new bullish positions.

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: 52.29 change: +1.13

Stop Loss: 49.40
Target(s): 59.00, 64.00
Current Gain/Loss: -5.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
09/29 update: After the recent volatility in gold prices today was positively boring. Shares of the DGP gapped open higher and then spent the rest of the session churning sideways. Readers might want to wait for another dip closer to the $50.00 mark before initiating 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: 22.57 change: +0.06

Stop Loss: 20.85
Target(s): 25.00
Current Gain/Loss: + 3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/29 update: EXXI is normally a volatile stock. To see shares close almost unchanged on the session is a surprise. Of course the closing numbers don't tell the whole story. EXXI spiked to $23.42 this morning, dipped to $21.86 this afternoon, before paring its losses. I am not convinced of the market's late day rebound. Thus, I would hesitate to open new positions here.

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: 13.73 change: +0.08

Stop Loss: 12.89
Target(s): 16.25, 17.50
Current Gain/Loss: -4.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/29 update: HGSI fell from its intraday high of $14.16 to the afternoon low of $13.15 before paring its losses and closing in positive territory. Aggressive traders could buy this bounce. I would prefer to see a new rally past $14.20 or a close over $14.00. Cautious traders may want to up their stop toward today's low.

(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: 66.33 change: +1.13

Stop Loss: 63.40
Target(s): 69.75
Current Gain/Loss: +3.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/29 update: It was a volatile day for small cap stocks. The IWM gapped higher and rallied to $67.02 this morning before falling almost -4% at its intraday low. Stocks rebounded late in the session, probably on last minute quarter end window dressing by fund managers. More conservative traders may want to raise their stop loss near today's intraday low (64.37).

We are not suggesting new bullish positions.

NOTE: The plan was to sell half of our position at the open this morning. IWM @ 66.73 (+3.8%), Nov $68 call @ $3.56 (+32.3%).

Suggested Position: Long IWM @ $64.25

- or -

Long NOV $68 call (IWM1119K68) Entry $2.69

09/29 Planned to sell half at the open.
IWM @ 66.73 (+3.8%)
bid NOV $68 call $3.56 (+32.3%)
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: 43.93 change: +0.28

Stop Loss: 41.75
Target(s): 46.50, 48.00
Current Gain/Loss: +2.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/29 update: It was another volatile session for stocks but traders bought the dip in RHT near technical support at the 200-dma. Please note that I am raising our stop loss to $41.75.

Current Position: Long RHT stock @ $42.72

- or -

Long OCT $45 call (RHT1122J45) Entry $1.15

09/29 new stop loss @ 41.75
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


U.S. Oil ETF - USO - close: 31.97 change: +0.72

Stop Loss: 30.45
Target(s): 34.50
Current Gain/Loss: +4.10
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/29 update: A rebound in oil helped produce a gap open higher for the USO. Shares of this ETF then spent the rest of the day moving sideways in choppy trading. The 10-dma appears to be acting as short-term technical resistance. I am not suggesting new positions at this time. 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

Avon Products Inc. - AVP - close: 19.83 change: +0.22

Stop Loss: 21.11
Target(s): 17.75, 15.50
Current Gain/Loss: +0.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/29 update: AVP's gap open higher this morning provided a better entry point for our bearish trade. Shares opened at $19.96, rallied to $20.25 only to reverse lower. The stock retested yesterday's support near $19.50 before paring its losses. I do not see any changes from my prior comments and would still open new positions now. More conservative traders may want to consider a tighter stop loss lower their risk.

Earlier Comments:
Our targets are $17.75 and $15.50. Readers may want to consider the November puts instead of Octobers. FYI: The Point & Figure chart for AVP is bearish with a $7.00 target.

Current Position: short the stock @ $19.96

- or -

Long OCT $20 PUT (AVP1122V20) Entry $0.79

Entry on September 29 at $19.96
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 3.9 million
Listed on September 28, 2011


CSX Corp. - CSX - close: 19.58 change: +0.68

Stop Loss: 20.26
Target(s): 18.10, 16.25
Current Gain/Loss: - 0.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/29 update: Railroad stocks were outperformers today. CSX erased yesterday's -3.4% decline with a +3.6% bounce. The move was fueled by positive analyst comments on the industry this morning. The larger trend for CSX is still down but readers may want to wait for a new failed rally at $20.00 before initiating new positions.

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


Phillip Morris Intl. - PM - close: 64.01 change: +0.63

Stop Loss: 66.05
Target(s): 60.25, 57.50
Current Gain/Loss: +0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/29 update: The morning rebound faded and PM tagged a new relative low before reversing back into positive territory. Shares remain under resistance at its 200-dma and the $66.00 level. I would still consider new positions here or you could wait for a new failed rally in the $65-66 area.

Current Position: short PM stock @ 64.21

- or -

Long NOV $60 PUT (PM1119W60) Entry $1.60

Entry on September 29 at $64.21
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 10.9 million
Listed on September 28, 2011


CLOSED BULLISH PLAYS

Silver Wheaton Corp. - SLW - close: 30.16 change: -0.47

Stop Loss: 30.45
Target(s): 37.00, 41.00
Current Gain/Loss: -11.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/29 update: Shares of SLW continued to underperformed even though silver prices gapped open higher and closed with a gain today. SLW's gap higher and spike to $31.73 failed. Shares hit our stop loss at $30.45 as it dipped under the $30.00 level. The $30.00 area has been support in the past. Aggressive traders may want to consider new bullish positions here with a tight stop loss. I'm going to keep SLW on my watch list for a few days.

*Small Positions*

closed Position: Long SLW stock @ $34.38, exit $30.45 (-11.4%)

- or -

OCT $35 call (SLW1122J35) Entry $1.70, Exit $0.60 (-64.7%)

09/29 stopped out at $30.45
09/27 trade opened on gap higher at $34.38

chart:

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