Editor's Note:
Shorts run for cover on a late day bounce. Stocks see widespread gains. We had two trades hit our targets. I'm suggesting an early exit on two trades. Plus, there are several updated stop losses.

-James

Current Portfolio:


BULLISH Play Updates

Bristol-Myers Squibb - BMY - close: 32.09 change: +0.60

Stop Loss: 30.75
Target(s): 33.50
Current Gain/Loss: +3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/04 update: BMY rallied to a new 52-week high. The close above $32.00 is bullish but the stock did see resistance in the $32.00-32.50 back in 2007. On a positive note the stock has seen strong volume on the advance this week. We are raising our stop loss to $30.75.

current Position: Long BMY stock @ $31.15

- or -

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

10/04 new stop loss @ 30.75
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: 52.24 change: -2.20

Stop Loss: 50.50
Target(s): 59.00, 64.00
Current Gain/Loss: -5.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
10/04 update: Gold lost ground today. There was no follow through on yesterday's pop. The DGP plunged back to technical support at the exponential 200-dma. This could be used as a new entry point. We are going to try and reduce our risk by raising the stop loss to $50.50.

- Small Positions -

current Position: long the DGP @ $55.26

10/04 new stop loss @ 50.50
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


BEARISH Play Updates

Avon Products Inc. - AVP - close: 19.26 change: +0.29

Stop Loss: 20.25
Target(s): 17.75, 15.50
Current Gain/Loss: +3.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/04 update: AVP gapped open lower at $18.63 and fell to $18.17 before bouncing back. The stock looks poised to rebound toward the $20.00 level and its 10-dma. Wait for the rebound to fail before considering new bearish positions. Please note that I am consolidating our exit targets down to one at $17.75.

Earlier Comments:
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

10/04 exit target at $17.75
10/01 new stop loss @ 20.25

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: 19.21 change: +0.82

Stop Loss: 19.55
Target(s): 18.10, 16.25
Current Gain/Loss: + 2.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04 update: Target achieved. CSX gapped open lower at $18.10 this morning. That happens to be our first exit target at $18.10 (+7.8%). The option opened at $2.29 (+90%). CSX dipped to $17.83 before bouncing back and it bounced back big time! More conservative traders will want to consider an early exit now. I am lowering our stop loss to $19.55.

Current Position: short CSX stock @ $19.65

- or -

Long OCT $20 PUT (CSX1122V20) Entry $1.20

10/04 new stop loss @ 19.55, readers may want to exit early now
10/04 1st target hit at $18.10 (+7.8%)
bid on Oct $20 put at $2.29 (+90.8%)

chart:

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


Loews Corp. - L - close: 34.11 change: +0.61

Stop Loss: 35.15
Target(s): 30.50
Current Gain/Loss: -3.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04 update: The action in L today was not exactly what we had in mind. The stock gapped open lower at $33.06 (our entry) but bounced at $32.90. Almost all of the bounce looked like short covering in the last 30 minutes of trading. One concern was the big volume on today's rebound. L should still have resistance near $35.00 and its 10-dma. Readers may want to wait for the rebound to stall or roll over before initiating new bearish positions.

current Position: short L stock @ $33.06

- or -

Long OCT $30 PUT (L1122V30) Entry $0.50

Entry on October 04 at $33.06
Earnings Date 10/31/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on October 03, 2011


Phillip Morris Intl. - PM - close: 62.80 change: +1.04

Stop Loss: 64.25
Target(s): 60.25, 57.50
Current Gain/Loss: +2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/04 update: PM followed the market lower this morning and higher this afternoon. The spike down this morning came close to our target at $60.25. The oversold bounce looked like it was going to roll over under the $62.00 level but then the market saw a late day surge higher and PM climbed to a +1.6% gain. I am not suggesting new positions at this time.

Please note that we will reduce our exit targets to one at $60.25. More aggressive traders can aim lower.

Current Position: short PM stock @ 64.21

- or -

Long NOV $60 PUT (PM1119W60) Entry $1.60

10/01 new stop loss at $64.25

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


Vulcan Materials Co. - VMC - close: 27.42 change: +1.23

Stop Loss: 28.50
Target(s): 25.25, 23.00
Current Gain/Loss: +0.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04 update: Target achieved. VMC almost erased all of our gains with a big bounce off its lows today. Yet the stock did hit our first exit target at $25.25 this morning (+8.4%). The option bid on the Oct. $26 put was at $2.00 (+33.3%).

This big bounce is dangerous for bears. The larger trend is still down but VMC could see an oversold bounce back to the $30 level. Readers will want to seriously consider an early exit now. I am lowering the stop loss to $28.50.

Earlier Comments:
FYI: Investors should note that the most recent data did list short interest at 19% of the 128 million share float. That is pretty high interest and raises the risk of a short squeeze if the market bounces.

- small positions -

current Position: Short VMC stock @ $27.58

- or -

Long OCT $26 PUT (VMC1122V26) Entry $1.50

10/04 new stop loss @ 28.50
10/04 1st target hit at $25.25 (+8.4%)
bid on the Oct $26 put @ 2.00 (+33.3%)

chart:

Entry on October 03 at $27.58
Earnings Date 10/31/11 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on October 01, 2011


CLOSED BEARISH PLAYS

Research In Motion - RIMM - close: 21.00 change: +0.50

Stop Loss: 22.65
Target(s): 18.25, 16.25
Current Gain/Loss: - 3.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/04 update: It was a volatile day for RIMM with a morning spike to $22.49 and an afternoon dip to $19.29. Rumors were swirling this morning that the company had hired a firm to "explore strategic alternatives". It looks like support at $20.00 has been a lot stronger than expected. We want to go ahead and exit early now.

NOTE: I have corrected the entry price on our Oct. $20 put.

Aggressive traders may want to keep some sort of bearish position open. I might consider an out of the money 2012 January put. Why? The stories circling RIMM and how it will shut down their Playbook tablet PC business sound true but have yet to be confirmed. When that news hits it could send the stock a lot lower.

Earlier Comments:
I would keep our position size small. RIMM is likely to see some volatility.

- Small Positions -

closed Position: short RIMM stock @ $20.22, exit $21.00 (-3.8%)

- or -

OCT $20 PUT (RIMM1122V20) Entry $1.30, exit $1.04 (-20%)

10/04 exit early

chart:

Entry on October 03 at $20.22
Earnings Date 12/15/11 (unconfirmed)
Average Daily Volume = 27.7 million
Listed on October 01, 2011


Xilinx Inc. - XLNX - close: 28.05 change: +0.99

Stop Loss: 29.55
Target(s): 25.20, 23.00
Current Gain/Loss: -3.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04 update: The intraday action in XLNX today looks too bullish. While you can definitely argue that the stock should find resistance in the $28-29 zone we don't want to wait around. The larger trend is still down with the bear flag pattern but XLNX could bounce back toward $30 and its 50-dma before rolling over again.

We're suggesting an early exit now.

Earlier Comments:
FYI: The Point & Figure chart for XLNX is bearish with a $20 target. The bear-flag pattern on the daily chart would suggest a downside target near $23.

closed Position: short XLNX stock @ $27.22, exit 28.05 (-3.0%)

- or -

OCT $27 PUT (XLNX1122V27) Entry $0.94, exit $0.66 (-29.7%)

10/04 exit early

chart:

Entry on October 03 at $27.22
Earnings Date 10/19/11 (confirmed)
Average Daily Volume = 5.1 million
Listed on October 01, 2011