Editor's Note:
The oversold bounce continued into Wednesday with stocks up in a widespread rally. We saw three of our bearish plays hit stops today.

-James

Current Portfolio:


BULLISH Play Updates

Bristol-Myers Squibb - BMY - close: 32.73 change: +0.64

Stop Loss: 30.75
Target(s): 33.50
Current Gain/Loss: +5.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/05 update: Today was a big day for BMY. Shares are starting to see some momentum to the upside and the stock added +1.99% in today's session. Furthermore BMY has broken out past its 2007 peak and closed at new nine-year highs. our exit target is $33.50. If you have a longer-term time frame you could aim higher.

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


Broadcom Corp. - BRCM - close: 34.82 change: +1.51

Stop Loss: 31.75
Target(s): 36.25
Current Gain/Loss: + 4.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/05 update: BRCM delivered a strong performance with a +4.5% gain and a close above several key moving averages in the $34.00 area. I would not chase it here if you missed the entry point this morning. Conservative traders may want to exit near $35.75 (anywhere underneath possible resistance at $36.00). I see stronger resistance in the $36.50-37.00 zone so our exit target is $36.25.

Current Position: Long BRCM stock @ $33.24

- or -

Long OCT $34 call (BRCM1122J34) Entry $0.90

Entry on October 05 at $33.24
Earnings Date 10/25/11 (unconfirmed)
Average Daily Volume = 9.3 million
Listed on October 04, 2011


PowerShares Gold Double Long - DGP - close: 53.41 change: +1.17

Stop Loss: 50.50
Target(s): 59.00, 64.00
Current Gain/Loss: -3.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
10/05 update: Commodities bounced today and the DGP added +2.2%. This ETF is still trading under short-term resistance at the 10-dma. I would hesitate to launch new positions here.

- 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


UnitedHealth Group - UNH - close: 44.45 change: +1.67

Stop Loss: 41.25
Target(s): 46.50
Current Gain/Loss: +2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/05 update: Our new UNH play is off to a strong start. Shares were actually a little too strong this morning and UNHY gapped open higher at $43.54. UNH closed up +3.9% on the session, outperforming the major indices. Our target is $46.50. More conservative traders may want to exit near $46 and its 200-dma instead.

current Position: Long UNH stock @ $43.54

- or -

Long OCT $43 call (UNH1122J43) Entry $1.88

Entry on October 05 at $43.54
Earnings Date 10/18/11 (confirmed)
Average Daily Volume = 8.9 million
Listed on October 04, 2011


BEARISH Play Updates

Avon Products Inc. - AVP - close: 19.67 change: +0.41

Stop Loss: 20.25
Target(s): 17.75
Current Gain/Loss: +2.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/05 update: The oversold bounce in AVP continues and shares have rallied to their simple 10-dma, which is the first level of technical resistance. Wait for a failed rally here or near $20.00 before considering new bearish positions.

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


Phillip Morris Intl. - PM - close: 63.29 change: +0.49

Stop Loss: 64.25
Target(s): 60.25, 57.50
Current Gain/Loss: +1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/05 update: The bounce in PM seems to be slowing. Shares rallied to their 10-dma and stalled. PM gained +0.7% versus +1.7% in the S&P 500 index. A failed rally near $64.00 can be used as a new bearish entry point.

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


CLOSED BEARISH PLAYS

CSX Corp. - CSX - close: 19.63 change: +0.42

Stop Loss: 19.55
Target(s): 18.10, 16.25
Current Gain/Loss: + 0.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/05 update: Transports and railroad stocks were outperformers to the upside today. CSX gapped higher at $19.33 and posted a +2.1% gain. The larger trend is still bearish with lower lows and lower highs but we lowered our stop last night to reduce our risk. CSX hit our stop loss at $19.55 today. I would keep this stock on your watch list.

closed Position: short CSX stock @ $19.65, exit $19.55 (+0.5%)

- or -

OCT $20 PUT (CSX1122V20) Entry $1.20, final exit $1.10 (-8.3%)

10/05 stopped out at $19.55
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: 34.99 change: +0.88

Stop Loss: 35.15
Target(s): 30.50
Current Gain/Loss: -6.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/05 update: The bounce in L was just a little too strong today. Shares hit an intraday high of $35.16. Our stop loss was at $35.15. The trade is closed. The stock's close above its simple 10-dma is short-term bullish. The next level of resistance is probably $36.00 or its 50-dma. The larger trend is still down. We can keep this stock on our watch list for a failure at resistance.

closed Position: short L stock @ $33.06, exit $35.15 (-6.3%)

- or -

OCT $30 PUT (L1122V30) Entry $0.50, Exit $0.25 (-50%)

10/05 stopped out at $35.15

chart:

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


Vulcan Materials Co. - VMC - close: 28.41 change: +0.99

Stop Loss: 28.50
Target(s): 25.25, 23.00
Current Gain/Loss: -3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/05 update: The short covering in VMC continued this morning and the stock spiked to $28.75. Our stop loss was hit at $28.50. This happens to be a move to the simple 10-dma. The larger trend for VMC is still down but these bear-market rallies can be sharp. A new failed rally near $30.00 could be used as another bearish entry point.

Our plan was to use small positions to limit our risk.

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 -

closed Position: Short VMC stock @ $27.58, 28.50 (-3.3%)

- or -

OCT $26 PUT (VMC1122V26) Entry $1.50 exit $0.65 (-56.6%)

10/05 stopped out at $28.50
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