Editor's Note:
The oversold bounce in stocks continues for a third session. Many stocks are up more than +10% off their Tuesday lows. The rebound has been very impressive but will the market be able to hold these gains?

We had both of our bearish plays get stopped out today.

-James

Current Portfolio:


BULLISH Play Updates

Bristol-Myers Squibb - BMY - close: 32.45 change: +0.05

Stop Loss: 30.75
Target(s): 33.50
Current Gain/Loss: +4.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/06 update: No, it's not your imagination. BMY closed lower than it did yesterday but it still posted a gain. The stock traded ex-dividend today. The company paid a 33-cent dividend. I am little surprised it was today. The company's website says the next dividend is payable on November 1, 2011 to shareholders of record on October 11, 2011. Guess the website is not up to date. At any rate, BMY spent the day consolidating sideways after yesterday's move to new multi-year highs.

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: 35.35 change: +0.53

Stop Loss: 31.75
Target(s): 35.90
Current Gain/Loss: + 6.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/06 update: BRCM continues to creep higher. Shares added +1.5%. We are going to take a more conservative approach to our exit target and move it down to $35.90. More aggressive traders can aim higher.

The call option is up more than +100%, you may want to take profits now!

Current Position: Long BRCM stock @ $33.24

- or -

Long OCT $34 call (BRCM1122J34) Entry $0.90

10/06 adjust target to $35.90

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: 54.19 change: +0.78

Stop Loss: 50.50
Target(s): 59.00, 64.00
Current Gain/Loss: -1.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
10/06 update: Commodities continued to rally today but the action in gold was pretty mild. The DGP only rose +1.4%. Shares remain under resistance at $55 and its 100-dma.

- 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: 44.94 change: +0.49

Stop Loss: 41.25
Target(s): 46.50
Current Gain/Loss: +3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/06 update: Traders bought the dip near $44.00 this morning but they were unable to push UNH through potential round-number resistance at $45.00. I am not suggesting new positions at this time.

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

None. No bearish plays currently.


CLOSED BEARISH PLAYS

Avon Products Inc. - AVP - close: 20.42 change: +0.75

Stop Loss: 20.25
Target(s): 17.75
Current Gain/Loss: -1.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/06 update: The short squeeze is leaving no stone unturned and AVP outperformed today. The stock surged past resistance at $20.00 and closed up +3.8%. Our stop loss was hit at $20.25.

closed Position: short the stock @ $19.96, exit 20.25 (-1.4%)

- or -

OCT $20 PUT (AVP1122V20) Entry $0.79, exit $0.50 (-36.7%)

10/06 stopped out at $20.25
10/04 exit target at $17.75
10/01 new stop loss @ 20.25

chart:

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: 64.58 change: +1.29

Stop Loss: 64.25
Target(s): 60.25, 57.50
Current Gain/Loss: -0.06%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/06 update: The oversold bounce in PM continues and shares broke out past their 10-dma and past the $64.00 level. Our stop loss was hit at $64.25. There is still potential resistance at the simple 200-dma. Readers may want to keep PM on their watch list for a failed rally and a new entry point for bearish positions.

closed Position: short PM stock @ 64.21, exit $64.25 (-0.06%)

- or -

Long NOV $60 PUT (PM1119W60) Entry $1.60, exit $1.20 (-25.0%)

10/06 stopped out at $64.25
10/01 new stop loss at $64.25

chart:

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