Editor's Note:
The stock market rally that began last week seems to be slowing. The major indices tagged resistance and reversed but still posted gains for the day. I would be very cautious on bullish positions. The stock market is overbought and due for some profit taking.

-James

Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 25.88 change: +0.04

Stop Loss: 24.75
Target(s): 29.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
10/12 update: Our ADBE trade is not open yet. The stock rallied to $26.28 intraday. If you look at an intraday chart it almost looks like a very short-term bearish double top under resistance near $26.30. Currently our plan is to open bullish positions if ADBE hits $26.35. More conservative traders may want to move that trigger higher to $26.55 instead.

Trigger @ 26.35

Suggested Position: buy ADBE @ 26.36

- or -

buy the NOV $27 call (ADBE1119K27)

Entry on October xx at $ xx.xx
Earnings Date 12/15/11 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on October 11, 2011


Autodesk, Inc. - ADSK - close: 31.02 change: +1.01

Stop Loss: 28.25
Target(s): 34.50
Current Gain/Loss: +2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/12 update: Our new ADSK is now open. Shares gapped higher at $30.31 and quickly hit our trigger to launch positions at $30.35. ADSK continued to rally almost all day long and closed up +3.3%. If you missed the entry point you may want to wait for a new dip near $30 before considering positions.

The plan was to keep our position size small since ADSK is short-term overbought here.

*Small Positions*

current Position: Long ADSK stock @ 30.35

- or -

Long NOV $32 call (ADSK1119K32) Entry $1.60

Entry on October 12 at $30.35
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on October 11, 2011


Bristol-Myers Squibb - BMY - close: 32.82 change: -0.14

Stop Loss: 30.75
Target(s): 33.50
Current Gain/Loss: +5.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/12 update: BMY erased yesterday's minor gain with a little sideways consolidation today. I do not see any changes from my prior comments. The trend is up but BMY looks short-term overbought. Cautious investors may want take profits now. I am expecting a pull back soon, probably toward the $32.00-31.50 area. Our final target is $33.50.

current Position: Long BMY stock @ $31.15

- or -

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

10/10 new stop loss @ 30.95
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: 55.90 change: +0.65

Stop Loss: 50.50
Target(s): 60.00
Current Gain/Loss: +1.1%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
10/12 update: Most of the precious metals were up today. The DGP added +1.1% and closed on technical resistance at its 100-dma. Readers could launch new positions here but if you do I would consider a much tighter stop loss.

- Small Positions -

current Position: long the DGP @ $55.26

10/08 adjusted exit target to $60.00
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


Copper ETF - JJC - close: 43.51 change: +0.91

Stop Loss: see below
Target(s): 47.50
Current Gain/Loss: + 0.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/12 update: Copper outperformed gold today and the JJC gapped higher near short-term resistance at $44. Shares of this ETF drifted sideways in a very narrow range before fading lower into the close. Shares added +2.1% for the session and tested its 20-dma. I am not suggesting new positions tonight.

current Position: Long JJC (ETF) @ $43.25

- or -

Long NOV $45 call (JJC1119K45) Entry $1.90

10/10 JJC hit our upside trigger at $43.25, stop 41.25

Entry on October 10 at $43.25
Earnings Date --/--/--
Average Daily Volume = 461 thousand
Listed on October 08, 2011


Lowe's Companies - LOW - close: 20.62 change: +0.09

Stop Loss: 19.75
Target(s): 22.85
Current Gain/Loss: - 0.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/12 update: LOW managed to eke out a small gain today after traders bought the dip near $20.50 again. I am cautious on stocks with the major indices failing near resistance. No new positions in LOW at the moment. More conservative traders might want to consider a tighter stop loss.

Earlier Comments:
The $22.00 level might be resistance but I'm listing our exit target at $22.85. I would keep our position size small.

current Position: Long LOW stock @ 20.75

- or -

Long NOV $21 call (LOW1119K21) Entry $0.85

Entry on October 10 at $20.75
Earnings Date 11/14/11 (unconfirmed)
Average Daily Volume = 16.7 million
Listed on October 08, 2011


EnPro Industries - NPO - close: 31.55 change: +0.82

Stop Loss: 29.80
Target(s): 34.50
Current Gain/Loss: + 2.2%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
10/12 update: NPO is finally seeing some movement. The stock has been churning sideways in the $30-31 zone. Today it broke higher and closed up +2.6%. Today's move in NPO looks like a new entry point but I am worried about the major indices that stalled at resistance.

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

(Small Positions)

current Position: Long NPO stock @ $30.87

- or -

Long Oct $30 call (NPO1122J30) Entry $1.75

10/10 new stop loss at $29.80

Entry on October 07 at $30.87
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 282 thousand
Listed on October 06, 2011


BEARISH Play Updates

None. We do not have any active bearish trades.