Editor's Note:
Most of our candidates closed near their highs for the week. Unfortunately the U.S. stock market looks short-term overbought and could be poised for some profit taking soon. Readers need to be cautious on launching new positions and may want to reconsider their stop loss placement on current trades.

-James

Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 26.81 change: +1.01

Stop Loss: 24.75
Target(s): 29.50
Current Gain/Loss: -1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/15 update: Shares of ADBE were surging on Friday thanks to positive comments about the company's position for the next generation of web programming language (HTML5). There were multiple analysts offering positive comments on the stock. ADBE gapped open higher at $27.13. We had at trigger to open bullish positions at $26.35 so the trade is now open. Technically it still looks like a buy right now but you might want to wait for a dip back toward $26.00, which could happen in the next day or two.

Current Position: Long ADBE @ 27.13

- or -

Long NOV $27 call (ADBE1119K27) Entry $1.27

10/14 ADBE gapped higher at $27.13

chart:

Entry on October 14 at $27.13
Earnings Date 12/15/11 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on October 11, 2011


Autodesk, Inc. - ADSK - close: 32.42 change: +1.43

Stop Loss: 29.75
Target(s): 34.00
Current Gain/Loss: +6.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/15 update: ADSK continues to race higher most likely due to short covering. Bloomberg published a list of big short interest changes. ADSK saw short interest rise +26% from 5.6 million to 7.1 million shares from September 15th to the 30th.

Cautious traders may want to take profits now or take profits when ADSK hits the 100-dma at $32.80. We are raising our stop loss to $29.75. I'm not suggesting new positions at this time. If you're looking for an entry point I'd wait for a dip back toward the $30 area, which should be new support. Please note I'm also adjusting our exit target to $34.00.

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

10/15 new stop loss @ 29.75, adjusted target to $34.00

chart:

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: 32.44 change: -0.32

Stop Loss: 31.75
Target(s): 33.50
Current Gain/Loss: +4.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/15 update: Profit taking in BMY is normal but it is still a little surprising to see the stock underperform on Friday. We are raising our stop loss to $31.75. Plus, I am suggesting we sell at least half of our call position on Monday at the opening bell. The bid on the 2012 Jan. $30 call is currently at $3.10 (+37%). I am not suggesting new positions at this time.

Earlier Comments:
Our final target is $33.50.

current Position: Long BMY stock @ $31.15

- or -

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

10/15 new stop loss @ 31.75
10/15 Plan to take profits on the call, sell half on Monday
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

chart:

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: 56.09 change: +0.80

Stop Loss: 53.45
Target(s): 60.00
Current Gain/Loss: +1.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
10/15 update: The U.S. dollar has seen a significant drop in the last two weeks. Normally a falling dollar would be bullish for precious metals. Yet gold has not rallied that much. It's been more of a sideways consolidation with a slightly bullish bias. I am growing cautious here. More conservative traders may want to exit early. We are raising our stop loss to $53.45.

FYI: The long-term trend for gold (the GLD and DGP) is up. If you like the DGP then consider waiting for a new dip near $50 and the 200-dma before considering new bullish positions.

- Small Positions -

current Position: long the DGP @ $55.26

10/15 new stop loss @ 53.45
10/13 Not making any progress. Cautious traders may want to exit early now with DGP near breakeven
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)

chart:

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: 44.36 change: +1.30

Stop Loss: 41.75
Target(s): 47.50
Current Gain/Loss: + 2.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/15 update: Copper outperformed both gold and silver on Friday. The JJC rallied +3.0%. Shares closed at new two-week highs. We are raising our stop loss to $41.75. I'm not suggesting new positions at this time. Nimble traders might consider buying a dip near the simple 10-dma.

current Position: Long JJC (ETF) @ $43.25

- or -

Long NOV $45 call (JJC1119K45) Entry $1.90

10/15 new stop loss at $41.75
10/10 JJC hit our upside trigger at $43.25, stop 41.25

chart:

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


KB Home - KBH - close: 6.68 change: -0.14

Stop Loss: 6.25
Target(s): 8.75
Current Gain/Loss: -3.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/15 update: Hmmm... KBH's performance on Friday was disappointing. The stock underperformed both its peers in the housing sector and the market's major indices. The stock did open higher and our trade was opened on Friday morning at $6.91. Unfortunately the rally failed near $7.00. Even more unfortunate Friday's session looks like a bearish engulfing reversal candlestick pattern.

At this point I would prefer to see a bounce from $6.50 or near the $6.30 levels before considering new positions. More conservative traders could wait for a close above $7.00 before considering positions.

Earlier Comments:
KBH could easily see a short squeeze. The most recent data listed short interest at 51% of the 65-million share float. This is an aggressive trade. We want to keep our position size small to limit our risk.

(small positions)

current Position: Long KBH stock @ $6.91

- or -

Long NOV $7.00 call (KBH1119K7) Entry $0.57

- or -

Long 2012 JAN $7.50 call (KBH1221A7.5) Entry $0.69

10/14 trade opened with gap higher at $6.91

chart:

Entry on October 14 at $6.91
Earnings Date 01/09/12 (unconfirmed)
Average Daily Volume = 4.4 million
Listed on October 13, 2011


Lowe's Companies - LOW - close: 20.93 change: +0.48

Stop Loss: 19.75
Target(s): 22.85
Current Gain/Loss: + 0.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/15 update: LOW has spent a week consolidating sideways under the $21.00 level and digesting its bullish breakout from the prior trading range. If the market can stay positive then LOW looks poised to make a run at the next level of resistance near $22.00.

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

chart:

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: 32.16 change: +0.42

Stop Loss: 29.80
Target(s): 34.00
Current Gain/Loss: + 4.1%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
10/15 update: NPO is up five days in a row and up 8 out of the last 9 sessions. While the trend is up I would not chase it here. Look for a dip back toward $31 before considering new positions. Please note that I am adjusting our exit strategy. For the stock position we are moving the target down to $34.00. For the October call position we are moving our exit target down to $33.00 but we will likely close it in the next couple of days because October options are running out of time.

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

10/15 adjusted target for stock to $34.00
10/15 adjusted target for option to $33.00
10/10 new stop loss at $29.80

chart:

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


NetApp, Inc. - NTAP - close: 39.23 change: +0.58

Stop Loss: 37.95
Target(s): 44.00
Current Gain/Loss: -0.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/15 update: Positive analyst comments on Friday morning helped fuel a rally in NTAP. The stock hit $39.69 intraday. Our trigger to open bullish positions was tagged at $39.55. I would still consider new positions now.

Earlier Comments:
I do consider this an aggressive trade so we will want to keep our position size small.

(small positions)

current Position: Long NTAP stock @ 39.55

- or -

Long NOV $40 call (NTAP1119K40) Entry $2.10

chart:

Entry on October xx at $ xx.xx
Earnings Date 11/16/11 (unconfirmed)
Average Daily Volume = 7.4 million
Listed on October 12, 2011


SuccessFactors, Inc. - SFSF - close: 26.22 change: +0.63

Stop Loss: 24.45
Target(s): 29.50
Current Gain/Loss: +1.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/15 update: Our new play on SFSF is off to a good start. Shares gapped open at $25.83 and settled with a +2.4% gain (versus a +1.8% gain in the NASDAQ). The simple 100-dma could be potential resistance. I would not be surprised to see another dip back toward the $25.00 level after tagging the 100-dma. Please note we are raising our stop loss to $24.45. Our multi-week target is $29.50 but don't be surprised to see some resistance near $28.00.

current Position: Long SFSF stock @ $25.83

- or -

Long NOV $27 call (SFSF1119K27) Entry $1.25

10/15 new stop loss @ 24.45

chart:

Entry on October 14 at $25.83
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on October 13, 2011


BEARISH Play Updates

Walgreen Co. - WAG - close: 33.00 change: +0.04

Stop Loss: 34.26
Target(s): 30.50
Current Gain/Loss: +0.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/15 update: WAG saw a little volatility on Friday morning but shares essentially churned sideways. The stock definitely underperformed the broader market. I would still consider new bearish positions now. I would not be surprised to see a bounce near $32.00. Our target is $30.50.

NOTE: October options only have five trading days left.

current Position: short WAG stock @ $33.11

- or -

Long Oct. $32 put (WAG1122V32) Entry $0.19

- or -

Long NOV $31 put (WAG1119W31) Entry $0.59

chart:

Entry on October 13 at $33.11
Earnings Date 12/21/11 (unconfirmed)
Average Daily Volume = 8.6 million
Listed on October 12, 2011