Editor's Note:
The U.S. market experienced some overdue profit taking on Monday. We saw KBH and NTAP hit our stop losses today. WAG, a bearish play, hit our stop on news regarding its dispute with ESRX.

I am temporarily removing our entry point plans on SBUX until we see how the market fares tomorrow.

Investors should note that IBM's disappointing earnings results tonight could send stocks lower tomorrow morning. Readers will want to double check their stop loss placement.

-James

Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 26.24 change: -0.57

Stop Loss: 24.75
Target(s): 29.50
Current Gain/Loss: -3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/17 update: Profit taking across the market today pulled ADBE back toward prior resistance and what should be support near $26.00. Normally I would be tempted to launch new bullish positions here. However, I am concerned that reaction to IBM's earnings out tonight could pull stocks lower again tomorrow. I would wait for a bounce in ADBE before considering new positions.

Current Position: Long ADBE @ 27.13

- or -

Long NOV $27 call (ADBE1119K27) Entry $1.27

10/14 ADBE gapped higher at $27.13

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: 31.25 change: -1.17

Stop Loss: 29.75
Target(s): 34.00
Current Gain/Loss: +2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/17 update: ADSK hit some long overdue profit taking today with a -3.6% pull back. Volume was light on the session, which is a good sign. I do not see any changes from my weekend comments. ADSK could easily dip back toward the $30.00 level, which should be support. Wait for a dip or a bounce near $30 before considering new 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

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

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: +0.00

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

Comments:
10/17 update: BMY closed unchanged on the session. Traders bought the dip near $32.00 this morning and BMY spent most of the day drifting sideways. Per the weekend update our plan was to take some profits (sell half) at the open this morning in our 2012 Jan. $30 calls, which opened down at $2.90 (+28.3%). 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

10/17 2012 Jan. $30 call open (bid) @ 2.90 (+28.3%)
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

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: 55.51 change: -0.58

Stop Loss: 53.45
Target(s): 60.00
Current Gain/Loss: +0.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
10/17 update: Monday was a quiet day for precious metals. The DGP dipped toward $55 and its 10-dma before settling with a -1% pull back. I am growing cautious here. More conservative traders may want to exit early.

- 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)

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: 43.30 change: -1.06

Stop Loss: 41.75
Target(s): 47.50
Current Gain/Loss: + 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/17 update: Monday's -2.3% drop in the JJC erased most of our unrealized gains. Readers might want to consider new positions on a dip or a bounce near the 10-dma or the $42.00 level.

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

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


Lowe's Companies - LOW - close: 20.89 change: +0.10

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

Comments:
10/17 update: LOW made headlines this morning with news it was closing 20 underperforming stores across 15 states. Ten of those stores closed as of yesterday (Oct. 16th). The stock saw an initial move lower, then a spike higher to its 100-dma before paring its gains. The stock actually closed up on the day once you back out the 14-cent dividend. The ex-dividend date was today.

I am not suggesting new positions at this time.

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: 31.35 change: -0.81

Stop Loss: 29.80
Target(s): 34.00
Current Gain/Loss: + 1.5%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
10/17 update: NPO underperformed with a -2.5% decline. This is really bad news for our October $30 call. More conservative traders holding these calls may want to exit immediately. There is a good chance we'll see NPO test $31.00 or $30.00 this week. No new positions at this 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

10/17 October options are running out of time. Consider an early exit
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

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


VeriFone Systems - PAY - close: 38.35 change: -1.25

Stop Loss: 37.95
Target(s): 44.85
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
10/17 update: PAY followed the market lower and closed with a -3.1% loss. Shares are trading near short-term support at $38.00. Nimble traders could buy a bounce from this level. Our plan is to open bullish positions at $40.50.

Earlier Comments:
We will aim for $44.85 as our exit target. More conservative traders may want to exit near the 200-dma. FYI: The Point & Figure chart for PAY is bullish with a $59 target.

Trigger @ 40.50

Suggested Position: buy PAY stock @ $40.50

- or -

buy the NOV $42 call (PAY1119K42)

Entry on October xx at $ xx.xx
Earnings Date 12/01/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on October 13, 2011


Starbucks Corp. - SBUX - close: 41.16 change: -1.06

Stop Loss: 40.80
Target(s): 46.00
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/17 update: Our trade in SBUX is not open yet. Both the stock and the S&P 500 index opened lower today. Shares essentially erased Friday's gain. Readers might want to consider buying a dip near $40.00 although a normal 38.2% Fibonacci retracement of the October bounce would be a dip near $39.50 instead. Please note that we are going to temporarily remove our entry point plans. We'll wait to see how SBUX fares tomorrow and re-evaluate. The exception would be an unexpected surge to a new high. If that happens then we'll open small bullish positions at $42.26. FYI: Friday's high was $42.22.

Earlier Comments:
We'll tentatively set our exit target at $46.00 but we'll need to be nimble. I'm suggesting a stop loss at $40.80. FYI: The Point & Figure chart for SBUX is bullish with a $57 target.

*See Entry Point Details Above* (Small positions)

No Entry Point Tomorrow, unless SBUX hits a new high.

10/17 Trade not open. We are temporarily removing our entry point strategy to see how shares fare tomorrow.

Entry on October xx at $ xx.xx
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 8.5 million
Listed on October 13, 2011


SuccessFactors, Inc. - SFSF - close: 26.09 change: -0.13

Stop Loss: 24.90
Target(s): 29.50
Current Gain/Loss: +1.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/17 update: Surprise! SFSF was not supposed to report earnings until Oct. 26th. Yet after the closing bell tonight the company pre-announced better than expected results. SFSF expects Q3 revenues in the $93-95 million range compared to prior estimates in the $83-84 million zone. SFSF is expected to post a profit versus prior guidance of breakeven. The stock is trading near $28.00 in after hours markets.

I am not suggesting new positions at this time. We will raise our stop loss to $24.90. Conservative traders may want to exit early at the open (if it's near $28.00). Our final target is still $29.50.

FYI: I cautioned readers that $28.00 looked like potential resistance.

current Position: Long SFSF stock @ $25.83

- or -

Long NOV $27 call (SFSF1119K27) Entry $1.25

10/17 new stop loss @ 24.90
10/17 After the closing bell SFSF pre-announces stronger earnings results.
10/15 new stop loss @ 24.45

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

None. We do not have any active bearish trades.


CLOSED BULLISH PLAYS

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

Stop Loss: 6.25
Target(s): 8.75
Current Gain/Loss: -9.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/17 update: Market profit taking on Monday proved to be too much for shares of KBH. The stock underperformed with a -5.8% pull back. Shares didn't hit our stop loss at $6.25 until the last few minutes of trading. Murphy's law would suggest the stock will rally higher tomorrow.

I would keep KBH on your watch list. The stock could still see a short squeeze.

Earlier Comments:
This is an aggressive trade. We want to keep our position size small to limit our risk.

(small positions)

closed Position: Long KBH stock @ $6.91, exit $6.25 (-9.5%)

- or -

NOV $7.00 call (KBH1119K7) Entry $0.57, exit $0.25 (-56.1%)

- or -

2012 JAN $7.50 call (KBH1221A7.5) Entry $0.69, exit $0.45 (-34.7%)

10/17 stopped out at $6.25
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


NetApp, Inc. - NTAP - close: 38.05 change: -1.18

Stop Loss: 37.95
Target(s): 44.00
Current Gain/Loss: -4.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/17 update: Our NTAP trade has been stopped out. Shares underperformed today and closed down -3.0%. The stock dipped to technical support near its 50-dma and hit $37.59 at its lows. Our stop was hit at $37.95.

I would keep NTAP on your watch list. Tech stocks could see another decline tomorrow as investors react to IBM's earnings. Look for NTAP to fall toward $37.00 or its 30-dma near $36.50. A drop to either level could be a new bullish entry point.

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

(small positions)

closed Position: Long NTAP stock @ 39.55, exit $37.95 (-4.0%)

- or -

NOV $40 call (NTAP1119K40) Entry $2.10, exit $1.38 (-34.2%)

10/17 stopped out at $37.95

chart:

Entry on October 14 at $39.55
Earnings Date 11/16/11 (unconfirmed)
Average Daily Volume = 7.4 million
Listed on October 12, 2011


CLOSED BEARISH PLAYS

Walgreen Co. - WAG - close: 33.89 change: +0.89

Stop Loss: 34.26
Target(s): 30.50
Current Gain/Loss: -3.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/17 update: The stock market is full of unexpected events. WAG has been in a dispute with Express Scripts, which is WAG's pharmacy benefits manager. Today investors were surprised by news that WAG is negotiating with ESRX a price guarantee to ESRX for all Department of Defense consumers that get their medications at WAG. Wall Street saw this as a positive development and shares of WAG spiked higher at the open. Shares hit $34.50 intraday and our stop loss was hit at $34.26.

closed Position: short WAG stock @ $33.11, exit $34.26 (-3.4%)

- or -

Oct. $32 put (WAG1122V32) Entry $0.19, Exit $0.03 (-84.2%)

- or -

NOV $31 put (WAG1119W31) Entry $0.59, Exit $0.33 (-44.0%)

10/17 stopped out at $34.26

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