Editor's Note:
Copper, silver, and gold all underperformed on Wednesday. Our bullish JJC trade has been stopped out. Plus, our new SBUX trade has been stopped out with the stock's quick reversal lower.

-James

Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 26.02 change: -0.74

Stop Loss: 25.35
Target(s): 29.50
Current Gain/Loss: -4.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/19 update: ADBE has been unable to build on any bounce from support near $26.00. After today's -2.7% drop the stock is once again testing support. Technically this looks like an entry point but I would wait to see if both ADBE and the S&P 500 index both open positive tomorrow before considering bullish positions.

Current Position: Long ADBE @ 27.13

- or -

Long NOV $27 call (ADBE1119K27) Entry $1.27

10/18 new stop loss @ 25.35, today's bounce looks like an entry
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: 30.96 change: -0.93

Stop Loss: 29.75
Target(s): 34.00
Current Gain/Loss: +2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/19 update: ADSK continues to see profit taking. The stock gave up almost 3%. I don't see any changes from my prior comments. I'd prefer to buy a dip closer to $30.00 if you're looking for an entry point.

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: 32.35 change: -0.21

Stop Loss: 31.75
Target(s): 33.50
Current Gain/Loss: +3.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/19 update: Hmm... the tone of trading in BMY might be changing. The stock is still showing relative strength. One firm slapped a "sell" rating on BMY this morning but the stock held up fine. What concerns me is that BMY has been trading under its simple 10-dma the last few sessions and has been unable to breakout past this very short-term technical resistance. The stock remains inside its narrow bullish channel but internal strength seems to be fading. 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


Lowe's Companies - LOW - close: 21.04 change: -0.45

Stop Loss: 19.75
Target(s): 22.85
Current Gain/Loss: + 1.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/19 update: LOW gave into profit taking and slipped -2% on Wednesday. Shares are now back under their 100-dma. We can look for short-term support near the 10-dma or the $20.50 level. 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: 31.46 change: -0.43

Stop Loss: 29.80
Target(s): 34.00
Current Gain/Loss: + 1.9%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
10/19 update: NPO struggled with short-term resistance near $32.20 midday and eventually faded to a -1.3% decline. If the market retreats then thee is a good chance that NPO could retest the $30 level. It was our plan to exit our October $30 calls at the close today. These closed with a bid of $1.25. I am not suggesting new positions on NPO 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 -

Oct $30 call (NPO1122J30) Entry $1.75, exit $1.25 (-28.5%)

10/19 exit Oct. $30 calls, bid @ $1.25 (-28.5%)
10/18 plan to exit Oct. calls tomorrow at the close
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: 38.71 change: -0.45

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

Comments:
10/19 update: PAY retreated from resistance near $40 this morning. The stock is currently stuck in the middle of its $38-40 trading range. Nimble traders might want to consider buying a dip near $38.00. 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


Rackspace Hosting - RAX - close: 38.09 change: -0.86

Stop Loss: 37.25
Target(s): 43.25
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
10/19 update: It was not surprising to see the technology sector show some weakness this morning as investors reacted to AAPL's disappointing earnings report last night. Yet I was expecting any weakness to be short lived. Instead the tech sector was an underperformer today. RAX fell -2.2%. Our trade was not opened this morning.

We are going to temporarily remove our entry point plans on RAX. I am suggesting we just sit back and watch how the stock performs tomorrow and we'll re-evaluate Thursday night any new entry point or drop it from the newsletter.

Entry Point Removed. Re-evaluate Tomorrow Night.

10/19/11 Temporarily remove entry point plans, no trade
10/19/11 trade not opened.

Entry on October xx at $ xx.xx
Earnings Date 11/07/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on October 18, 2011


Financial Sector ETF - XLF - close: 12.61 change: -0.18

Stop Loss: 11.95
Target(s): 14.45
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
10/19 update: Our trade on the XLF is not open yet. Shares of this financial ETF opened higher by a penny but the S&P 500 did not. The XLF reversed at $13.00 and closed near its lows for the session. I'll repeat my comments that more conservative traders may want to wait for a breakout or a close over $13.00 as their bullish entry point. We are going to try again. The plan is to open bullish trades if both the XLF and the S&P500 index can open positive tomorrow morning. We will adjust our stop loss to $11.95.

*See Entry Details Above*

Suggested Position: buy XLF @ the open

- or -

buy the NOV $13 call (XLF1119K13)

11/19 try again. New stop loss @ 11.95

Entry on October xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 125 million
Listed on October 18, 2011


BEARISH Play Updates

None. We do not have any active bearish trades.


CLOSED BULLISH PLAYS

Copper ETF - JJC - close: 41.60 change: -2.10

Stop Loss: 41.75
Target(s): 47.50
Current Gain/Loss: - 3.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/19 update: Metals were down at the start of trading today and they slipped throughout the session. The JJC closed on its lows with a -4.8% drop. Our stop loss was hit at $41.75. Worries over a slowing economy both here and abroad could be to blame for today's weakness. Nimble traders may want to consider buying a dip near $40.00 or the October lows near $39.00 and use a tight stop loss.

current Position: Long JJC (ETF) @ $43.25, exit $41.75 (-3.4%)

- or -

NOV $45 call (JJC1119K45) Entry $1.90, Exit $0.65*(-65.7%)

10/19 stopped out at $41.75
*option did not trade while JJC was near our stop. This is an estimate
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


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

Stop Loss: 40.75
Target(s): 46.00
Current Gain/Loss: -3.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/19 update: There was no follow through on SBUX's breakout to new highs yesterday. Instead the stock gapped open lower at $42.00 and then plunged to $40.72. Our stop loss was hit at $40.75. You could argue our stop might have been too tight but we wanted to limit our risk.

(Small positions)

closed Position: Long SBUX stock @ $42.26, exit $40.75 (-3.5%)

- or -

NOV $44 call (SBUX1119K44) Entry $1.10, exit $0.63 (-42.7%)

10/19 stopped out at $40.75
10/18 new stop loss @ 40.75
10/18 Triggered at $42.26
10/17 Trade not open. We are temporarily removing our entry point strategy to see how shares fare tomorrow.

chart:

Entry on October 18 at $42.26
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 8.5 million
Listed on October 13, 2011