Editor's Note:
EnPro Industries hit our exit target today. The stock market delivered another widespread rally.

Our new trades on SPLS and UWM have been triggered. MS was opened as well although shares of MS did not perform very well.

-James

Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 28.20 change: +0.90

Stop Loss: 25.45
Target(s): 29.50
Current Gain/Loss: +3.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/24 update: ADBE continues to perform well. Shares added another +3.2% and rallied past potential resistance at the 100-dma and the $28.00 level. ADBE is starting to look short-term overbought here. More conservative traders may want to exit near the exponential 200-dma near $28.85. I am not suggesting new positions at this time.

Current Position: Long ADBE @ 27.13

- or -

Long NOV $27 call (ADBE1119K27) Entry $1.27

10/20 new stop loss @ 25.45
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: 33.05 change: +1.27

Stop Loss: 30.45
Target(s): 33.80
Current Gain/Loss: +8.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/24 update: ADSK was another strong performer. The stock rallied +3.99%. ADSK seemed to run out of steam halfway through the day and just consolidated sideways near $33 the rest of the session.

Please note our new stop loss at $30.45. More conservative traders may want to raise their stop even higher. Please note that I am adjusting our exit target down to $33.80.

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

10/24 new stop loss @ 30.45, adjust target to $33.80
10/20 ADSK provided another entry point on the dip to $30.00
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: 32.53 change: -0.03

Stop Loss: 31.95
Target(s): 33.50
Current Gain/Loss: +4.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/24 update: Uh-oh! BMY did not participate in the market's rally today. That's a warning signal. More conservative traders may want to exit immediately. We are raising our stop loss to $31.95. I am not suggesting new positions at this time.

Earlier Comments:
We will plan on exiting this trade on Oct. 26th at the closing bell to avoid holding over the earnings announcement. That's assuming shares do not hit our exit target at $33.50 first. Our stop loss remains at $31.75.

current Position: Long BMY stock @ $31.15

- or -

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

10/24 new stop loss @ 31.95
10/22 plan on exiting October 26th if not sooner
10/17 sold half 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 10/27/11 (confirmed)
Average Daily Volume = 13.6 million
Listed on September 22, 2011


Lowe's Companies - LOW - close: 21.78 change: -0.35

Stop Loss: 20.90
Target(s): 22.85
Current Gain/Loss: + 4.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/24 update: Hmmm.... readers may want to exit now. Today's action in LOW looks like a failed rally at the exponential 200-dma. We should probably expect a dip back toward the simple 10-dma near $21.00. I am not suggesting new positions at this time.

Earlier Comments:
I would keep our position size small.

current Position: Long LOW stock @ 20.75

- or -

Long NOV $21 call (LOW1119K21) Entry $0.85

10/22 new stop loss @ 20.90
10/22 Cautious traders may want to take profits now
LOW +6.6%, Nov. $21 call +81%

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


Morgan Stanley - MS - close: 17.15 change: +0.13

Stop Loss: 15.45
Target(s): 19.75
Current Gain/Loss: - 0.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/24 update: Our MS trade is not off to a very good start. Shares opened higher at $17.30 and then spent the rest of the day consolidating sideways above $17.00. The stock added +0.7% but I would argue that MS did not truly participate in the market's widespread rally. That's a caution signal for us.

Earlier Comments:
Our target is $19.75 but I am concerned the 100-dma might be overhead resistance. FYI: The Point & Figure chart for MS is bullish with a $29 target.

(Small Positions)

Current Position: Long MS stock @ $17.30

- or -

Long NOV $18 call (MS1119K18) Entry $0.72

Entry on October 24 at $17.30
Earnings Date 10/19/11
Average Daily Volume = 42.8 million
Listed on October 22, 2011


VeriFone Systems - PAY - close: 40.13 change: +1.46

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

Comments:
10/24 update: I was almost ready to give up on PAY. Our play is still not open yet but shares performed well today with a +3.7% gain. The stock's close over $40.00 and its exponential 200-dma is bullish. Currently 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


Staples Inc. - SPLS - close: 15.09 change: +0.20

Stop Loss: 14.35
Target(s): 16.75
Current Gain/Loss: - 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/24 update: Our new trade on SPLS is now open. Shares rallied past resistance at $15.00 and hit our trigger at $15.11. I would still consider new positions now with the close above $15.00.

Earlier Comments:
Our target is %16.75. However, that might be a little optimistic. The exponential 200-dma could be resistance. Plus, SPLS has two rivals, OMX and ODP, both reporting earnings this week. Results from these companies could have a big impact on SPLS.

current Position: Long SPLS stock @ 15.11

- or -

Long NOV $16 call (SPLS1119K16) Entry $0.30

10/24 trade opened at $15.11 (trigger)

Entry on October 24 at $15.11
Earnings Date 11/15/11 (confirmed)
Average Daily Volume = 9.2 million
Listed on October 22, 2011


Ultra (long) Russell 2000 ETF - UWM - close: 35.03 chg: +2.10

Stop Loss: 29.85
Target(s): 39.00
Current Gain/Loss: +5.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/24 update: Our new play on the ultra-long small cap Russell 2000 ETF is off to a strong start. Shares gapped open higher at $33.24, hit our trigger at $33.25, and then surged to a +6.3% gain for the day. The late August peak near $36.20 could be potential resistance. I'd wait for a pull back before considering new bullish positions. FYI: The Nov. $35 call actually opened lower at $1.70.

(Small Positions)

Suggested Position: Long UWM stock @ 33.25

- or -

Long NOV $35 call (UWM1119K35) Entry $1.70

10/24 triggered @ 33.25

Entry on October 24 at $33.25
Earnings Date --/--/--
Average Daily Volume = 3.9 million
Listed on October 22, 2011


Financial Sector ETF - XLF - close: 13.42 change: +0.29

Stop Loss: 11.95
Target(s): 14.45
Current Gain/Loss: +5.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
10/24 update: Financial stocks continued to rally. The XLF added +2.2%. Yet the rally stalled under the late August peak near $13.50ish. That could be a warning that the rally is tired and stocks are due for a dip. I would wait for a pull back (maybe near $13.00) before considering new positions.

Remember, this sector is currently hostage to the news out of Europe. Trade carefully.

Earlier Comments:
Investors need to be aware that the XLF could see a HUGE move next week as the market reacts to news from the EU summit. That huge move could be up or down. If you are the hedging type then consider buying a put to protect yourself here.

current Position: Long XLF @ $12.71

- or -

Long NOV $13 call (XLF1119K13) $0.42

11/20 trade opened. XLF at $12.71
11/19 try again. New stop loss @ 11.95

Entry on October 20 at $12.71
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

EnPro Industries - NPO - close: 33.32 change: +0.93

Stop Loss: 30.40
Target(s): 33.45
Current Gain/Loss: + 8.3%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
10/24 update: Target achieved. NPO surged to $33.64 this afternoon. Our exit target was $33.45.

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

(Small Positions)

closed Position: Long NPO stock @ $30.87, exit $33.45 (+8.3%)

10/24 target hit at $33.45
10/22 new stop loss @ 30.40
10/22 adjusted target to $33.45
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

chart:

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