Editor's Note:
The stock market's pull back has been very sharp and we're starting to see some stop losses get hit.

PAY, RHT, and the XLF were all stopped out today. I am suggesting an early exit for our ACOM trade. Meanwhile FAST, NTAP and XLNX were all opened today.

-James

Current Portfolio:


BULLISH Play Updates

Beazer Homes - BZH - close: 2.04 change: -0.11

Stop Loss: 1.84
Target(s): 3.25
Current Gain/Loss: -6.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/01 update: This is it. I cautioned readers to look for a dip back toward likely support in the $2.00-2.05 zone. Shares actually dipped to $1.95 before paring its losses. I would consider new positions now. Or if you're really bearish on the market then look for a dip into the $1.85-1.80 zone. Please note that we're adjusting our stop loss down to $1.75.

Earlier Comments:
We have listed a very high target at $3.25 but I anticipate scaling that down. This is sort of a just-in-case BZH delivers better than expected earnings and the stock explodes kind of target. This industry is very heavily shorted so a short squeeze is a definite possibility.

Please note we are going to take the unusual step and hold over BZH's earnings in November. Normally we try to always exit ahead of earnings to avoid holding over the announcement.

FYI: You could buy calls but the spreads are so wide they could actually increase your risk (but they'll definitely leverage any move higher).

current Position: Long BZH stock @ $2.19

- or -

Long 2012 Jan $3.00 call (BZH1221A3) Entry $0.15

Entry on October 31 at $2.19
Earnings Date 11/15/11 (confirmed)
Average Daily Volume = 2.4 million
Listed on October 29, 2011


Fastenal Co - FAST - close: 37.20 change: -0.89

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/01 update: Our new trade in FAST is open and at a better entry point. We planned to launch bullish positions at $37.25 but the stock gapped open lower at $37.17. Considering the market's recent weakness readers may want to wait for a dip into the $36.50-36.00 zone before initiating new bullish trades.

Earlier Comments:
Our target is $39.90. FYI: The Point & Figure chart for FAST is bullish with a $50 target.

current Position: Long FAST @ 37.17

- or -

Long NOV $37.50 call (FAST1119K37.5) Entry $1.00

11/01 FAST gapped open lower at $37.17, trade opened.

Entry on November 1 at $37.17
Earnings Date 01/18/12 (unconfirmed)
Average Daily Volume = 3.0 million
Listed on October 31, 2011


Juniper Networks - JNPR - close: 23.28 change: -1.19

Stop Loss: 21.95
Target(s): 29.00
Current Gain/Loss: *see below*
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
11/01 update: Shares of JNPR were a bit more volatile than expected. Our plan was to launch bullish positions on a dip at $24.00 with a stop loss at $22.75. Well today's market decline saw JNPR gap open lower at $23.46 (trade opened) and then drop to $22.75 (trade closed) before paring its losses. That's a -3% loss for us. The plan was to keep positions small to limit our risk.

I still think JNPR offers potential. We will keep JNPR on the newsletter. I am suggesting readers buy JNPR (or calls) if both stock and the S&P 500 index both open positive tomorrow morning. We'll adjust our stop loss down to $21.90.

*see Entry Details Above* (small positions)

Suggested Position: buy JNPR stock @ at the open

- or -

buy the JAN $25 call (JNPR1221A25)

11/01 Try again. New strategy. Buy JNPR if stock and S&P500 opens positive tomorrow, stop loss @ 21.90.
11/01 trade opened at $23.46, stopped out @ 22.75 (-3.0% loss)
option opened @ $1.80, exit $1.36 (-24.4%)
10/29 alternative entry point: dip at $23.00

Entry on October xx at $ xx.xx
Earnings Date 10/18/11
Average Daily Volume = 13 million
Listed on October 29, 2011


NetApp Inc. - NTAP - close: 39.74 change: -1.22

Stop Loss: 37.25
Target(s): 44.50
Current Gain/Loss: - 0.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/01 update: Our new trade on NTAP is open. Shares gapped open lower at $39.75, which was under our trigger to open positions at $40.00. We are adjusting our stop loss down to $37.25 but more conservative traders may want to keep their stop closer to $38.00 instead. I would wait for a rally past $40.50 or consider launching positions if both NTAP and the S&P 500 index both open positive tomorrow.

Earlier Comments:
This is going to be a short-term trade. We do not want to hold over the November 16th earnings report. We'll set our target at $44.50 but we'll plan to exit ahead of earnings.

current Position: Long NTAP stock @ 39.75

- or -

Long NOV $40 call (NTAP1119K40) Entry $1.71

11/01 new stop loss @ 37.25
11/01 NTAP gaps open lower at $39.75, our new entry point.

Entry on November 1 at $39.75
Earnings Date 11/16/11 (confirmed)
Average Daily Volume = 6.8 million
Listed on October 31, 2011


Xilinx Inc. - XLNX - close: 32.52 change: -0.94

Stop Loss: 31.40
Target(s): 35.75
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/01 update: Our trade on XLNX has been opened at $32.50 as planned. The stock is now resting on its simple 200-dma, which should be support. If you're concerned the market has further to fall then you might want to wait for a dip near $32.00 or its 10-dma before considering new bullish positions.

Earlier Comments:
The plan was to keep our position size small to limit risk. Our multi-week target is $35.75. FYI: The Point & Figure chart for XLNX is bullish with a $46 target.

(small positions)

Current Position: Long XLNX stock @ 32.50

- or -

Long Jan $35 call (XLNX1221A35) Entry $0.95

Entry on November 1 at $32.50
Earnings Date 10/19/11
Average Daily Volume = 5.0 million
Listed on October 29, 2011


BEARISH Play Updates

Dish Network - DISH - close: 23.84 change: -0.33

Stop Loss: 24.75
Target(s): 21.25
Current Gain/Loss: +6.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/01 update: Hmm... I am a bit disappointed that DISH did not drop further today. The stock market is down -5% in just two days. The S&P 500 lost -2.8% today alone. Yet DISH only fell -1.3%. Shares of DISH slipped to $23.00 intraday before paring its losses.

I am not suggesting new positions at this time. We will adjust our stop loss lower to $24.75.

Earlier Comments:
FYI: The Point & Figure chart for DISH is bearish with a $16 target.

current Position: short DISH stock @ $25.38

- or -

Long NOV $25 PUT (DISH1119W25) Entry $1.20

11/01 new stop loss @ 24.75

Entry on October 28 at $25.38
Earnings Date 11/07/11 (confirmed)
Average Daily Volume = 3.0 million
Listed on October 27, 2011


CLOSED BULLISH PLAYS

VeriFone Systems - PAY - close: 39.69 change: -2.52

Stop Loss: 39.95
Target(s): 44.85
Current Gain/Loss: -1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/01 update: It was not a great day for PAY. Shares gapped open lower at $40.48 and fell to $39.48 before settling with a -5.9% decline. Our stop loss was hit at $39.95 closing this trade. Readers may want to wait for PAY to close over its 200-dma before considering new bullish positions.

closed Position: Long PAY stock @ $40.65, exit $39.95 (-1.7%)

- or -

NOV $42 call (PAY1119K42) Entry $1.05 exit $0.95 (- 9.5%)

11/01 stopped out at $39.95
10/29 new stop loss @ 39.95
Readers may want to go ahead and take profits now, especially with the Nov $42 calls (+114%)
10/27 new stop loss @ 38.40
10/27 Trade opened. PAY gapped higher at $40.65

chart:

Entry on October 27 at $40.65
Earnings Date 12/01/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on October 13, 2011


Red Hat, Inc. - RHT - close: 48.28 change: -1.37

Stop Loss: 47.80
Target(s): 54.75
Current Gain/Loss: -2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/01 update: Stocks were trading lower prior to the opening bell and RHT gapped open lower at $47.70. This was under our stop loss at $47.80. The play was closed immediately. Technically the $48 level was supposed to be support. I would be tempted to re-launch bullish positions if both RHT and the S&P 500 index can open positive tomorrow morning.

closed Position: Long RHT stock @ 49.05, exit $47.70 (-2.7%)

- or -

NOV $50 call (RHT1119K50) Entry $1.20 exit $0.75 (-37.5%)

11/01 stopped out on gap open lower at $47.70
10/29 new stop loss @ 47.80
readers may want to take profits on the calls now, which are already up +137%
10/27 trade opened at trigger $49.05

chart:

Entry on October 27 at $49.05
Earnings Date 12/21/11 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on October 26, 2011


Financial Sector ETF - XLF - close: 12.86 change: -0.64

Stop Loss: 13.25
Target(s): 14.45
Current Gain/Loss: + 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/01 update: Financial stocks were getting hammered overseas as investors reacted to news that the Greek government is proposing a referendum vote on the recent EU bailout plans. This has the potential to be a disaster. When our markets opened the U.S. financial sector plunged. The XLF gapped open lower at $12.84, which was well under our stop loss of $13.25. The play was closed immediately.

current Position: Long XLF @ $12.71, exit $12.84 (+1.0%)

11/01 XLF gaps open lower at $12.84, under our stop of $13.25
10/28 exited Nov. $13 calls @ $1.00 (+138.0%)
10/27 plan to exit Nov. $13 calls at the open tomorrow
10/27 new stop loss @ 13.25
10/20 trade opened. XLF at $12.71
10/19 try again. New stop loss @ 11.95

chart:

Entry on October 20 at $12.71
Earnings Date --/--/--
Average Daily Volume = 125 million
Listed on October 18, 2011


CLOSED BEARISH PLAYS

Ancestry.com Inc. - ACOM - close: 22.77 change: +0.10

Stop Loss: 24.35
Target(s): 18.75
Current Gain/Loss: -3.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/01 update: ACOM is not cooperating. The stock market is down huge these last two days and yet ACOM will not break support near $22.00-21.50. I am suggesting an early exit now. Readers might want to consider keeping ACOM on your watch list for a breakdown under $21.50 as a possible entry point for bearish positions.

closed Position: short ACOM stock @ $21.80, exit $22.77 (-3.3%)

- or -

NOV $22.50 PUT (ACOM1119W22.5) Entry $1.41 exit $1.20 (-14.8%)

11/01 We want to exit early!

chart:

Entry on October 28 at $21.80
Earnings Date 10/26/11 (confirmed)
Average Daily Volume = 840 thousand
Listed on October 27, 2011