Editor's Note:
Traders were buying the dip a bit sooner than I expected this morning. Our new trades on IWM and JJC have not been opened yet.

-James

Current Portfolio:


BULLISH Play Updates

Beazer Homes - BZH - close: 2.06 change: +0.02

Stop Loss: 1.75
Target(s): 3.25
Current Gain/Loss: -5.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/02 update: Wednesday proved to be a quiet, low-volume day for BZH. The stock barely moved. I do not see any changes from my prior comments (and yesterday we did lower the stop loss to $1.75). I would still consider new positions now near $2.00.

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: 38.26 change: +1.06

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: + 2.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/02 update: FAST delivered a strong session with a +2.8% gain and a close back above $38.00. I am not suggesting new positions at this time. More aggressive traders may want to aim higher than our $39.90.

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


iShares Russell 2000 ETF - IWM - close: 73.15 change: +1.76

Stop Loss: 67.49
ETF target: 75.75
November Call Target: 73.75
January Call Target: 75.75
Current Gain/Loss: unopened
Time Frame: 2 to 8 weeks
New Positions: Yes, see below

Comments:
11/02 update: Traders bought the dip in stocks a bit sooner than we expected. I'm not ready to buy the bounce yet. We will keep our buy-the-dip entry point at $69.50 for now.

We are suggesting small bullish positions on a dip at $69.50 with a stop loss at $67.45, which is under the mid October lows. Readers can buy the ETF of you can buy the call options.

Trigger @ 69.50 (small positions)

Suggested Position: buy the IWM @ 69.50
Target: 75.75

- or -

buy the NOV $72 call (IWM1119K72)
Target: 73.75

- or -

buy the JAN $73 call (IWM1221A73)
Target: 75.75

Entry on November xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 84 million
Listed on November 1, 2011


Copper ETN - JJC - close: 46.36 change: +1.01

Stop Loss: 41.90
Target(s): 48.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
11/02 update: Hmm.... commodities saw a strong bounce on Wednesday. Copper prices rebounded sharply with a +2.2% gain in the JJC. This ETF closed just under its 50-dma. I would not chase it here.

We will leave our buy-the-dip entry point at $44.35 with a stop loss if triggered at $41.90. More conservative traders might want to consider a tighter stop loss. Our target is $48.00 although more aggressive traders may want to aim for $50.00 instead.

buy the dip Trigger @ 44.35

Suggested Position: buy the JJC @ 44.35

- or -

buy the NOV $45 call (JJC1119K45)

- or -

buy the JAN $47 call (JJC1221A47)

Entry on November xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 438 thousand
Listed on November 1, 2011


Juniper Networks - JNPR - close: 23.54 change: +0.26

Stop Loss: 21.90
Target(s): 29.00
Current Gain/Loss: - 0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/02 update: Our new play on JNPR is now open. Both the stock and the S&P500 index opened positive. JNPR opened at $23.72. The stock dipped to retest its simple 10-dma and then bounced to a +1.1% gain. I would still consider new positions here if the market is positive tomorrow morning.

The plan was to keep positions small to limit our risk.

(small positions)

current Position: Long JNPR stock @ $23.72

- or -

Long JAN $25 call (JNPR1221A25) Entry $1.50

11/02 trade is open. JNPR opened at $23.72
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 November 2 at $23.72
Earnings Date 10/18/11
Average Daily Volume = 13 million
Listed on October 29, 2011


NetApp Inc. - NTAP - close: 40.25 change: +0.51

Stop Loss: 37.25
Target(s): 44.50
Current Gain/Loss: + 1.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/02 update: NTAP recouped about half of yesterday's losses. The stock's close over $40.00 is a positive sign. I would still consider new positions here if the S&P 500 opens 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: 31.81 change: -0.71

Stop Loss: 31.40
Target(s): 35.75
Current Gain/Loss: - 2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/02 update: The SOX semiconductor index posted a gain today but the sector did underperform the broader market. I didn't see any specific news behind today's relative weakness in XLNX (-2.1%). The stock's breakdown under $32.00 and the simple 200-dma is short-term bearish. The low today was $31.62 and our stop is at $31.40.

I am not suggesting new positions at this time.

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: 23.69 change: -0.15

Stop Loss: 24.75
Target(s): 21.25
Current Gain/Loss: +6.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/02 update: DISH tried to rebound this morning but the bounce ran out of steam at $24.40. Today's relative weakness in DISH is a good sign for our trade. More conservative traders may want to exit early on a dip into the $22.50-22.00 zone.

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