Editor's Note:
Shares of Fastenal (FAST) hit our upside target a lot quicker than expected. Meanwhile we had CX, HSTM, and IMAX all opened this morning.

-James

Current Portfolio:


BULLISH Play Updates

Beazer Homes - BZH - close: 2.06 change: +0.00

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

Comments:
11/03 update: Is that real? Or was that a bad tick? Right around 10:25 a.m. this morning shares of BZH spiked down to $1.79 and then immediately recovered. It looks like just a bad tick. It also looks like a dip to support near its 50-dma.

I don't see any changes from my prior comments. BZH is still consolidating near the $2.00 area and I would still consider new positions here.

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


CEMEX - CX - close: 4.49 change: +0.27

Stop Loss: 3.89
Target(s): 4.95
Current Gain/Loss: + 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/03 update: Sometimes the gap open is your friend. Sometimes it is your enemy. All of the quote services I checked show CX gapping open this morning at $4.48 but if you look at an intraday chart it looks like CX actually opened at $4.34, spiked down toward $4.05 and then immediately spiked up to $4.48. It was obviously a volatile morning. We will use the official opening price of $4.48 today. Unfortunately that means we get to enjoy none of today's +6.6% gain in CX. More conservative traders may want to wait for a dip into the $4.25-4.00 zone before considering new bullish positions.

*See Entry Details Above*

current Position: Long CX stock @ $4.48

- or -

Long Jan $5 call (CX1221A5) Entry $0.45

11/03 CX gapped open to $4.48 (+6.3%)

Entry on November 3 at $ 4.48
Earnings Date 10/26/11
Average Daily Volume = 20.3 million
Listed on November 2, 2011


Healthstream Inc. - HSTM - close: 15.99 change: +0.48

Stop Loss: 14.25
Target(s): 18.00
Current Gain/Loss: + 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/03 update: Our new play on HSTM is open. Unfortunately the stock's gap open higher this morning took a chunk out of our potential gains. The stock opened at $15.79 and closed at $15.99 (+3.0%) on the session. Nimble traders were given a chance to buy the dip this morning after the initial gap higher. I would wait for a dip into the $15.50-15.00 zone before considering new positions.

Earlier Comments:
Our plan was to keep position sizes small to limit risk. Our target is $18.00. FYI: The Point & Figure chart for HSTM is bullish with a $17.50 target. NOTE: HSTM does have options but the spreads are too wide to trade.

(small positions)

current Position: Long HSTM @ $15.79

11/03 HSTM gapped open higher at $15.79

Entry on November 3 at $15.79
Earnings Date 10/24/11
Average Daily Volume = 134 thousand
Listed on November 2, 2011


IMAX Corp. - IMAX - close: 19.43 change: +0.05

Stop Loss: 17.70
Target(s): 24.50
Current Gain/Loss: + 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/03 update: IMAX underperformed the market today with a sideways consolidation and barely closing in positive territory. I would still consider new positions here while more conservative traders may want to wait for a dip into the $19.00-18.50 zone as their entry point instead. FYI: IMAX opened flat at $19.38 while the S&P 500 opened higher. We are going to consider that a win so the play is opened.

Earlier Comments:
Our multi-week target is $24.50. Keep in mind that the exponential 200-dma could be resistance near $22.50ish. FYI: The Point & Figure chart for IMAX is bullish with a $28.00 target.

Current Position: Long IMAX @ $19.38

- or -

Long DEC $20 call (IMAX1117L20) Entry $1.27

Entry on November 3 at $19.38
Earnings Date 10/27/11
Average Daily Volume = 1.2 million
Listed on November 2, 2011


iShares Russell 2000 ETF - IWM - close: 74.97 change: +1.82

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:
11/03 update: Small caps continue to rally. The IWM gapped open higher, reversed course to fill the gap and then reversed again with a rally the rest of the session. The close over its exponential 200-dma is technically bullish.

The jobs data comes out tomorrow and stocks could see a lot of volatility in reaction to that number. 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: 46.58 change: +0.22

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

Comments:
11/03 update: The JJC copper ETF initially sold off but found support near $45.50 intraday. Shares remain under their 50-dma. I do not see any changes from my prior comments.

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: 23.96 change: +0.42

Stop Loss: 21.90
Target(s): 29.00
Current Gain/Loss: + 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/03 update: Traders bought the mid morning dip near $23.00 but JNPR was unable to breakout past resistance near $24.00 and its simple 100-dma. If the stock market gaps higher on the jobs data tomorrow then readers may want to consider launching new positions in JNPR but I would hesitate if JNPR gaps open higher than $24.50.

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: 41.96 change: +1.71

Stop Loss: 38.40
Target(s): 44.50
Current Gain/Loss: + 5.5%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/03 update: It was a big day for NTAP. The stock dipped to $39.76 this morning and then soared to a +4.2% gain with a rally to short-term resistance near $42.00. I am not suggesting new positions at this time. We will raise our stop loss to $38.40.

More conservative traders may want to take profits tomorrow before the close, especially if you're holding the November calls (currently up +78%).

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

11/03 new stop loss @ 38.40
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: 32.42 change: +0.61

Stop Loss: 31.40
Target(s): 35.75
Current Gain/Loss: - 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/03 update: Yesterday the low was $31.62. Today the low in XLNX was $31.65. Traders bought the dip and shares rallied to a +1.9% gain. The close over $32.00 is bullish and I would be tempted to launch new positions here if the market opens positive tomorrow.

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: 23.68 change: -0.01

Stop Loss: 24.75
Target(s): 21.25
Current Gain/Loss: +6.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/03 update: DISH continues to underperform the market. There was an early morning spike to $24.30 but the rally quickly faded. DISH consolidated sideways in a narrow range while the rest of the market rallied higher.

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


CLOSED BULLISH PLAYS

Fastenal Co - FAST - close: 40.13 change: +1.87

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: + 7.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/03 update: Target achieved. FAST outperformed the market today with a +4.8% gain and a rally past resistance at $40.00. Our exit target was hit at $39.90.

closed Position: Long FAST @ 37.17, exit $39.90 (+7.3%)

- or -

NOV $37.50 call (FAST1119K37.5) Entry $1.00, exit $2.75 (+175.0%)

11/03 exit target hit at $39.90
11/01 FAST gapped open lower at $37.17, trade opened.

chart:

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