Editor's Note:
Stocks ended the week on an up note with widespread gains on Friday. Unfortunately volume was pretty light so it's hard to put a lot of confidence behind this move.

All of our untriggered plays are now open.

-James

Current Portfolio:


BULLISH Play Updates

Beazer Homes - BZH - close: 2.40 change: +0.18

Stop Loss: 1.90
Target(s): 3.25
Current Gain/Loss: +9.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: BZH delivered another strong session. Shares rallied more than +8% on Friday and closed at new multi-week highs. The rally this past week has been impressive (+17.4%) but I am concerned that this is setting up for a sell the news event.

BZH is due to report earnings on Nov. 15th (Tuesday) before the opening bell. Analysts are expecting a loss of -36 cents a share. After such a big bounce in one week and even larger bounce from its October lows (+77%) there could be a big temptation for investors to sell the earnings news.

Our plan is to hold over the earnings report. However, more conservative traders will want to seriously consider exiting positions on Monday at the close to avoid holding over the announcement. That way you can lock in a gain.

We are raising our stop loss to $1.90.

current Position: Long BZH stock @ $2.19

- or -

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

11/12 new stop loss @ 1.90. More conservative traders may want to exit prior to the earnings report to lock in a gain.

chart:

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


Casey's General Stores - CASY - close: 52.03 change: +1.38

Stop Loss: 48.75
Target(s): 54.50
Current Gain/Loss: + 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: CASY rallied to a new all-time high on Friday. Readers may want to wait for another dip into the $51-50 zone before launching new positions. Please note that we are raising our stop loss to $48.75.

Earlier Comments:
FYI: The Point & Figure chart for CASY is bullish with a $70.00 target.

Current Position: Long CASY stock @ $51.19

- or -

Long DEC $50 call (CASY1117L50) Entry $2.90

11/12 new stop loss @ 48.75
11/08 new stop loss @ 47.95
11/08 trade opened.

chart:

Entry on November 08 at $51.19
Earnings Date 12/06/11 (unconfirmed)
Average Daily Volume = 250 thousand
Listed on November 5, 2011


CEMEX - CX - close: 4.63 change: +0.23

Stop Loss: 4.29
Target(s): 5.10
Current Gain/Loss: + 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: CX displayed relative strength on Friday with a +5.2% gain. Shares were actually a lot higher on Friday morning with a spike to $4.72. Nimble traders could buy this bounce on Friday but I would consider a tighter stop loss if you're launching positions now.

Please note that we're adjusting our exit target from $4.95 to $5.10. I am raising our stop loss to $4.29.

current Position: Long CX stock @ $4.48

- or -

Long Jan $5 call (CX1221A5) Entry $0.45

11/12 new stop loss @ 4.29, new exit target @ 5.10
11/07 new stop loss @ 4.24
11/05 new stop loss @ 3.97
11/03 CX gapped open to $4.48 (+6.3%)

chart:

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


Honeywell Intl. - HON - close: 54.79 change: +1.23

Stop Loss: 52.40
Target(s): 58.50
Current Gain/Loss: + 0.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12 update: The market strength on Friday morning pushed HON to gap open higher. Shares opened at $54.40 and rallied to $55.81 before trimming its gains. Our trigger to open bullish positions was at $54.25 so the trade was opened Friday morning. The close over resistance near $54.00 and its simple 200-dma is bullish but the big pull back from Friday's highs is a little bit worrisome.

Readers may want to wait for another dip or a bounce near the $54.00 mark before considering new bullish positions.

Current Position: Long HON stock @ $54.40

- or -

Long DEC $55 call (HON1117L55) Entry $1.78

11/11 trade opened on HON's gap higher at $54.40
11/09 adjusted entry point strategy to Trigger @ 54.25, moved stop loss to $52.40

chart:

Entry on November xx at $ xx.xx
Earnings Date 01/30/12 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on November 8, 2011


Healthstream Inc. - HSTM - close: 16.12 change: +0.79

Stop Loss: 14.80
Target(s): 18.00
Current Gain/Loss: + 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: HSTM outperformed the market on Friday with a big +5.1% gain. You could buy this bounce but if you do consider a much tighter stop loss (maybe $15.12ish). The newsletter is leaving our stop at $14.80.

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

11/09 new stop loss @ 14.80
11/08 new stop loss @ 14.65
11/07 new stop loss @ 14.40
11/03 HSTM gapped open higher at $15.79

chart:

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: 19.10 change: +0.55

Stop Loss: 17.70
Target(s): 24.50
Current Gain/Loss: - 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: IMAX produced a +2.9% bounce on Friday but shares are still trading in a sideways consolidation pattern. I am not suggesting new positions at this time. The stock is going to encounter potential resistance at the 100-dma and the $20.00 level soon. More conservative traders might want to consider a stop loss closer to $18.25 to limit risk.

Earlier Comments:
Our multi-week target is $24.50. Keep in mind that the exponential 200-dma could be resistance near $22.25ish. 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

chart:

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


Juniper Networks - JNPR - close: 24.88 change: +1.11

Stop Loss: 22.70
Target(s): 29.00
Current Gain/Loss: + 4.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: Friday was a big day for JNPR with a +4.6% gain. Unfortunately two things concern me. Volume was below average so it's hard to put a lot of conviction behind Friday's move. Plus, shares are still unable to breakout past resistance near the $25.00 mark.

Please note our new stop loss at $22.70. Currently our exit target is $29.00 but readers may want to exit at potential technical support near the exponential 200-dma (currently 27.51).

Earlier Comments:
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

11/12 new stop loss @ 22.70
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

chart:

Entry on November 2 at $23.72
Earnings Date 10/18/11
Average Daily Volume = 13 million
Listed on October 29, 2011


KB Home - KBH - close: 7.60 change: +0.27

Stop Loss: 6.70
Target(s): 9.50
Current Gain/Loss: +0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: Our new trade on KBH is open. Shares gapped higher at $7.41 on Friday and rallied past the 100-dma and its Tuesday high for a +3.6% gain. Our trigger to open bullish positions was hit at $7.55. If this rally continues KBH could see a short squeeze. The next level of resistance is the $8.00 region.

Earlier Comments:
The most recent data listed short interest at more than 50% of the relatively small 65.4 million-share float. That's definitely enough fuel for a significant short squeeze.

KBH can be a volatile stock so we need to use a wide stop loss. This raises the risk profile on this trade. We will aim for $9.50 but the exponential 200-dma might be overhead resistance (currently at 9.10).

current Position: Long KBH stock @ 7.55

- or -

Long Jan $7.50 call (KBH1221A7.5) Entry $0.91

11/11 trade opened at $7.55

chart:

Entry on November 11 at $ 7.55
Earnings Date 01/09/12 (unconfirmed)
Average Daily Volume = 5.8 million
Listed on November 10, 2011


Kodiak Oil & Gas - KOG - close: 7.71 change: +0.36

Stop Loss: 6.75
Target(s): 9.75
Current Gain/Loss: + 2.6%
Time Frame: two to three months
New Positions: see below

Comments:
11/12 update: Strength in oil and the oil sector lifted KOG to new all-time highs. Shares hit $7.88 on Friday afternoon before paring gains. If you're looking for a new bullish entry point you may want to wait for a dip back toward the simple 10-dma.

Earlier Comments:
Our multi-month target is $9.75. FYI: The Point & Figure chart for KOG is bullish with a $13.75 target. KOG is a potential takeover target.

current Position: Long the stock @ 7.51

- or -

Long 2012 MAR $7.50 call (KOG1217C7.5) Entry $1.25

11/08 trade opened at $7.51.

chart:

Entry on November 08 at $ 7.51
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 6.6 million
Listed on November 5, 2011


Red Hat, Inc. - RHT - close: 50.05 change: +0.98

Stop Loss: 48.45
Target(s): 54.90
Current Gain/Loss: - 0.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12 update: Our new trade on RHT is open but we need to tread carefully here. We listed an entry point to open bullish positions at $50.25. RHT gapped higher on Friday at $49.91 and rallied to $50.69 before fading lower to a +1.9% gain. The larger trend is still bullish. Yet short-term RHT was unable to breakout past resistance in the $50.75-51.00 zone.

I am suggesting readers wait for another dip near the $49.50 level or a breakout past $51.00 before initiating new positions.

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

(small positions)

current Position: Long RHT stock @ $50.25

- or -

Long DEC $52.50 call (RHT1117L52.5) Entry $1.50

11/11 trade opened at $50.25
11/09 adjusted entry point strategy: Trigger @ 50.25, stop loss 48.45

chart:

Entry on November 11 at $50.25
Earnings Date 12/21/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on November 8, 2011


Financial SPDR ETF - XLF - close: 13.24 change: +0.31

Stop Loss: 12.59
Target(s): simple 200-dma
Current Gain/Loss: - 2.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/12 update: Stocks rallied on positive headlines out of Europe and a positive consumer sentiment report here in the U.S. Financial stocks added about +2% on average. The XLK rose +2.3%. If the S&P 500 index opens positive on Monday I would consider new bullish positions here in the XLF.

Earlier Comments:
Our multi-week target is the simple 200-dma (near $14.50ish) but there is potential resistance at the exponential 200-dma (closer to $14.00), not to mention possible resistance at the October highs. We want to keep our position size small!

(small positions)

current Position: Long the XLF @ $13.55

- or -

Long 2012 Jan $14 call (XLF1221A14) Entry $0.59

11/09 new stop loss @ 12.59
11/08 trade opened at $13.55
11/07 new strategy: Instead of buying a dip, I am suggesting we buy a rally with a trigger at $13.55. New stop loss $12.74. Target simple 200-dma.

chart:

Entry on November 08 at $13.55
Earnings Date --/--/--
Average Daily Volume = 137 million
Listed on November 3, 2011


Xilinx Inc. - XLNX - close: 32.85 change: +0.87

Stop Loss: 31.40
Target(s): 35.75
Current Gain/Loss: + 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/12 update: The SOX semiconductor index outperformed on Friday with a +3.5% gain. Shares of XLNX trailed its peers with a +2.7% gain. If the S&P 500 index and XLNX both open positive on Monday morning I would be tempted to launch new 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

chart:

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

None. We do not have any active bearish trades.