Editor's Note:
The financial sector was one of the worst performers on Monday as investors pondered the future of the EU zone.

The U.S. market suffered a widespread decline. Small caps underperformed their large cap rivals with the Russell 2000 down -1.5% versus -0.9% in the S&P 500.

FYI: We could see a lot of weakness in shares of HSTM and KOG tomorrow. After the closing bell tonight both companies announced plans to sell a significant amount of new common stock, diluting current shareholders.

-James

Current Portfolio:


BULLISH Play Updates

Allegheny Technologies Inc. - ATI - close: 49.68 change: -0.31

Stop Loss: 47.45
Target(s): 56.75
Current Gain/Loss: -2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: Uh-oh! Warning. ATI rallied to $51.00 intraday only to reverse lower into a loss. The breakout to a new relative high didn't stick and this could be a bull-trap. Our trigger to open bullish positions was hit at $50.60 but I am not suggesting new positions at this time. I'd wait for a new move over the $50.50 level.

current Position: Long ATI stock @ 50.60

- or -

Long DEC $52.50 call (ATI1117L52.5) Entry $2.75

11/14 trade triggered at $50.60

Entry on November 14 at $50.60
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on November 12, 2011


Beazer Homes - BZH - close: 2.22 change: -0.18

Stop Loss: 1.90
Target(s): 3.25
Current Gain/Loss: +1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: BZH just reversed Friday's 18-cent gain. Shares have pulled back to what could be support near its 100-dma and the $2.20 level. I use the term support loosely here. BZH will most likely gap open (higher or lower) tomorrow following its earnings report tomorrow morning. Analysts are expecting a loss of -36 cents a share. I am concerned that BZH could see significant profit taking as investors sell the earnings news.

I am not suggesting new positions at this time.

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.

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: 51.59 change: -0.44

Stop Loss: 48.75
Target(s): 54.50
Current Gain/Loss: + 0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: CASY dipped to $51.07 before trimming its losses. I don't see any changes from my weekend comments. Traders can use dips in the $51-50 zone as a new entry point.

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.

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: 4.53 change: -0.10

Stop Loss: 4.29
Target(s): 5.10
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: CX lost 10 cents on the session but shares are still holding on to technical support at the 10-dma. I am not suggesting new positions tonight.

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%)

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: 54.71 change: -0.08

Stop Loss: 52.40
Target(s): 58.50
Current Gain/Loss: + 0.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14 update: HON held up pretty well on Monday. The stock spent the entire session consolidating sideways in the $54.38-55.00 zone. If both HON and the S&P 500 index open positive tomorrow I would consider it a new bullish entry point.

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

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: 16.05 change: -0.07

Stop Loss: 14.95
Target(s): 18.00
Current Gain/Loss: + 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: Uh-oh! Tomorrow could be an ugly day for HSTM. After the closing bell tonight HSTM announced plans to sell an additional 3.25 million shares of common stock. HSTM only has 22.2 million shares outstanding. That's almost a 15% increase in the amount of stock. It is entirely possible that we see HSTM decline -15% tomorrow since they are diluting current shareholders.

Yet it's not a guarantee that HSTM is going to plunge tomorrow even though I think it's likely. More conservative traders will want to exit at the open tomorrow (likely a gap down). I am raising our stop loss to $14.95. We are not suggesting new positions at this time.

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

11/14 new stop loss @ 14.95
11/14 After the closing bell HSTM announces plans to sell 3.25 million shares of new stock.
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

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: 18.74 change: -0.36

Stop Loss: 17.70
Target(s): 24.50
Current Gain/Loss: - 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: Investors have been selling into strength in IMAX the last couple of days. That is not very encouraging. If the market trends lower we could see IMAX retesting its 20-dma or the $18.00 level. I am not suggesting new positions at this time. 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

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: 24.76 change: -0.12

Stop Loss: 22.70
Target(s): 29.00
Current Gain/Loss: + 4.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: The fact that JNPR only lost 12 cents today can be considered a victory for the bulls. On the other hand today also looks like a failed rally. If the market pulls back tomorrow I would expect JNPR to retest the $24.00 level. I am not suggesting new positions tonight.

Currently our exit target is $29.00 but readers may want to exit at potential technical resistance 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

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: 7.30 change: -0.30

Stop Loss: 6.70
Target(s): 9.50
Current Gain/Loss: -3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14 update: KBH completely erased Friday's gain with a -3.9% reversal lower today. That's obviously not a good sign. Readers may want to wait for another bounce from the $7.00 level before considering new bullish positions.

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

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: 7.69 change: -0.02

Stop Loss: 7.20
Target(s): 9.75
Current Gain/Loss: + 2.6%
Time Frame: two to three months
New Positions: see below

Comments:
11/14 update: It was a busy day for KOG after the closing bell. There were several press releases hitting the wires once the market closed. KOG said they had agreed to an additional 50,000 net leasehold acres in the Williston Basin near its existing operations. KOG management also released their 2012 preliminary capital budget and their 2012 production guidance. KOG plans to end the year (Dec. 31st, 2011) with production of 17,000 BOE/day and expects to end 2012 with production ramping up to 30,000 BOE/day. KOG also announced plans to sell $550 million in senior notes plus plans to sell 37.5 million shares of common stock.

That last announcement could be serious trouble for us! KOG currently has 209 million shares of stock outstanding. The new secondary public offering of 37.5 million shares is an 18% increase. That's means current shareholders are going to see an 18% dilution to their current positions. We could see KOG's stock gap open lower tomorrow in the $6.20-6.15 range in reaction to this news. It's not guaranteed that we'll see KOG stock plunge but it's a possibility.

Please note that I am raising our stop loss to $7.20 to try and reduce our risk. More conservative traders may want to plan on an exit at the opening bell tomorrow. I am not suggesting new positions at this time.

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

11/14 new stop loss @ 7.20
11/14 KOG announces plans to sell an additional 37.5 million shares of new stock
11/08 trade opened at $7.51.

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


Newfield Exploration Co. - NFX - close: 43.14 change: -0.87

Stop Loss: 41.75
Target(s): 49.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
11/14 update: Our new trade on NFX is not open yet. I am suggesting we try again. The plan is to open bullish positions tomorrow morning but only if NFX and the S&P 500 both open positive (that did not happen today).

Earlier Comments:
I am suggesting we keep our position size small to limit our risk. More conservative traders might want to wait for a rally past possible resistance near $45.00 as an alternative entry point. FYI: The Point & Figure chart for NFX is bullish with a $57.00 target.

*See Entry Details Above*

Suggested Position: buy NFX stock @ the open

- or -

buy the DEC $45 call (NFX1117L45)

Entry on November xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on November 12, 2011


Red Hat, Inc. - RHT - close: 50.20 change: +0.15

Stop Loss: 48.45
Target(s): 54.90
Current Gain/Loss: - 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/14 update: NFX displayed a little bit of relative strength. Yet shares still can't 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

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: 12.97 change: -0.26

Stop Loss: 12.59
Target(s): simple 200-dma
Current Gain/Loss: - 4.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/14 update: Financials were underperformers today as investor sentiment seemed to sour a little bit on the Europe situation. The XLF gave up most of Friday's gains but appeared to find some short-term support at its rising 30-dma late in the session. I am not suggesting new positions at this time.

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.

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


Xilinx Inc. - XLNX - close: 32.51 change: -0.34

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

Comments:
11/14 update: XLNX gave up -1% on Monday. If the market continues to sink tomorrow we could see XLNX retesting support near $31.70 again. 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

None. We do not have any active bearish trades.