Editor's Note:
Small caps were showing relative strength with the Russell 2000 up +1.4% versus +0.48% in the S&P 500.

Our HSTM trade has been stopped out, as expected, thanks to the company's announcement last night to sell more stock.

-James

Current Portfolio:


BULLISH Play Updates

Allegheny Technologies Inc. - ATI - close: 50.00 change: +0.32

Stop Loss: 47.45
Target(s): 56.75
Current Gain/Loss: -1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: The late morning swoon took ATI down to short-term support near $48.00 before the stock bounced back into positive territory. I would look for a new rally past $50.50 as an entry point to open bullish positions. I would keep a wary eye on the exponential 200-dma near $51.85 as possible resistance.

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: +0.00

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

Comments:
11/15 update: BZH missed Wall Street's earnings estimates by 21 cents. The company reported a loss of 57 cents a share with revenues up almost +25% to $334.9 million. The stock traded down to $2.06 before bouncing back and closing unchanged on the session.

The fact that BZH did not see a huge drop in its stock price is bullish in my book. If a big earnings miss isn't going to take the stock down, then the worst may be behind it for this stock.

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: 52.66 change: +1.07

Stop Loss: 48.75
Target(s): 54.50
Current Gain/Loss: + 2.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: CASY displayed some relative strength with a breakout past resistance at $52.00 and a +2.0% gain. I would not chase it here. We are raising our stop loss to $49.40.

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

11/15 new stop loss @ 49.40
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


Carlisle Companies - CSL - close: 44.67 change: +0.66

Stop Loss: 41.90
Target(s): 49.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
11/15 update: Our new trade on CSL is not open yet. Neither CSL or the S&P 500 index opened positive this morning. CSL did manage to reverse higher midday and stocks posted a +1.4% gain. The breakout past $44.00 is bullish.

We will try again. I am suggesting we buy CSL if both the stock and the S&P 500 index can open positive tomorrow morning. We'll use a stop loss at $41.90 if triggered. Our multi-week target is $49.50. FYI: The Point & Figure chart for CSL is bullish with a $73.00 target.

NOTE: Options are available but the spreads are too wide to trade.

*See Entry Details Above*

Suggested Position: buy CSL stock @ the open

Entry on November xx at $ xx.xx
Earnings Date 02/07/12 (unconfirmed)
Average Daily Volume = 327 thousand
Listed on November 14, 2011


CEMEX - CX - close: 4.64 change: +0.11

Stop Loss: 4.29
Target(s): 5.10
Current Gain/Loss: + 3.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: CX completely reversed yesterday's loss with a +2.4% gain today. The stock looks poised to run higher. More conservative traders may want to tighten their stop loss.

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: 54.78 change: +0.07

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

Comments:
11/15 update: HON filled the gap and tested support at its 10-dma and 200-dma with today's dip and bounce near $54.00. I would open new positions here if both HON and the S&P 500 index open positive tomorrow morning.

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


IMAX Corp. - IMAX - close: 19.24 change: +0.50

Stop Loss: 17.70
Target(s): 24.50
Current Gain/Loss: - 0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: IMAX was showing some relative strength on Tuesday with a +2.6% gain. The move today also looks like a breakout over its short-term trendline of lower highs. However, I wouldn't get too excited yet. IMAX still has potential resistance at its 100-dma directly overhead.

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: 24.59 change: -0.17

Stop Loss: 22.70
Target(s): 29.00
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: JNPR underperformed the market on Tuesday with a -0.6% decline. Shares are trading in the $24.00-25.00 zone. Nimble traders could use dips near $24.00 as a new bullish entry point.

Currently our exit target is $29.00 but readers may want to exit at potential technical resistance near the exponential 200-dma.

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: 7.53 change: +0.23

Stop Loss: 6.70
Target(s): 9.50
Current Gain/Loss: -0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: KBH recovered most of yesterday's losses with a +3.1% gain today. Readers may want to wait for a move past $7.60 or $7.65 as a new bullish entry point.

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: 7.84 change: +0.15

Stop Loss: 7.20
Target(s): 9.75
Current Gain/Loss: + 4.3%
Time Frame: two to three months
New Positions: see below

Comments:
11/15 update: Wow! I will confess that I am surprised with KOG's performance today. Not only did shares not hit our stop loss at $7.20 but KOG managed to reverse higher and close up +1.9%. Yesterday the company announced plans to sell an additional 37.5 million shares of stock, diluting current shareholders. This news was among several announcements last night.

The relative strength is very encouraging but I would not chase it here. No new positions.

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

11/15 gap down at 7.41 and hit 7.21 before bouncing.
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: 42.93 change: -0.21

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

Comments:
11/15 update: Our play on NFX is still not open. Shares gapped down and dipped toward their converging 10 and 50-dma before bouncing. Unfortunately, NFX failed to close in positive territory.

I remain bullish on NFX and suggest we try again. The plan is to open bullish positions if both NFX and the S&P 500 index can open positive tomorrow morning.

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: 52.72 change: +2.52

Stop Loss: 48.45
Target(s): 54.90
Current Gain/Loss: + 4.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/15 update: The RHT bulls were in charge today. The stock was in rally mode almost all day long and broke out to new all-time highs with today's +5.0% gain. I had been suggesting readers buy RHT on a rally past $51.00. Now this short-term resistance should be new support.

Earlier Comments:
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: 13.03 change: +0.06

Stop Loss: 12.75
Target(s): simple 200-dma
Current Gain/Loss: - 3.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/15 update: I am concerned with our XLF trade. Shares did post a gain today but the XLF appears to be building a bearish trend of lower highs, which could be forecasting a breakdown under support near $12.80 soon.

If you're looking for a bullish entry I'd wait for a rally past $13.25. Please note our new stop loss at $12.75.

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

11/15 new stop loss @ 12.75
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: 32.97 change: +0.46

Stop Loss: 31.40
Target(s): 35.75
Current Gain/Loss: + 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: The semiconductor sector showed some strength today. XLNX produced a +1.4% gain. If both the XLNX and the S&P 500 index open positive tomorrow we can use it as a new entry point.

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.


CLOSED BULLISH PLAYS

Healthstream Inc. - HSTM - close: 15.08 change: -0.97

Stop Loss: 14.95
Target(s): 18.00
Current Gain/Loss: - 5.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/15 update: I am very surprised that HSTM did not see bigger losses today after last night's announcement to sell 3.25 million shares of stock. HSTM gapped open lower as we expected but shares opened at $15.39 and then fell to $14.59 before paring its losses. At the end of the day HSTM lost -6.0%. It could have been a lot worse.

We were stopped out at $14.95.

Earlier Comments:
Our plan was to keep position sizes small to limit risk.

(small positions)

current Position: Long HSTM @ $15.79, exit $14.95 (-5.3%)

11/15 stopped out at $14.95
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

chart:

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