Editor's Note:
Almost everything turned lower today. Stocks, bonds, commodities, even the U.S. dollar posted declines. Looks like investors were in a mood to sell and it didn't matter what.

AIG, AOL, TOL were stopped out. TIE was closed this morning as planned.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 9.36 change: -0.19

Stop Loss: 9.25
Target(s): 10.45
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 18, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 141 million
New Positions: Yes, see below

Comments:
10/23/12: BAC looked so ready to breakout higher yesterday. Yet the broad-based weakness today pushed the stock to a -1.9% decline. We are still waiting for a breakout from its sideways consolidation.

I am suggesting a trigger to launch bullish positions at $9.65 with a stop loss at $9.25. Our multi-week target is $10.45.

Trigger @ 9.65

Suggested Position: buy BAC stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the 2013 Jan $10 call (BAC1319a10)



Ctrip.com Intl. - CTRP - close: 19.67 change: -0.18

Stop Loss: 19.25
Target(s): 24.75
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 22, 2012
Time Frame: Exit prior to the Nov. 5th earnings report
Average Daily Volume = 2.9 million
New Positions: Yes, see below

Comments:
10/23/12: CTRP delivered a relatively quiet session. The stock gapped open lower and then churned sideways in a narrow range. I don't see any changes from my prior comments.

A breakout past this resistance could lead to more short covering. I am suggesting a trigger to launch small bullish positions at $20.55 with an initial stop loss at $19.25. Our target is $24.75 but we will plan to exit ahead of the November 5th earnings report if CTRP doesn't hit our target by then.

Keep positions small to limit risk. CTRP can be a little volatile.

Trigger @ 20.55 *Small Positions*

Suggested Position: buy CTRP stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the NOV $21 call (CTRP1217k21)



DreamWorks Animation - DWA - close: 20.61 change: -0.22

Stop Loss: 19.95
Target(s): 22.00
Current Gain/Loss: +0.0%

Entry on October 18 at $20.60
Listed on October 17, 2012
Time Frame: exit prior to the Oct. 30th earnings report
Average Daily Volume = 902 thousand
New Positions: see below

Comments:
10/23/12: DWA followed the market lower this morning. Shares spiked down toward round-number support at $20.00 and bounced. Traders could use this bounce as a new entry point but I would be super cautious about launching new bullish positions here. Please note our new stop loss at $19.95.

Our exit target is $22.00 but more aggressive traders could aim higher.

Earlier Comments:
The stock could see a short squeeze. The most recent data listed short interest at 43% of the 63 million share float. We do not want to hold over the October 30th earnings report.

current Position: Long DWA stock @ $20.60

- (or for more adventurous traders, try this option) -

Long NOV $20 call (DWA1217k20) Entry $1.45

10/23/12 new stop loss @ 19.95
10/18/12 triggered @ 20.60



ICICI Bank - IBN - close: 39.89 change: -0.71

Stop Loss: 39.15
Target(s): 44.85
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 22, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.4 million
New Positions: Yes, see below

Comments:
10/23/12: It wasn't just the U.S. trading lower today. Global markets around the world were seeing weakness. Shares of IBN gapped open lower and then drifted sideways in a narrow range.

Use a trigger to open bullish positions at $40.85. If triggered our target is $44.85. Keep our position size small to limit risk.

Trigger @ 40.85 *Small Positions*

Suggested Position: buy IBN stock @ (trigger)



Mattress Firm - MFRM - close: 32.70 change: +0.24

Stop Loss: 32.40
Target(s): 39.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 20, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 405 thousand
New Positions: Yes, see below

Comments:
10/23/12: MFRM managed to outperform most of the market by closing in positive territory. Traders bought the dip this morning and MFRM came roaring back. Aggressive traders could buy this bounce with a stop under today's low. I am suggesting we stick to our plan and wait for a breakout.

Earlier Comments:
MFRM could see a short squeeze. The most recent data listed short interest at 30% of the very, very small 9.0 million share float. MFRM is currently consolidating under resistance at $34.00.

I am suggesting a trigger to open bullish positions at $34.10. Our target is $39.50.

Trigger @ 34.10

Suggested Position: buy MFRM stock @ (trigger)



Plum Creek Timber - PCL - close: 43.94 change: -0.29

Stop Loss: 42.95
Target(s): 44.75
Current Gain/Loss: + 1.8%

Entry on October 15 at $43.15
Listed on October 13, 2012
Time Frame: exit prior to earnings on Oct. 29th (not yet confirmed)
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
10/23/12: PCL produced an "inside day" with today's range inside Monday's range. This is a show of indecision by traders. I don't see any changes from my prior comments. More conservative traders could raise their stops toward $43.25. I am not suggesting new positions.

current Position: Long PCL stock @ $43.15

10/18/12 new stop loss @ 42.95, adjust target to $44.75
10/16/12 new stop loss @ 42.40
10/15/12 triggered at $43.15



BEARISH Play Updates

Navistar Intl. - NAV - close: 19.49 change: -0.36

Stop Loss: 20.55
Target(s): 16.00
Current Gain/Loss: + 1.3%

Entry on October 19 at $19.75
Listed on October 16, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.6 million
New Positions: see below

Comments:
10/23/12: NAV bounced to resistance near $20.00 and reversed. This move can be used as a new bearish entry point. More conservative traders could tighten their stops.

Earlier Comments:
The 2008 lows were near $15.50 so we're going to target a drop to $16.00. FYI: There is already a growing amount of bearish pressure on the stock with the most recent data listing short interest at 15% of the 47.4 million share float.

current Position: short NAV stock @ $19.75

- (or for more adventurous traders, try this option) -

Long NOV $20 PUT (NAV1217w20) entry $1.55

10/20/12 new stop loss @ 20.55
10/19/12 triggered @ 19.75



Sohu.com - SOHU - close: 38.40 change: +0.32

Stop Loss: 40.05
Target(s): 36.00
Current Gain/Loss: + 2.9%

Entry on October 10 at $39.55
Listed on October 9, 2012
Time Frame: Exit prior to the Nov. 5th earnings report
Average Daily Volume = 472 thousand
New Positions: see below

Comments:
10/23/12: Hmmmm... today's action in SOHU could be a warning signal for bears. The stock market produced a very broad-based decline and yet SOHU bounced back from its morning lows to close positive. We don't want to see that kind of relative strength in our bearish candidates. Furthermore today's move is technically a bullish engulfing candlestick reversal pattern but this needs to see confirmation.

I am lowering our stop loss to $40.05. More conservative traders may want to exit early. I am not suggesting new positions at this time.

Earlier Comments:
I have to warn you that SOHU can be a volatile stock so we need to limit our position size to reduce our risk or consider trading the options. Our target is $36.00. More aggressive traders could aim for the $34.00 area.

*Small Positions*

current Position: short SOHU stock @ $39.55

- (or for more adventurous traders, try this option) -

Long Nov $37.50 PUT (SOHU1211w37.5) entry $1.85

10/23/12 new stop loss @ 40.05
10/20/12 new stop loss @ 40.55
10/18/12 new stop loss @ 41.01



Trimble Navigation - TRMB - close: 46.54 change: +0.31

Stop Loss: 48.05
Target(s): 42.50
Current Gain/Loss: + 0.6%

Entry on October 19 at $46.50
Listed on October 10, 2012
Time Frame: exit prior to earnings on Nov. 1st
Average Daily Volume = 697 thousand
New Positions: see below

Comments:
10/23/12: I want to caution traders about our TRMB play. The stock spiked down this morning and pierced its 300-dma. Yet the stock reversed higher after falling to $45.16. The fact that TRMB closed up in positive territory is a potential warning signal. You could argue this is a one-day bullish reversal, especially considering the market's widespread weakness today.

I am not suggesting new positions and we will lower our stop loss to $48.05.

(Small Positions)

current Position: short TRMB stock @ $46.50

- (or for more adventurous traders, try this option) -

Long Nov $45 PUT (TRMB1211w45) Entry $1.40

10/23/12 new stop loss @ 48.05, warning, today could be a bullish reversal in TRMB
10/19/12 triggered @ 46.50



CLOSED BULLISH PLAYS

American Intl. Group - AIG - close: 34.75 change: -0.80

Stop Loss: 34.85
Target(s): 39.75
Current Gain/Loss: - 3.2%

Entry on October 9 at $36.00
Listed on October 8, 2012
Time Frame: exit prior to earnings on Nov. 1st
Average Daily Volume = 44 million
New Positions: see below

Comments:
10/23/12: The market's widespread decline today hit the financials pretty good and AIG gapped open lower at $35.03. Shares quickly fell under support at $35.00 and hit our stop at $34.85.

closed Position: Long AIG stock @ $36.00 exit $34.85 (-3.2%)

- (or for more adventurous traders, try this option) -

Nov $37 call (AIG1211k37) entry $0.76 exit $0.30 (-60.5%)

10/23/12 stopped out at $34.85
10/22/12 today's bounce of $35.00 looks like a new entry point.
10/18/12 new stop loss @ 34.85
10/15/12 new stop loss @ 34.45

chart:



AOL Inc. - AOL - close: 35.50 change: -0.28

Stop Loss: 35.49
Target(s): 39.90
Current Gain/Loss: -4.7%

Entry on October 16 at $37.23
Listed on October 15, 2012
Time Frame: exit prior to the NOV 6th earnings report
Average Daily Volume = 1.6 million
New Positions: see below

Comments:
10/23/12: I warned readers yesterday that AOL would probably hit our stop loss today. Sure enough, the stock hit our stop midday. Readers may want to keep an eye on AOL to see if it bounces from its 50-dma.

closed Position: buy AOL stock @ $37.23 exit $35.49 (-4.7%)

- (or for more adventurous traders, try this option) -

NOV $38 call (AOL1217k38) entry $1.10 exit $0.55 (-50.0%)

10/23/12 stopped out at $35.49
10/22/12 AOL looks poised to hit our stop tomorrow
10/20/12 readers may want to raise their stops toward Friday's low (35.73)

chart:



Toll Brothers - TOL - close: 34.55 change: -0.41

Stop Loss: 34.30
Target(s): 38.50
Current Gain/Loss: - 3.7%

Entry on October 22 at $35.60
Listed on October 20, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.2 million
New Positions: see below

Comments:
10/23/12: We had a relatively tight stop loss on our TOL trade. I still think TOL has potential as a bullish candidate so keep it on your radar. Today's market decline was strong enough to push TOL to our stop loss at $34.30.

closed Position: Long TOL stock @ $35.60 exit $34.30 (-3.7%)

- (or for more adventurous traders, try this option) -

2013 Jan $38 call (TOL1319a38) Entry $1.35* exit $0.95 (-29.6%)

10/23/12 stopped out @ 34.30
10/22/12 TOL hit our entry point at $35.60 today. *option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



CLOSED BEARISH PLAYS

Titanium Metals - TIE - close: 12.23 change: -0.12

Stop Loss: 12.65
Target(s): 11.00
Current Gain/Loss: + 2.3%

Entry on October 4 at $12.41
Listed on October 3, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
10/23/12: I was concerned that TIE may have bottomed. Last night we adjusted our plans to exit this morning at the open. TIE gapped down at $12.12 before bouncing off the $12.00 mark.

*Small Positions*

closed Position: short TIE stock @ $12.41 exit $12.12 (+2.3%)

10/23/12 closed early this morning
10/22/12 prepare to exit at the open tomorrow
10/13/12 new stop loss @ 12.65

chart: