Editor's Note:
Wednesday turned out to be a relatively quiet session for our active candidates.

I am removing MFRM as a candidate.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 9.31 change: -0.05

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:
10/24/12: BAC was upgraded this morning but the news failed to stop the stock's decline. Shares followed the market lower. 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: 19.79 change: +0.12

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:
10/24/12: CTRP is still churning sideways underneath resistance. 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: 20.51 change: -0.10

Stop Loss: 19.95
Target(s): 22.00
Current Gain/Loss: -0.4%

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:
10/24/12: Wednesday was a quiet session for DWA with the stock drifting sideways in a 40-cent range. Although technically today's action does look like a bearish engulfing candlestick reversal pattern. These patterns need confirmation. I am not suggesting new positions at this time.

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: 39.75 change: -0.14

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:
10/24/12: Today looked a lot like yesterday without the gap down at the open. IBN is slipping 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)



Plum Creek Timber - PCL - close: 44.19 change: +0.25

Stop Loss: 42.95
Target(s): 44.75
Current Gain/Loss: + 2.4%

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:
10/24/12: PCL displayed some relative strength today and almost erased yesterday's decline. The path of least resistance seems to be up for PCL but I am not suggesting new positions. Our exit target remains at $44.75. More conservative traders could raise their stops toward $43.25.

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



Trex Co. - TREX - close: 34.63 change: -0.06

Stop Loss: 33.70
Target(s): 38.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 23, 2012
Time Frame: exit prior to the Nov. 1st earnings report
Average Daily Volume = 229 thousand
New Positions: Yes, see below

Comments:
10/24/12: TREX saw a midday bounce but the stock failed to breakout past the $35.00 level. There is no change from my prior comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $35.15. Our target is $38.50 but if shares don't move fast enough then we will plan on exiting prior to the November 1st earnings report.

Trigger @ 35.15

Suggested Position: buy TREX stock @ (trigger)



BEARISH Play Updates

Navistar Intl. - NAV - close: 19.08 change: -0.41

Stop Loss: 20.55
Target(s): 16.00
Current Gain/Loss: + 3.4%

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:
10/24/12: I am surprised that NAV did not see a bigger decline today. Before the opening bell NAV announced it was selling another 10 million shares of stock in a new secondary offering. It sounds like the company is desperate for cash. Ten million new shares would up NAV's outstanding shares from 68.59 million to 78.59 million. Normally investors don't like it when a company dilutes their ownership stake. We could have seen NAV down significantly more on this news.

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

10/24/12 NAV announced plans for 10 million new shares of stock
10/20/12 new stop loss @ 20.55
10/19/12 triggered @ 19.75



Sohu.com - SOHU - close: 38.55 change: +0.15

Stop Loss: 40.05
Target(s): 36.00
Current Gain/Loss: + 2.5%

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:
10/24/12: SOHU managed a bounce but shares reversed at its simple 10-dma (short-term resistance). 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: 46.42 change: -0.12

Stop Loss: 48.05
Target(s): 42.50
Current Gain/Loss: + 0.2%

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:
10/24/12: TRMB tried to bounce this morning but the rally reversed near technical resistance at its 10-dma, 100-dma and exponential 200-dma. More conservative traders may want to lower their stops.

I am not suggesting new positions.

(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

Mattress Firm - MFRM - close: 31.62 change: -1.08

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:
10/24/12: MFRM underperformed today with a -3.3% decline. The stock has not yet hit our entry trigger. I am removing it from the newsletter as a candidate. Readers may want to keep MFRM on their radar screen for a close above $34.00 down the road.

Trade did not open.

10/24/12 removed from the newsletter. trade did not open.

chart: