Editor's Note:
We are pruning out play list and removing a few unopened trades.

BAC, TREX and CRZO have been removed.

PCL was closed. DWA was stopped out.

Current Portfolio:


BULLISH Play Updates

Ctrip.com Intl. - CTRP - close: 19.54 change: +0.01

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:
10/27/12: It was a relatively quiet week for CTRP. The stock has been consolidating sideways under resistance near its exponential 200-dma (in the $20.30-20.40 range). If the stock closes under its simple 10-dma (currently 19.30) then I'll probably drop it. Right now the plan is to wait for CTRP to breakout and open bullish positions at $20.55.

A breakout past this resistance could lead to more short covering. 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)

chart:



ICICI Bank - IBN - close: 39.68 change: -0.61

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:
10/27/12: There was no follow through on Thursday's bounce. IBN has reversed back to the middle of its trading range. There should be short-term support at $39.00. Currently we are still sitting on the sidelines. I am suggesting 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)

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BEARISH Play Updates

Navistar Intl. - NAV - close: 18.51 change: -0.08

Stop Loss: 20.05
Target(s): 16.00
Current Gain/Loss: + 6.3%

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:
10/27/12: It was not a good week for NAV with the stock slipping to new multi-year lows. Broken support near $20.00 should be new overhead resistance. I am not suggesting new positions at this time but nimble traders could use a failed rally near $20 or the 10-dma as an entry point.

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

10/25/12 new stop loss @ 20.05
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

chart:



Sohu.com - SOHU - close: 38.58 change: -0.11

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:
10/27/12: SOHU found support near $38.00 on Friday but the overall trend remains bearish. We are running out of time with only a few days left. We plan to exit prior to the Nov. 5th earnings report. 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

chart:



Textainer Group - TGH - close: 29.94 change: -0.26

Stop Loss: 30.75
Target(s): 25.25
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 25, 2012
Time Frame: exit prior to the Nov. 6th earnings report
Average Daily Volume = 215 thousand
New Positions: Yes, see below

Comments:
10/27/12: TGH sold the bounce on Friday morning and shares are flirting with a bearish breakdown under significant support at the $30.00 level.

Thursday's low was $29.66 and Friday's low was $29.65. The April 2012 low was $29.53. I am suggesting a trigger to open bearish positions at $29.45. If triggered our target is $25.25. However, we do not want to hold over the Nov. 6th earnings report so we only have a couple of weeks.

Trigger @ 29.45

Suggested Position: short TGH stock @ (trigger)

chart:



Trimble Navigation - TRMB - close: 47.06 change: -0.19

Stop Loss: 48.05
Target(s): 42.50
Current Gain/Loss: - 1.6%

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:
10/27/12: There was no follow through on Thursday's bounce in TRMB. Yet that does not mean our trade in not in jeopardy. The next level of resistance should be $48.00 and beyond that the 50-dma and 200-dma. Currently TRMB still has a bearish trend of lower highs and lower lows but I am not suggesting new positions. We are almost out of time. TRMB is due to report earnings on Nov. 1st. If our trade is still active on Wednesday then we'll plan to exit positions at the closing bell on Oct. 31st.

(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

10/27/12 if our trade is still active on Wednesday, prepare to exit at the close on Oct. 31st.
10/23/12 new stop loss @ 48.05, warning, today could be a bullish reversal in TRMB
10/19/12 triggered @ 46.50

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CLOSED BULLISH PLAYS

Bank of America - BAC - close: 9.12 change: -0.12

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: see below

Comments:
10/27/12: BAC is not cooperating with us. Shares have broken down from their recent sideways consolidation pattern. This week's pullback has created a bearish looking reversal candle on the weekly chart. Our trade has not opened yet so I am removing BAC as a candidate.

Trade did not open.

10/27/12 removed from the newsletter.

chart:



DreamWorks Animation - DWA - close: 19.85 change: -1.01

Stop Loss: 19.95
Target(s): 22.00
Current Gain/Loss: - 3.2%

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:
10/27/12: DWA looked so promising on Thursday's session with a nice bounce off its 10-dma. Then Thursday news surfaced that DWA's Animation division's chairman, Roger Enrico, had resigned immediately. DWA did not offer any reason for his unexpected departure. This news actually came out midday on Thursday and the stock really didn't react to it. I don't see any other reason for DWA to sell-off so sharply on Friday but shares fell -4.8%. The breakdown under $20.00 is bearish and DWA hit our stop loss at $19.95.

closed Position: Long DWA stock @ $20.60 exit $19.95 (-3.2%)

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

NOV $20 call (DWA1217k20) Entry $1.45 exit $0.80 (-44.8%)

10/26/12 stopped out at $19.95
10/23/12 new stop loss @ 19.95
10/18/12 triggered @ 20.60

chart:



Plum Creek Timber - PCL - close: 43.81 change: -0.20

Stop Loss: 43.45
Target(s): 44.75
Current Gain/Loss: + 1.5%

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:
10/27/12: Our plan was to exit our PCL positions on Friday at the closing bell. We did not want to hold over the earnings report expected on Monday.

closed Position: Long PCL stock @ $43.15 exit $43.81 (+1.5%)

10/26/12 exited at the closing bell
10/25/12 prepare to exit tomorrow at the closing bell
new stop loss @ 43.45
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

chart:



Trex Co. - TREX - close: 33.58 change: -0.92

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: see below

Comments:
10/27/12: TREX is not cooperating either. The stock was downgraded on Friday and that sparked a -2.6% sell-off in the stock. Our trade has not opened yet. I am removing TREX from the newsletter.

Trade did not open.

10/27/12 removed from the newsletter

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CLOSED BEARISH PLAYS

Carrizo Oil & Gas - CRZO - close: 26.64 change: +1.16

Stop Loss: 25.85
Target(s): 20.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 24, 2012
Time Frame: exit prior to earnings on Nov. 6th,
Average Daily Volume = 624 thousand
New Positions: see below

Comments:
10/27/12: CRZO outperformed the market on Friday with a +4.5% gain. This was likely due to headlines out on Thursday night that CRZO was being added to the S&P 600 small cap index. That means mutual funds that track the S&P 600 index will need to start buying CRZO shares.

Our trade has not opened yet and given this new development I am removing CRZO as a bearish candidate.

Trade did not open.

10/27/12 removed from the newsletter.

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