Editor's Note:
We have removed or closed multiple trades due to lost time. The market's two-day closure cut much needed time off some of our trades. We do not want to hold over earnings.

I have removed CTRP, IBN, and TGH. TRMB was closed as planned. RYL and LVLT were triggered.

Current Portfolio:


BULLISH Play Updates

Ryland Group - RYL - close: 33.87 change: +0.11

Stop Loss: 32.40
Target(s): 39.50
Current Gain/Loss: - 1.8%

Entry on October 31 at $34.50
Listed on October 27, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
10/31/12: The market's widespread early morning rally helped push RYL past our trigger to open bullish positions. Unfortunately the market, and RYL, gave back these gains. Our trade is open but at this point I would wait for a new rally past $34.25 before initiating new bullish positions.

The plan was to keep our position size small to limit our risk.

current Position: Long RYL stock @ 34.50

10/31/12 triggered @ 34.50



BEARISH Play Updates

Diebold, Inc. - DBD - close: 29.75 change: +0.24

Stop Loss: 30.65
Target(s): 26.50
Current Gain/Loss: - 0.8%

Entry on October 29 at $29.50
Listed on October 27, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 651 thousand
New Positions: see below

Comments:
10/31/12: DBD spent most of the day inside the $29.50-29.80 zone. The stock happened to close near the top of that range. Look for broken support near $30.00 to act as new resistance. A failed rally near $30.00 can be used as a new bearish entry point. FYI: The Point & Figure chart for DBD is bearish with a $21 target.

current Position: short DBD stock @ $29.50



Level 3 Communications - LVLT - close: 20.50 change: -0.18

Stop Loss: 21.05
Target(s): 17.00
Current Gain/Loss: - 3.0%

Entry on October 31 @ $19.90
Listed on October 27, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
10/31/12: Hmm... the trading activity in LVLT was interesting. Most of the market spiked higher at the open. LVLT moved the opposite direction and spiked lower. Shares hit our trigger to open bearish positions at $19.90. Yet there was no follow through and LVLT reversed. The intraday rebound is technically bullish. If there is any follow through tomorrow LVLT could easily hit our stop loss at $21.05. I am not suggesting any new positions at this time.

The plan was to keep our position size small to limit our risk.

*Small Positions*

current Position: short LVLT stock @ $19.90

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

Long NOV $20 PUT (LVLT1217w20) entry $0.70



Navistar Intl. - NAV - close: 18.75 change: +0.24

Stop Loss: 20.05
Target(s): 16.00
Current Gain/Loss: + 5.1%

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:
10/31/12: NAV spiked past the $19.00 level this morning but like most of the market gave back most of its gains. Shares did end up settling with a +1.2% gain for the session. Yet NAV remains under what should be significant resistance at the $20.00 mark. I am not suggesting new positions at this time.

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



Sohu.com - SOHU - close: 37.96 change: -0.62

Stop Loss: 40.05
Target(s): 36.00
Current Gain/Loss: + 4.0%

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:
10/31/12: SOHU gapped open lower and spent the entire day oscillating on either side of the $38.00 level. Readers may want to exit early. We are almost out of time. SOHU reports earnings on Monday. We will plan to exit on Friday, Nov. 2nd at the closing bell if our trade is still open.

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.

*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

10/31/12 prepare to exit on Fri. Nov. 2nd if our trade has not hit our target or stop before then
10/23/12 new stop loss @ 40.05
10/20/12 new stop loss @ 40.55
10/18/12 new stop loss @ 41.01



CLOSED BULLISH PLAYS

Ctrip.com Intl. - CTRP - close: 20.01 change: +0.47

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: , see below

Comments:
10/31/12: CTRP still looks like it is coiling for a significant bullish breakout. Unfortunately we are almost out of time. The market closure shaved two days off our potential time frame. CTRP is scheduled to report earnings on Monday, Nov.5th, after the closing bell. We do not want to hold over the report. More nimble traders may want to keep an eye on it. Our trade never opened. The trigger to buy bullish positions was $20.55.

Trade never opened.

10/31/12 we are almost out of time. CTRP has been removed.

chart:



ICICI Bank - IBN - close: 39.25 change: -0.43

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: see below

Comments:
10/31/12: IBN is not cooperating. Shares appear to be breaking down from its sideways trading range. Since our trade has not opened yet I am removing IBN as an active candidate. If the stock continues to sink, look for support near $36.00.

Trade did not open.

10/31/12 IBN has been removed from the newsletter.

chart:



CLOSED BEARISH PLAYS

Textainer Group - TGH - close: 30.20 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:
10/31/12: TGH is not seeing a lot of movement. On Friday shares lost 26 cents. Today the stock regained those 26 cents. We only have three trading days left to avoid holding over TGH's earnings report. Based on this time frame I am removing TGH as a candidate.

Trade did not open.

10/31/12 Removed TGH from the newsletter.

chart:



Trimble Navigation - TRMB - close: 47.17 change: +0.11

Stop Loss: 48.05
Target(s): 42.50
Current Gain/Loss: - 1.4%

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:
10/31/12: We have run out of time with our TRMB trade. The market's two-day closure cut two days off our trade window. Last week I warned readers that we would exit on October 31st at the closing bell if our trade was still open on Wednesday.

(Small Positions)

closed Position: short TRMB stock @ $46.50 exit $47.17 (-1.4%)

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

Nov $45 PUT (TRMB1211w45) Entry $1.40 exit $0.70 (-50.0%)

10/31/12 planned exit at the close
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

chart: