Editor's Note:

There were a lot of investors, both big and small, that were short stocks (and the market) going into this week. A lot of them were still short this morning. When the global markets around the world began to rally and the U.S. markets opened higher there was a rush for the exits that never slowed down. We had several bearish plays get stopped out.


CALL Play Updates

AutoZone Inc. - AZO - close: 158.00 change: -0.77 stop: 151.49

AZO refuses to cooperate no matter what direction we pick. The market explodes higher on short covering and AZO fails to participate. If the stock isn't going to cooperate I am not suggesting new positions. We can deploy our money elsewhere. Our target is $169.00.

Picked on     July 14 at $158.77
Change since picked:      - 0.77
Earnings Date           09/22/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  July 14, 2009         


Euro Currency ETF - FXE - close: 141.07 chg: +1.69 stop: 137.90

If looks like the U.S. dollar is finally breaking down from its multi-week consolidation. This is good news for the euro and the FXE. If you're looking for an entry point look for a dip near $140. I would use the September calls.

Our first target is $144.50. Our second target is $148.50. The P&F chart is bullish with a $168 target.

Picked on     June 23 at $140.76
Change since picked:      + 0.31
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Gold Miner ETF - GDX - close: 38.29 change: +1.53 stop: 33.99

The weakness in the dollar also helped gold futures. The GLD gold ETF gained 1.5%. The XAU gold & silver index rose 4.6%. The GDX gold-miner ETF rallied 4.1%. I am adding a second target at $42.40. Due to our gap higher entry point I'm adjusting our first target to take profits from $39.00 to $39.50.

Picked on     July 13 at $ 36.49 /gap higher entry
                               /originally listed at $35.93
Change since picked:      + 1.80
Earnings Date           00/00/00
Average Daily Volume =       6.8 million  
Listed on  July 13, 2009         


O'Reilly Automotive - ORLY - close: 40.88 change: +0.74 stop: 38.49

ORLY has broken out into blue-sky territory. These are all-time highs. Volume was above average on the rally, which is good news. Our first target is $44.00.

Picked on     July 13 at $ 40.00
Change since picked:      + 0.88
Earnings Date           07/29/09 (confirmed)
Average Daily Volume =       1.9 million  
Listed on  July 13, 2009         


PUT Play Updates

Agrium Inc. - AGU - close: 38.44 change: +1.30 stop: 40.05

The market's rally was very widespread and AGU was not immune. The stock gained 3.5% and reclaimed the $38.00 level and its 200-dma. I suggest more conservative traders STRONGLY consider an early exit right here. I am not suggesting new positions at this time. Our first target is $35.10. Our second target is $31.00.

FYI: Readers should note that AGU is trying a hostile takeover for CF Industries, which is itself trying a hostile takeover of Terra Industries.

Picked on     July 06 at $ 38.75 *triggered     
Change since picked:      - 0.31
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       4.2 million  
Listed on  June 30, 2009         


Compass Minerals Intl. - CMP - cls: 49.68 change: +0.67 stop: 52.55 *new*

CMP delivered a nice pop this morning but it failed under $51.50. I am lowering our stop loss to $52.55. I'm not suggesting new positions at this time. CMP has exceeded our first target at $47.50. Our second target is $43.00.

Picked on     July 06 at $ 52.25 *triggered     
Change since picked:      - 2.57
                               /1st target hit @ 47.50 (-9.0%)
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009         


Sears Holdings - SHLD - close: 62.95 change: +3.26 stop: 64.25

The retailers also experienced some short covering. SHLD gained 5.4% and rallied just past resistance near $62.00. This is worrisome! More conservative traders may want to consider an early exit right now! I'm not suggesting new positions at this time. Our first target is $55.10. Our second target is $50.50.

Picked on     July 07 at $ 59.75
Change since picked:      + 3.20
Earnings Date           08/27/09 (unconfirmed)
Average Daily Volume =       1.2 million  
Listed on  July 07, 2009         


United Parcel Serv. - UPS - close: 50.53 change: +0.95 stop: 51.05 *new*

This is it! UPS has broken resistance at $50.00 and is now testing technical resistance at its 200-dma. I am lowering our stop loss to $51.05.

Our first target to take profits is $45.50. I am setting a secondary target at $43.00. We do not want to hold over the late July earnings report.

Picked on     June 26 at $ 49.50 *triggered     
Change since picked:      + 1.03
Earnings Date           07/23/09 (confirmed)
Average Daily Volume =       5.2 million  
Listed on  June 17, 2009         


Weyerhaeuser - WY - close: 30.42 change: +1.38 stop: 31.51

We were looking for WY to roll over under the $30.00 level. Today's breakout over the $30.00 level and its 100-dma is bullish and a warning for the bears. More conservative traders may want to exit early right now. I'm not suggesting new positions at this time. There is still additional resistance at $31.00. Our first target is $26.00. Our second target is $23.00. The P&F chart points to a $24 target.

Picked on     July 04 at $ 29.51
Change since picked:      + 0.91
Earnings Date           07/31/09 (unconfirmed)
Average Daily Volume =       2.1 million  
Listed on  July 04, 2009         


CLOSED BULLISH PLAYS

UltraShort SP& 500 - SDS - cls: 53.22 chg: -3.34 stop: 55.90

Investors were essentially short going into earnings season. The S&P 500 had just produced a bearish head-and-shoulders pattern. It was the logical trade to be short. Now the market is soaring on a short squeeze as investors rush to cover on these better than expected earnings results. The SDS gapped open lower at $55.12, way below our stop loss, and it continued to fall for a 5.9% loss.

Due to this inverse ETF's volatility it was suggested that readers only trade half or less than their normal position size.

Chart:

Picked on     July 08 at $ 60.50 *triggered     
Change since picked:      - 5.38<-- stopped out/gap down (-8.8%)
Earnings Date           00/00/00
Average Daily Volume =        40 million  
Listed on  July 07, 2009         


Ultra-Short REIT - SRS - close: 19.00 change: -1.47 stop: 19.45

Our high-risk aggressive trade on the REIT sector has failed. The market's rally this week has been too strong and bears are running for cover. The security has broken down under the $20.00 level and all of its key moving averages. We were stopped out at $19.45. We knew this was a volatile trade and suggested readers only buy half or less than their normal position size.

Chart:

Picked on     July 09 at $ 22.67
Change since picked:      - 3.22<-- stopped out @ 19.45 (-14.2%)
Earnings Date           00/00/00
Average Daily Volume =      27.8 million  
Listed on  July 09, 2009         


CLOSED BEARISH PLAYS

Core Labs - CLB - close: 86.49 change: +3.21 stop: 85.25

A 3% surge in the price of oil coupled with a broad-based market rally fueled a 3.8% pop in CLB. The stock gapped open higher at $85.56, which was above our stop loss at $85.25.

Chart:

Picked on     July 01 at $ 83.16 /gap down entry
                              /originally listed at 84.53
Change since picked:      + 2.40<-- stopped @ 85.56 (+2.8%)
                              /1st target hit @ 80.25 (-3.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       232 thousand 
Listed on  July 01, 2009         


Costco - COST - close: 46.90 change: +1.87 stop: 46.10

We have been waiting for COST to break support so we can open bearish positions at $43.90. It looks like that is not going to happen any time soon. The stock is surging higher but look for resistance at its 200-dma.

Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00           *never opened*
Earnings Date           10/08/09 (unconfirmed)
Average Daily Volume =      4.75 million  
Listed on  July 04, 2009         


Freeport McMoran - FCX - close: 50.91 change: +2.73 stop: 50.51

Mining stocks were hot today and it started in Europe. By the time the U.S. markets opened shares of FCX gapped open higher at $50.30 and quickly hit our stop loss. A breakdown in the dollar helped push commodities higher and that really boosted the rally in the miners. FCX had already hit our first target at $45.25.

Chart:

Picked on     July 04 at $ 47.92 /gap down entry
                               /originally listed at $49.72
Change since picked:      + 2.59<-- stopped out @ 50.51 (+5.4%)
                               /1st target hit @ 45.25 (-5.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =        18 million  
Listed on  July 04, 2009         


MetLife Inc. - MET - close: 30.90 change: +1.62 stop: 30.35

Financial stocks continued to be a bright spot in the market and the insurers were not that far behind. MET has broken through resistance at its 200-dma and now at the $30.00 level hitting our stop loss at $30.35.

Chart:

Picked on     July 04 at $ 28.04
Change since picked:      + 2.31<-- stopped out (+8.2%)
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       7.4 million  
Listed on  July 04, 2009         


Mosaic - MOS - close: 44.55 change: +1.33 stop: 45.05

We cautioned traders that MOS was a volatile stock. Shares managed to rise just enough over the $45.00 level to hit our stop loss and close the play.

Chart:

Picked on     July 11 at $ 41.13
Change since picked:      + 3.92<-- stopped out @ 45.05 (+9.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       6.8 million  
Listed on  July 11, 2009         


NII Holdings - NIHD - close: 20.34 change: +1.08 stop: 20.10

The market's short-covering fueled rally was enough to push NIHD to a 5.6% gain and a breakout over resistance near $19.50, at its 30-dma and at the $20.00 mark. Our play was stopped at $20.10.

Chart:

Picked on     July 04 at $ 18.61
Change since picked:      + 1.49<-- stopped out @ 20.10 (+8.0%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       2.9 million  
Listed on  July 04, 2009         


Wynn Resorts - WYNN - close: 36.19 change: +2.39 stop: 35.25

The short-covering in gambling stocks continued and WYNN rose more than 7% to breakthrough the $35.00 level and its 30-dma. We were stopped at $35.25. WYNN had already exceeded our first target at $30.25.

Chart:

Picked on     June 22 at $ 34.28
Change since picked:      + 0.97 <-- stopped out @ 35.25 (+2.8%)
                               /1st target hit @ 30.25 (-11.7%)
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 22, 2009