Editor's Note:

I'm filling in for James tonight but will pick up where he left off with his commentary from last night.

The selloff into Wednesday's close sucked in some bear fuel to help get some short covering going on Thursday.


CALL Play Updates

Gold ETF - GLD - close: 106.98 change: -0.12 stop: 99.75

The US dollar was relatively flat today (although the ETF, UUP, did some funny things at the end of the day, supposedly because trading was suspended while new shares are issued). The flat dollar was matched by the metals also trading flat. I am not suggesting new positions at this time.

We want to take profits at $109.90. If you have the November calls you will want to exit completely. If you own the January calls I'd sell part of your position. Our second target is $119.00.

Picked on   October 06 at $102.28
Change since picked:       + 4.70
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


Parker Hannifin - PH - close: 56.63 change: +2.10 stop: 52.39

Our new call play in PH stumbled yesterday, but it turned out to be just a day of consolidation before proceeding higher again. If it pulls back again to the $53.00 region and its 50-dma it would be a good time to consider entering a play. In the meantime we of course hope the rally will continue.

Our first target is $58.50. We will cautiously set a second target at $62.00 but the $60.00 level could prove to be strong resistance. I would use small positions. Friday could be very volatile due to economic data.

Picked on  November 03 at $ 55.25
Change since picked:       +1.38
Earnings Date            01/20/09 (unconfirmed)
Average Daily Volume =        1.6 million  
Listed on  November 03, 2009         


UltraShort Treasury ETF - TBT - close: 47.82 change: +0.10 stop: 43.90

Like the dollar and the metals, bonds were relatively flat today. Today's high of 48.28 shows the resistance at the 200-dma near 48.50 could hold things down for awhile.

Our first target is $54.50. Our second target is $58.50. Our time frame is several weeks (possibly year end).

Picked on   October 26 at $ 47.89 (1/2 position)
Change since picked:       - 0.07

2nd entry on   October 30 at $ 45.50 (1/2 position)
Change since picked:          + 2.32

Earnings Date            --/--/--
Average Daily Volume =        6.0 million  
Listed on   October 26, 2009         


PUT Play Updates

BIOGEN IDEC - BIIB - close: 44.39 change: +1.59 stop: 47.25

The anemic bounce got a stronger lift today with the rest of the market. It's just below the bottom of the gap down on October 23rd, near 45.00, so I'm anticipating that will be resistance. The little selloff into the close could mean it's ready to resume its selloff. I'm not suggesting new positions at this time. BIIB has already hit our first target. Our second and final target to exit is $40.50.

Picked on   October 03 at $ 48.89
Change since picked:       - 4.50
                               /1st target hit @ 44.50 (-8.9%)
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        2.6 million  
Listed on   October 03, 2009         


Bank of Montreal - BMO - close: 47.39 change: +0.34 stop: 51.25

Financials were lagging again today but then got a shot in the arm in the afternoon. BMO participated in the rally attempt which got it marginally into the green. I would prefer to launch new put positions on a failed rally near the 50-dma, at 48.92, but traders might want to consider opening small positions here. Our first target is $42.75. Our second target is $40.50.

Picked on   October 27 at $ 47.37
Change since picked:       +0.02
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


UltraDow30 - DDM - close: 40.19 change: +1.55 stop: 41.26

I've been suggesting readers look for short-term resistance near $40.00 which is where it continues to struggle. I would consider new positions here but traders might want to tighten their stops. I'm suggesting readers use small positions to limit risk.

Our first target is $35.25. The 100-dma near $35.00 could be technical support. I would consider a second target at $32.50 but for now we'll exit completely at $35.25. The 100-dma and exponential 200-dma could offer some support.

Picked on   October 31 at $ 37.82 (1/2 position size)
Change since picked:       + 2.37
Earnings Date            --/--/--
Average Daily Volume =        3.2 million  
Listed on   October 31, 2009         


Intuitive Surgical - ISRG - close: 259.91 change: +8.59 stop: 261.00

Today's strong rally brought ISRG up closer to its stop. It's either a very good entry level 9being so close to the stop level and therefore small risk) or else today's rally was simply one day before we get stopped out. More cautious traders could wait for a drop under $240 to open positions (just consider a tighter stop loss).

Remember, this is an aggressive trade. ISRG can be very volatile and options aren't cheap. I would use very small positions about 25% your normal trade size. Our first target is $226.00. Our second target is $202.00.

Picked on   October 31 at $246.35
Change since picked:       + 13.56
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        939 thousand 
Listed on   October 31, 2009         


Russell 2000 iShares - IWM - close: 58.04 change: +1.79 stop: 62.55

Today we got the bigger bounce and we're now closer to our price trigger. Wait for a rally toward $60.00 and use a trigger at $59.00 to buy puts. An alternative entry point would be to look for a drop under support near $55.00 and its exponential 200-dma. If triggered at $59 our first target is $55.50. Our second target is $52.00 or the 200-dma, whichever the IWM hits first.

Picked on  November xx at $ xx.xx <-- TRIGGER @ 59.00
Change since picked:       + 0.00
Earnings Date            --/--/--
Average Daily Volume =       54.5 million  
Listed on  November 02, 2009         


iShares Transports - IYT - close: 68.13 chg: +1.45 stop: 70.60

IYT formed an inside day today and could be part of a reversal pattern back to the downside. It is trying to push back up to yesterday's early high and in so doing is leaving a negative divergence on the shorter-term charts. This could be a good setup for another entry into our bearish play. IYT has already hit our first target. Our second and final target is $62.00.

Picked on   October 24 at $ 68.29
Change since picked:       - 0.16
                              /1st target hit @ 65.25 (-4.4%)
Earnings Date            --/--/--
Average Daily Volume =        664 thousand 
Listed on   October 24, 2009         


Life Tech. - LIFE - close: 49.70 change: +1.50 stop: 50.10

The bulls managed to push this back up towards the October highs but if you look at the weekly chart it's easy to see that the $50 region is resistance and it continued to be today. Upward momentum is waning. Yet readers may want to wait for another clearly defined failed rally near $50 with a selloff tomorrow or a close under $46.50 to open positions. At this point I would use small positions if opening new plays. The $45.00 level and the $44.00 level are both short-term support. Another level of support to watch is the rising 100-dma. Our target is $41.00.

Picked on   October 28 at $ 45.83 /gap down entry point 10/29/09
                              /originally listed at $46.61
Change since picked:       + 3.87
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 28, 2009         


Precision CastParts - PCP - close: 99.43 change: +3.31 stop: 100.55

PCP managed to push above its 50-dma and if it pushes much higher it will hit our stop. I was hoping for a failed rally near $100 and this may be our setup so readers can consider a new bearish entry point to buy puts and use a very tight stop.

I'm suggesting small positions about 50% your normal trade size. Our only target is $90.25. More aggressive traders may want to aim lower but I'm concerned about the trendline off the March lows, which could be strong support.

Picked on   October 31 at $ 95.53
Change since picked:       + 3.90
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        1.3 million  
Listed on   October 31, 2009         


Research In Motion - RIMM - close: 57.79 change: +0.18 stop: 62.65

Good news! The oversold bounce in RIMM is already fading and today's stock market rally barely budged RIMM. In fact an early morning rally, to a lower high, faded to a loss by the afternoon and only a late-day bounce kept it in the green. I lowered our stop loss to $62.65 yesterday and that continues to look like a good level for now. The stock has already hit our first target. We're currently aiming for $53.00.

Picked on   October 28 at $ 62.93 /gap open entry    
Change since picked:       - 5.14
                               /1st target hit @ 58.55 (-6.9%)
Earnings Date            12/17/09 (unconfirmed)
Average Daily Volume =       17.9 million  
Listed on   October 26, 2009