Current Portfolio:

BULLISH Play Updates

Cisco Systems - CSCO - close 22.86 change -0.11 stop 22.20

Target(s): 23.65, 23.90, 24.20
Key Support/Resistance Areas: 23.65, 22.55
Current Gain/Loss: +0.04%
Time Frame: 1 to 2 weeks
New Positions: Yes

CSCO hit our target to enter long positions at $22.85. We are playing for a bounce in the stock within the base it has built over the past month. This could be a quick trade and I suggest readers take profits if CSCO bounces as I anticipate. I've also listed another higher target at $23.90 which is near Monday's highs. If CSCO hits our target we should make about 60 cents on the option position for a +35% gain. If CSCO breaks out of the base it could rally to fill a gap which is up near our more aggressive 3rd target of $24.20 and below the stock's 200-day SMA. NOTE: I view this trade as potentially being quick once it is opened.

Current Position: Long CSCO stock at $22.85

Option Traders:
Suggested Position: Buy August $22.00 CALL

Entry on June xx
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 69 million
Listed on 6/16/10

Hanson Natural Corp - HANS - close 39.20 change -0.26 stop 38.25

Target(s): 40.20, 40.70, 42.40, 43.25
Key Support/Resistance Areas: 42.50, 41.00, 40.25, 39.30, 38.50
Current Gain/Loss: -6.8% Time Frame: 1 to 2 weeks
New Positions: Yes

We are long HANS as of the open this morning. The stock sold off early but drifted higher the remainder of the day. HANS remains above it 20-day and 200-day SMA and is providing support for the stock. I've adjusted the targets slightly and have provided another target at $40.20 which is near the stock's 50-day SMA and $1 higher than the today's closing price. This will produce a winning trade and I suggest readers at least tighten stops at this level in case HANS can't break out of the ascending triangle. The overall strength of the bounce in the market will likely determine the fate of the break out. I'll leave my comments from the play release. HANS got hit hard during the flash crash but has since held up well, making a series of higher lows. The stock is forming an ascending triangle on the daily chart and has an unfilled gap from the flash crash all the way up near $42.40. In addition, the stock is above its 20-day and 200-day SMA but has recently pulled back from its 50-day SMA. I suggest readers play for a bounce here with the building momentum of the ascending triangle. I also believe the S&P 500 will bounce as it is approaching the its 20-day SMA which should help stronger stocks that have performed. We have a good reference point to place a tight protective stop just below the 200-day SMA at $38.25, which also below the primary upward trend line. Our primary targets are $40.70 and $42.40.

Current Position: Long HANS stock at $39.42

Options Traders:
Suggested Position: August $40.00 CALLS

Entry on June 23, 2010
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on 6/22/10

BEARISH Play Updates

NONE. All closed for gains this week.


Simpson Manufacturing Co - SSD - close 26.32 change +0.09 stop 28.82

Target(s): 25.75 (hit), 25.35, 24.25
Key Support/Resistance Areas: 28.70, 27.75, 26.90, 26.00, 25.30, 24.00
Current Gain/Loss: +4.49%
Time Frame: 1 to 2 weeks
New Positions: Closed

SSD hit our target at $25.75 this morning so we are now flat on the position. The stock proceeded to bounce over $1 higher. This was a quick trade but we booked a +4.49% gain. Staying nimble and taking profits in this market environment is a must to make money. For readers who may still have positions, the stock still looks vulnerable to me but it could also continue bouncing so please don't let this turn into a loser. I also suggest readers keep an eye on the 20-day SMA and if SSD trades up there it should set-up another shorting opportunity depending on the market conditions at the time. I'll leave my comments from last night pertaining to exiting the trade. Our immediate targets are $25.75 and $25.35 and they could be hit relatively quick if there is any further weakness in the market. If these levels are hit I suggest being quick to take profits as I'm anticipating a bounce when the SPX hits its 20-day SMA which is not too far away from current levels. I'll leave my comments from the play release. SSD hit a key resistance area near $28.70 on 6/14 and has retreated ever since. The stock is barely hanging on to its 200-day SMA and I believe it is poised to retest its June lows and possibly its late February lows near $24.00. The stock remains below its 20-day SMA and if the market continues lower form here we should easily hit our targets. Our stop is $28.82 which is above the highs from 6/14. My only concern is a possible inverse head and shoulders pattern on the daily chart. But if there is a bounce I believe it will be short lived considering today's bearish price action.

Closed Position: Short SSD stock at $25.75, entry was at $26.96

Annotated chart:

Entry on June 22, 2010
Earnings 7/28/2010 (unconfirmed)
Average Daily Volume: 337,000
Listed on June 21, 2010