Editor's Note:
NOTE: James will be filling in for me the remainder of the week. I look forward to catching up with you on Monday.

Current Portfolio:

BULLISH Play Updates

Athenahealth, Inc. - ATHN - close 31.18 change -0.19 stop 26.90

Target(s): 31.50 (hit), 32.95, 34.00
Key Support/Resistance Areas: 34.25, 31.75, 30.00, 28.25, 25.75
Current Gain/Loss: +3.07%
Time Frame: 1 to 2 weeks
New Positions: Yes, preferably on weakness

8/18: ATHN is consolidating near its highs of the past few days. The stock has had a pattern recently of selling off early in the morning only to get bought immediately. Today's volume was on extremely light volume which is a bullish sign. Our first target has been hit and if our 2nd target of $32.95 is reached we will have a gain of nearly +9%. Broader market strength will certainly help our cause to get there.

8/17: ATHN tacked on more gains after yesterday's breakout. Our first target of $31.50 has been hit and I've added a 2nd target of $32.95. I'm going to raise the stop to $26.90 which is below all of the upward trend lines and the 20-day SMA. My comments from below remain valid.

8/16: ATHN had a huge day closing +5.67% on the day. The stock was having a fabulous day and this afternoon the company received an upgrade which helped add to the gains. Our lower target to enter positions was missed by 37 cents so positions were entered on strength at $30.25. ATHN is finding a little resistance at $31.50 which is just below the July 2009 lows. There could be a pullback here which will provide a second chance entry point. If we break above today's highs ATHN has some clear air up towards our more aggressive targets. I've added $32.95 (adjusted on 8/17) as our second target.

8/14: ATHN is in the business of automating health care records and billing. I like ATHN as a long defensive play that should thrive as healthcare regulation takes form. Technically ATHN had a huge gap down after they missed earnings estimates in late April. Since then the stock has formed a nice cup and handle pattern which signals the "changing of the guard" from sellers to buyers. The company reported earnings in late July that beat estimates and the stock is now gaining momentum. On Friday, ATHN closed right on a downward trend line from January but I think it is only a matter of time before this is broken, which is typical of a cup and handle formation. Ideally, I suggest traders initiate long positions on any weakness, but a break out is another strategy. Let's use $28.50 as a trigger on weakness and $30.25 as a trigger on strength. ATHN has a big gap to fill all the way up near $34.00 which is our most aggressive target. Our near term target is $31.50. Our initial stop is $25.50 which is below its upward trend line and the rising 20-day SMA.

Current Position: Long ATHN stock, entry was at $30.25

Options Traders: Long September $31.00 CALL

Entry on August 16, 2010
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 767,000
Listed on August 14, 2010

Newmont Mining Corp - NEM - close 59.49 change +1.11 stop 56.40

Target(s): 59.30, 60.50, 61.50
Key Support/Resistance Areas: 62.00, 59.50, 58.16, 55.00, 54.30, 52.30
Current Gain/Loss: +4.83%
Time Frame: Several weeks
New Positions: No

8/18: NEM keeps chugging higher and closed +1.90% today. We have nearly +5% gains. I've moved the stop up to $56.40 which is just below breakeven on the trade, the 20-day SMA, and the recent upward trend line. If NEM can break above today's highs it should fill a gap lower on 7/16 and hit our second target of $60.50. Once again, this could happen fast and I suggest we close positions at this level, or at least tighten stops to protect gains.

8/17: NEM closed just above its 50-day SMA and is about $1 away from 1st target. A trip up to this level could happen fast and I suggest readers be quick to protect profits or simply exit positions if this level is reached. My comments from below remain valid.

8/16: NEM gained +1.75% and is consolidating above its 100-day SMA and below its 50-day SMA's. We need a break above Thursday's high and the 50-day SMA to get NEM moving towards our targets. I am expecting strength in the broader market which should help our cause.

8/14: We are in NEM at $56.75 per last night's updates. The stock is consolidating below its 50-day SMA and any broader market strength or strength in gold should catapult NEM up towards our targets.

Current Position: Long NEM stock, entry was at $56.75

Entry on August 13, 2010
Earnings 11/3/2010 (unconfirmed)
Average Daily Volume: 7.7 million
Listed on August 10, 2010

Oceaneering International - OII - close 51.56 change -0.42 stop 46.60

Target(s): 53.00, 54.40, 57.00
Key Support/Resistance Areas: 57.50, 54.50, 53.40, 49.00
Current Gain/Loss: +4.80%
Time Frame: 1 to 2 weeks
New Positions: Yes, preferably on weakness

8/18: There is not much to report on OII as the stock traded within Tuesday's range. OII appears to be consolidating some of those gains before another leg higher. If our $53.00 target is reached we will have a +7.50% gain. Take profits or protect them at this level. My comments from below remain valid.

8/17: OII surged +4.69% higher today and we have gained +5.65% in the position. The stock is approaching our first target of $53.00 which is also just below the 100-day SMA and recent swing high. This is an area to consider taking profits, or at least protecting them.

8/16: Long positions in OII were initiated at the open at $49.20. The stock finished the day strong closing +0.34% higher. We need OII to break above its 20-day SMA at $50.19 and the stock should re-test its recent swing high just above our first target of $53.00.

8/14: With the recent oil leak in the Gulf of Mexico the oil services industry is being turned upside down with regulations and drilling moratoriums. I think OII will benefit because the new rules in the gulf point to more underwater robotic contracts. And it just so happens that OII recently raised their guidance because of it. This past week's dip has come right into an upward trend line and a prior resistance level which should now act as support. This is a buying opportunity in OII. I suggest readers enter long positions now. Our stop is $46.60 which is below OII's recent swing low and its rising 50-day SMA. We have three realistic near term targets that will produce a winning nice trade if they are reached.

Current Position: Long OII stock, entry was at $49.20

Options Traders: Long September $50.00 CALL

Entry on August 16, 2010
Earnings 10/28/10 (unconfirmed)
Average Daily Volume: 807,000
Listed on August 14, 2010

BEARISH Play Updates

Chesapeake Energy - CHK - close 20.88 change -0.44 stop 22.85

Target(s): 19.70, 18.80, 18.05
Key Support/Resistance Areas: 22.50, 21.60, 20.30, 19.65, 18.75, 18.00
Current Gain/Loss: -0.34% Time Frame: 1 to 2 weeks
New Positions: Yes

8/18: CHK lost -2% today and continues to look vulnerable. The stock looks ready to break down from two bear flags: A small bear flag (from the 8/5 swing high) within a larger bear flag (from the mid June swing highs). Some broader market weakness should get CHK moving lower in earnest.

8/17: CHK rallied higher with the market today and closed an unfilled gap from 8/12. The remains below its moving averages and trend lines which should keep bounces in check. I suggest exhibiting patience with this trade while the broader market completes this bounce.

8/16: We are short CHK as of the open at $20.81. CHK looks vulnerable but the stock could bounce with the market so we may need to exhibit some patience. CHK has trend lines, moving averages, and resistance levels overhead to keep bounces in check. My comments from below have not changed.

8/14: CHK is a good company but it is facing significant headwinds. There is increasing pressure to ban drilling in the Marcellus shale. Pennsylvania is considering a year long moratorium so they can study fracturing problems and its impact on drinking water. If the process is halted in the Marcellus shale then it will probably be halted in the Haynesville and Barnett shale plays, which are the primary assets of CHK. Technically, CHK looks like it is about ready to lose it. The stock is trading in a wide downward channel and on Friday it closed below an upward trend line. It would be nice to short CHK on a bounce but I'm not sure it will happen. I suggest we initiate short positions now. Our most aggressive target right now is to test the July 2009 lows near $18.05. Our stop is $22.85 which is above the recent swing high and several moving averages.

Current Position: Short CHK stock, entry was at $20.81

Options Traders: Long October $20.00 PUTS

Entry on August 16, 2010
Earnings: 11/2/2010 (unconfirmed)
Average Daily Volume: 10 million
Listed on August 14, 2010

Con-way Inc. - CNW - close: 27.95 change: +0.41 stop: 31.55 *NEW*

Target(s): 28.25, 26.75, 25.50
Key Support/Resistance Areas: 25.00, 28.00, 32.00
Current Gain/Loss: N/A
Time Frame: Several Weeks
New Positions: Yes, trigger 29.20

8/18: CNW gained +1.49% today. We are looking for more bounce up to $29.20 which is our trigger to enter short positions. I've updated the above targets and stop should we get filled.

8/17: CNW gained +3% today but the stock finished the day near its lows. Let's move the trigger down $29.20 to enter short positions. I'll adjust the stop once we are in the trade.

8/16: CNW can't seem to catch a bid. I suggest we remain patient here and see if CNW bounces with the market up to our trigger to enter short positions at $29.80. My comments from below have not changed.

8/14: The sellers are obviously overwhelming the buyers in CNW and the stock has run away from us, closing -4.30% on Friday. I do not suggest chasing it down here. I am going to leave this play open and see if CNW manages to bounce back up to fill some of these recent gaps. I'm going to lower the trigger to $29.80. If anyone caught it short it has been a good play, but unfortunately our trigger wasn't hit.

Suggested Position: Short CNW stock if it trades to $29.20

Entry on August xx
Earnings Date 11/03/10 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on August 7, 2010

SPDR Retail ETF - XRT - close 37.91 change +0.47 stop 39.28

Target(s): 36.00, 35.25, 34.65
Key Support/Resistance Areas: 39.00, 38.00, 37.60, 36.50, 35.80, 35.00
Current Gain/Loss: -1.04%
Time Frame: 1 to 2 weeks
New Positions: Yes

8/18: Mixed earnings results keep pouring out of the retailers but there is one common theme and that is they are offering cautious comments while guidance is nothing to write home about. I believe today's +1.26% bounce will be short lived and someone with deep pockets does as well. Option volume in the September PUT strikes in XRT was approximately 25K compared to the CALL strikes of approximately 3.2K. I like this volume flow and expect XRT to head lower from here.

8/17: We are short XRT as of the open today at $37.52. Retailers caught a bid today when Wal-Mart and Home Depot beat earnings estimates, while others posted mixed results. However, WMT and HD narrowed their guidance and I believe the bounce in XRT will be short lived and is a good short at these levels. If the broader market remains strong we may need to be patient, but when the bounce is over XRT should quickly head towards our targets.

8/16: The retail sector is facing many headwinds from a weak consumer and many analysts are already pointing to a dismal back to school season. In addition, retailers are going to have offer deeper discounts than they are currently just to get consumers into stores to buy things. This will negatively affect earnings and if retailers begin to warn investors by lowering guidance XRT will suffer. I've chosen the ETF as opposed to individual names to filter out some of the earnings noise being reported this week by many major retailers. I do expect a bounce in the overall market in the coming days and suggest readers initiate short positions on any strength. We'll use $37.35 as a trigger to enter short positions in XRT. Our stop will be $39.28 which is above two downtrend lines and the 20, 50, and 200-day SMA's. If triggered, our first two targets are -3.5% and -5.5% away, respectively.

Current Position: Short XRT stock, entry was at $37.52

Options Traders: Long September $36.00 PUTS

Entry on August 17, 2010
Earnings: 11/2/2010 (unconfirmed)
Average Daily Volume: 12 million
Listed on August 16, 2010