Editor's Note:
NOTE: I am filling in for Scott today and this weekend. - James

Current Portfolio:

BULLISH Play Updates

Athenahealth, Inc. - ATHN - close 30.65 change -0.53 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: +1.3%
Time Frame: 1 to 2 weeks
New Positions: Yes, preferably on weakness

8/19: After several days of gains ATHN was ripe for some profit taking. I'm surprised today wasn't worse. Shares opened lower after ATHN was slapped with a "sell" rating this morning. Traders bought the dip near its rising 10-dma and ATHN reduced its losses to just -1.7%. If you are looking for new bullish entry points I would wait for a dip or a bounce near the $28.00 level, which should offer some short-term support.

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

The Andersons, Inc - ANDE - close 36.34 change -0.58 stop 33.33

Target(s): 39.15, 40.50, 41.50
Key Support/Resistance Areas: 41.50, 40.50, 39.20, 38.00, 35.50
Current Gain/Loss: -1.8%
Time Frame: 1 to 3 weeks
New Positions: Yes

8/19: ANDE failed at the $37 level again and ended the session with a 1.5% decline and a small bearish engulfing reversal pattern. Use the weakness to our advantage. ANDE should have some support near $35.00 or this week's low near $35.20. Wait for a dip near the $35 area (or wait for a bounce) to launch new bullish positions.

8/18: We are back with a play in the agriculture sector after a nice winning trade in IPI that was closed this week. The agriculture sector continues to heat up and is gaining momentum. Farmers want and need to grow more food to keep up with demand, especially from emerging markets. Many potash companies have seen significant gains in recent weeks because potash levels need to be replenished in farmland soil. ANDE is a downstream play in this space as they provide products and services to the industry that enable farmers to grow crops and distribute them. I also believe this stock and sector can do well in a down market. Technically, ANDE is forming a long term ascending triangle while finding support above a key pivot level since March (see ovals on chart). I suggest readers take advantage of the momentum and initiate long positions now. Our initial stop will be $33.33, which is below upward trend lines and moving averages, but it will be adjusted as the trade develops. Our targets are +6%, +9.5%, and +12% higher, respectively. NOTE: Average daily volume is a tad light in this stock so I consider it an aggressive play. However, volume has ticked up significantly in recent days/weeks which is a bullish sign.

Current Position: Long ANDE stock, entry was at $37.02

Options Traders: Buy December $40.00 Calls, current ask $2.10

Entry on August 18, 2010
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 180,000
Listed on August 18, 2010

Newmont Mining Corp - NEM - close 58.44 change -1.05 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: +2.98%
Time Frame: Several weeks
New Positions: No

8/19: It was a close call today. NEM spiked to $60.23 this morning - almost enough to tag our second target at $60.50. Unfortunately investors were in the mood to take profits with the bearish economic data out this morning. The $58.00 level should be short-term support but I would not be surprised to see NEM retrace back toward the $56.00 level before bouncing again. We are not suggesting new bullish positions at this time.

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.

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 50.52 change -1.04 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: +2.68%
Time Frame: 1 to 2 weeks
New Positions: Yes, preferably on weakness

8/19: Oil services index (OSX) gave up -2.2% during today's market-wide decline. OII managed a -2.0% loss and found short-term support near $50.00. If we were in a rising market I would be tempted to buy this dip near $50 and the rising 30-dma but the environment is favoring the bears. Wait for signs of a bounce before considering new positions.

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.

8/14: 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 20.81 change -0.07 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: -0.00% Time Frame: 1 to 2 weeks
New Positions: No

8/19: It was a disappointing day. The market plunged lower and yet shares of CHK barely budged. This could be a warning sign! Today would have been a great excuse for investors to sell CHK and they didn't. Overall the trend is down but the relative strength today makes me nervous. I'm not suggesting new bearish positions at this time.

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 yearlong 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: 27.54 change: -0.41 stop: 31.55

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

8/19: The trend is down for CNW but we're still waiting for the right entry point. Right now the plan is to open bearish positions if CNW bounces back to $29.20. Readers may want to consider an alternative and consider shorts on a new relative low under $26.30.

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.

8/14: 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 37.34 change -0.57 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: +0.48%
Time Frame: 1 to 2 weeks
New Positions: Yes

8/19: Earnings results from Sears (SHLD) this morning were disappointing and the stock crashed with a -9% loss. Competition between retailers is heating up as they fight for the wallets of a consumer that is spending less. Fundamentally the XRT should be a good bearish candidate and I would still consider new positions today.

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.

8/16: 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