Editor's Note:
Both ARUN and PHM gapped open higher and triggered our bullish trades.

Current Portfolio:


BULLISH Play Updates

Aruba Networks - ARUN - close: 16.79 change: +1.30

Stop Loss: 15.49
Target(s): 19.00
Current Gain/Loss: +4.1%
Time Frame: 2 to 4 weeks

Entry on August 09 at $16.13
Listed on August 8, 2011
Average Daily Volume = 3.4 million New Positions: see below

Comments:
08/09/12 update: Our new trade on ARUN is off to a strong start. We wanted to buy ARUN at $15.75 but shares gapped open higher at $16.13 and soared to a +8.3% gain. The stock closed the session near potential technical resistance at its simple 100-dma. Our trade was opened on the gap higher above our trigger. I wouldn't chase it here if you missed the entry this morning.

We are adjusting the stop loss to $15.49.

Earlier Comments:
ARUN could see a short squeeze. The most recent data listed short interest at 24% of the 104.8 million-share float.

current position: Long ARUN stock @ $16.13

- or -

Long Sep $16 call (ARUN1222i16) Entry $1.55

08/09/12 new stop loss @ 15.49
08/09/12 triggered on gap higher at $16.13. Trigger was $15.75.


PulteGroup - PHM - close: 12.67 change: +0.58

Stop Loss: 11.80
Target(s): 14.50
Current Gain/Loss: + 3.1%
Time Frame: 6 to 8 weeks

Entry on August 09 at $12.29
Listed on August 8, 2011
Average Daily Volume = 14.5 million New Positions: see below

Comments:
08/09/12 update: Our PHM trade is also open.

The stock also gapped open higher above our trigger. We were planning to launch positions at $12.25 but PHM opened at $12.29 and rallied to $12.92 intraday before settling with a +4.79% gain. I would look for a pullback near the $12.25 area before considering new positions now.

We are raising the stop loss to $11.80.

Current Position: Long PHM stock @ $12.29

- or -

Long Oct $13 call (PHM1220j13) Entry $0.70

08/09/12 new stop loss @ 11.80
08/09/12 triggered on gap higher at $12.29. Trigger was $12.25.


Tempur Pedic Intl. - TPX - close: 31.55 change: +0.15

Stop Loss: 29.75
Target(s): 39.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks

Entry on August xx at $ xx.xx
Listed on August 7, 2011
Average Daily Volume = 2.5 million New Positions: Yes, see below

Comments:
08/09/12 update: Another sleepy summer day on Wall Street left TPX drifting sideways again. We are waiting on a breakout to a new relative high.

I do consider this somewhat of an aggressive trade so we will want to limit the size of our position. I am suggesting a trigger to open small bullish positions at $32.50. We'll start with a stop loss at $29.75. Our multi-week target is $39.00 since the $40.00 level is probably round-number resistance.

Trigger @ $32.50 (small positions)

Suggested Position: buy TPX stock @ (trigger)

- or -

buy the Sep $33 call (TPX1222I33)


BEARISH Play Updates

Incyte Corp - INCY - close: 17.77 change: +0.17

Stop Loss: 18.65
Target(s): 14.00
Current Gain/Loss: - 1.5%
Time Frame: 6 to 8 weeks

Entry on August 08 at $17.50
Listed on August 7, 2011
Average Daily Volume = 2.0 million New Positions: see below

Comments:
08/09/12 update: INCY was looking oversold so I'm not surprised to see a little oversold bounce. Shares failed right where they should have at the $18.00 mark. I would still consider new positions here at current levels.

Earlier Comments:
I do consider this an aggressive trade since INCY is already considered oversold at this point. Our target is $14.00.

(small positions)

current Position: short INCY stock @ $17.50

- or -

Long Sep $17.50 PUT (INCY1222I17.5) Entry $1.30

08/08/12 triggered @ 17.50
*remember, small positions to limit risk!


Suburban Propane Partners - SPH - close: 36.85 change: -0.76

Stop Loss: 39.15
Target(s): 35.50
Current Gain/Loss: + 4.9%
Time Frame: 6 to 8 weeks

Entry on August 08 at $38.76
Listed on August 6, 2011
Average Daily Volume = 144 thousand New Positions: see below

Comments:
08/09/12 update: SPH continues to sink with another gap down. Shares ended the day with a -2.0% decline. The stock is technically short-term oversold here but there is no guarantee of a bounce. We are planning to exit on a dip to $35.50.

Please note our new stop loss at $39.15.

current Position: short SPH @ $38.76

- or -

Long Sep $40 PUT entry @ $2.20

08/09/12 new stop loss @ 39.15
08/08/12 triggered on gap down at $38.76 (trigger was 39.75)