Editor's Note:
The U.S. market's major indices continued to drift higher on Friday.

It was a relatively quiet day for the Premier play list.

Current Portfolio:


BULLISH Play Updates

Aruba Networks - ARUN - close: 16.78 change: -0.01

Stop Loss: 15.49
Target(s): 19.00
Current Gain/Loss: +4.0%
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:
08/11/12 update: Friday was a very quiet session for ARUN. Shares drifted sideways to close virtually unchanged. The stock is hovering near its 100-dma. I would not be surprised to see a dip back into the $16.00-15.75 area. Readers will want to wait for that dip if you're looking for an entry point.

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.

chart:



PulteGroup - PHM - close: 12.48 change: -0.19

Stop Loss: 11.80
Target(s): 14.50
Current Gain/Loss: + 1.5%
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:
08/11/12 update: After Thursday's big gains I'm not surprised to see a little profit taking on Friday. I suggested readers look for a dip. I still think there is a good chance we might see PHM slip into the $12.25-12.00 area, which is where I would launch new positions.

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.

chart:



Tempur Pedic Intl. - TPX - close: 30.76 change: -0.79

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:
08/11/12 update: TPX, like most of the market, has been churning sideways this past week. Yet shares underperformed on Friday with a -2.5% decline. I didn't see any news to explain Friday's relative weakness. Aggressive traders could buy a dip near what should be round-number support at the $30.00 mark. I am suggesting readers wait for a breakout to new highs instead.

We want to use a trigger at $32.50 to launch small positions but if we see TPX close under $30.00 we'll drop it as a candidate.

I do consider this somewhat of an aggressive trade so we will want to limit the size of our position. 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)

chart:



BEARISH Play Updates

Incyte Corp - INCY - close: 18.21 change: +0.44

Stop Loss: 18.65
Target(s): 14.00
Current Gain/Loss: - 4.1%
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:
08/11/12 update: Okay, now I am concerned. Thursday's oversold bounce was no big deal. Friday's bounce produced a close back above the 300-dma and what should have been resistance at the $18.00 level. I am not suggesting new positions at this time.

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!

chart:



Suburban Propane Partners - SPH - close: 37.23 change: +0.38

Stop Loss: 39.15
Target(s): 35.50
Current Gain/Loss: + 3.9%
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:
08/11/12 update: Shares of SPH were looking pretty oversold so Friday's bounce is no surprise. I am expecting the $38.00 level to offer some short-term resistance. I'm not suggesting new positions at this time.

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)

chart:



Stamps.com Inc. - STMP - close: 19.70 change: -0.58

Stop Loss: 20.65
Target(s): 17.00
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 9, 2011
Time Frame: 3 to 6 weeks
Average Daily Volume = 319 thousand
New Positions: Yes, see below

Comments:
08/11/12 update: STMP is moving the right direction for us. Shares underperformed on Friday with a -2.8% decline and closed under round-number support at $20.00. Yet the intraday low was only $19.54. Our trigger to launch positions is at $19.50. Aggressive traders could go ahead and start now but I am suggesting readers wait and use our trigger.

FYI: The Point & Figure chart for STMP is bearish with an $11 target.

Trigger @ 19.50

Suggested Position: short STMP @ (trigger)

- or -

buy the Sep $20 PUT (STMP1222u20) current ask $1.65

chart: