Editor's Note:
Stocks were weak this morning but most of the market saw an afternoon rebound that pared its losses. Overall it was a quiet day for the Premier Investor newsletter.

Current Portfolio:


BULLISH Play Updates

Aruba Networks - ARUN - close: 16.49 change: -0.29

Stop Loss: 15.49
Target(s): 19.00
Current Gain/Loss: +2.2%
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:
08/13/12 update: ARUN continues to hover near technical resistance at its simple 100-dma. You'll notice on an intraday chart that the stock has also been struggling with the $17.00 mark the last couple of days. It might be time for a little correction. ARUN could try and fill the gap with a dip to $15.60.

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.



Energy XXI Ltd. - EXXI - close: 33.13 change: -0.48

Stop Loss: 32.45
Target(s): 37.75
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 11, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 968 thousand
New Positions: Yes, see below

Comments:
08/13/12 update: EXXI came close but the stock did not breakout past resistance near $34.00. As a matter of fact, today's move looks like a bearish reversal or failed rally at the $34.00 level. We'll have to see if there is any follow through lower. Right now our plan is unchanged.

I am suggesting a trigger to launch bullish positions at $34.05 with a stop loss at $32.45. Our multi-week target is $37.75.

Trigger @ 34.05

Suggested Position: buy EXXI stock @ (trigger)

- or -

buy the Sep $35 call (EXXI1222i35)



PulteGroup - PHM - close: 12.44 change: -0.04

Stop Loss: 11.80
Target(s): 14.50
Current Gain/Loss: + 1.2%
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:
08/13/12 update: PHM spent the day hovering under the $12.50 level. The low today was $12.27. I've been looking for a dip into the $12.25-12.00 zone. I still think there is a chance we could see PHM trade closer to $12.00.

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.



Skyworks Solutions - SWKS - close: 29.39 change: -0.24

Stop Loss: 28.49
Target(s): 33.50
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 11, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.5 million
New Positions: Yes, see below

Comments:
08/13/12 update: SWKS delivered a quiet session with shares churning above the $29.00 level. There is no change from my weekend comments.

The late July high was $30.10. I am suggesting a trigger to launch bullish positions at $30.25. Our multi-week target is $33.50.
FYI: The Point & Figure chart for SWKS is bullish with a $40.00 target.

Trigger @ 30.25

Suggested Position: buy SWKS stock @ (trigger)

- or -

buy the Nov $32 call (SWKS1217K32)



Tempur Pedic Intl. - TPX - close: 31.13 change: +0.37

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:
08/13/12 update: Hmm... TPX was showing a little bit of relative strength today. Traders bought the dip at $30.19 and managed to close up +1.2% by the closing bell. Aggressive traders might want to buy this bounce. 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)



BEARISH Play Updates

Incyte Corp - INCY - close: 18.19 change: -0.02

Stop Loss: 18.65
Target(s): 14.00
Current Gain/Loss: - 3.9%
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:
08/13/12 update: There was not any follow through on Friday's big bounce in INCY. Yet most of the market was weak today and INCY did see an intraday bounce just like the major indices. I am cautious on this trade with INCY above $18.00. 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!



Suburban Propane Partners - SPH - close: 37.40 change: +0.17

Stop Loss: 38.05
Target(s): 35.50
Current Gain/Loss: + 3.5%
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:
08/13/12 update: Hmm... what do we do here with SPH? The stock is still oversold in spite of a relatively mild two-day bounce. I find it interesting that shares did not decline this morning when most of the market was falling. Has SPH temporarily exhausted the current crop of sellers?

Readers may want to seriously consider exiting now to lock in gains. We are going to turn cautious on this trade and tighten our stop loss down to $38.05. I'm not suggesting new positions at this time.

current Position: short SPH @ $38.76

- or -

Long Sep $40 PUT entry @ $2.20

08/13/12 new stop loss @ 38.05
08/09/12 new stop loss @ 39.15
08/08/12 triggered on gap down at $38.76 (trigger was 39.75)



Stamps.com Inc. - STMP - close: 19.64 change: -0.06

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:
08/13/12 update: STMP is getting closer but our trade is still not open yet. On Friday the stock dipped to $19.54 intraday. Today's low was $19.52. Our trigger to launch bearish positions is $19.50. Aggressive traders may want to go ahead and open positions following today's failed rally near $20.00 this morning.

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)