Editor's Note:
Tuesday was another low-volume summer day on Wall Street. Stocks slipped lower into the close.

Our STMP trade has been triggered.

Current Portfolio:


BULLISH Play Updates

Aruba Networks - ARUN - close: 16.27 change: -0.22

Stop Loss: 15.49
Target(s): 19.00
Current Gain/Loss: +0.9%
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:
08/14/12 update: ARUN is down two days in a row this week. Traders did buy the dip at $16.00 this morning but I'm still expecting shares will try and fill the gap. That means a dip to $15.60 is likely.

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: 33.49 change: +0.36

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:
08/14/12 update: EXXI displayed some relative strength today with a +1.0% gain. The intraday bounce near its simple 200-dma is also encouraging. Yet we're still waiting for a breakout.

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: 12.70 change: +0.26

Stop Loss: 11.80
Target(s): 14.50
Current Gain/Loss: + 3.3%
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:
08/14/12 update: Homebuilders as a group were showing a little strength today. PHM outperformed many of its peers with a +2.0% gain. I am not suggesting new positions at this time.

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: 29.23 change: -0.16

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:
08/14/12 update: It was another quiet day for SWKS. The stock continues to consolidate sideways under resistance near $30.00.

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: 31.73 change: +0.60

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:
08/14/12 update: The rebound in TPX continues. Shares outperformed the market with a +1.9% gain. The stock is nearing short-term resistance at the $32 level.

We want to use a trigger at $32.50 to launch small positions.

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

FARO Technologies - FARO - close: 34.68 change: -0.02

Stop Loss: 36.55
Target(s): 30.50
Current Gain/Loss: + 0.8%

Entry on August 14 at $ 34.97
Listed on August 13, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 238 thousand
New Positions: see below

Comments:
08/14/12 update: It's not the most impressive start. FARO drifted sideways in a narrow range most of the day. I would still consider new bearish positions now but more conservative traders could wait for a new drop under $34.00 as their entry point.
FYI: The Point & Figure chart for FARO is bearish with a long-term $21.00 target.

Current Position: short FARO stock @ $34.97

- or -

Long Sept $35 PUT (FARO1222u35) Entry $2.10



Incyte Corp - INCY - close: 18.25 change: +0.06

Stop Loss: 18.65
Target(s): 14.00
Current Gain/Loss: - 4.3%
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:
08/14/12 update: INCY is still trying to bounce. Shares made it to $18.48 intraday before paring its gains. I don't see any changes from my prior comments. 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: 37.69 change: +0.29

Stop Loss: 38.05
Target(s): 35.50
Current Gain/Loss: + 2.8%
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:
08/14/12 update: SPH continues to slowly drift higher. I suspect this is just bearish traders covering shorts and locking in gains. That is something our readers may want to consider, especially since SPH is now up three days in a row. I'm not suggesting new positions at this time.

current Position: short SPH @ $38.76

- or -

Long Sep $40 PUT entry @ $2.20

08/14/12 I repeat, readers may want to lock in gains now and exit early
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: 18.84 change: -0.80

Stop Loss: 20.65
Target(s): 17.00
Current Gain/Loss: + 3.4%

Entry on August 14 at $19.50
Listed on August 9, 2011
Time Frame: 3 to 6 weeks
Average Daily Volume = 319 thousand
New Positions: see below

Comments:
08/14/12 update: Our STMP play is finally open. The stock was weak pretty early this morning and underperformed the market with a -4.0% decline. This is a new low for the year. STMP hit our trigger to launch bearish positions at $19.50.

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

Current Position: short STMP @ $19.50

- or -

Long Sep $20 PUT (STMP1222u20) Entry $1.85

08/14/12 triggered @ 19.50