Editor's Note:
Shares of homebuilder PulteGroup (PHM) hit our target this afternoon but we had already decided to lock in gains at the open this morning.

Current Portfolio:


BULLISH Play Updates

eBay Inc. - EBAY - close: 47.16 change: -0.20

Stop Loss: 45.75
Target(s): 49.75
Current Gain/Loss: + 2.0%

Entry on August 17 at $46.25
Listed on August 16, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 12.3 million
New Positions: see below

Comments:
09/05/12: EBAY rebounded off its morning lows to pared its losses. Readers can look for short-term support near the $46.00 level.

I am not suggesting new positions at this time.

current Position: Long EBAY stock @ $46.25

- or -

Long Oct $47 call (EBAY1220J47) Entry $1.89

09/01/12 new stop loss @ 45.75
08/17/12 triggered at $46.25



CarMax - KMX - close: 31.62 change: +0.97

Stop Loss: 29.90
Target(s): 33.00
Current Gain/Loss: + 5.0%

Entry on August 30 at $30.10
Listed on August 29, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Comments:
09/05/12: Shares of KMX surged +3.1% on apparently no news today. The relative strength is encouraging but I would expect a little pullback when KMX nears potential resistance at $32.00. We are raising our stop loss up to $29.90. The Sept. $30 option has almost doubled for us. Readers may want to start taking profits there.

current Position: Long KMX stock @ $30.10

- (or for more adventurous traders, try this option) -

Long Sep $30 call (KMX1222i30) entry $1.08

09/05/12 new stop loss @ 29.90
08/30/12 trade opened on gap down at $30.10



Scotts Miracle-Gro Company - SMG - close: 41.98 change: -0.09

Stop Loss: 40.60
Target(s): 44.85
Current Gain/Loss: + 0.3%

Entry on September 04 at $41.85
Listed on September 01, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 500 thousand
New Positions: see below

Comments:
09/05/12: It was a rather boring session for SMG today with shares churning sideways in a very narrow range near $42.00. I would still consider new positions now at current levels but nimble traders could try and buy dips near the 30-dma (currently 41.27).

FYI: The Point & Figure chart for SMG is bullish with a long-term $54 target.

current Position: Long SMG stock @ $41.85

09/04/12 triggered @ 41.85



BEARISH Play Updates

ADTRAN Inc. - ADTN - close: 20.08 change: -0.19

Stop Loss: 21.15
Target(s): 17.50
Current Gain/Loss: - 1.2%

Entry on September 04 at $19.85
Listed on September 01, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 973 thousand
New Positions: see below

Comments:
09/05/12: ADTN continues to drift lower and posted a -0.9% decline. Yet shares have not yet closed under round-number support at $20.00. Our trade is open at $19.85 but I would wait for a new drop under $19.85 before initiating new positions.

FYI: The Point & Figure chart for ADTN is bearish with a long-term $10.00 target.

current Position: short ADTN stock @ $19.85

- (or for more adventurous traders, try this option) -

Long Oct $19 PUT (ADTN1220v19) Entry $1.05*

09/04/12 triggered @ 19.85
*option entry price is an estimate since the option did not trade at the time our play was opened



Cabot Corp. - CBT - close: 35.53 change: +0.99

Stop Loss: 35.85
Target(s): 31.50
Current Gain/Loss: - 2.0%

Entry on August 29 at $34.85
Listed on August 28, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 338 thousand
New Positions: see below

Comments:
09/05/12: Hmm... I didn't see any news to explain the sudden surge of relative strength in CBT today. Shares rallied +2.8%. It looks like follow through on yesterday's intraday bounce off the $34.00 level. If there is any follow through higher tomorrow our trade will get stopped outa t $35.85. I am not suggesting new positions at this time.

Our multi-week target is $31.50. The Point & Figure chart for CBT is bearish with a $25.00 target.

current Position: short CBT stock @ $34.85

- (or for more adventurous traders, try this option) -

Long Oct $35 PUT (CBT1220v35) entry $2.05



Dolby Labs - DLB - close: 33.49 change: +0.05

Stop Loss: 35.11
Target(s): 30.15
Current Gain/Loss: + 0.5%

Entry on August 24 at $33.60
Listed on August 23, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 992 thousand
New Positions: see below

Comments:
09/05/12: DLB also delivered a quiet day with the stock drifting sideways in a very narrow range. There is no change from my prior comments. Look for short-term resistance near $34.00. More conservative traders might want to start adjusting their stop loss lower.

*Small Positions*

current Position: short DLB stock @ $33.60

- (or for more adventurous traders, try this option) -

Long Sep $35 PUT (DLB1222u35) Entry $1.90



Robert Half Intl. - RHI - close: 25.74 change: -0.23

Stop Loss: 26.85
Target(s): 22.50
Current Gain/Loss: - 0.0%

Entry on September 04 at $25.75
Listed on September 01, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
09/05/12: The bounce in RHI failed near the $26.50 level and RHI is back to our entry point near $25.75. I would use today's move as a new entry point for bearish positions.

FYI: The Point & Figure chart for RHI is bearish with a $20.00 target.

current Position: short RHI stock @ $25.75

09/04/12 triggered @ 25.75



Strayer Education - STRA - close: 65.64 change: +1.14

Stop Loss: 66.51
Target(s): 61.50
Current Gain/Loss: + 2.8%

Entry on August 23 at $67.50
Listed on August 22, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 294 thousand
New Positions: see below

Comments:
09/05/12: I noticed that many of the education-related stocks outperformed today. DeVry (DV) announced a stock buyback and acquisition in Brazil yet I doubt this news drove the rally behind all the education stocks. STRA has bounced back with a +1.7% gain and is poised to test short-term resistance at $66.00. I am lowering our stop loss to $66.51. More conservative traders may want to exit now.

I am not suggesting new positions at this time.

Earlier Comments:
Part of our challenge is that the for-profit education stocks have been bearish for a while. The most recent data listed short interest in STRA at 41% of the very small 11 million share float. That raises our risk of a short squeeze. Given this risk I'd rather buy put options but the options spreads are too wide to trade. We'll try and limit our risk by keeping our position size small.

*Small Positions Only!*

current Position: short STRA stock @ $67.50

09/05/12 new stop loss @ 66.51
09/01/12 new stop loss @ 67.05
08/30/12 new stop loss @ 67.75
08/27/12 new stop loss @ 68.65
08/25/12 new stop loss @ 70.25



TIM Participacoes S.A. - TSU - close: 19.18 change: -0.14

Stop Loss: 20.05
Target(s): 17.50
Current Gain/Loss: + 3.1%

Entry on August 22 at $19.80
Listed on August 21, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 2.3 million
New Positions: see below

Comments:
09/05/12: TSU faded lower with a -0.7% decline. I am not suggesting new positions at this time.

current Position: short TSU stock @ $19.80 (Small Positions)

09/01/12 new stop loss @ 20.05
08/27/12 new stop loss @ 20.55
08/22/12 triggered @ 19.80



Vulcan Materials - VMC - close: 37.94 change: +0.24

Stop Loss: 39.25
Target(s): 34.25
Current Gain/Loss: - 0.4%

Entry on September 05 at $37.80
Listed on September 04, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 444 thousand
New Positions: see below

Comments:
09/05/12: VMC opened at $37.80 but managed a bounce off its morning lows to close up +0.6%. Overall nothing has changed from yesterday and I would still consider new bearish positions at current levels.

Earlier Comments:
I do consider this an aggressive, higher-risk trade because VMO has been so volatile in recent weeks. Plus, there is arguably potential support at the 300-dma, and at $35.00.

*Keep Position Size Small to Limit Risk*

current Position: short VMC stock @ $37.80



CLOSED BULLISH PLAYS

PulteGroup - PHM - close: 14.04 change: +0.29

Stop Loss: 12.65
Target(s): 13.90
Current Gain/Loss: +11.6%
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:
09/05/12: PHM hit our target today at $13.90 except that we had already decided to exit positions at the opening bell this morning. Shares opened at $13.72 and eventually rallied +2.1% to close over resistance at the $14.00 level. We were lucky that the call option opened higher for us today.

closed Position: Long PHM stock @ $12.29 exit $13.72 (+11.6%)

- or -

Oct $13 call (PHM1220j13) Entry $0.70 exit $1.48 (+111.4%)

09/05/12 closed at the open this morning
09/04/12 prepare to exit at the opening bell tomorrow!
08/29/12 new stop loss @ 12.65
08/25/12 adjust exit target to $13.90
08/20/12 new stop loss @ 12.45
08/18/12 new stop loss @ 11.95
08/17/12 PHM stalls/reverses at resistance near $14.00
08/09/12 new stop loss @ 11.80
08/09/12 triggered on gap higher at $12.29. Trigger was $12.25.

chart: