Editor's Note:
We are updating our stop losses on our bullish candidates. Plus a few of our bearish trades were stopped out.

ADTN, CBT, RHI, STRA were stopped out.

We want to exit DLB and TSU at the open tomorrow.

Current Portfolio:


BULLISH Play Updates

eBay Inc. - EBAY - close: 48.91 change: +1.75

Stop Loss: 46.25
Target(s): 49.75
Current Gain/Loss: + 5.8%

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:
09/06/12: The stock market's broad-based gains helped fuel a +3.7% rally in EBAY. Shares have closed at new multi-year highs. I am raising our stop loss to $46.25. Readers may want to start taking profits on our October call option.

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

09/06/12 new stop loss @ 46.25
09/01/12 new stop loss @ 45.75
08/17/12 triggered at $46.25



CarMax - KMX - close: 32.76 change: +1.14

Stop Loss: 31.40
Target(s): 33.00
Current Gain/Loss: + 8.8%

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: see below

Comments:
09/06/12: KMX has continued to show impressive relative strength. The stock added another +3.6% on top of yesterday's +3% gain. Now shares are within striking distance of our $33.00 target.

I am suggesting we go ahead and exit our Sept. $30 call at the open tomorrow. I don't want to get greedy with the option up +173%. We will raise the stop loss on our equity position to $31.40.

current Position: Long KMX stock @ $30.10

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

Long Sep $30 call (KMX1222i30) entry $1.08

09/06/12 new stop loss @ 31.40
Prepare to exit the Sept. $30 call at the open tomorrow (current bid $2.95)
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: 42.62 change: +0.64

Stop Loss: 41.30
Target(s): 44.85
Current Gain/Loss: + 1.8%

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:
09/06/12: SMG rallied to the $43.00 level and started to pare its gains. Shares ended the session up +1.5%. I am not suggesting new positions at this time. We will raise our stop loss to $41.30.

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

current Position: Long SMG stock @ $41.85

09/06/12 new stop loss @ 41.30
09/04/12 triggered @ 41.85



BEARISH Play Updates

Dolby Labs - DLB - close: 34.42 change: +0.93

Stop Loss: 35.11
Target(s): 30.15
Current Gain/Loss: - 2.4%

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:
09/06/12: The stock market's widespread rally today could be troublesome for the bears. DLB surged +2.7% and closed back above the $34.00 level again. I am suggesting we abandon ship and exit early tomorrow morning at the open.

*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

09/06/12 abandon ship! exit early at the open tomorrow



TIM Participacoes S.A. - TSU - close: 19.58 change: +0.40

Stop Loss: 20.05
Target(s): 17.50
Current Gain/Loss: + 1.1%

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:
09/06/12: TSU was not immune to the market's rally today and shares added +2.0%. I am suggesting we exit positions early tomorrow at the opening bell to try and avoid having this winning trade turn into a losing one.

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

09/06/12 prepare to exit at the open tomorrow
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: 38.49 change: +0.55

Stop Loss: 39.25
Target(s): 34.25
Current Gain/Loss: - 1.8%

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:
09/06/12: The bounce in VMC reversed at the $39.00 level today. The overall pattern still looks bearish for VMC but we are not suggesting new positions. Our stop loss is unchanged at $39.25.

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



Westport Innovations - WPRT - close: 33.99 change: +0.18

Stop Loss: 34.55
Target(s): 30.10
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 05, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 798 thousand
New Positions: Yes, see below

Comments:
09/06/12: WPRT did not see much of a bounce today. That's good news for the bears. I don't see any changes from my prior comments.

The August 24th low was $33.66. I am suggesting small bearish positions if WPRT can trade at $33.45 as our trigger. We will aim for $30.10 but more aggressive traders could aim lower. We do want to keep our position size small to limit our risk because WPRT does have a high amount of short interest. The most recent data listed short interest at 37% of the 40 million-share float. That does raise the risk of a short squeeze. Readers may want to consider limiting their risk by buying put options instead of shorting the stock. FYI: The Point & Figure chart for WPRT is bearish with a $28.00 target.

Trigger @ 33.45

Suggested Position: short WPRT stock @ (trigger)

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

buy the Oct $30 PUT (WPRT1220v30)



CLOSED BEARISH PLAYS

ADTRAN Inc. - ADTN - close: 20.60 change: +0.52

Stop Loss: 21.15
Target(s): 17.50
Current Gain/Loss: - 6.5%

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:
09/06/12: Short covering in ADTN pushed the stock to $21.42 intraday. That was a +6.6% move before selling pressure resumed. Our stop loss was hit at $21.15 on the way up.

Readers may want to keep ADTN on their watch list for a close under $19.80 as a new bearish entry point.

closed Position: short ADTN stock @ $19.85 exit $21.15 (-6.5%)

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

Long Oct $19 PUT (ADTN1220v19) Entry $1.05* exit $0.50* (-52.3%)

09/06/12 stopped out @ 21.15
*option exit price is an estimate since the option did not trade at the time our play was closed.
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

chart:



Cabot Corp. - CBT - close: 36.75 change: +1.22

Stop Loss: 35.85
Target(s): 31.50
Current Gain/Loss: - 3.5%

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:
09/06/12: It looks like we were the victims of a bear-trap pattern. Our play was triggered on the spike down below support near $35.00. Unfortunately CBT immediately reversed higher and has now seen a sharp two and a half day rebound.

The stock gapped open higher at $36.07 this morning, which was above our stop loss at $35.85.

closed Position: short CBT stock @ $34.85 exit $36.07 (-3.5%)

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

Oct $35 PUT (CBT1220v35) entry $2.05 exit $0.75 (-63.4%)

chart:



Robert Half Intl. - RHI - close: 27.06 change: +1.32

Stop Loss: 26.85
Target(s): 22.50
Current Gain/Loss: - 4.3%

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:
09/06/12: RHI also looks like a bear-trap pattern with the breakdown to new lows under support and then the sudden reversal higher. Today's move definitely looks like short covering with a +5.1% bounce. Our stop was hit at $26.85.

closed Position: short RHI stock @ $25.75 exit $26.85 (-4.3%)

09/06/12 stopped out at $26.85
09/04/12 triggered @ 25.75

chart:



Strayer Education - STRA - close: 69.42 change: +3.78

Stop Loss: 66.51
Target(s): 61.50
Current Gain/Loss: + 1.5%

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:
09/06/12: We were worried about an oversold bounce in STRA yesterday. That's why we lowered the stop loss down to $66.51. Shares gapped higher at $66.02 and then rallied toward the next resistance level at $70.00. Our stop was hit at $66.51.

Earlier Comments:
We'll try and limit our risk by keeping our position size small.

*Small Positions Only!*

closed Position: short STRA stock @ $67.50 exit $66.51 (+1.5%)

09/06/12 stopped out at $66.51
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

chart: