Editor's Note:
Shares of CarMax Inc. hit our bullish exit target on Friday.

We closed DLB and TSU at the open.

VMC was stopped out while WPRT was triggered.

Current Portfolio:


BULLISH Play Updates

eBay Inc. - EBAY - close: 49.24 change: +0.33

Stop Loss: 46.25
Target(s): 49.75
Current Gain/Loss: + 6.6%

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:
09/08/12: EBAY continued to drift higher on Friday following Thursday's surge higher. Shares hit $49.26 intraday. Our exit target is $49.75 but readers may want to start taking profits now.

The bid on our October $47 call has risen to $3.35. I am suggesting we go ahead and exit our calls on Monday morning at the open.

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

09/08/12 prepare to exit our call option on Monday morning
09/06/12 new stop loss @ 46.25
09/01/12 new stop loss @ 45.75
08/17/12 triggered at $46.25

chart:



Scotts Miracle-Gro Company - SMG - close: 43.21 change: +0.59

Stop Loss: 41.30
Target(s): 44.85
Current Gain/Loss: + 3.2%

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:
09/08/12: SMG continues to drift higher. Shares are now testing resistance at the simple 100-dma and the mid August highs. The stock held up reasonably well considering news out late Friday afternoon, just before the closing bell, concerning SMG and its $12.5 million fine and civil penalty for the government's case about illegally including insecticides inside SMG's bird food products. For reference the company brings in about $2.86 billion a year in revenues.

SMG is testing resistance so I am not suggesting new positions at this time.

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

chart:



Virgin Media, Inc. - VMED - close: 29.32 change: +0.64

Stop Loss: 27.25
Target(s): 31.50
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 06, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.5 million
New Positions: Yes, see below

Comments:
09/08/12: VMED continued to show relative strength on Friday with a +2.2% gain. We do not want to chase it here. Odds are pretty good the stock will see a pullback. Broken resistance near $28.00 should be support. I am moving our buy-the-dip trigger from $28.25 to $28.55. We will inch our stop loss higher to $27.45.

I suspect VMED could see more short covering since the most recent data listed short interest at 20% of the 256 million-share float. FYI: The Point & Figure chart for VMED is bullish with a $41 target.

Buy-the-Dip Trigger @ $28.55

Suggested Position: buy VMED stock @ (trigger)

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

buy the Oct $28 call (VMED1220j28)

09/08/12 adjust the buy-the-dip trigger higher from $28.25 to $28.55

chart:



BEARISH Play Updates

Westport Innovations - WPRT - close: 33.42 change: -0.57

Stop Loss: 34.55
Target(s): 30.10
Current Gain/Loss: + 0.1%

Entry on September 07 at $33.45
Listed on September 05, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 798 thousand
New Positions: Yes, see below

Comments:
09/08/12: Our new WPRT has been triggered. Shares underperformed the market again on Friday. The stock hit our trigger to open bearish positions at $33.45.

Earlier 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.

*Small Positions to Limit Risk*

current Position: short WPRT stock @ $33.45

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

Long Oct $30 PUT (WPRT1220v30) entry $1.05

09/07/12 triggered @ 33.45

chart:



CLOSED BULLISH PLAYS

CarMax - KMX - close: 32.24 change: -0.52

Stop Loss: 31.40
Target(s): 33.00
Current Gain/Loss: + 9.6%

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:
09/08/12: Target achieved.

KMX rallied to $33.28 intraday and then reversed to close in negative territory. Fortunately shares hit our exit target at $33.00 early Friday morning.

We had already decided to exit our Sept. $30 call at the open on Friday morning.

closed Position: Long KMX stock @ $30.10 exit $33.00 (+9.6%)

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

Sep $30 call (KMX1222i30) entry $1.08 exit $2.95*(+173.1%)

09/07/12 target hit at $33.00
we closed our call option at the open
*option exit price is an estimate since the option did not trade at the time our play was closed.
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

chart:



CLOSED BEARISH PLAYS

Dolby Labs - DLB - close: 34.46 change: +0.04

Stop Loss: 35.11
Target(s): 30.15
Current Gain/Loss: - 2.3%

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:
09/08/12: On Thursday night we decided to close positions early on Friday morning. DLB opened at $34.38 before spiking higher.

*Small Positions*

closed Position: short DLB stock @ $33.60 exit $34.38 (-2.3%)

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

Sep $35 PUT (DLB1222u35) Entry $1.90 exit $0.90 (-52.6%)

09/07/12 closed on Friday morning
09/06/12 abandon ship! exit early at the open tomorrow

chart:



TIM Participacoes S.A. - TSU - close: 20.16 change: +0.58

Stop Loss: 20.05
Target(s): 17.50
Current Gain/Loss: + 0.8%

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:
09/08/12: TSU was not cooperating so in Thursday night's newsletter we decided to exit on Friday morning. TSU opened at $19.65 before shooting higher and breaking through resistance at $20.00.

(Small Positions)

closed Position: short TSU stock @ $19.80 exit $19.65 (+0.8%)

09/07/12 closed on Friday morning
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

chart:



Vulcan Materials - VMC - close: 40.35 change: +1.86

Stop Loss: 39.25
Target(s): 34.25
Current Gain/Loss: - 3.8%

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:
09/08/12: Many of the basic material names were skyrocketing higher. It could have been reaction to China's new plan to build several major construction projects costing one trillion yen. Shares of VMC gapped open higher at $38.69 and then surged toward and eventually past resistance near $40.00 and its 50-dma and 200-dma. Our stop loss was hit 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*

closed Position: short VMC stock @ $37.80 exit $39.25 (-3.8%)

09/07/12 stopped out at $39.25

chart: