Editor's Note:
The stock market paused after last week's rally. Traders are probably waiting on the German court's vote on the ESM and the upcoming FOMC meeting.

Current Portfolio:


BULLISH Play Updates

Constant Contact, Inc. - CTCT - close: 20.71 change: +0.09

Stop Loss: 18.99
Target(s): 24.50
Current Gain/Loss: + 0.0%

Entry on September 10 at $20.70
Listed on September 08, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 436 thousand
New Positions: see below

Comments:
09/10/12: CTCT posted another gain today, it's third in a row, but shares definitely retreated from their intraday highs. I suspect we'll see CTCT dip into the $20.25-20.00 zone. I would wait for the dip and launch new bullish positions there.

Earlier Comments:
CTCT could see more short covering. The most recent data listed short interest at 28% of the relatively small 29.8 million-share float. Our target is $24.50 but we may adjust that lower. Keep an eye on potential resistance at the simple 200-dma.

current Position: Long CTCT stock @ $20.70



eBay Inc. - EBAY - close: 48.53 change: -0.71

Stop Loss: 46.25
Target(s): 49.75
Current Gain/Loss: + 4.9%

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:
09/10/12: Positive analyst comments on EBAY today were not enough to lift the stock any higher. Shares had rallied to new multi-year highs late last week and today saw some profit taking.

Over the weekend I said we would exit our October calls at the open this morning. EBAY's gap down this morning produced a gap down in our option price.

I am not suggesting new positions at this time.

current Position: Long EBAY stock @ $46.25

- or -

(exited options on 09-10-2012 at the open)
Oct $47 call (EBAY1220J47) Entry $1.89 exit $3.05 (+61.3%)

09/10/12 closed option position this morning (+61.3%)
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



Scotts Miracle-Gro Company - SMG - close: 42.98 change: -0.23

Stop Loss: 41.30
Target(s): 44.85
Current Gain/Loss: + 2.7%

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:
09/10/12: SMG rallied to a new two-month high today only to reverse under the $44.00 level. Shares look poised to pullback toward $42.00 or the rising 30-dma. 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



Veeco Instruments - VECO - close: 35.54 change: -0.46

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: - 0.9%

Entry on September 10 at $35.88
Listed on September 08, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 723 thousand
New Positions: see below

Comments:
09/10/12: VECO's performance today was a big disappointing. Shares underperformed the market with a -1.2% decline. Given today's decline I would look for a dip near $35.00 as our next entry point.

Our plan was to limit our risk by keeping our position size small.

*Small Positions to Limit Risk*

current Position: Long VECO stock @ $35.88

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

Long Oct $37.00 call (VECO1220j37) Entry $1.60



Virgin Media, Inc. - VMED - close: 29.38 change: +0.06

Stop Loss: 27.45
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:
09/10/12: The rally in VMED seems to be slowing a bit. Shares are short-term overbought and I am expecting a pullback. Right now the plan is to open bullish positions on a dip at $28.55 with a stop loss at $27.45.

Earlier Comments:
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 and adjust the stop loss to $27.45



BEARISH Play Updates

Westport Innovations - WPRT - close: 31.52 change: -1.90

Stop Loss: 34.05
Target(s): 30.10
Current Gain/Loss: + 5.8%

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: see below

Comments:
09/10/12: Good news! WPRT is accelerating lower and underperformed the market with a -5.6% decline on Monday. Today's drop is also a breakdown under the exponential 200-dma, the simple 100-dma, and the simple 300-dma. Our exit target is $30.10 but more aggressive traders could aim lower. I am adjusting our stop loss to $34.05.

Earlier Comments:
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

09/10/12 new stop loss @ 34.05
09/07/12 triggered @ 33.45