Editor's Note:
Stocks surged as Ben Bernanke gave the market what it wanted to hear.

We closed our CTCT trade as planned. NTGR was triggered.

Current Portfolio:


BULLISH Play Updates

eBay Inc. - EBAY - close: 48.88 change: +0.89

Stop Loss: 47.45
Target(s): 49.75
Current Gain/Loss: + 5.7%

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:
09/13/12: EBAY displayed relative strength with a +1.8% gain. Shares look poised to rally toward likely resistance at $50.00. Our target to exit is $49.75. I am raising our stop loss to $47.45.

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%)

09/13/12 new stop loss @ 47.45
09/12/12 new stop loss @ 46.75
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



Energy XXI Ltd. - EXXI - close: 36.53 change: +0.68

Stop Loss: 34.40
Target(s): 39.75
Current Gain/Loss: + 2.8%

Entry on September 12 at $35.55
Listed on September 11, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 790 thousand
New Positions: see below

Comments:
09/13/12: It was a good day for EXXI. Traders bought the dip this morning near $35.25 and shares outperformed the market with a +1.89% gain. I am raising our stop loss to $34.40. I am not suggesting new positions at this time.

current Position: Long EXXI stock @ $35.55

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

Long Oct $35 CALL (EXXI1220j35) Entry $2.25

09/13/12 new stop loss @ 34.40



Netgear Inc. - NTGR - close: 39.70 change: +0.38

Stop Loss: 38.80
Target(s): 44.75
Current Gain/Loss: - 1.4%

Entry on September 13 at $40.25
Listed on September 10, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 562 thousand
New Positions: see below

Comments:
09/13/12: Hmm... we need to be cautious here. NTGR rallied this afternoon along with the market. Yet after breaking through resistance near $40.00 the stock reversed. Our trigger to open bullish positions was hit at $40.25 but I would not launch new positions now. Nimble traders could watch and try and buy a bounce off $39.00. Otherwise I would wait for a new rally past $40.25 as our next entry point.

current Position: Long NTGR stock @ $40.25

09/13/12 triggered @ 40.25



Scotts Miracle-Gro Company - SMG - close: 43.95 change: +0.50

Stop Loss: 41.75
Target(s): 44.85
Current Gain/Loss: + 5.0%

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:
09/13/12: SMG has climbed to a new three-month high. I am raising our stop loss to $41.75. More conservative traders may want to take profits now. 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

09/13/12 new stop loss @ 41.75
09/06/12 new stop loss @ 41.30
09/04/12 triggered @ 41.85



Veeco Instruments - VECO - close: 36.59 change: +0.56

Stop Loss: 34.45
Target(s): 39.75
Current Gain/Loss: + 2.0%

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:
09/13/12: VECO consolidated sideways waiting for the Fed news and then shot higher to test the $37 level. I am raising our stop loss to $34.45.

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

09/13/12 new stop loss @ 34.45



Virgin Media, Inc. - VMED - close: 30.01 change: +0.35

Stop Loss: 27.85
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: see below

Comments:
09/13/12: VMED refuses to see a pullback. The stock rallied to another 52-week high and is now testing potential round-number resistance at the $30.00 mark. If we did not want to chase it earlier this week we still don't want to chase it now. If VMED does not start to see some sort of correction tomorrow then we'll drop it as a candidate. More aggressive traders could buy a breakout over today's high (30.14) and just use a super tight stop loss (maybe the prior day's low) as a strategy.

NOTE: I will adjust our buy-the-dip entry point to $28.75. If triggered we'll move the stop loss to $27.85.

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 @ $28.75

Suggested Position: buy VMED stock @ (trigger)

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

buy the Oct $28 call (VMED1220j28)

09/13/12 adjust the entry trigger to $28.75
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

Aetna Inc. - AET - close: 38.17 change: +0.82

Stop Loss: 38.65
Target(s): 35.05
Current Gain/Loss: -2.4%

Entry on September 13 at $37.27
Listed on September 12, 2011
Time Frame: 3 to 6 weeks
Average Daily Volume = 4.0 million
New Positions: see below

Comments:
09/13/12: AET is not cooperating with us. The stock gapped open lower and then almost immediately rallied. Shares were climbing almost the entire session and posted a +2.1% gain. Furthermore today's bounce has painted a bullish engulfing candlestick reversal pattern. If there is any follow through higher AET will likely hit our stop loss at $38.65. I am not suggesting new positions.

current Position: short AET stock @ $37.27

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

Long Oct $35 PUT (AET1220v35) Entry $0.35



Jive Software, Inc. - JIVE - close: 14.53 change: +0.47

Stop Loss: 15.05
Target(s): 10.25
Current Gain/Loss: - 4.5%

Entry on September 11 at $13.90
Listed on September 10, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
09/13/12: Shares of JIVE were upgraded this morning and the news produced a gap open higher. Yet the rally did not break through resistance at the $15.00 level. JIVE still closed up with a +3.3% gain.

I am not suggesting new positions at this time.

Earlier Comments:
It looks like lots of investors are already bearish with short interest at 28% of the small 24.8 million-share float. That does raise the risk of a short squeeze so I would limit our position size to reduce our risk. You can also limit your risk by using the put options.

*Small Positions*

current Position: short JIVE stock @ $13.90

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

Long Oct $15 PUT (JIVE1220v15) Entry $1.90



Westport Innovations - WPRT - close: 31.83 change: -0.35

Stop Loss: 33.65
Target(s): 27.50
Current Gain/Loss: + 4.8%

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:
09/13/12: WPRT continues to underperform the market. The bounce failed near technical resistance at its 100-dma and 300-dma today. I am lowering our stop loss down to $33.65. I am also lowering our target. While the $30.00 level could be round-number support we are going to aim for a the $27.50 level.

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

09/13/12 new stop loss @ 33.65, adjust target to $27.50
09/10/12 new stop loss @ 34.05
09/07/12 triggered @ 33.45



CLOSED BULLISH PLAYS

Constant Contact, Inc. - CTCT - close: 19.82 change: -0.53

Stop Loss: 18.99
Target(s): 24.50
Current Gain/Loss: - 4.4%

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:
09/13/12: CTCT was really weak this morning. The recent breakout past resistance near $20.00 was a bull-trap pattern. Given the turnaround we decided last night to exit positions at the open today. Shares gapped open at $19.79 and then plunged to 418.20 before paring its losses.

closed Position: Long CTCT stock @ $20.70 exit $19.79 (-4.4%)

09/13/12 closed at the opening bell today
09/12/12 prepare to exit at the open tomorrow

chart: