Editor's Note:
Outside of a big decline in oil prices today the markets were relatively quiet.

Our VMED trade was triggered on a breakout higher.

Current Portfolio:


BULLISH Play Updates

Analog Devices - ADI - close: 40.92 change: +0.15

Stop Loss: 39.45
Target(s): 44.75
Current Gain/Loss: - 0.4%

Entry on September 17 at $41.10
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
09/19/12: Traders bought the dip in ADI near $40.50 again and the stock bounced toward $41.00. Shares have cut our minor decline in half to -0.4%. I would still consider new positions now or you can wait for a rally past today's high as an entry point (today's high 41.07).

Our multi-week target is going to require some patience but we are aiming for $44.75. The Point & Figure chart for ADI is bullish with a $49 target.

current Position: Long ADI stock @ $41.10

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

Long 2013 Jan $42 call (ADI1319a42) Entry $1.60

09/17/12 triggered @ 41.10



Energy XXI Ltd. - EXXI - close: 36.70 change: -0.13

Stop Loss: 35.45
Target(s): 39.75
Current Gain/Loss: + 3.2%

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:
09/19/12: A sharp pullback in crude oil prices undermined strength in the energy sector. EXXI dipped to $36.25 this morning. I don't think the pullback in EXXI is finished yet. Look for a dip to $36.00 or the 10-dma. 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 exit $3.05*(+35.5%)

09/17/12 closed our Oct. $35 calls at the open. bid @ $3.05
*option exit price is an estimate since the option did not trade at the time our play was closed.
09/15/12 new stop loss @ 35.45, prepare to exit our Oct. calls at the open on Monday
09/13/12 new stop loss @ 34.40



Guidewire Software - GWRE - close: 31.31 change: +0.18

Stop Loss: 29.85
Target(s): 34.50
Current Gain/Loss: + 0.3%

Entry on September 18 at $31.23
Listed on September 17, 2011
Time Frame: 4 to 8 weeks
Average Daily Volume = 621 thousand
New Positions: see below

Comments:
09/19/12: GWRE is still drifting higher thanks to traders buying the dips. Shares erased yesterday's minor loss. I don't see any changes from my Monday night comments and would still consider new positions now at current levels. Our multi-week target is $34.50.

current Position: Long GWRE stock @ $31.23

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

Long Oct $30 call (GWRE1220j30) entry $2.50



Lions Gate Entertainment - LGF - close: 15.61 change: +0.34

Stop Loss: 14.75
Target(s): 17.75
Current Gain/Loss: + 2.4%

Entry on September 18 at $15.25
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
09/19/12: LGF outperformed the market today with a +2.2% bounce. I wouldn't get too excited just yet. LGF still has resistance near the $16.00 level.

current Position: Long LGF stock @ $15.25

09/18/12 triggered @ 15.25



Shutterfly, Inc. - SFLY - close: 33.42 change: -0.76

Stop Loss: 32.25
Target(s): 39.75
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 18, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 834 thousand
New Positions: Yes, see below

Comments:
09/19/12: There was no follow through on yesterday's rally in SFLY. Shares dropped sharply at the open before eventually trimming its losses. Aggressive traders could buy a breakout past the simple 300-dma, currently a t $34.36. I am suggesting a trigger to open bullish positions at $35.25. Our target is $39.75. We'll start with a stop loss at $32.25.

If SFLY breaks out past resistance it could see a big short squeeze higher. The most recent data listed short interest at 39% of the small 32.1 million share float. This week's rally has created a new Point & Figure chart buy signal with a long-term $48 target.

Due to SFLY's volatility we want to keep our position size small to limit our risk.

Trigger @ 35.25

Suggested Position: buy SFLY stock @ (trigger)

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

buy the OCT $35 call (SFLY1220j35)



Veeco Instruments - VECO - close: 36.02 change: -0.33

Stop Loss: 35.45
Target(s): 39.75
Current Gain/Loss: + 0.4%

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:
09/19/12: It was a quiet day for VECO. Shares faded lower to a -0.9% decline. I am not suggesting new positions at this time.

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) -

(planned exit on Monday, Sep. 17th, at the open) Oct $37.00 call (VECO1220j37) Entry $1.60 exit $1.65 (+ 3.2%)

09/17/12 planned exit for the Oct $37 call
09/15/12 new stop loss @ 35.45, prepare to exit our October calls at the open on Monday morning
09/13/12 new stop loss @ 34.45



Virgin Media, Inc. - VMED - close: 30.32 change: +0.41

Stop Loss: 29.25
Target(s): 32.25
Current Gain/Loss: + 0.4%

Entry on September 19 at $30.20
Listed on September 06, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
09/19/12: Our VMED trade is finally open. Yesterday we adjusted our strategy to buy a breakout and use an entry trigger at $30.20. VMED was kind enough to follow our script and rally to new highs. Our stop is at $29.25. Our target is $32.25.

NOTE: We want to keep our position size small to limit our risk.

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.

current Position: Long VMED stock @ $30.20

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

Long Oct $30 call (VMED1220j30) entry $0.95

09/19/12 triggered @ $30.20
09/18/12 Strategy change: use a breakout trigger to open bullish positions at $30.20 with a stop loss at $29.25.
09/15/12 adjust buy-the-dip trigger to $29.00 and stop to $28.45
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

Synacor, Inc. - SYNC - close: 7.54 change: +0.04

Stop Loss: 7.70
Target(s): 6.10
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 13, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 628 thousand
New Positions: Yes, see below

Comments:
09/19/12: We are seeing more of the same from SYNC. Shares bounced off support at $7.35 and churned sideways the rest of the day.

Last Thursday's low and today's low was $7.35. I am suggesting bearish positions if shares can hit $7.30. I do consider this an aggressive, higher-risk trade. The most recent data listed short interest at 15% of the very small 8.0 million share float. We will target a drop to $6.10.

Trigger @ 7.30

Suggested Position: short SYNC stock @ (trigger)



Westport Innovations - WPRT - close: 29.37 change: -0.65

Stop Loss: 32.05
Target(s): 27.50
Current Gain/Loss: +12.2%

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:
09/19/12: WPRT is still underperforming and gave up -2.1% today. The stock was struggling with round-number resistance at $30.00 this morning. I am lowering our stop loss down to $32.05.

I am not suggesting new positions at this time.

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) -

(closed the Oct $30 put when WPRT hit $30.15 on Sep. 17th) Oct $30 PUT (WPRT1220v30) entry $1.05 exit $1.90 (+ 80.9%)

09/19/12 new stop loss @ 32.05
09/17/12 new stop loss @ 32.60
09/17/12 closed Oct $30 puts when WPRT hit $30.15
09/15/12 new stop loss @ 33.10, plan to exit our October puts when WPRT hits $30.15. 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