Editor's Note:
The market's major indices were weak on Friday but our play list delivered a mix of results. All of our bullish trades were outperforming the market. Our bearish traders were split between those in an oversold bounce and those hitting new relative lows.

MDSO was triggered.

Current Portfolio:


BULLISH Play Updates

Calumet Specialty Products - CLMT - close: 32.00 change: +0.84

Stop Loss: 29.85
Target(s): 33.75
Current Gain/Loss: + 5.6%

Entry on September 21 at $30.30
Listed on September 20, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 409 thousand
New Positions: see below

Comments:
09/29/12: CLMT continues to perform well. I suspect window dressing helped push the stock to a new multi-year high and a +2.6% gain on Friday. Do not be surprised if CLMT sees some profit taking on Monday. More conservative traders may want to take profits now, especially if you have the call option.

I am not suggesting new positions at this time. We will raise the stop loss to $29.85.

Please note that I am adjusting our exit target down to $33.75.

Income investors might want to do more research on CLMT as a potential longer-term trade considering the stock's 8.1% dividend yield.

FYI: The Point & Figure chart for CLMT is bullish with a long-term $47.50 target.

current Position: Long CLMT stock @ $30.30

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

NOV $30 call (CLMT1217K30) Entry $1.40

09/29/12 new stop loss @ 29.85
Adjust exit target to $33.75
09/27/12 new stop loss @ 29.49
09/25/12 new stop loss @ 29.25
09/21/12 triggered @ 30.30

chart:



Homeowners Choice, Inc. - HCII - close: 23.50 change: +0.72

Stop Loss: 22.90
Target(s): 27.75
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 24, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 208 thousand
New Positions: Yes, see below

Comments:
09/29/12: HCII is recovering as traders buy the dip. The stock is once again nearing resistance at the $24.00 level. If the market can resume the rally then I expect HCII to breakout.

Earlier Comments:
HCII could see a short squeeze if it can breakout again. The most recent data listed short interest at 22% of the very small 8.0 million share float.

I am suggesting a trigger to open bullish positions at $24.10. We'll use a stop loss at $22.90. Our multi-week target is $27.75.

Trigger @ 24.10

Suggested Position: buy HCII stock @ (trigger)

chart:



Medidata Solutions - MDSO - close: 41.50 change: +1.14

Stop Loss: 38.95
Target(s): 44.75
Current Gain/Loss: + 1.8%

Entry on September 28 at $40.75
Listed on September 27, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 147 thousand
New Positions: see below

Comments:
09/29/12: Our new trade on MDSO has been triggered at $40.75. Shares displayed relative strength on Friday with a +2.8% gain. I would wait for a dip if you're looking for a new bullish entry point. Our multi-week target is $44.75.

current Position: Long MDSO stock @ $40.75

09/28/12 triggered @ 40.75

chart:



BEARISH Play Updates

Centene Corp. - CNC - close: 37.41 change: +0.27

Stop Loss: 38.51
Target(s): 31.50
Current Gain/Loss: - 1.8%

Entry on September 20 at $36.75
Listed on September 19, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 693 thousand
New Positions: see below

Comments:
09/29/12: I am starting to worry about CNC. The stock is up three days in a row. More conservative traders may want to consider an early exit now or lower their stop loss. I am not suggesting new positions at this time.

Bigger picture CNC still looks bearish but I'm starting to wonder if shares might see a bounce back toward $39 or $40 before rolling over again.

current Position: short CNC stock @ $36.75

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

Long Oct $35 PUT (CNC1220v35) Entry $1.20

chart:



Con-way Inc. - CNW - close: 27.37 change: +0.04

Stop Loss: 29.05
Target(s): 25.05
Current Gain/Loss: + 3.8%

Entry on September 20 at $28.44
Listed on September 19, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 787 thousand
New Positions: see below

Comments:
09/29/12: The transportation sector has been trying to bounce all week long but the Dow Jones transportation average dipped to a new three-month low on Friday. CNW is showing relative strength compared to its peers in the transports. Traders bought the dip in CNW at $27 on Friday. I have been warning that CNW is oversold and due for a bounce. The bounce may not be over yet. Look for resistance near $28.00 and near the $29.00 mark. I am not suggesting new positions at current levels.

Our target is $25.05. More aggressive traders could aim lower. The Point & Figure chart for CNW is bearish with a $20 target.

current Position: short CNW stock @ $28.44 (gap down)

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

Long Oct $27.50 put (CNW1220v27.5) Entry $1.00*

09/25/12 new stop loss @ 29.05
09/20/12 new stop loss @ 29.55
09/20/12 entry on gap open lower at $28.44
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Nu Skin Enterprises - NUS - close: 38.83 change: +0.98

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: - 0.6%

Entry on September 24 at $38.61
Listed on September 22, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
09/29/12: Ouch! The oversold bounce in NUS is erasing our potential gains. The stock is now up three days in a row following a five-day plunge. Broken support near $40.00 should be new resistance. Readers can use a bounce or a failed rally in the $39.50-40.00 zone as a new bearish entry point.

Earlier Comments:
I do consider this a more aggressive, higher-risk trade. There are already a lot of investors who are bearish on the stock. The most recent data listed short interest at 18% of the 51.9 million share float. That does raise our risk of a short squeeze so you may want to play the options to limit your risk to the cost of your option. Our initial target is $35.25 but more aggressive traders could definitely aim lower. The Point & Figure chart for NUS is bearish with a $23.00 target.

current Position: short NUS stock @ $38.61

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

Long Oct $35 PUT (NUS1220v35) entry $1.32

09/25/12 new stop loss @ 40.15

chart:



Synaptics Inc. - SYNA - close: 24.02 change: -0.37

Stop Loss: 26.05
Target(s): 22.15
Current Gain/Loss: + 3.1%

Entry on September 26 at $24.79
Listed on September 25, 2011
Time Frame: 3 to 6 weeks
Average Daily Volume = 439 thousand
New Positions: see below

Comments:
09/29/12: SYNA erased Thursday's bounce and hit new lows for the year on Friday. The trend is down and if SYNA were to bounce then broken support near $25.00 should be resistance.

I am adjusting our stop loss down to $26.05. I am adjusting our exit target to $22.15.

Earlier Comments:
I do consider this a higher-risk, more aggressive trade because SYNA has already seen a big move down but today's break under support could signal another big leg down. We want to limit our risk and keep our position size small.

*Small Positions*

current Position: short SYNA stock @ $24.79

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

Long Oct $25 PUT (SYNA1220v25) Entry $1.15

09/29/12 new stop loss @ 26.05, adjust exit target to $22.15

chart:



Vistaprint N.V. - VPRT - close: 34.15 change: -0.67

Stop Loss: 36.15
Target(s): 30.25
Current Gain/Loss: + 1.3%

Entry on September 27 at $34.60
Listed on September 26, 2011
Time Frame: 3 to 5 weeks
Average Daily Volume = 572 thousand
New Positions: see below

Comments:
09/29/12: VPRT is performing well. The bounce failed near short-term resistance at $35.00 and its 100-dma. Friday's move looks like a new bearish entry point although technical traders may want to wait for a drop under the 300-dma near $34.00.

Earlier Comments:
Readers may want to consider using put options to limit their risk. I do consider a higher-risk trade because the most recent data listed short interest at 28.4% of the small 21.9 million share float. There is a risk of a short squeeze.

*Small Positions*

current Position: short VPRT stock @ $34.60

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

Long Oct $35 PUT (VPRT1220v35) Entry $2.00

chart: