Editor's Note:
The market's major indices pared their gains on Tuesday.

We closed our option positions on CLMT and SYNA at the open this morning.

Current Portfolio:


BULLISH Play Updates

AGCO Corp. - AGCO - close: 47.52 change: +0.72

Stop Loss: 45.95
Target(s): 52.50
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 29, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Comments:
10/02/12: Traders bought the dip in AGCO this morning. The stock looks poised to breakout past resistance near $48.00 soon.

I am suggesting a trigger to open bullish positions at $48.15. We'll start with a stop loss at $45.95. Our target is $52.50.

Trigger @ 48.15

Suggested Position: buy AGCO stock @ (trigger)

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

buy NOV $50 call (AGCO1211k50)



Colfax Corp. - CFX - close: 36.12 change: -0.06

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: - 2.4%

Entry on October 01 at $37.00
Listed on September 29, 2012
Time Frame: 4 to 8 weeks
Average Daily Volume = 753 thousand
New Positions: see below

Comments:
10/02/12: Traders also bought the dip in CFX midday and pared its loss to just six cents. I am a little big cautious given the two days of weakness. More aggressive traders might want to buy a rally past $36.50. More conservative traders may want to raise their stops.

The plan was to keep our position size small to limit our risk. FYI: The Point & Figure chart for CFX is bullish with a long-term $59 target.

*Small Positions*

Suggested Position: Long CFX stock @ $37.00

10/01/12 triggered @ 37.00



Calumet Specialty Products - CLMT - close: 33.30 change: +0.23

Stop Loss: 31.45
Target(s): 33.75
Current Gain/Loss: + 9.9%

Entry on September 21 at $30.30
Listed on September 20, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 409 thousand
New Positions: see below

Comments:
10/02/12: CLMT continues to inch higher and just produced its fifth gain in a row. The stock actually gapped open higher this morning at $33.39, which is good news for our call option because we planned on exiting our calls this morning at the open.

Unfortunately our option didn't see that much movement but we were able to exit at $3.30.

Our target to exit our stock position is $33.75 but readers may want to exit early now.

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 exit $3.30 (+135.7%)

10/02/12 closed Nov. $30 call at the open. exit $3.30 (+135.7%)
10/01/12 new stop loss @ 31.45, prepare to exit our Nov. $30 calls at the open tomorrow morning
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



Homeowners Choice, Inc. - HCII - close: 24.34 change: +0.63

Stop Loss: 22.90
Target(s): 27.75
Current Gain/Loss: + 1.0%

Entry on October 01 at $24.10
Listed on September 24, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 208 thousand
New Positions: see below

Comments:
10/02/12: After a shaky start shares of HCII are showing relative strength. Shares gained +2.6% today and set a new closing high. I would be tempted to launch new bullish positions again if both the S&P 500 and HCII are positive tomorrow morning.

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.

current Position: Long HCII stock @ $24.10

10/01/12 triggered @ 24.10



Medidata Solutions - MDSO - close: 40.72 change: -1.22

Stop Loss: 38.95
Target(s): 44.75
Current Gain/Loss: - 0.1%

Entry on September 28 at $40.75
Listed on September 27, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 147 thousand
New Positions: see below

Comments:
10/02/12: Ouch! I cautioned readers to expect a dip toward $40.00 but it still hurts. Shares dipped to $40.00 and started to bounce this afternoon. I would use this late day bounce as 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



Sun Hydraulics Corp. - SNHY - close: 27.40 change: +0.10

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 1, 2012
Time Frame: exit prior to earnings in November
Average Daily Volume = 54 thousand
New Positions: Yes, see below

Comments:
10/02/12: Tuesday was a quiet day for SNHY with the stock churning sideways under resistance near $27.50.

Earlier Comments:
I do consider this trade somewhat aggressive because SNHY does not have much volume. I am suggesting small bullish positions if SNHY can trade at $27.65. We will aim for $31.00. FYI: The Point & Figure chart for SNHY is bullish with a $38 target.

Trigger @ 27.65 *Small Positions*

Suggested Position: buy SNHY stock @ (trigger)



BEARISH Play Updates

Centene Corp. - CNC - close: 36.40 change: -0.63

Stop Loss: 38.05
Target(s): 31.50
Current Gain/Loss: + 1.0%

Entry on September 20 at $36.75
Listed on September 19, 2012
Time Frame: exit prior to earnings on Oct. 23rd.
Average Daily Volume = 693 thousand
New Positions: see below

Comments:
10/02/12: CNC is starting to fade lower again and underperformed the market with a -1.7% decline. The stock is once again testing technical support at the 100-dma so there is still a chance the stock could bounce.

Please note our new stop loss at $38.05.

current Position: short CNC stock @ $36.75

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

Long Oct $35 PUT (CNC1220v35) Entry $1.20

10/02/12 new stop loss @ 38.05



Con-way Inc. - CNW - close: 27.40 change: +0.06

Stop Loss: 29.05
Target(s): 25.05
Current Gain/Loss: + 3.7%

Entry on September 20 at $28.44
Listed on September 19, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 787 thousand
New Positions: see below

Comments:
10/02/12: The transportation sector tried to bounce today but it didn't make it very far. CNW managed a minor gain but shares were essentially drifting sideways all day long.

I am not suggesting new positions at this time.

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.



Matson, Inc. - MATX - close: 20.50 change: +0.34

Stop Loss: 21.05
Target(s): 16.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 1, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 263 thousand
New Positions: Yes, see below

Comments:
10/02/12: MATX managed to outperform the transports with a +1.6% gain but shares still look vulnerable.

The Sept. 24th low was $19.96. I am suggesting a trigger to open bearish positions at $19.85. If triggered we will aim for $16.50.

Trigger @ 19.85

Suggested Position: short MATX stock @ (trigger)



Synaptics Inc. - SYNA - close: 23.93 change: +1.06

Stop Loss: 24.70
Target(s): 22.15
Current Gain/Loss: + 3.5%

Entry on September 26 at $24.79
Listed on September 25, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 439 thousand
New Positions: see below

Comments:
10/02/12: SYNA cut our potential gains in half with a big +4.6% bounce today. The move higher was fueled by an analyst upgrade this morning. The trend is still down but the oversold bounce may not be over yet. More conservative traders may want to exit early now.

We had already planned to exit our October $25 puts at the open this morning. Unfortunately, SYNA gapped open higher at $23.59. This cut our potential profits on the option by a significant percentage!

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) -

(exit on Oct 2nd, at the open)
Oct $25 PUT (SYNA1220v25) Entry $1.15 exit $1.65 (+43.4%)

10/02/12 planned exit to close our put option at the open
10/01/12 new stop loss @ 24.70, plan on exiting our October puts at the opening bell tomorrow
09/29/12 new stop loss @ 26.05, adjust exit target to $22.15



Vistaprint N.V. - VPRT - close: 34.54 change: +0.63

Stop Loss: 36.15
Target(s): 30.25
Current Gain/Loss: + 0.2%

Entry on September 27 at $34.60
Listed on September 26, 2012
Time Frame: 3 to 5 weeks
Average Daily Volume = 572 thousand
New Positions: see below

Comments:
10/02/12: VPRT also outperformed the market with a +1.8% oversold bounce today. The bounce may not be over yet. I would not be surprised to see a rebound back to the $35.00 area. I am not suggesting new positions at this time.

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