Editor's Note:
The market's rally on Friday morning faded lower into the weekend.

We did see VPRT get stopped out. I am removing MATX. I am suggesting an early on Monday for HCII to lock in gains.

Current Portfolio:


BULLISH Play Updates

AGCO Corp. - AGCO - close: 47.62 change: -0.36

Stop Loss: 45.95
Target(s): 52.50
Current Gain/Loss: - 1.1%

Entry on October 4 at $48.15
Listed on September 29, 2012
Time Frame: exit prior to the late October earnings
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
10/06/12: AGCO hit another new relative high on Friday morning only to reverse lower in profit taking the rest of the session. The stock is having trouble confirming the breakout past resistance at $48.00. I would wait for a new rally past $48.15 or $48.25 before initiating new positions.

current Position: Long AGCO stock @ $48.15

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

Long NOV $50 call (AGCO1211k50) Entry $1.25

10/04/12 triggered @ 48.15

chart:



Bio-Reference Labs - BRLI - close: 31.57 change: -0.85

Stop Loss: 29.90
Target(s): 34.75
Current Gain/Loss: + 4.4%

Entry on October 03 at $30.25
Listed on October 2, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 232 thousand
New Positions: see below

Comments:
10/06/12: Ouch! After an impressive four-day rally higher shares of BRLI hit some profit taking on Friday. The stock gave back -2.6%. The move looks like a short-term bullish reversal. I would not be surprised to see some follow through lower on Monday morning. We can expect the $30.00 level to be support.

FYI: The Point & Figure chart for BRLI is bullish with a $49.50 target.

current Position: Long BRLI stock @ $30.25

10/04/12 new stop loss @ 29.90
10/03/12 new stop loss @ 29.25
10/03/12 triggered @ 30.25

chart:



Colfax Corp. - CFX - close: 37.21 change: +0.06

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: + 0.6%

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:
10/06/12: CFX spent Friday churning sideways at all-time highs. I would not be surprised to see it fill the gap and dip back toward $36.50 before moving higher.

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

chart:



Genomic Health - GHDX - close: 36.10 change: -0.70

Stop Loss: 35.40
Target(s): 39.90
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 4, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 205 thousand
New Positions: Yes, see below

Comments:
10/06/12: There was no follow through on Thursday's rally in GHDX. Shares retreated from resistance near $37.00. The larger pattern remains unchanged.

I am suggesting a trigger to launch bullish positions at $37.05. More conservative traders may want to wait for GHDX to hit a new high above $37.50 before launching positions. Our target is $39.90 but more aggressive traders could aim higher.

Due to GHDX recent volatility I would keep our position size small.

Trigger @ 37.05 *small positions*

Suggested Position: buy GHDX stock @ (trigger)

chart:



Homeowners Choice, Inc. - HCII - close: 26.13 change: +0.78

Stop Loss: 22.90
Target(s): 27.75
Current Gain/Loss: + 8.4%

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:
10/06/12: HCII continues to perform well and added another +3.0% on Friday. The stock is at new record highs and is starting to look short-term overbought after a seven-day, +16% gain. Odds of a pullback are probably pretty high.

HCII could definitely run higher but I am suggesting we go ahead and lock in gains on Monday morning. We can look at re-entering positions on a bounce from what should be support near $24.00.

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

10/06/12 prepare to exit and lock in gains on Monday morning
10/01/12 triggered @ 24.10

chart:



Sun Hydraulics Corp. - SNHY - close: 27.99 change: +0.28

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: + 1.2%

Entry on October 03 at $27.65
Listed on October 1, 2012
Time Frame: exit prior to earnings in November
Average Daily Volume = 54 thousand
New Positions: see below

Comments:
10/06/12: SNHY broke out from its trading range this past week and closed at new six-month highs. If you're looking for a new entry point then consider waiting for a dip near or a bounce from what should be support near $27.50.

Don't forget that we want to limit our position size to reduce our risk. SNHY could be volatile thanks to its lack of volume.

FYI: The Point & Figure chart for SNHY is bullish with a $38 target.

*Small Positions*

current Position: Long SNHY stock @ $27.65

10/03/12 triggered @ 27.65

chart:



BEARISH Play Updates

Centene Corp. - CNC - close: 36.27 change: -0.33

Stop Loss: 38.05
Target(s): 31.50
Current Gain/Loss: + 1.3%

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:
10/06/12: CNC is inching closer and closer to a breakdown under support near $36.00 and its 100-dma but it has not happened yet. Readers could use a drop under $36.00 as a new bearish entry point. I remain very cautious on this trade.

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

chart:



Con-way Inc. - CNW - close: 27.98 change: +0.27

Stop Loss: 29.05
Target(s): 25.05
Current Gain/Loss: + 1.6%

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:
10/06/12: The Dow Jones Transportation Average has produced a dramatic bounce higher. CNW has also tried to rebound but not to the same extent as the sector average. I've been suggesting to readers that CNW should have resistance near $28.00 and near $29.00. At the moment it looks like CNW is poised to bounce back toward $29.00. More conservative traders will want to seriously consider an early exit now to avoid a loss. We are going to risk it and keep CNW on the newsletter and leave the stop at $29.05.

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*

10/06/12 more conservative traders will want to seriously consider an early exit now to avoid a loss
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:



J.C.Penney Co. - JCP - close: 23.96 change: +0.19

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 1.7%

Entry on October 3 at $23.57
Listed on October 2, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 8.9 million
New Positions: see below

Comments:
10/06/12: JCP is still churning sideways. Shares did add +0.79% on Friday but they struggled with the 10-dma and 100-dma as technical resistance. I would wait for a new drop under $23.50 before considering new bearish positions.

Earlier Comments:
I consider this a somewhat aggressive, higher-risk trade. We want to limit our risk by keeping our position size small.

*Small Positions*

current Position: short JCP stock @ $23.57

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

Long Oct $23 PUT (JCP1220v23) entry $0.65

chart:



Synaptics Inc. - SYNA - close: 23.40 change: +0.47

Stop Loss: 24.51
Target(s): 22.15
Current Gain/Loss: + 5.6%

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:
10/06/12: SYNA tried to rally on Friday morning but traders quickly sold into strength. The rally past $24 and technical resistance at its simple 10-dma did not last very long. Friday's high was $24.37. I am lowering our stop loss down to $24.51. I am not suggesting new positions at this time.

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%)

10/06/12 new stop loss @ 24.51
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

chart:



Titanium Metals - TIE - close: 12.40 change: -0.10

Stop Loss: 13.05
Target(s): 11.00
Current Gain/Loss: + 0.1%

Entry on October 4 at $12.41
Listed on October 3, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
10/06/12: Good news! TIE's attempt at a bounce on Friday failed at its simple 50-dma. Shares reversed to close down -0.8%. Readers can use this move as a new bearish entry point on TIE.

*Small Positions*

current Position: short TIE stock @ $12.41

chart:



CLOSED BEARISH PLAYS

Matson, Inc. - MATX - close: 20.80 change: -0.05

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:
10/06/12: MATX is not cooperating with us. A few days ago the stock looked poised to breakdown under key support at the $20.00 level. Now shares act like they are about to breakout higher from the $21-20 zone.

I am removing MATX from the newsletter. Our trade did not open with the trigger at $19.85.

Trade did not open.

10/06/12 removed from the newsletter.

chart:



Vistaprint N.V. - VPRT - close: 35.23 change: -0.10

Stop Loss: 36.15
Target(s): 30.25
Current Gain/Loss: - 4.5%

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:
10/06/12: I suspect that VPRT's high level of short interest made its oversold bounce a lot sharper than expected. The stock rallied past resistance near $36.00 and its 200-dma, 150-dma, and exponential 200-dma on Friday morning before eventually reversing lower and closing negative. Our stop loss was hit at $36.15.

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*

closed Position: short VPRT stock @ $34.60 exit $36.15 (-4.5%)

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

Oct $35 PUT (VPRT1220v35) Entry $2.00 exit $0.60*(-70.0%)

10/05/12 stopped out at $36.15
*option exit price is an estimate since the option did not trade at the time our play was closed.
10/04/12 VPRT is not working for us. Readers may want to exit early now.

chart: