Editor's Note:
The plan was to close our HCII trade at the open this morning so readers could lock in gains.

Elsewhere we saw our new VECO trade opened.

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: - 0.3%

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:
10/08/12: AGCO pierced its 10-dma but managed to rebound before hitting its rising 20-dma this morning. The stock rallied back to close near 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



Bio-Reference Labs - BRLI - close: 31.51 change: -0.06

Stop Loss: 29.90
Target(s): 34.75
Current Gain/Loss: + 4.2%

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:
10/08/12: BRLI spent the day churning inside the $31-32 zone. I am not convinced the pullback is over. Look for a dip toward $30.00.

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



Colfax Corp. - CFX - close: 36.90 change: -0.31

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: - 0.3%

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:
10/08/12: It turned out to be a very boring day for CFX with the stock drifting sideways just under $37 in a narrow range. I would still expect a dip into the $36.50-36.00 zone before CFX moves 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



Genomic Health - GHDX - close: 35.44 change: -0.66

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:
10/08/12: The biotech index underperformed the major indices and GHDX underperformed its peers with a -1.8% decline. That's two declines in a row and GHDX looks headed for the $35.00 level.

Currently we are waiting on a breakout to a new relative high. 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)



Sun Hydraulics Corp. - SNHY - close: 27.45 change: -0.54

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: - 0.7%

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:
10/08/12: Ouch! SNHY underperformed the market with a -1.9% decline. I didn't see any headlines to explain today's relative weakness. It's probably just profit taking. Look for support near $27.00 and the 10-dma. More conservative traders may want to raise their stops!

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



Trex Co. Inc. - TREX - close: 33.97 change: -0.93

Stop Loss: 33.85
Target(s): 39.00
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 6, 2012
Time Frame: exit prior to the late October earnings report
Average Daily Volume = 251 thousand
New Positions: Yes, see below

Comments:
10/08/12: TREX was downgraded this morning, which helped explain the gap down. There was not much follow through and traders bought the dip at TREX's rising 20-dma.

I don't see any changes from my weekend comments. The trend is still up. I am suggesting a trigger to open bullish positions at $35.15. If triggered we'll use a stop loss at $33.85. Our target is $39.00.

Trigger @ 35.15

Suggested Position: buy TREX stock @ (trigger)



BEARISH Play Updates

Centene Corp. - CNC - close: 36.14 change: -0.13

Stop Loss: 38.05
Target(s): 31.50
Current Gain/Loss: + 1.7%

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:
10/08/12: CNC is trying to cooperate with us. Shares broke down under support near $36.00 and its 100-dma this morning but the stock managed a comeback and closed off its lows. CNC looks weak but readers may want to look for a drop below today's low (35.64) before considering new positions.

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: 28.22 change: +0.24

Stop Loss: 29.05
Target(s): 25.05
Current Gain/Loss: + 0.8%

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:
10/08/12: The transportation sector continued to bounce on Monday and CNW added +0.8%. I warned readers that CNW looked like it might rebound toward the $29.00 area. I don't see any changes from my weekend comments.

More conservative traders will want to seriously consider an early exit to avoid or minimize any loss. 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.



J.C.Penney Co. - JCP - close: 23.93 change: -0.03

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 1.5%

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:
10/08/12: Hmm... I am starting to think we may want to give up on JCP for lack of movement. Shares are just churning sideways on either side of $24.00. Yet there is still a bearish trend with rallies failing near its 10 and 100-dma. 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



Synaptics Inc. - SYNA - close: 23.70 change: +0.30

Stop Loss: 24.51
Target(s): 22.15
Current Gain/Loss: + 4.4%

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:
10/08/12: SYNA bounced off its Monday morning lows and closed up +1.2%. Yet this recent sideways consolidating is starting to look like a bear-flag pattern. 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



Titanium Metals - TIE - close: 12.45 change: +0.05

Stop Loss: 13.05
Target(s): 11.00
Current Gain/Loss: - 0.3%

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:
10/08/12: TIE quickly bounced off its gap down at the open this morning. Yet the rebound stalled at the $12.50 level this afternoon. Overall I don't see any changes from my prior comments. I would still consider new bearish positions at current levels.

*Small Positions*

current Position: short TIE stock @ $12.41



Veeco Instruments - VECO - close: 29.01 change: -0.89

Stop Loss: 31.05
Target(s): 26.25
Current Gain/Loss: + 2.5%

Entry on October 08 at $29.75
Listed on October 6, 2012
Time Frame: exit prior to the Oct 22nd earnings report
Average Daily Volume = 740 thousand
New Positions: see below

Comments:
10/08/12: Our new play on VECO is open and off to a good start. Shares gapped open lower at $29.78 and plunged to a -2.9% decline. This is a new five-month low and confirms the breakdown under support near $30.00. I am lowering our stop loss to $30.55.

Earlier Comments:
A lot of investors are already bearish on this stock so there is a risk of a short squeeze should it unexpectedly move higher. The most recent data listed short interest at 29% of the 38.7 million share float. Thus you may want to use put options to limit your risk instead of shorting the stock.

current Position: short VECO stock @ $29.75

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

Long Nov $30 PUT (VECO1211w30) Entry $2.20



CLOSED BULLISH PLAYS

Homeowners Choice, Inc. - HCII - close: 25.62 change: -0.51

Stop Loss: 22.90
Target(s): 27.75
Current Gain/Loss: + 8.5%

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:
10/08/12: Over the weekend we decided it would be better to lock in gains and exit our HCII positions on Monday morning at the open. The stock opened at $26.16, rallied to a new high at $26.60, and then reversed.

closed Position: Long HCII stock @ $24.10 exit $26.16 (+8.5%)

10/08/12 planned exit this morning
10/06/12 prepare to exit and lock in gains on Monday morning
10/01/12 triggered @ 24.10

chart: