Editor's Note:
The market delivered a widespread sell-off today and the major indices closed near their lows for the session. That does not bode well for tomorrow morning.

I am removing GHDX as a candidate.

Current Portfolio:


BULLISH Play Updates

AGCO Corp. - AGCO - close: 47.13 change: -0.87

Stop Loss: 45.95
Target(s): 52.50
Current Gain/Loss: - 2.1%

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:
10/09/12: AGCO spent the day retreating lower and lost -1.8% by the closing bell. The combination of Thursday's reversal lower and today's drop doesn't look so hot for AGCO. More conservative traders may want to abandon ship. I am not suggesting 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



American Intl. Group - AIG - close: 35.45 change: -0.45

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: - 1.5%

Entry on October 9 at $36.00
Listed on October 8, 2012
Time Frame: exit prior to earnings on Nov. 1st
Average Daily Volume = 44 million
New Positions: Yes, see below

Comments:
10/09/12: AIG opened higher at $36.00 and then quickly succumbed to profit taking. Shares lost -1.25% by the closing bell. I cautioned readers yesterday that you might want to wait for a dip into the $35.25-35.00 zone and that certainly seems like where AIG is headed.

Our target is $39.75 but we'll plan on exiting prior to the early November earnings report. FYI: The Point & Figure chart for AIG is bullish with a $42.50 target.

Current Position: Long AIG stock @ $36.00

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

Long Nov $37 call (AIG1211k37) entry $0.76



Bio-Reference Labs - BRLI - close: 30.96 change: -0.55

Stop Loss: 29.90
Target(s): 34.75
Current Gain/Loss: + 2.3%

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:
10/09/12: Just as expected shares of BRLI dipped toward $30.00. Shares hit $30.28 and its 10-dma before paring its losses.

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: 36.72 change: -0.18

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: - 0.8%

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:
10/09/12: CFX slowly drifted lower and is nearing its rising 10-dma. Both the 10-dma and 20-dma could offer some short-term technical support for CFX. I am not suggesting new positions at this time.

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



Sun Hydraulics Corp. - SNHY - close: 27.06 change: -0.39

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: - 2.1%

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:
10/09/12: SNHY fell -1.4%. The stock is testing short-term support near $27 and its 10-dma but there is no guarantee it will hold this level. I am not suggesting new positions at this time. 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: 33.24 change: -0.73

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:
10/09/12: Hmm... we may have to give up on TREX as a trade. Shares are down sharply over the last two days. It's unlikely that TREX will breakout past resistance near $35.00 soon. We'll give it one more day to try and recover. Otherwise we'll probably drop it as a candidate.

Earlier Comments:
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: 35.62 change: -0.52

Stop Loss: 38.05
Target(s): 31.50
Current Gain/Loss: + 3.1%

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:
10/09/12: CNC is finally breaking down and closing under support near $36 and its 100-dma. This is good news for the bears and offers a new entry point for bearish 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: 27.98 change: -0.24

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:
10/09/12: CNW erased yesterday's 24-cent gain and closed on its lows of the session. That doesn't bode well for tomorrow if you're bullish. Today's performance appears to be a failed rally near the bottom of the gap down on Sept. 20th. 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: 24.39 change: +0.46

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 3.5%

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:
10/09/12: I've recently expressed concern about our bearish JCP trade. The stock has not been cooperating. Shares moved against us today with a +1.9% gain and a bullish breakout above the 10-dma and 100-dma. If there is any follow through higher tomorrow we could see JCP hit our stop at $25.05. More conservative traders may want to exit early now. I am not suggesting new 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: 23.20 change: -0.50

Stop Loss: 24.51
Target(s): 22.15
Current Gain/Loss: + 6.4%

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:
10/09/12: SYNA underperformed the market with a -2.1% decline. It looks like shares are about to breakdown from their recent sideways consolidation.

Our target is $22.15 but more aggressive traders could aim lower.

Earlier Comments:
I do consider this a higher-risk, more aggressive trade because SYNA has already seen a big move 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: 12.39 change: -0.06

Stop Loss: 13.05
Target(s): 11.00
Current Gain/Loss: + 0.2%

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:
10/09/12: There was no follow through on yesterday's bounce and TIE drifted lower. I would still consider new bearish positions at current levels.

*Small Positions*

current Position: short TIE stock @ $12.41



Veeco Instruments - VECO - close: 28.42 change: -0.59

Stop Loss: 30.15
Target(s): 26.25
Current Gain/Loss: + 4.5%

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:
10/09/12: The sell-off in VECO continues with a -2.0% decline on Tuesday. I am lowering our stop loss down to $30.15.

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

10/09/12 new stop loss @ 30.15
10/08/12 new stop loss @ 30.55



CLOSED BULLISH PLAYS

Genomic Health - GHDX - close: 34.01 change: -1.43

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:
10/09/12: GHDX has continued to retreat from resistance near $37.00. The stock is now down three days in a row and breaking down through technical support. Our trade has not opened yet and I am removing GHDX as a candidate.

Trade did not open.

10/09/12 removed as a candidate

chart: