Editor's Note:
The market continues to slip lower after revering intraday on Friday.

Some of our bullish plays are struggling. We saw AGCO get stopped out today. I am removing TREX as a candidate.

Current Portfolio:


BULLISH Play Updates

American Intl. Group - AIG - close: 35.49 change: +0.04

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: - 1.4%

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:
10/10/12: Wednesday was a quiet day for AIG. Shares closed virtually unchanged on the session. Traders could wait for a dip near $35.00 as a new bullish entry point.

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: 31.51 change: +0.55

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:
10/10/12: BRLI erased yesterday's loss with a 55-cent gain today. Traders did buy the dip near its rising 10-dma this morning.

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: 36.33 change: -0.39

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: - 1.8%

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:
10/10/12: CFX is still drifting lower but is still maintaining the bullish trend of higher lows, for now. Readers may want to adjust their stops closer to $36.00. 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: 27.05 change: -0.01

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: - 2.2%

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:
10/10/12: SNHY closed virtually unchanged today after churning sideways along the $27.00 level. I don't see any changes from my prior comments. 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



BEARISH Play Updates

Centene Corp. - CNC - close: 35.69 change: +0.07

Stop Loss: 37.05
Target(s): 31.50
Current Gain/Loss: + 2.9%

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:
10/10/12: CNC bounced this morning but prior support near $36.00 has become new resistance. I am lowering our stop loss to $37.05.

current Position: short CNC stock @ $36.75

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

Long Oct $35 PUT (CNC1220v35) Entry $1.20

10/10/12 new stop loss @ 37.05
10/02/12 new stop loss @ 38.05



Con-way Inc. - CNW - close: 27.91 change: -0.07

Stop Loss: 29.05
Target(s): 25.05
Current Gain/Loss: + 1.9%

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:
10/10/12: It looks like the rebound in CNW may have stalled but I remain cautious here. 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: 24.15 change: -0.24

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 2.5%

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:
10/10/12: There was no follow through on yesterday's bounce in JCP. I remain cautious on this stock with shares above $24.00. 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



Sohu.com - SOHU - close: 39.81 change: +0.23

Stop Loss: 41.40
Target(s): 36.00
Current Gain/Loss: - 0.7%

Entry on October 10 at $39.55
Listed on October 9, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 472 thousand
New Positions: Yes, see below

Comments:
10/10/12: SOHU tried to bounce and failed at $40.25 this morning. I don't see any changes from my prior comments and would still consider new bearish positions at current levels.

Earlier Comments:
I have to warn you that SOHU can be a volatile stock so we need to limit our position size to reduce our risk or consider trading the options. Our target is $36.00. More aggressive traders could aim for the $34.00 area.

*Small Positions*

current Position: short SOHU stock @ $39.55

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

Long Nov $37.50 PUT (SOHU1211w37.5) entry $1.85



Synaptics Inc. - SYNA - close: 23.21 change: +0.01

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:
10/10/12: The consolidation in SYNA is narrowing. Shares barely moved today. It looks like the stock is coiling for a breakdown.

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: 12.16 change: -0.23

Stop Loss: 13.05
Target(s): 11.00
Current Gain/Loss: + 2.0%

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:
10/10/12: TIE underperformed the market today with a -1.8% decline and a new multi-week low. The $12.00 level and the 100-dma near $12.00 could offer some short-term support so don't be surprised to see a bounce.

*Small Positions*

current Position: short TIE stock @ $12.41



Veeco Instruments - VECO - close: 27.87 change: -0.55

Stop Loss: 30.15
Target(s): 26.65
Current Gain/Loss: + 6.3%

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:
10/10/12: VECO continues to sink and is now down four days in a row. I am adjusting our exit target to $26.65. I am not suggesting new positions at this time.

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

10/10/12 adjust exit target to $26.65
10/09/12 new stop loss @ 30.15
10/08/12 new stop loss @ 30.55



CLOSED BULLISH PLAYS

AGCO Corp. - AGCO - close: 46.19 change: -0.94

Stop Loss: 45.95
Target(s): 52.50
Current Gain/Loss: - 4.6%

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:
10/10/12: Yesterday's weakness accelerated today and AGCO spiked down under what should have been support near $46 and its 200-dma. Our stop loss was hit at $45.95.

closed Position: Long AGCO stock @ $48.15 exit $45.95 (-4.6%)

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

NOV $50 call (AGCO1211k50) Entry $1.25 exit $0.50 (-60.0%)

10/10/12 stopped out at $45.95
10/04/12 triggered @ 48.15

chart:



Trex Co. Inc. - TREX - close: 33.04 change: -0.20

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: see below

Comments:
10/10/12: TREX continues to retreat lower. Shares are now testing the $33.00 level. I am removing TREX as a candidate since it is unlikely that TREX will breakout past resistance near $35.00 soon.

Trade did not open.

10/10/12 removed from the newsletter, unopened.

chart: