Editor's Note:
The market's early morning gains faded and stocks drifted back toward unchanged.

We did see JCP hit our stop loss.

Current Portfolio:


BULLISH Play Updates

American Intl. Group - AIG - close: 35.68 change: +0.19

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: - 0.9%

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: see below

Comments:
10/11/12: AIG is still struggling with resistance near the $36.00 level. I would still expect a dip toward $35.00, especially if the market's major indices move lower tomorrow.

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: 32.30 change: +0.79

Stop Loss: 30.75
Target(s): 34.75
Current Gain/Loss: + 6.8%

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:
10/11/12: BRLI displayed relative strength with a rally toward its early October highs. The rebound did pare its gains to settle with a +2.5% advance. A failure here and it's going to look like a short-term bearish double top. More conservative traders may want to take profits now. I am raising our stop loss to $30.75.

current Position: Long BRLI stock @ $30.25

10/11/12 new stop loss @ 30.75
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: 36.30 change: -0.03

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: - 1.9%

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:
10/11/12: CFX was little changed at the closing bell today. Shares are still trading with a very short-term trend of lower highs within the larger bullish trend. 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: 26.60 change: -0.45

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: - 3.8%

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:
10/11/12: It's starting to look ugly with SNHY. The morning rally failed and shares lost -1.6% by the close. The next level of support should be the $26.00 level. I am not suggesting new positions at this time. More conservative traders may want to exit early.

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: 35.82 change: +0.13

Stop Loss: 37.05
Target(s): 31.50
Current Gain/Loss: + 2.5%

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:
10/11/12: CNC managed another gain but the rebound keeps struggling with new resistance near $36 and its 100-dma. I am not suggesting 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

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



Con-way Inc. - CNW - close: 27.83 change: -0.08

Stop Loss: 28.60
Target(s): 25.05
Current Gain/Loss: + 2.1%

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:
10/11/12: The early morning rally attempt in CNW failed for the third day in a row. I am adjusting our stop loss down to $28.60. 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*

10/11/12 new stop loss @ 28.60
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.



Sohu.com - SOHU - close: 40.17 change: +0.36

Stop Loss: 41.40
Target(s): 36.00
Current Gain/Loss: - 1.6%

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:
10/11/12: Uh-oh! SOHU has closed back above the $40.00 level. That's not a good sign for the bears although SOHU should still have resistance near $41.00 and its converging 50-dma and 100-dma. I am not suggesting new positions with the stock above $40.

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: 23.35 change: +0.14

Stop Loss: 24.51
Target(s): 22.15
Current Gain/Loss: + 5.8%

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:
10/11/12: SYNA continues to churn sideways with a bearish trend of lower highs. I am not suggesting new positions.

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: 12.43 change: +0.27

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:
10/11/12: TIE is bouncing and managed a rally with a +2.2% gain. The rebound stalled at resistance near $12.50 and its 10-dma.

*Small Positions*

current Position: short TIE stock @ $12.41



Trimble Navigation - TRMB - close: 47.43 change: +0.67

Stop Loss: 48.55
Target(s): 42.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 10, 2012
Time Frame: exit prior to earnings on Nov. 1st
Average Daily Volume = 697 thousand
New Positions: Yes, see below

Comments:
10/11/12: TRMB produced a bounce but it failed at short-term resistance near $48.00. More aggressive traders may want to use today's move as a new entry point. I am suggesting we stick to our plan and wait for a breakdown.

Earlier Comments:
I am suggesting small bearish positions if TRMB can trade at $46.50 or lower. If triggered our target is $42.50 but we want to exit prior to the next earnings report on November 1st.

Trigger @ 46.50 (Small Positions)

Suggested Position: short TRMB stock @ (trigger)

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

buy the Nov $45 PUT (TRMB1211w45)



Veeco Instruments - VECO - close: 28.32 change: +0.45

Stop Loss: 30.15
Target(s): 26.65
Current Gain/Loss: + 4.8%

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:
10/11/12: VECO produced an oversold bounce after four days of declines. I am not suggesting new positions.

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 BEARISH PLAYS

J.C.Penney Co. - JCP - close: 26.18 change: +2.03

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 6.3%

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:
10/11/12: Our JCP trade has been stopped out thanks to today's +8.4% gain. Back in January 2012 the company's management announced a new pricing structure to offer everyday low prices instead of focusing on sales. The CEO said they were going to try and wean customers off the use of sales and promised to stop issuing coupons. Since then the market has been unhappy with the results.

This morning it was announced that the CEO had approved a new coupon with a $10 off their next purchase of $10 or more. Management isn't calling it a "coupon".

The market liked it or the shorts got spooked by it and shares of JCP soared this morning. Our stop loss was hit at $25.05.

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*

closed Position: short JCP stock @ $23.57 exit $25.05 (-6.3%)

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

Oct $23 PUT (JCP1220v23) entry $0.65 exit $0.09 (-86.1%)

10/11/12 stopped out at $25.05

chart: