Editor's Note:
The stock market finished the week on a down note with financials leading the way.

Current Portfolio:


BULLISH Play Updates

American Intl. Group - AIG - close: 35.46 change: -0.22

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: see below

Comments:
10/13/12: It should be no surprise to see AIG pullback on Friday. I warned readers to expect a dip toward $35.00 and AIG is headed that direction. Nimble trades could use a bounce off the $35.00 level as a new bullish entry point but I am somewhat reluctant to launch new positions at this time.

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

chart:



Bio-Reference Labs - BRLI - close: 31.88 change: -0.42

Stop Loss: 30.75
Target(s): 34.75
Current Gain/Loss: + 5.4%

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:
10/13/12: BRLI had rallied toward short-term resistance near its 52-week high. A little profit taking on a Friday is not surprising. Look for a dip toward short-term support at the 10-dma near $31.25. If the pullback breaks the 10-dma then we'll probably see BRLI hit our stop loss at $30.75 and suddenly it will look like a short-term bearish double top. I am not suggesting new positions at this time. More conservative traders may want to take profits now.

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

chart:



Colfax Corp. - CFX - close: 36.39 change: +0.09

Stop Loss: 35.40
Target(s): 39.90
Current Gain/Loss: - 1.6%

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:
10/13/12: After slowly drifting lower all week long CFX managed a very minor bounce on Friday. The stock is holding up pretty well considering the early October high was a new record high. More aggressive traders may want to leave their stops below the $35.00 level. I am raising our stop loss to $35.40. 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

10/13/12 new stop loss @ 35.40
10/01/12 triggered @ 37.00

chart:



Sun Hydraulics Corp. - SNHY - close: 26.03 change: -0.57

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: - 5.9%

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:
10/13/12: It's not looking very good for SNHY. The breakout past resistance near $27.50 has reversed sharply. It now looks like a bull trap pattern. SNHY is down five days in a row and picking up speed. Odds are very good that SNHY will break the next level of support at $26.00 and hit our stop loss at $25.95. Unfortunately there isn't much use in closing the position now since the damage has been done. We'll wait and see if shares bounce off the $26.00 level. I am not suggesting new positions at this time.

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: 35.59 change: -0.23

Stop Loss: 36.65
Target(s): 31.50
Current Gain/Loss: + 3.2%

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:
10/13/12: This past week saw CNC breakdown under support at $36.00 and test it again as new resistance. While the trend is down we are running out of time. Our October options only have five days left. Plus, we want to exit our stock position prior to the earnings report on Oct. 23rd.

I am not suggesting new positions at this time. We will lower our stop loss to $36.65.

current Position: short CNC stock @ $36.75

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

Long Oct $35 PUT (CNC1220v35) Entry $1.20

10/13/12 new stop loss @ 36.65
10/10/12 new stop loss @ 37.05
10/02/12 new stop loss @ 38.05

chart:



Con-way Inc. - CNW - close: 28.21 change: +0.38

Stop Loss: 28.60
Target(s): 25.05
Current Gain/Loss: + 0.8%

Entry on September 20 at $28.44
Listed on September 19, 2012
Time Frame: exit prior to the Oct 30th earnings report
Average Daily Volume = 787 thousand
New Positions: see below

Comments:
10/13/12: Friday was a close call for our CNW trade. Shares hit an intraday high of $28.58. If there is any follow through on Monday we'll see this trade get stopped out. CNW is up three weeks in a row but it has yet to breakout past the top of the Sep. 20th gap down.

I am not suggesting new positions at this time.

Bear in mind that we only have five days left on our October puts.

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.

chart:



Sohu.com - SOHU - close: 39.61 change: -0.56

Stop Loss: 41.40
Target(s): 36.00
Current Gain/Loss: - 0.2%

Entry on October 10 at $39.55
Listed on October 9, 2012
Time Frame: Exit prior to the late October earnings report
Average Daily Volume = 472 thousand
New Positions: Yes, see below

Comments:
10/13/12: SOHU erased Thursday's bounce with Friday's move looking like a failed rally under the 10-dma. We can use Friday's reversal as a new bearish entry point. Keep in mind that we want to exit prior to the late October earnings report.

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

chart:



Synaptics Inc. - SYNA - close: 23.21 change: -0.14

Stop Loss: 24.40
Target(s): 22.15
Current Gain/Loss: + 6.4%

Entry on September 26 at $24.79
Listed on September 25, 2012
Time Frame: Exit prior to the Oct. 25th earnings report
Average Daily Volume = 439 thousand
New Positions: see below

Comments:
10/13/12: The sideways consolidation in SYNA continues to narrow. We can expect a breakout one way or the other pretty soon. I am lowering our stop loss to $24.40 so it's just above the October high. Readers may want to take profits now. 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%)

10/13/12 new stop loss @ 24.40, readers may want to exit early now
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: 12.06 change: -0.37

Stop Loss: 12.65
Target(s): 11.00
Current Gain/Loss: + 2.8%

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:
10/13/12: Good news! The bounce has reversed at technical resistance at the simple 10-dma. Shares closed at new multi-week lows. Now the challenge for the bears is to push TIE past potential support at $12.00 and the simple 100-dma. I am not suggesting new positions at this time. We will lower our stop loss to $12.65.

*Small Positions*

current Position: short TIE stock @ $12.41

10/13/12 new stop loss @ 12.65

chart:



Trimble Navigation - TRMB - close: 46.99 change: -0.44

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:
10/13/12: TRMB came close but did not hit our entry trigger at $46.50. The intraday low on Friday was $46.55. TRMB does look vulnerable here and I would expect the stock to break to new relative lows soon. There is no change from my prior comments.

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)

chart:



Veeco Instruments - VECO - close: 28.75 change: +0.43

Stop Loss: 30.15
Target(s): 26.65
Current Gain/Loss: + 3.4%

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:
10/13/12: The oversold bounce in VECO continues. Shares are up two days in a row but after such a sharp decline it's not surprising to see a rebound. Look for resistance at the simple 10-dma near $29.50 or the $30.00 level. 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

chart: