NEW BULLISH Plays

Luminex Corp. - LMNX - close: 20.45 change: +0.40

Stop Loss: 19.79
Target(s): 23.00
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 06, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 167 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
LMNX makes biological testing technology. The stock had rallied to new 52-week highs ahead of its earnings report on July 30th. Unfortunately traders were unhappy with the results (miss by penny, revenues in-line) and the stock collapsed from $23.30 to less than $20.00 in two days.

We suspect the knee-jerk reaction to earnings is over. Traders have been buying the stock near $20.00 the last couple of days. Today LMNX displayed relative strength.

Tonight we are suggesting a trigger to open small bullish positions if shares can trade at $20.60. If triggered our target is $23.00.

Trigger @ 20.60 *small positions*

Suggested Position: buy LMNX stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

The Mosaic Co. - MOS - close: 40.68 change: -0.76

Stop Loss: 42.10
Target(s): 35.25
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 06, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 9.8 million
New Positions: Yes, see below

Company Description

Why We Like It:
The last several days have been rough for the potash industry. On July 30th several stocks in the group collapsed on news that Russian potash producer Uralkali was pulling out of a cartel and would begin selling more potash at lower prices.

That headline sent MOS from the $53 area down toward $40 before bouncing. There has been no follow through oversold bounce. Traders have continued to sell MOS. Now the stock is poised to breakdown below support near the $40.00 level.

Before I continue I want to warn you that MOS could be a very volatile stock. There have already been rumors that Uralkali might re-join the cartel and the move to pull out was just a negotiating ploy. If Uralkali does rejoin the cartel these stocks will likely bounce. In the meantime the trend for MOS is down.

I am suggesting small bearish positions if MOS can trade at $39.65. That's ten cents below today's intraday low. Today's high was $42.00. We'll use a stop loss at $42.10. You may want to consider buying put options instead of shorting the stock since your risk on buying a put is limited to the cost of the option.

Trigger @ 39.65 *small positions*

Suggested Position: short MOS stock @ (trigger)

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

buy the Sep $35 PUT (MOS1321u35) current ask $0.62

Annotated chart: