Editor's Note:
The S&P 500, the small cap Russell 2000 index, and the Dow Transportation average all dipped to short-term support at their simple 10-dma.

DAL has been removed. GPS was stopped out. RAX was closed.


Current Portfolio:


BULLISH Play Updates

BlackBerry Limited - BBRY - close: 9.57 change: -0.01

Stop Loss: 8.49
Target(s): 10.90
Current Gain/Loss: +6.2%

Entry on August 05 at $9.01
Listed on August 03, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 16.3 million
New Positions: see below

Comments:
08/06/13: BBRY spiked up to its simple 30-dma this morning and then reversed. Fortunately traders were still in a buy-the-dip mood and shares recovered to close almost unchanged on the session. I am not suggesting new positions at these levels.

Earlier Comments:
I do consider this a more aggressive, higher risk trade but it definitely has potential if the sellers are finally exhausted. We are suggesting a trigger to open small bullish positions at $9.01. If triggered we'll use a stop below the recent lows. Our six to nine-week target is $10.90 since the $11.00 level should be resistance.

*small positions*

current Position: Long BBRY stock @ $9.01

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

Long 2014 Jan $10 call (BBRY1418a10) entry $0.99



Best Buy Co. - BBY - close: 31.39 change: +0.15

Stop Loss: 29.75
Target(s): 33.50
Current Gain/Loss: + 3.3%

Entry on August 01 at $30.40
Listed on July 25, 2013
Time Frame: exit PRIOR to earnings in late August
Average Daily Volume = 4.9 million
New Positions: Yes, see below

Comments:
08/06/13: BBY recovered from its early morning weakness and managed to outperform the market with a +0.4% gain. I am not suggesting new positions at current levels.

Earlier Comments:
We do not want to hold over the late August earnings report.

current Position: Long the stock @ $30.40

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

Long Sep $32 call (BBY1321i32) entry $1.20

08/01/13 new stop loss @ 29.75



FLIR Systems - FLIR - close: 33.04 change: -0.12

Stop Loss: 31.95
Target(s): 36.00
Current Gain/Loss: + 0.0%

Entry on August 02 at $33.05
Listed on August 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
08/06/13: FLIR spent Tuesday's session hovering on either side of the $33 level. A bounce from here (consider a rally above $33.20) could be used as a new bullish entry point.

current Position: Long FLIR stock @ $33.05



Lowe's Companies - LOW - close: 44.87 change: -0.60

Stop Loss: 44.40
Target(s): 49.50
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 05, 2013
Time Frame: exit PRIOR to earnings on Aug. 21st
Average Daily Volume = 5.9 million
New Positions: Yes, see below

Comments:
08/06/13: There was no follow through on LOW's rally from Monday. Even though shares gave back -1.3% today the stock remains inside yesterday's trading range. That makes today's session an "inside day". I don't see any changes from my prior comments.

We are suggesting a trigger to open bullish positions at $45.60. If triggered our short-term target is $49.50. However, we will plan on exiting prior to LOW's earnings report on August 21st.

FYI: The Point & Figure chart for LOW is bullish with a long-term $57.50 target.

Trigger @ 45.60

Suggested Position: buy LOW stock @ (trigger)

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

Buy the Sep $45 call (LOW1321i45)



Texas Instruments - TXN - close: 39.73 change: -0.13

Stop Loss: 38.90
Target(s): 44.50
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 03, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.2 million
New Positions: Yes, see below

Comments:
08/06/13: TXN tried to rally this morning. The stock failed at resistance near $40.00 again. I don't see any changes from our weekend new play description.

We are suggesting a trigger to launch bullish positions at $40.20. If triggered our multi-week target is $44.50.

Trigger @ $40.20

Suggested Position: buy TXN stock @ (trigger)

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

buy the Sep $40.00 call (TXN1321i40) current ask $0.97



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Delta Airlines - DAL - close: 20.98 change: -0.73

Stop Loss: 21.20
Target(s): 24.50
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 03, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 9.1 million
New Positions: Yes, see below

Comments:
08/06/13: The market's profit taking on Tuesday hit the airline stocks pretty hard. The XAL airline index fell -2.2%. Shares of DAL gave up -3.3%. Our trade has not opened yet with the entry trigger at $22.15. Given today's display of relative weakness we are removing DAL as a candidate.

Trade did not open.

08/06/13 removed from the newsletter

chart:



The Gap, Inc. - GPS - close: 45.52 change: -0.76

Stop Loss: 45.49
Target(s): 49.50
Current Gain/Loss: - 0.5%

Entry on July 29 at $45.75
Listed on July 27, 2013
Time Frame: exit PRIOR to earnings in late August
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
08/06/13: An earnings warning from American Eagle Outfitters (AEO) last night sent many of the retail names lower today. GPS was one of them with a -1.6% decline. On an intraday basis GPS traded below what should have been support at its 10-dma, 20-dma and the $45.00 level. Our stop was hit at $45.49.

closed Position: Long GPS stock @ $45.75 exit $45.49 (-0.5%)

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

Sep $45 call (GPS1321i45) entry $2.27 exit $2.09 (-7.9%)

08/06/13 stopped out
08/01/13 new stop loss @ 45.49
07/30/13 new stop loss @ 44.75

chart:



Rackspace Hosting - RAX - close: 46.20 change: -0.60

Stop Loss: 44.45
Target(s): 49.00
Current Gain/Loss: +1.9%

Entry on July 25 at $45.35
Listed on July 24, 2013
Time Frame: exit PRIOR to earnings on Aug. 8th
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
08/06/13: RAX did not see any follow through on yesterday's rally. Instead the market-wide pullback helped RAX completely erase yesterday's gain. Our plan was to exit positions today at the closing bell to avoid holding over earnings on Aug. 8th.

*small positions*

closed Position: Long RAX stock @ $45.35 exit $46.20 (+1.9%)

08/06/13 scheduled exit
08/05/13 prepare to exit tomorrow at the close
08/01/13 new stop loss @ 44.45
07/27/13 new stop loss @ 43.85

chart: