Editor's Note:
After a three-day decline the U.S. market managed a bounce on Thursday.

LOW and OCN were triggered. MOS has been removed.


Current Portfolio:


BULLISH Play Updates

BlackBerry Limited - BBRY - close: 9.23 change: +0.02

Stop Loss: 8.49
Target(s): 10.90
Current Gain/Loss: +2.4%

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:
08/08/13: BBRY is struggling with technical resistance at its 30-dma. The stock has failed there three days in a row. It looks like traders are selling into strength, which is not a good sign. Readers may want to adjust their stop loss higher to reduce their risk. I am not suggesting new positions at the moment.

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: 31.03 change: +0.59

Stop Loss: 29.75
Target(s): 33.50
Current Gain/Loss: + 2.1%

Entry on August 01 at $30.40
Listed on July 25, 2013
Time Frame: exit PRIOR to earnings on August 20th
Average Daily Volume = 4.9 million
New Positions: Yes, see below

Comments:
08/08/13: Traders were ready to buy the dip in BBY this morning and shares rebounded off the $30.00 mark. BBY managed to outperform the market with a +1.9% gain. Keep in mind that we have less than two weeks left for this trade to work.

We do not want to hold over a position over BBY's earnings report on August 20th.

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: 32.65 change: -0.23

Stop Loss: 31.95
Target(s): 36.00
Current Gain/Loss: - 1.2%

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:
08/08/13: Uh-oh! FLIR did not participate in the market's bounce today. The stock is now down four days in a row. Traders may want to raise their stop loss immediately. I am not suggesting new positions at this time.

current Position: Long FLIR stock @ $33.05



Luminex Corp. - LMNX - close: 21.05 change: -0.03

Stop Loss: 19.79
Target(s): 23.00
Current Gain/Loss: + 2.2%

Entry on August 07 at $20.60
Listed on August 06, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 167 thousand
New Positions: see below

Comments:
08/08/13: Early morning profit taking erased yesterday's gains but then traders bought the dip and shares bounced back to nearly unchanged. Shares remain under their 50-dma.

*small positions*

current Position: Long LMNX stock @ $20.60



Lowe's Companies - LOW - close: 46.16 change: +1.86

Stop Loss: 44.40
Target(s): 49.50
Current Gain/Loss: + 1.2%

Entry on August 08 at $45.60
Listed on August 05, 2013
Time Frame: exit PRIOR to earnings on Aug. 21st
Average Daily Volume = 5.9 million
New Positions: see below

Comments:
08/08/13: An upgrade from JPMorgan this morning helped launch shares of LOW higher. The stock gapped open at $45.27 and then surged to a new high for the year above $46.00. LOW ended the day up +4.19%. Our trigger to open bullish positions was hit this morning at $45.60.

Don't forget that we will plan on exiting prior to LOW's earnings report on August 21st.

current Position: Long LOW stock @ $45.60

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

Long Sep $45 call (LOW1321i45) entry $1.90



Ocwen Financial Corp - OCN - close: 51.80 change: +1.29

Stop Loss: 49.25
Target(s): 55.00
Current Gain/Loss: + 2.0%

Entry on August 08 at $50.76
Listed on August 07, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 1.8 million
New Positions: see below

Comments:
08/08/13: I didn't see any headlines to explain the relative strength in OCN today but we're not complaining. We were expecting a move higher. Our plan was to go long at $50.70 but shares gapped open higher at $50.76. The stock raced to a new all-time high near $52 and closed up +2.55%.

Earlier Comments:
If triggered our multi-week target is $55.00. More aggressive traders could aim higher. The Point & Figure chart for OCN is bullish with a $63 target.

current Position: Long OCN stock @ $50.76

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

Long Sep $50 call (OCN1321i50) entry $2.70

08/08/13 traded on gap higher at $50.76. Trigger was $50.70



Texas Instruments - TXN - close: 39.65 change: +0.00

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:
08/08/13: TXN has spent five days now hovering below resistance at the $40.00 level. I'm surprised the breakout didn't happen today with the market's rally this morning.

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)



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BEARISH PLAYS

The Mosaic Co. - MOS - close: 43.48 change: +2.12

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: see below

Comments:
08/08/13: MOS is obviously not cooperating with our bearish designs on the stock. Shares gapped open higher and soared to a +5.1% gain. We knew that MOS might be volatile, which was why we were suggesting small positions.

Our trade did not open (trigger was $39.65) so we're removing MOS as a candidate.

Trade did not open.

08/08/13 removed from the newsletter

chart: