Editor's Note:
The U.S. market ended the week in the red although selling pressure has actually been rather mild so far.


Current Portfolio:


BULLISH Play Updates

BlackBerry Limited - BBRY - close: 9.76 change: +0.53

Stop Loss: 8.49
Target(s): 10.90
Current Gain/Loss: +8.3%

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:
08/10/13: BBRY was making headlines on Friday. The stock popped and almost tagged the $10.00 mark before closing with a +5.74% gain. The rally was fueled by speculation that BBRY was willing to consider going private. The company's market cap has plunged from $84 billion to $5 billion. They have about $3.00 a share in cash, about $2.00 a share in short-term investments, and almost $5 a share in receivables. That's $10 worth of assets and no debt. The company could definitely be a takeover or buyout target.

On a technical basis the breakout past its 30-dma is bullish. I am not suggesting new positions at this time.

Earlier Comments:
I do consider this a more aggressive, higher risk trade but it definitely has potential if the sellers are finally exhausted. 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

chart:



Best Buy Co. - BBY - close: 30.63 change: -0.40

Stop Loss: 29.75
Target(s): 33.50
Current Gain/Loss: + 0.8%

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:
08/10/13: Friday saw BBY give back a good chunk of Thursday's gains with a -1.28% decline. We're still bullish with BBY above $30.00 but the stock is forming a very short-term trend of lower highs. Nimble traders could try buying dips near $30.00. However, we are planning to exit prior to the 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

chart:



FLIR Systems - FLIR - close: 32.99 change: +0.34

Stop Loss: 31.95
Target(s): 36.00
Current Gain/Loss: - 0.2%

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:
08/10/13: FLIR broke its four-day down trend with a +1.0% bounce on Friday. If this rebound continues I would be tempted to buy the stock in a rally past Friday's intraday high at $33.23. More conservative traders may want to raise their stop near Friday's low at $32.51.

current Position: Long FLIR stock @ $33.05

chart:



Luminex Corp. - LMNX - close: 21.14 change: +0.09

Stop Loss: 19.79
Target(s): 23.00
Current Gain/Loss: + 2.6%

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:
08/10/13: LMNX outperformed the broader market with a +0.4% gain on Friday. The stock is still struggling with technical resistance near its 50-dma. I am not suggesting new positions at the moment.

*small positions*

current Position: Long LMNX stock @ $20.60

chart:



Lowe's Companies - LOW - close: 45.68 change: -0.48

Stop Loss: 44.40
Target(s): 49.50
Current Gain/Loss: + 0.2%

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:
08/10/13: After Thursday's big gain in LOW it's not surprising to see some profit taking, especially with a widespread market decline on Friday. Traders might want to consider looking for a dip near $45.00 as an alternative bullish entry point.

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

chart:



Ocwen Financial Corp - OCN - close: 51.90 change: +0.10

Stop Loss: 49.25
Target(s): 55.00
Current Gain/Loss: + 2.2%

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:
08/10/13: OCN tagged a new high before lunchtime and then spent the rest of Friday drifting sideways. I don't see any changes from our earlier comments. If the market continues to decline we could see OCN retesting the $51-50 zone and traders could use a dip or a bounce in that area as an alternative bullish entry point.

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

chart:



Texas Instruments - TXN - close: 39.78 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:
08/10/13: Shares of TXN are starting to get squeezed between short-term support at its 10-dma and overhead resistance at the $40.00 level. The stock should see a breakout one way or the other soon. We're expecting a breakout higher.

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 $0.99

chart:



BEARISH Play Updates

MDC holdings - MDC - close: 29.34 change: +0.16

Stop Loss: 30.35
Target(s): 25.50
Current Gain/Loss: - 0.9%

Entry on August 09 at $29.08
Listed on August 08, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 943 thousand
New Positions: see below

Comments:
08/10/13: Shares of MDC gapped open lower by 10 cents on Friday morning. Our trade opened at $29.08. Unfortunately, Friday afternoon saw the homebuilders produce an oversold bounce. It's nothing too alarming yet. MDC should find new short-term resistance near $30.00. Nimble traders may want to wait and launch bearish positions on a bounce or failed rally near the $30.00 level.

Earlier Comments:
Keep in mind that the homebuilders have been volatile. I am suggesting small positions. You may want to consider just buying puts since your risk is limited to the cost of the put option.

*Small Positions*

current Position: short MDC stock @ $29.08

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

Long Sep $30 PUT (MDC1321u30) entry $2.10

08/09/13 trade opened with MDC opening at $29.08

chart: