Editor's Note:
Stocks rebounded off their intraday lows. The S&P 500 managed to close with a gain but the small cap Russell 2000 index closed negative.

We want to exit our BBY trade tomorrow morning.
LINE was triggered today.


Current Portfolio:


BULLISH Play Updates

Best Buy Co. - BBY - close: 30.86 change: +0.00

Stop Loss: 29.75
Target(s): 33.50
Current Gain/Loss: + 1.5%

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:
08/13/13: BBY seems to be stuck trading sideways in the $30.00-31.50 zone. It might remain stuck there until the company reports earnings on August 20th. Shares closed unchanged today compared to the market's major indices, which posted gains. Consider its recent performance we are suggesting an early exit in BBY. Plan to close positions tomorrow at the opening bell. Longer-term traders may want to reconsider since BBY's longer-term trend is still higher.

current Position: Long the stock @ $30.40

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

Long Sep $32 call (BBY1321i32) entry $1.20

08/13/13 prepare to exit at the open tomorrow
08/01/13 new stop loss @ 29.75



FLIR Systems - FLIR - close: 33.20 change: +0.02

Stop Loss: 31.95
Target(s): 36.00
Current Gain/Loss: + 0.5%

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:
08/13/13: Tuesday ended up being a quiet day for FLIR. Traders bought the morning dip but FLIR almost didn't make it back into positive territory.

FLIR is going to begin trading ex-dividend on August 15th. The quarterly cash dividend should be nine cents a share.

More conservative traders may want to raise their stop near Friday's low at $32.51.

current Position: Long FLIR stock @ $33.05



Luminex Corp. - LMNX - close: 21.49 change: -0.16

Stop Loss: 20.40
Target(s): 23.00
Current Gain/Loss: + 4.3%

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:
08/13/13: LMNX underperformed the market with a -0.7% decline. Traders bought the dip this morning near $21.00. The stock managed to bounce back above its 50-dma before the closing bell. I am not suggesting new positions at this time.

*small positions*

current Position: Long LMNX stock @ $20.60

08/12/13 new stop loss @ 20.40



Lowe's Companies - LOW - close: 46.13 change: +0.33

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:
08/13/13: LOW dipped toward its simple 10-dma this morning. The stock didn't quite make it to that moving average before rebounding. The stock managed to bounce back into positive territory and outperforming the major indices with a +0.7% gain. LOW is poised to hit new all-time highs again.

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: 51.35 change: -0.40

Stop Loss: 49.25
Target(s): 55.00
Current Gain/Loss: + 1.2%

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:
08/13/13: If you look at OCN's intraday chart you will notice that the stock has failed near $52.25 three days in a row. I am expecting shares to drop into the $51.00-50.00 zone. I would be tempted to launch new bullish positions on a dip or a bounce near $50.00.

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: 39.76 change: +0.04

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:
08/13/13: There is virtually no change in shares of TXN and no change from my earlier comments. The stock is consolidating sideways below key resistance at the $40.00 level.

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)



United Stationers - USTR - close: 43.90 change: +0.38

Stop Loss: 41.95
Target(s): 48.50
Current Gain/Loss: + 0.8%

Entry on August 12 at $43.55
Listed on August 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 275 thousand
New Positions: see below

Comments:
08/13/13: USTR continues to run with the stock up four days in a row. I do not see any changes from my earlier comments. Although traders can look for short-term support at the 10-dma near $42.70 and the $42.00 level.

Earlier Comments:
USTR could see more short covering. The most recent data listed short interest at more than 13% of the small 39.4 million share float.

current Position: long USTR stock @ $43.55

08/12/13 triggered @ 43.55



BEARISH Play Updates

Linn Energy - LINE - close: 22.91 change: -1.03

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: + 3.2%

Entry on August 13 at $23.65
Listed on August 12, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
08/13/13: Thankfully we did not have to wait very long for LINE to hit our entry point. Shares gapped down at $23.75 and then plunged to a -4.28% decline. Our entry trigger was hit at $23.65 this morning.

current Position: short LINE stock @ $23.65

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

Long Sep $22 PUT (LINE1321u22) entry $1.10



MDC holdings - MDC - close: 29.11 change: -0.53

Stop Loss: 30.35
Target(s): 25.50
Current Gain/Loss: - 0.1%

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:
08/13/13: Homebuilders underperformed today. It looks like the oversold bounce in MDC is failing. Shares reversed with a -1.7% decline. There is no change from my earlier comments.

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



Saia, Inc. - SAIA - close: 28.92 change: -0.59

Stop Loss: 30.25
Target(s): 25.25
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 192 thousand
New Positions: Yes, see below

Comments:
08/13/13: The more aggressive entry strategy I mentioned last night would have worked well this morning. SAIA spiked up to $29.82 before reversing. Shares ended the session down -1.99%. The newsletter is still on the sidelines and waiting for a new relative low. Our suggested trigger is $28.25.

Trigger @ 28.25

Suggested Position: short SAIA stock @ (trigger)