Editor's Note:
The U.S. market produced widespread declines and the S&P 500 closed near its lows for the session.

BBY was closed. TXN has been removed. SAIA was triggered.


Current Portfolio:


BULLISH Play Updates

FLIR Systems - FLIR - close: 32.91 change: -0.29

Stop Loss: 31.95
Target(s): 36.00
Current Gain/Loss: - 0.4%

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:
08/14/13: FLIR spent Wednesday's session drifting lower and ended the day down -0.8%. I am not suggesting new positions at this time.

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: 21.19 change: -0.31

Stop Loss: 20.40
Target(s): 23.00
Current Gain/Loss: + 2.8%

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:
08/14/13: The early morning rally attempt in LMNX didn't make it very far before reversing. Shares closed down -1.4% and back below their 50-dma. 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: 45.00 change: -1.13

Stop Loss: 44.40
Target(s): 49.50
Current Gain/Loss: - 1.3%

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:
08/14/13: Shares of LOW were upgraded this morning but it didn't help. A sell-off in the homebuilder stocks weighed on LOW. While LOW isn't a homebuilder the stock can react to moves in the group. Today saw LOW give back -2.4% and erase the last few days of gains.

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



The Mosaic Co. - MOS - close: 43.75 change: -0.69

Stop Loss: 43.70
Target(s): 49.50
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 13, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 584 thousand
New Positions: Yes, see below

Comments:
08/14/13: There was no follow through on yesterday's rally. MOS spiked lower at the open and spent most of the day inside the $43.50-44.00 zone. There is no change from my prior comments.

I do consider this an aggressive, higher-risk trade. Therefore I'm suggesting small bullish positions. Launch trades if MOS can trade at $45.10. If triggered our target is $49.50.

Trigger @ 45.10 *small positions*

Suggested Position: buy MOS stock @ (trigger)

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

buy the Sep $47.50 call (MOS1321i47.5)



Ocwen Financial Corp - OCN - close: 50.94 change: -0.41

Stop Loss: 49.25
Target(s): 55.00
Current Gain/Loss: + 0.4%

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:
08/14/13: We were expecting OCN to dip today. The stock lost -0.79% and closed near its 10-dma. 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



United Stationers - USTR - close: 43.51 change: -0.39

Stop Loss: 41.95
Target(s): 48.50
Current Gain/Loss: - 0.1%

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:
08/14/13: Traders bought the dip midday near the $43.00 level. If both USTR and the S&P 500 both open positive then I would be tempted to launch new positions here.

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

Facebook, Inc. - FB - close: 36.65 change: -0.37

Stop Loss: 38.55
Target(s): 33.50
Current Gain/Loss: + 0.5%

Entry on August 14 at $36.83
Listed on August 13, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 86.2 million
New Positions: see below

Comments:
08/14/13: As expected FB continued to move and it continued to show volatility. The stock gapped down this morning at $36.83. Traders sold the bounce at $37.55 and more conservative traders may want to use that as a guide to adjust their stop loss lower. We are keeping our stop at $38.55 for now.

Earlier Comments:
The stock can be volatile so I would consider this an aggressive, higher-risk trade. Our target is $33.50.

*Small Positions*

current Position: short FB stock @ $36.83

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

Long Sep $35 PUT (FB1321u35) entry $0.79



Linn Energy - LINE - close: 23.68 change: +0.77

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: - 0.1%

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:
08/14/13: I couldn't find any headlines to explain the relative strength in LINE today. The stock opened lower and dipped to $22.38 before bouncing all the way back to $24.15 by this afternoon. LINE ended the session up +3.3%. More conservative traders may want to tighten their stop losses.

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: 29.01 change: -0.10

Stop Loss: 30.35
Target(s): 25.50
Current Gain/Loss: + 0.2%

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:
08/14/13: I am disappointed with MDC's performance today. The homebuilders were weak and the DJUSHB index lost -1.8%. Yet MDC rebounded off its Wednesday morning lows and only posted a -0.3% decline.

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: 28.55 change: -0.37

Stop Loss: 30.25
Target(s): 25.25
Current Gain/Loss: - 1.1%

Entry on August 14 at $28.25
Listed on August 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 192 thousand
New Positions: see below

Comments:
08/14/13: SAIA slipped to a new relative low and hit our suggested entry point for bearish positions at $28.25. The stock did manage to pare its losses before closing with a -1.5% decline (compare that to the -0.4% drop in the NASDAQ).

Readers may want to wait for another new relative low (under $28.20) before initiating positions.

current Position: short SAIA stock @ $28.25



CLOSED BULLISH PLAYS

Best Buy Co. - BBY - close: 31.67 change: +0.81

Stop Loss: 29.75
Target(s): 33.50
Current Gain/Loss: + 1.8%

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:
08/14/13: Murphy's Law has amazing timing! Last night we decide to close BBY at the open this morning. What happens next? BBY is upgraded before the bell and given a $38 price target. Shares open at $30.94 and then rally to a +2.6% gain.

closed Position: Long the stock @ $30.40 exit $30.94 (+1.8%)

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

Sep $32 call (BBY1321i32) entry $1.20 exit $1.18 (-1.6%)

08/14/13 closed this morning
08/13/13 prepare to exit at the open tomorrow
08/01/13 new stop loss @ 29.75

chart:



Texas Instruments - TXN - close: 39.17 change: -0.59

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: see below

Comments:
08/14/13: We have run out of patience with TXN. After churning sideways in a narrow range under resistance at $40.00 for several days in a row the stock has finally broken out. Unfortunately the move is lower.

Our trade did not open (trigger $40.20).

Trade did not open.

08/14/13 removed from the newsletter

chart: