Editor's Note:
The stock market's seasonal August weakness continued with equities closing near their session lows on Friday.

AUDC was triggered. LMNX and LINE were stopped out. MOS has been removed. FB was closed.


Current Portfolio:


BULLISH Play Updates

AudioCodes Ltd. - AUDC - close: 5.61 change: +0.02

Stop Loss: 5.29
Target(s): 6.25
Current Gain/Loss: - 1.1%

Entry on August 16 at $ 5.67
Listed on August 15, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 229 thousand
New Positions: see below

Comments:
08/17/13: The relative strength in AUDC continued on Friday. Shares actually gapped open higher at $5.67. Our suggested trigger was $5.65 so the gap open triggered our play. The stock's rally did run into trouble near $5.80 and AUDC pared its gains by the closing bell.
FYI: The Point & Figure chart for AUDC is bullish with a $10 target.

current Position: Long AUDC stock @ $5.67

08/16/13 trade opened on gap higher at $5.67. Trigger was $5.65

chart:



FLIR Systems - FLIR - close: 32.20 change: +0.01

Stop Loss: 31.95
Target(s): 36.00
Current Gain/Loss: - 2.6%

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:
08/17/13: Traders bought the dip in FLIR on Friday morning near $32 and its 20-dma. Yet the stock's rebound attempt faded and shares closed virtually unchanged on the session. If the market continues to sink we could see FLIR hit our stop loss at $31.95 soon.

current Position: Long FLIR stock @ $33.05

chart:



Ocwen Financial Corp - OCN - close: 51.42 change: +1.19

Stop Loss: 49.25
Target(s): 55.00
Current Gain/Loss: + 1.3%

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:
08/17/13: Traders appeared to be in a buy-the-dip mood with OCN. The stock rebounded sharply from the $50 level on Friday morning and outperformed the market with a +2.3% gain. The next hurdle for the bulls is resistance near the recent highs around $52.00.

Earlier Comments:
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:



BEARISH Play Updates

Saia, Inc. - SAIA - close: 28.51 change: +0.20

Stop Loss: 30.25
Target(s): 25.25
Current Gain/Loss: - 0.9%

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:
08/17/13: SAIA's intermediate trend is down but shares displayed relative strength on Friday with a +0.7% gain. More conservative traders might want to consider adjusting their stop loss closer to the simple 10-dma near $29.20. I am not suggesting new positions at this time.

current Position: short SAIA stock @ $28.25

chart:



CLOSED BULLISH PLAYS

Luminex Corp. - LMNX - close: 20.76 change: +0.09

Stop Loss: 20.40
Target(s): 23.00
Current Gain/Loss: - 1.0%

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:
08/17/13: LMNX displayed some relative strength on Friday by closing with a +0.4% gain. Unfortunately shares continued to sink on Friday morning and LMNX hit our stop loss at $20.40 before rebounding higher.

*small positions*

closed Position: Long LMNX stock @ $20.60 exit $20.40 (-1.0%)

08/16/13 stopped out
08/12/13 new stop loss @ 20.40

chart:



The Mosaic Co. - MOS - close: 42.87 change: -1.36

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: see below

Comments:
08/17/13: MOS did not see any follow through on Thursday's bounce. Instead the stock displayed relative weakness on Friday with a -3.0% decline. Shares are moving farther away from our suggested entry point at $45.10 and it seems unlikely that MOS will hit our entry trigger soon so tonight we are removing MOS from the newsletter.

Trade did not open.

08/17/13 removed from the newsletter

chart:



CLOSED BEARISH PLAYS

Facebook, Inc. - FB - close: 37.08 change: +0.52

Stop Loss: 38.55
Target(s): 33.50
Current Gain/Loss: - 0.4%

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:
08/17/13: Considering FB's performance on Thursday we thought it best to abandon ship and exit early on Friday morning. Sure enough the stock displayed relative strength on Friday. FB gapped open higher at $36.97 and ended the session with a +1.4% gain.

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

*Small Positions*

closed Position: short FB stock @ $36.83 exit $36.97 (-0.4%)

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

Sep $35 PUT (FB1321u35) entry $0.79 exit $0.79 (-0.0%)

08/16/13 early exit at the opening bell
08/15/13 prepare to exit at the open tomorrow morning.

chart:



Linn Energy - LINE - close: 24.79 change: +0.27

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: - 5.9%

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:
08/17/13: Our LINE trade did not perform as expected. Shares have been showing relative strength for three days in a row and added another +1.1% on Friday. Friday's session also saw LINE trade above round-number resistance at $25.00 and hit our stop loss at $25.05.

closed Position: short LINE stock @ $23.65 exit $25.05 (-5.9%)

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

Sep $22 PUT (LINE1321u22) entry $1.10 exit $0.55 (-50.0%)

08/16/13 stopped out
08/15/13 LINE is not cooperating. Readers may want to exit early now.

chart: