Editor's Note:
The U.S. stock market failed to see any follow through on yesterday's bounce.

CVI has been removed.
MLNX has been triggered.
SAIA was closed this morning.


Current Portfolio:


BULLISH Play Updates

AudioCodes Ltd. - AUDC - close: 6.10 change: +0.11

Stop Loss: 5.70
Target(s): 6.35
Current Gain/Loss: + 7.6%

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:
08/21/13: AUDC is still flexing its relative strength muscle with another gain (+1.8%). The stock is up seven out of the last eight session. Today's move is a bullish breakout above potential resistance at the $6.00 mark. More conservative investors might want to start taking some money off the table. I am raising our stop loss to $5.70.
FYI: The Point & Figure chart for AUDC is bullish with a $10 target.

current Position: Long AUDC stock @ $5.67

08/21/13 new stop loss @ 5.70
08/20/13 new stop loss @ 5.45, adjust target to $6.35
08/19/13 new stop loss @ 5.35
08/16/13 trade opened on gap higher at $5.67. Trigger was $5.65



Electronic Arts - EA - close: 26.66 change: -0.09

Stop Loss: 26.25
Target(s): 29.75
Current Gain/Loss: - 1.6%

Entry on August 20 at $27.10
Listed on August 17, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: see below

Comments:
08/21/13: Shares of EA almost hit our stop loss at $26.25 today. Shares dipped down to its simple 20-dma near $26.30 midday and held there for a while before finally paring its losses. I am still concerned that yesterday's move is a bull-trap pattern and would wait for a new rally past $27.00 before considering new bullish positions.

current Position: long EA stock @ $27.10

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

Long Sep $28 call (EA1321i28) $0.55



Halliburton Company - HAL - close: 46.98 change: -0.37

Stop Loss: 45.80
Target(s): 49.85
Current Gain/Loss: - 0.3%

Entry on August 19 at $47.10
Listed on August 17, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 9.0 million
New Positions: Yes, see below

Comments:
08/21/13: It was another down day for the energy sector. This time shares of HAL also posted a decline (-0.7%) although shares ended the session near prior resistance and what could be short-term support at $47.00. If this dip continues I would be tempted to buy dips in HAL near its 10-dma (currently near $46.60) or near the $46.00 level.

Earlier Comments:
Our target is $49.85. If you have a longer time frame you could aim higher.

current Position: long HAL stock @ $47.10

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

Long Oct $50 call (HAL1319j50) entry $0.69



Ocwen Financial Corp - OCN - close: 50.46 change: -0.50

Stop Loss: 49.75
Target(s): 55.00
Current Gain/Loss: - 0.6%

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:
08/21/13: OCN is still trading inside the $50-52 zone. You will notice that shares are coiling more tightly and a breakout one way or the other is imminent. Unfortunately, given the short-term down trend in the market's major indices they might pull OCN lower. I am not suggesting new positions at this time.

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

08/19/13 new stop loss @ 49.75
08/08/13 traded on gap higher at $50.76. Trigger was $50.70



BEARISH Play Updates

Mellanox Technologies - MLNX - close: 39.09 change: -1.37

Stop Loss: 41.00
Target(s): 35.25
Current Gain/Loss: + 1.0%

Entry on August 21 at $39.50
Listed on August 20, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 713 thousand
New Positions: see below

Comments:
08/21/13: The relative weakness in MLNX continues with another decline today. Shares broke down below round-number support at $40.00 with today's -3.3% decline. Our suggested trigger to open bearish positions was hit at $39.50.

Earlier Comments:
I would keep position small because MLNX does have above average short interest at 15% of the 37.5 million share float. FYI: The Point & Figure chart for MLNX is bearish with a $27.00 target.

current Position: short MLNX stock @ $39.50



CLOSED BEARISH PLAYS

CVR Energy, Inc. - CVI - close: 43.19 change: +1.12

Stop Loss: 42.25
Target(s): 35.25
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 19, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 579 thousand
New Positions: see below

Comments:
08/21/13: CVI displayed relative strength for a second day in a row. Today saw a sharp rebound towards short-term resistance near $44.00. If you look closing at CVI's chart the rally today did fail at a three-week trend line of lower highs. More aggressive traders could short CVI here with a tight stop loss above today's high. We are taking the safer route and just removing CVI from the newsletter. Our trade has not opened yet. The suggested entry point was $39.75.

Trade did not open.

08/21/13 removed from the newsletter
Note: the option has an odd strike price, mostly likely due to CVI's special dividend earlier this year.

chart:



Saia, Inc. - SAIA - close: 29.75 change: +0.00

Stop Loss: 30.25
Target(s): 25.25
Current Gain/Loss: - 4.9%

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:
08/21/13: SAIA rallied up toward resistance near $30.00 but couldn't breakout today. Shares ended the session unchanged. Our plan was to exit at the opening bell this morning. SAIA actually opened slightly lower at $29.64.

closed Position: short SAIA stock @ $28.25 exit $29.64 (-4.9%)

08/21/13 scheduled exit
08/20/13 prepare to exit immediately at the opening bell tomorrow.

chart: