Editor's Note:
The market's rebound continued on Friday and equities ended the week on an up note.

STZ was triggered. TPX has been removed.


Current Portfolio:


BULLISH Play Updates

Electronic Arts - EA - close: 27.78 change: +1.12

Stop Loss: 26.90
Target(s): 29.75
Current Gain/Loss: + 3.2%

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:
08/24/13: It was another bullish week for EA thanks to positive news from Gamestop (GME) on Thursday. GME raised their guidance and EA rallied to new multi-year highs. Shares of EA are now up five weeks in a row. The breakout from the 26-27 trading range is also bullish. If you're looking for an entry point then consider buying a dip in the $27.50-27.00 zone.

We are raising our stop loss to $26.90.

current Position: long EA stock @ $27.10

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

Long Sep $28 call (EA1321i28) $0.55

08/24/13 new stop loss @ 26.90

chart:



Halliburton Company - HAL - close: 48.71 change: +0.89

Stop Loss: 46.99
Target(s): 49.85
Current Gain/Loss: + 3.4%

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:
08/24/13: Another rally for the energy stocks boosted HAL past the $48.00 level. The stock may have also received a boost from headlines regarding HAL's tender offer to buy back shares, which expired on Thursday night. HAL said they will buy back about 68 million shares at $48.50 a share or $3.3 billion. Wall Street loves stock buybacks and HAL rallied +1.8% on Friday.

The simple 10-dma has risen to $47.06. We are adjusting our stop loss up to $46.99.

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

08/24/13 new stop loss @ 46.99
08/22/13 new stop loss @ 46.40

chart:



Ocwen Financial Corp - OCN - close: 50.97 change: +0.31

Stop Loss: 49.85
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:
08/24/13: Shares of OCN could be at a turning point. Not only has the sideways consolidation narrowed, which would suggest a breakout one way or the other is imminent, but OCN is also trading near the bottom edge of its bullish channel. The stock should either rally off the channel's lower edge or snap lower through it (obviously OCN could just move sideways but it seems unlikely).

We are adjusting the stop loss higher to $49.85. 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

08/24/13 new stop loss @ 49.85
08/19/13 new stop loss @ 49.75
08/08/13 traded on gap higher at $50.76. Trigger was $50.70

chart:



Constellation Brands Inc. - STZ - close: 55.86 change: +0.68

Stop Loss: 53.75
Target(s): 60.00
Current Gain/Loss: +0.9%

Entry on August 23 at $55.35
Listed on August 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
08/24/13: Our new trade on STZ has opened. The stock gapped open higher at $55.34 and then rallied +1.2% to close at a new all-time high. Our suggested trigger to open positions was $55.35. If you missed the entry you could look for a dip back toward $55.00 as an alternative entry point. We're going to try and reduce our risk by raising the stop loss to $53.75, just below the simple 20-dma.

current Position: Long STZ stock @ $55.35

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

Long Oct $60 call (STZ1319j60) entry $0.70

08/24/13 new stop loss @ 53.75

chart:



BEARISH Play Updates

Mellanox Technologies - MLNX - close: 39.77 change: -0.16

Stop Loss: 41.00
Target(s): 35.25
Current Gain/Loss: - 0.7%

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:
08/24/13: Friday proved to be a quiet day for MLNX. There was a small spike higher at the open. Shares hit $40.40 and reversed. MLNX spent most of the session hovering on either side of the $40.00 level. Thankfully, Friday's session did not confirm Thursday's bullish reversal candlestick pattern. I would use a new drop below $39.50 as an entry point to launch bearish positions.

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

08/22/13 warning! MLNX has produced a one-day bullish reversal pattern

chart:



CLOSED BEARISH PLAYS

Tempur Sealy Intl. - TPX - close: 38.35 change: +1.67

Stop Loss: 38.05
Target(s): 31.00
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
08/24/13: We are removing TPX as a trade. The stock looked poised to breakdown below support near $36.00 but Friday's +4.5% rally suddenly makes it seem unlikely that we'll get triggered any time soon. It appears that the International Sleep Products Association's monthly report showed that "mattress sales in July jumped almost +5%" (source: Associated Press).

We are removing TPX as a candidate.

Trade did not open.

08/24/13 removed from the newsletter

chart: