Editor's Note:
The morning rally peaked around lunchtime and stocks were paring their gains the rest of the session.


Current Portfolio:


BULLISH Play Updates

Halliburton Company - HAL - close: 48.54 change: -0.36

Stop Loss: 46.99
Target(s): 49.85
Current Gain/Loss: + 3.1%

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: see below

Comments:
08/29/13: Crude oil saw some profit taking today and the energy stocks followed oil lower. HAL gave up -0.7%. Watch for shares to find short-term support near its rising 10-dma, or the 20-dma if energy stocks really see stronger profit taking.

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



J2 Global, Inc. - JCOM - close: 50.04 change: -0.04

Stop Loss: 49.40
Target(s): 57.50
Current Gain/Loss: - 1.9%

Entry on August 26 at $51.00
Listed on August 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 339 thousand
New Positions: see below

Comments:
08/29/13: JCOM flirted with a breakdown under the $50.00 level but shares bounced near $49.80. If the market does see another down day I would not be surprised to see JCOM trade near its mid August lows around $49.50 and potentially hit our stop loss at $49.40.

Earlier Comments:
If JCOM resumes its up trend the stock should see some short covering. The most recent data listed short interest at 35% of the 41.6 million share float.

current Position: long JCOM stock @ $51.00



Constellation Brands Inc. - STZ - close: 54.57 change: -0.02

Stop Loss: 53.75
Target(s): 60.00
Current Gain/Loss: -1.4%

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:
08/29/13: The midday rally in STZ failed near the $55.00 level. That doesn't bode well for the bulls. I am not suggesting new positions at this time.

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



Waste Connections - WCN - close: 42.98 change: -0.35

Stop Loss: 42.99
Target(s): 48.00
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 26, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 336 thousand
New Positions: Yes, see below

Comments:
08/29/13: WCN displayed relative weakness with a -0.8% decline. The close under its 40-dma is short-term bearish but there is a good chance WCN will bounce near its 50-dma (currently near 42.72). More aggressive traders may want to consider buying a dip at the 50-dma and use a relatively tight stop loss.

We are suggesting a trigger to open bullish positions at $44.25. If triggered our multi-week target is $48.00.

Trigger @ 44.25

Suggested Position: buy WCN stock @ (trigger)



BEARISH Play Updates

Darden Restaurants - DRI - close: 46.55 change: +0.19

Stop Loss: 48.25
Target(s): 44.25
Current Gain/Loss: +1.3%

Entry on August 26 at $47.16
Listed on August 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
08/29/13: DRI produced a +0.4% bounce. Shares spent most of the day inside the $46.40-46.80 zone. If the bounce continues tomorrow, look for short-term resistance at the 10-dma near $47.10.

current Position: short DRI stock @ $47.16

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

Long Oct $45 PUT (DRI1319v45) entry $0.90



Fastenal Co. - FAST - close: 44.46 change: +0.42

Stop Loss: 45.01
Target(s): 40.25
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 28, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Comments:
08/29/13: FAST dipped toward yesterday's lows before bouncing this morning. It looks like the oversold bounce has stalled under round-number resistance at the $45.00 level. I don't see any changes from my Wednesday night new play comments.

Earlier Comments:
FAST looks poised to break down even further and the next level of support should be the $40.00 area. Tuesday's low was $43.75. I am suggesting a trigger to open bearish positions at $43.70. If triggered our target is $40.25. More aggressive traders may want to aim lower. The Point & Figure chart for FAST is bearish with a $37 target.

Trigger @ 43.70

Suggested Position: short FAST stock @ (trigger)

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

buy the Oct $40 PUT (FAST1319v40)



Mellanox Technologies - MLNX - close: 38.99 change: +1.15

Stop Loss: 41.00
Target(s): 35.25
Current Gain/Loss: + 1.3%

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:
08/29/13: The Israeli market was up more than +1% today. That might help explain the spike higher in MLNX this morning. Shares rebounded +3.0% but the bounce did stall under resistance near $40.00 and its 10-dma. It is worth noting that today's move has created a bullish engulfing candlestick reversal pattern. I am not suggesting new positions. More conservative traders might want to lower their stops closer to the $40.00 level.

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



Meritage Homes Corp. - MTH - close: 40.72 change: +1.62

Stop Loss: 40.25
Target(s): 35.25
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 691 thousand
New Positions: Yes, see below

Comments:
08/29/13: No one seemed to have any good explanations for the sudden rally in the homebuilding stocks today. MTH outperformed many of its peers with a =4.1% gain. The close over $40 and its 10-dma puts the short-term down trend in jeopardy. The intermediate trend still remains lower. If MTH sees any follow through on this rally we might drop it. Until then our plan is unchanged.

Earlier Comments:
We are suggesting a trigger to launch bearish positions at $38.40. If triggered our multi-week target is $35.25. FYI: The Point & Figure chart for MTH is bearish with a $31.00 target.

Trigger @ 38.40

Suggested Position: short MTH stock @ (trigger)

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

Buy the Oct $35 PUT (MTH1319v35)