Editor's Note:
The U.S. market's Tuesday morning rally reversed pretty quickly but the major indices still managed to close with gains.

KIM was triggered.


Current Portfolio:


BULLISH Play Updates

Halliburton Company - HAL - close: 48.30 change: +0.30

Stop Loss: 46.99
Target(s): 49.85
Current Gain/Loss: + 2.5%

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:
09/03/13: Traders continued to buy HAL near short-term support at $48.00 and its 10-dma today. More conservative traders may want to tighten their stops.

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



Constellation Brands Inc. - STZ - close: 55.18 change: +0.93

Stop Loss: 53.75
Target(s): 60.00
Current Gain/Loss: -0.3%

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:
09/03/13: It was a volatile morning for STZ. The stock was upgraded to a "buy" by Goldman Sachs. The stock gapped open higher, spiked to $55.62, and then plunged back toward $54.00. Traders jumped back in to buy the dip and STZ outperformed the market by closing up +1.7% at day's end.

If both STZ and the S&P 500 open positive tomorrow then I would be tempted to launch positions again. Otherwise readers may want to wait for STZ to close above $56.00 before considering positions.

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



BEARISH Play Updates

Assurant Inc. - AIZ - close: 53.86 change: +0.82

Stop Loss: 54.05
Target(s): 48.00
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on August 31, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 590 thousand
New Positions: Yes, see below

Comments:
09/03/13: AIZ did not see any follow through on Friday's bearish breakdown below its 50-dma. Instead the stock gapped open and outperformed the market with a +1.5% gain for the day. If this bounce continues then we'll likely drop AIZ as a bearish candidate. For now our plan remains unchanged.

Earlier Comments:
Friday's low was $52.94. I am suggesting a trigger at $52.75. If triggered our target is $48.00. Do not be surprised to see a temporary bounce near the $50.00 mark.

Trigger @ 52.75

Suggested Position: short AIZ stock @ (trigger)

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

Buy the Oct $52.50 PUT (AIZ1319v52.5)



Darden Restaurants - DRI - close: 46.21 change: -0.00

Stop Loss: 48.25
Target(s): 44.25
Current Gain/Loss: +2.0%

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:
09/03/13: The early morning rally in DRI failed at resistance near its 10-dma. Shares tagged a new relative low midday but bounced back to close unchanged on the session. I am not suggesting new positions at this time.

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: 45.00 change: +1.01

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:
09/03/13: Hmm... FAST rebounded on Tuesday to what might be the top of a new trading range in the $44.00-45.50 zone. Shares did outperform the market with a +2.2% gain and the close above its 10-dma is short-term bullish. We are still on the sidelines waiting for a breakdown to new relative lows.

Earlier Comments:
FAST looks poised to break down even further and the next level of support should be the $40.00 area. Last 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)



InterDigital, Inc. - IDCC - close: 35.80 change: +0.26

Stop Loss: 36.25
Target(s): 30.25
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on August 31, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 342 thousand
New Positions: Yes, see below

Comments:
09/03/13: Shares of IDCC spiked past the $37.00 level this morning but the rally quickly reversed. Shares pared their gains to +0.7% by the close. The volatility this morning might imply that our suggested stop loss at $36.25 is too tight. More aggressive traders may want to use a wider stop. There is no change from my earlier comments.

Earlier Comments:
A breakdown under $35.00 could signal a drop toward $30.00. I am suggesting a trigger to open bearish positions at $34.85. If triggered our target is $30.50.

Trigger @ 34.85

Suggested Position: short IDCC stock @ (trigger)

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

buy the Oct $35 PUT (IDCC1319v35)



Kimco Realty - KIM - close: 19.89 change: -0.14

Stop Loss: 20.35
Target(s): 18.25
Current Gain/Loss: - 0.5%

Entry on September 03 at $19.80
Listed on August 31, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.9 million
New Positions: see below

Comments:
09/03/13: Our new play on KIM has been triggered. The early morning rally reversed at resistance near its 10-dma. Shares then broke down under round-number support at $20.00. KIM hit our suggested entry point at $19.80 late this morning. I would still consider new positions now.

current Position: short KIM stock @ $19.80

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

Long Oct $20 PUT (KIM1319v20) entry $0.95



Mellanox Technologies - MLNX - close: 38.01 change: -1.41

Stop Loss: 41.00
Target(s): 35.25
Current Gain/Loss: + 3.8%

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:
09/03/13: MLNX's attempt to rebound failed near resistance at its 10-dma. The stock reversed into a -3.5% decline, underperforming the market.

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: 39.74 change: -0.18

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:
09/03/13: MTH saw some more profit taking after last Thursday's big bounce. We're still waiting on a breakdown below support.

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)