Editor's Note:
Positive news on Chinese exports helped spark a market-wide rally on Monday.

MGM was triggered. MTH has been removed. RNF was stopped out.


Current Portfolio:


BULLISH Play Updates

Alliance Healthcare Services - AIQ - close: 24.89 change: -0.19

Stop Loss: 23.90
Target(s): 29.50
Current Gain/Loss: -3.2%

Entry on September 04 at $25.70
Listed on September 03, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 120 thousand
New Positions: see below

Comments:
09/09/13: Now is a good time to start worrying about our AIQ trade. The stock market produced a widespread rally on Monday and AIQ did not participate. The stock is actually down four days in a row. Traders did buy the dip again near its 10-dma but I am not suggesting new positions. We are raising the stop loss to $23.90.

*small positions*

current Position: Long AIQ stock @ $25.70

09/09/13 new stop loss @ 23.90. AIQ did not participate in the market rally. It's time to turn defensive.
09/04/13 adjust stop loss down to $23.45



MGM Resorts Intl. - MGM - close: 18.74 change: +0.32

Stop Loss: 17.99
Target(s): 19.95
Current Gain/Loss: + 0.2%

Entry on September 09 at $18.70
Listed on September 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.6 million
New Positions: see below

Comments:
09/09/13: Casino stocks had a good day. MGM added +1.7% and closed at a new two-year high. Our trigger to open bullish positions was hit at $18.70. I don't see any changes from our weekend new play comments.

current Position: long MGM stock @ $18.70

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

Long Oct $20 call (MGM1319j20) entry $0.38



Sunshine Heart - SSH - close: 11.06 change: +0.16

Stop Loss: 10.39
Target(s): 13.70
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 05, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 329 thousand
New Positions: Yes, see below

Comments:
09/09/13: SSH managed to outperform the market with a +1.4% gain. Yet the rally failed twice near $11.34 this afternoon. The stock pared its gains by the closing bell. We are waiting for a new relative high.

Earlier Comments:
I do consider this an aggressive, higher-risk trade due to SSH's recent volatility. Nimble traders may want to launch positions immediately. I am suggesting we wait for SSH to trade above Thursday's high (11.47). We'll use a trigger to open positions at $11.55. If triggered our target is $13.70. That's just below the August peak.

I am suggesting we keep our position size small to limit our risk.

Trigger @ 11.55 (small positions)

Suggested Position: buy SSH stock @ (trigger)



Constellation Brands Inc. - STZ - close: 57.93 change: +0.25

Stop Loss: 55.75
Target(s): 59.75
Current Gain/Loss: +4.7%

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:
09/09/13: STZ produced a +0.4% gain, making it five up days in a row. Shares do seem to be struggling with some short-term resistance near $58.00. I am adjusting our exit target to $59.75 (down from $60.00).

Patient investors may want to aim higher.

current Position: Long STZ stock @ $55.35

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

Long Oct $60 call (STZ1319j60) entry $0.70

09/09/13 adjust exit target to $59.75
09/07/13 new stop loss @ 55.75
09/05/13 new stop loss @ 55.25
08/24/13 new stop loss @ 53.75



BEARISH Play Updates

Community Health Systems - CYH - close: 37.99 change: -1.69

Stop Loss: 40.25
Target(s): 35.25
Current Gain/Loss: +2.6%

Entry on September 05 at $39.00
Listed on September 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
09/09/13: An analyst downgrade this morning before the opening bell helped push CYH off a cliff. Shares gapped lower at $38.41 and ended the session with a -4.25% loss. I am adjusting our stop loss down to $40.25.

current Position: short CYH stock @ $39.00

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

Long Oct $37 PUT (CYH1319v37) entry $0.98

09/09/13 new stop loss @ 40.25



Iron Mountain Inc. - IRM - close: 25.91 change: +0.07

Stop Loss: 26.65
Target(s): 21.00
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Comments:
09/09/13: IRM tried to bounce but the rally failed at short-term technical resistance at the 10-dma. More aggressive traders may want to open bearish positions now. The newsletter will stick to our current plan.

I am suggesting a trigger to open bearish positions at $25.40. If triggered our multi-week target is $21.00. Please note that I do expect a short-term bounce near the $24 level.

FYI: The Point & Figure chart for IRM is bearish with a $12.00 target.

Trigger @ 25.40

Suggested Position: short IRM stock @ (trigger)

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

buy the Oct $25 PUT (IRM1319v25)



Mellanox Technologies - MLNX - close: 37.99 change: -0.17

Stop Loss: 40.15
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:
09/09/13: MLNX briefly traded below its late August low before paring its losses. Shares ended the session with a -0.44% decline. If the stock bounces from here and breaks out past the 10-dma then suddenly today's low will look like a bullish double bottom. More conservative traders may want to lower their stop loss.

I am not suggesting new 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

09/04/13 new stop loss @ 40.15
08/22/13 warning! MLNX has produced a one-day bullish reversal pattern



CLOSED BEARISH PLAYS

Meritage Homes Corp. - MTH - close: 41.58 change: +1.82

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: see below

Comments:
09/09/13: Homebuilding stocks were big performers today. The DJUSHB home builder index surged +5.6%. The XHB added +3.4%. Meanwhile MTH rallied +4.5%. It is unlikely that shares of MTH will hit our suggested bearish entry point at $38.40 any time soon. Therefore tonight we're removing MTH as a candidate.

Trade did not open.

09/09/13 removed from the newsletter. Trade did not open.

chart:



Rentech Nitrogen Partners - RNF - close: 26.39 change: +0.84

Stop Loss: 25.75
Target(s): 21.00
Current Gain/Loss: - 5.2%

Entry on September 04 at $24.60
Listed on September 03, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 167 thousand
New Positions: see below

Comments:
09/09/13: The U.S. market was in rally mode on Monday and RNF gapped open higher at $25.87. That was above our suggested stop loss at $25.75 so our play closed immediately. By Monday's closing bell RNF had gained +3.2%.

closed Position: short RNF stock @ $24.60 exit $25.87 (-5.2%)

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

Oct $25 PUT (RNF1319v25) entry $1.60 exit $0.85 (-46.8%)

09/09/13 stopped out on gap open higher at $25.87.

chart: