Editor's Note:
The stock market is in rally mode as investors react to improvements on Syria and positive economic data out of China.

We want to exit AIQ at the open tomorrow.
SSH has been removed. SWKS has been triggered.


Current Portfolio:


BULLISH Play Updates

Alliance Healthcare Services - AIQ - close: 24.81 change: -0.08

Stop Loss: 23.90
Target(s): 29.50
Current Gain/Loss: -3.5%

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:
09/10/13: Shares of AIQ are not participating in the stock market's rally. The larger trend is up but AIQ is now down five days in a row. That's clearly a warning signal. Tonight I am suggesting an early exit at the opening bell tomorrow morning to cut our losses.

*small positions*

current Position: Long AIQ stock @ $25.70

09/10/13 prepare to exit at the opening bell tomorrow morning
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



Freeport-McMoRan Copper & Gold - FCX - close: 31.93 change: +0.09

Stop Loss: 29.95
Target(s): 36.00
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 11.5 million
New Positions: Yes, see below

Comments:
09/10/13: FCX briefly traded above resistance near $32.00 and its 200-dma but it did not hit our suggested entry point at $32.30. If the rally continues odds are good we could see FCX hit our trigger tomorrow.

If triggered our target is $36.00.

Trigger @ 32.30

Suggested Position: buy FCX stock @ (trigger)

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

Buy the 2014 Jan $35 call (FCX1418a35) current ask $1.08



MGM Resorts Intl. - MGM - close: 19.04 change: +0.30

Stop Loss: 17.99
Target(s): 19.95
Current Gain/Loss: + 1.8%

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:
09/10/13: Casino stocks continued to outperform the broader market on Tuesday and MGM added +1.6%. Traders may want to wait for a dip before initiating new positions. Broken resistance near $18.50 should be new support.

current Position: long MGM stock @ $18.70

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

Long Oct $20 call (MGM1319j20) entry $0.38



Constellation Brands Inc. - STZ - close: 58.24 change: +0.31

Stop Loss: 55.75
Target(s): 59.75
Current Gain/Loss: +5.2%

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:
09/10/13: Another day, another gain for STZ although shares did underperform the broader market's rally today. This stock is now up six days in a row. Our October $60 call has almost doubled in value (+92%) and traders may want to take profits early if you own the call.

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



Skyworks Solutions - SWKS - close: 26.33 change: +0.34

Stop Loss: 24.90
Target(s): 29.85
Current Gain/Loss: + 0.3%

Entry on September 10 at $26.25
Listed on September 09, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
09/10/13: Our brand new play on SWKS has already been triggered. Shares gapped open higher at $26.22. Our suggested entry point was hit at $26.25. SWKS did fill the gap this afternoon and I would still consider new positions now at current levels.

Earlier Comments:
This stock does not move very fast. We may have to adjust our time frame expectations. Our target is $29.85. FYI: The Point & Figure chart for SWKS is bullish with a $36.50 target.

*potentially a multi-month trade*

current Position: Long SWKS stock @ $26.25

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

Long 2014 Jan $30 call (SWKS1418a30) entry $1.00



BEARISH Play Updates

Community Health Systems - CYH - close: 39.03 change: +1.04

Stop Loss: 40.25
Target(s): 35.25
Current Gain/Loss: -0.1%

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:
09/10/13: Widespread market strength today probably sparked some short covering and CYH outperformed with a +2.7% gain. The overall trend is still down. Look for resistance at the 10-dma near $39.50 and then more resistance at the $40.00 mark.

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: 25.85 change: -0.06

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:
09/10/13: Shares of IRM failed at its 10-dma this morning (again).

More aggressive traders may want to open bearish positions now. 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: 38.34 change: +0.35

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: + 2.9%

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:
09/10/13: MLNX was not immune to Tuesday's global stock market rally. Shares added +0.9% but it's worth noting that MLNX failed to close above its 10-dma (again).

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 BULLISH PLAYS

Sunshine Heart - SSH - close: 10.95 change: -0.11

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: see below

Comments:
09/10/13: We are removing SSH. The market is in rally mode but SSH is not participating as expected. The stock has been unable to breakout past resistance in the $11.30-11.40 zone. Our trade has not opened yet so we're dropping SSH as a candidate.

Trade did not open.

09/10/13 removed from the newsletter.

chart: