Editor's Note:
The U.S. stock market rally paused on Thursday after a multi-day advance for the S&P 500 index.

FB was triggered. IRM has been removed.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 39.03 change: -0.22

Stop Loss: 38.25
Target(s): 44.50
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 10, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 2.1 million
New Positions: Yes, see below

Comments:
09/12/13: AVGO flirted with its simple 10-dma again. I don't see any changes fro my earlier comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $40.25. If triggered our multi-week target is $44.50. More conservative investors might want to wait for AVGO to close above $40.00 before launching bullish positions.

FYI: The Point & Figure chart for AVGO is bullish with a long-term $56.00 target.

Trigger @ 40.25

Suggested Position: buy AVGO stock @ (trigger)

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

Buy the 2014 Jan $40 call (AVGO1418a40)



Facebook, Inc. - FB - close: 44.75 change: -0.29

Stop Loss: 42.45
Target(s): 49.50
Current Gain/Loss: - 1.7%

Entry on September 12 at $45.53
Listed on September 11, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 61 million
New Positions: see below

Comments:
09/12/13: Shares of FB jumped ahead of this morning. Some bullish analyst comments this morning helped FB gap open higher at $45.53. This sparked a number of headlines about FB hitting new all-time highs (above resistance at the $45.00 mark). Our suggested trigger was to buy calls at $45.25 so the gap higher triggered our play. FB was unable to avoid the market's widespread decline today and shares faded to a -0.6% loss.

I am suggesting that traders wait for a new rally above $45.00 before jumping in if you're looking for an entry point. Our plan was to limit our position size to reduce our risk.

Earlier Comments:
I do consider this an aggressive, higher-risk trade because FB can be somewhat volatile and is already overbought. If you trade this stock I am suggesting investors keep their position size small to limit their risk.

*small positions*

current Position: long FB stock @ $45.53

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

Long Oct $48 call (FB1319j48) entry $1.46

09/12/13 trade opened on gap higher at $45.53. Trigger was $45.25.



Freeport-McMoRan Copper & Gold - FCX - close: 33.15 change: +0.32

Stop Loss: 29.95
Target(s): 36.00
Current Gain/Loss: + 2.6%

Entry on September 11 at $32.30
Listed on September 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 11.5 million
New Positions: see below

Comments:
09/12/13: FCX saw some volatility this morning. Traders quickly bought the gap down and FCX eventually outperformed the broader market with a +0.97% gain. The next obstacle for the bulls is the May 9th high of $33.25.

current Position: Long FCX stock @ $32.30

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

Long 2014 Jan $35 call (FCX1418a35) entry $1.15



MGM Resorts Intl. - MGM - close: 18.87 change: -0.23

Stop Loss: 17.99
Target(s): 19.95
Current Gain/Loss: + 0.9%

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:
09/12/13: Hmm... we need to turn cautious here on MGM. Shares underperformed the market with a -1.2% decline. Furthermore today's session has created a bearish engulfing candlestick reversal pattern. MGM should see support near $18.50 and near its 10-dma but I'm not suggesting new positions at the moment.

current Position: long MGM stock @ $18.70

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

Long Oct $20 call (MGM1319j20) entry $0.38



NVIDIA - NVDA - close: 15.70 change: -0.01

Stop Loss: 14.95
Target(s): 16.90
Current Gain/Loss: + 0.6%

Entry on September 11 at $15.60
Listed on September 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.4 million
New Positions: see below

Comments:
09/12/13: If you just look at the closing numbers then NVDA didn't do that bad today. Lack of any real decline is a sign of relative strength. Yet today's pullback from its intraday high is a bit worrisome. I strongly suspect we're going to see NVDA retest the $15.50 level soon. Investors may want to wait for the dip or a bounce near $15.50 before initiating new positions.

Earlier Comments:
Our plan was to use small positions to limit our risk.
FYI: The Point & Figure chart for NVDA is bullish with a long-term $23.00 target.

current Position: long NVDA stock @ $15.60



Constellation Brands Inc. - STZ - close: 58.04 change: -0.35

Stop Loss: 55.75
Target(s): 59.50
Current Gain/Loss: +4.9%

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:
09/12/13: After seven gains in a row shares of STZ finally saw a decline (-0.59%). If this dip continues the next level of support looks like the $56.00 level.

current Position: Long STZ stock @ $55.35

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

Long Oct $60 call (STZ1319j60) entry $0.70

09/11/13 adjust exit target to $59.50
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: 25.40 change: -0.18

Stop Loss: 24.90
Target(s): 29.85
Current Gain/Loss: - 3.2%

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:
09/12/13: SWKS lost -0.7% and the stock looks headed for round-number support at the $25.00 mark. Investors may want to wait for a dip to $25.00 or better yet a bounce from $25.00 before considering new bullish positions.

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: 38.56 change: -0.21

Stop Loss: 40.25
Target(s): 35.25
Current Gain/Loss: +1.1%

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:
09/12/13: CYH bounced off its morning lows today. The intraday rally appeared to fail near the $39.00 level. I would still consider new bearish positions at current levels.

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



Mellanox Technologies - MLNX - close: 37.86 change: -0.31

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: + 4.2%

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:
09/12/13: The early morning spike higher quickly reversed and MLNX underperformed the major indices with a -0.8% 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

Iron Mountain Inc. - IRM - close: 26.58 change: +0.69

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: see below

Comments:
09/12/13: IRM outperformed the market with a sharp +2.6% gain. Today's move breaks through multiple layers of short-term resistance. Our trade has not opened yet (trigger 25.40) and we're choosing to remove IRM as a bearish candidate.

Trade did not open.

09/12/13 removed from the newsletter. trade did not open.

chart: