Editor's Note:
The market is struggling because investors are nervous about the debt ceiling deadline and no signs of a deal yet.

-James

Current Portfolio:


BULLISH Play Updates

CROCS Inc. - CROX - close: 28.26 change: +0.02

Stop Loss: 26.45
Target(s): 29.90, 31.75
Current Gain/Loss: + 3.4%
Time Frame: up to its earnings report
New Positions: see below

Comments:
07/25 update: CROX did not see the same morning sell-off most of the market did. Shares instead spiked to a new relative high but faded after hitting the $29 level. The move almost looks like a short-term top. We're almost out of time so readers may want to exit early now. We plan to exit on July 27th at the close to avoid holding over earnings that evening.

Earlier Comments:
There is a chance CROX could see a lot more short covering with shares nearing new multi-year highs. The most recent data listed short interest at 12.6% of the 83.9 million-share float. FYI: The Point & Figure chart for CROX is bullish with a $52.50 target.

Suggested Position: Long CROX stock @ $27.31

- or -

Long AUG $28 call (CROX1120H28) Entry @ $1.15

07/23 new stop loss @ 26.45.
07/23 Prepare to exit prior to earnings on July 27th.

Entry on July 20 at $27.31
Earnings Date 07/27/11 (confirmed)
Average Daily Volume = 2.1 million
Listed on July 19, 2011


China Sunergy Co. Ltd. - CSUN - close: 1.62 change: -0.02

Stop Loss: 1.48
Target(s): 2.00, 2.25
Current Gain/Loss: - 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/25 update: CSUN opened at $1.67 and then surged to $1.78 for a +5.9% gain before giving it all back and closing in negative territory. The move looks like a short-term top. Readers may want to wait for a dip closer to $1.55-1.50 or wait for a bounce before initiating new positions.

Earlier Comments:
We should consider this an aggressive, higher-risk trade given the trend lower so trade small. Our first target is $2.00. I would expect some resistance at the 50-dma. Our final target is $2.25 but we do not want to hold over the earnings report in mid August.

Current Position: Long CSUN stock @ $1.67

Entry on July 25 at $ 1.67
Earnings Date 08/15/11 (unconfirmed)
Average Daily Volume = 325 thousand
Listed on July 23, 2011


Globe Specialty Metals, Inc. - GSM - close: 24.83 change: -0.02

Stop Loss: 23.80
Target(s): 27.25, 29.50
Current Gain/Loss: - 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/25 update: GSM was showing some intraday strength midday. Unfortunately the stock could not hold its rally above resistance at $25.00 and shares closed back in its previous trading range. The high today was $25.15. Traders could wait for a new rise past $25.15 or a close over $25.00 before initiating new positions. The plan was to keep our positions small to limit our risk.

Earlier Comments:
We should consider this an aggressive, higher-risk trade so let's keep our position size small to limit risk. We can always add to positions down the road. FYI: The Point & Figure chart for GSM is bullish with a $28.50 target.

- SMALL positions -

Current Position: Long GMS stock @ $25.18

- or -

Long AUG $25 call (GSM1120H25) Entry @ $1.60

07/20 New stop loss @ 23.80

Entry on July 14 at $25.18
Earnings Date 09/15/11 (unconfirmed)
Average Daily Volume = 874 thousand
Listed on July 13, 2011


Kaiser Aluminum - KALU - close: 55.83 change: -0.17

Stop Loss: 53.75
Target(s): 59.75
Current Gain/Loss: + 4.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
07/25 update: Monday was a very light volume day for KALU. Shares continued to consolidate sideways. There is no change from my prior comments. Readers may want to exit early now and lock in a gain. Currently the newsletter plans to exit on July 27th at the closing bell to avoid holding over earnings that evening.

Earlier Comments:
Our target is the $59.75 mark since the $60 level looks like resistance. Investors could certainly aim higher. KALU has a high amount of short interest and the stock could experience a short squeeze. FYI: Investors should note that the most recent data listed short interest at 9.9% of the very small 18.5 million share float.

- Small Positions -

Current Position: Long KALU @ $53.56

- or -

Long AUG $55 call (KALU1120H55) Entry @ $1.30

07/23 new stop loss @ 53.75
07/23 Prepare to exit on July 27 at the close
07/20 New stop loss @ 52.49

Entry on July 11 at $53.56
Earnings Date 07/27/11 (confirmed)
Average Daily Volume = 183 thousand
Listed on July 9, 2011


Kennametal Inc. - KMT - close: 44.25 change: -0.15

Stop Loss: 43.15
Target(s): 49.00
Current Gain/Loss: + 0.2%
Time Frame: up to its earnings report 7/28
New Positions: see below

Comments:
07/25 update: KMT saw a dip under short-term support at $44.00 this morning. Shares recovered and spent the rest of the day churning sideways. Cautious traders may want to exit immediately. Earnings are coming up soon. Right now the plan is to exit on July 27th at the closing bell to avoid earnings the next morning.

Earlier Comments:
I do consider this a somewhat aggressive, higher-risk trade.

Current Position: Long KMT stock @ $44.13

07/23 new stop loss @ 43.15
07/23 prepare to exit on July 27th at the close

Entry on July 19 at $44.13
Earnings Date 07/28/11 (confirmed)
Average Daily Volume = 826 thousand
Listed on July 18, 2011


Macy's Inc. - M - close: 29.94 change: -0.56

Stop Loss: 29.25
Target(s): 29.90, 32.25
Current Gain/Loss: + 5.8%
2nd Position Gain/Loss: + 0.2% Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/25 update: There was no follow through on Macy's Friday rally. Instead the widespread market weakness this morning had shares of M gapping open lower. The stock is back in the middle of its trading range. I am not suggesting new positions at current levels.

Earlier Comments:
Our plan was to keep positions small to limit our risk. Our final target is $32.25 but we might consider adjusting this target higher.

- small positions -

Current Position: Long M stock @ $28.30

- or -

Long Aug. $30 call (M1120H30) Entry @ $0.85

- 2nd Position, entry 7/11/11 -

suggested position: Long M stock @ $29.86

Long Aug. $32 call (M1120H32) Entry @ $0.63

07/23 new stop loss @ 29.25
07/16 new stop loss @ 28.90
07/09 new stop loss @ 28.49
07/09 Add 2nd position, buy stock/calls now
07/08 Planned exit. July $29 call @ $1.50 (+167.8%)
07/07 plan on exiting July calls tomorrow at the close
07/02 new stop loss @ 27.90
07/01 1st Target Hit @ 29.90 (+5.6%), options @ +107.1% (July) & +52.9% (Aug)

Entry on June 28 at $28.30
Earnings Date 08/10/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on June 27, 2011


Sandridge Energy, Inc. - SD - close: 11.92 change: -0.19

Stop Loss: 11.20
Target(s): 13.20, 13.90
Current Gain/Loss: + 1.1%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/25 update: Good news! I was hoping for a dip in SD and we got it. Shares opened at $11.78 and the stock saw several dips toward the $11.60 level this afternoon. I would still consider new positions now.

Earlier Comments:
SD could see a short squeeze. The most recent data listed short interest at almost 10% of SD's 346 million-share float. We do not want to hold over the August 4th earnings report so we don't have much time. FYI: The Point & Figure chart for SD is bullish with a long-term target at $31.

Current Position: Long SD stock @ $11.78

Entry on July 25 at $11.78
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 12.1 million
Listed on July 23, 2011


Vanguard Natural Resources - VNR - cls: 30.45 chg: -0.16

Stop Loss: 28.99
Target(s): 33.25
Current Gain/Loss: - 0.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/25 update: There is no change from my prior comments on VNR. The stock is still churning sideways in the $30-31 trading range. More conservative traders may want to use a higher stop loss!

Nimble traders could try and buy dips near $30.00. If you prefer to see more strength then wait for a breakout past $31.00.

Current Position: Long VNR stock @ $30.61

- or -

Long AUG $30 call (VNR1120H30) Entry @ $1.20

07/19 Play is opened @ 30.61
07/18 The requirements to launch positions was not met. Try again. Both VNR and the S&P 500 need to open higher tomorrow.

Entry on July 19 at $30.61
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 193 thousand
Listed on July 16, 2011


Western Refining Inc. - WNR - close: 21.44 change: +0.64

Stop Loss: 19.75
Target(s): 22.00, 24.50
Current Gain/Loss: + 9.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/25 update: WNR is outperforming its peers and the market again. The stock quickly saw a bounce off its morning lows near the 10-dma. Shares managed to tag a new 52-week high and closed up +3.0% on the session. Cautious traders may just want to take profits now.

Earlier Comments:
FYI: The Point & Figure chart for WNR is bullish with a $28.50 target. Plus, the most recent data listed short interest at 38% of the 54.2 million-share float. That's plenty of fuel for a short squeeze.

Current Position: Long WNR stock @ 19.50

- or -

Long AUG. $22 call (WNR1120H22) Entry @ $0.65

07/21 new stop loss @ 19.75
07/20 expect a dip toward the $20.35 area.
07/19 New stop loss @ 18.90. New targets @ 22.00 and $24.50

Entry on July 11 at $19.50
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on July 9, 2011


BEARISH Play Updates

OptionsXpress Holdings - OXPS - close: 15.49 change: -0.15

Stop Loss: 16.05
Target(s): 14.05, 13.65
Current Gain/Loss: - 1.6%
Time Frame: about 2 weeks
New Positions: see below

Comments:
07/25 update: OXPS did a pretty good job of playing dead today. Shares gapped down at the open and then just laid there. Shares traded in a very narrow range. Keep in mind that we are planning to exit on Tuesday (tomorrow) at the closing bell to avoid holding over earnings!

Current Position: short OXPS stock @ $15.24

- or -

Long AUG $15 PUT (OXPS1120T15) Entry @ $0.45

07/23 Prepare to exit on Tuesday at the close
07/21 OXPS is testing resistance at $16.00.
07/20 Failure at the 200-dma is a new bearish entry point.

Entry on July 18 at $15.24
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 696 thousand
Listed on July 16, 2011