Editor's Note:
The rally in the big caps, small caps and the transports appears to have stalled.

Our new EWJ trade has been triggered.


Current Portfolio:


BULLISH Play Updates

American Realty Capital Prop. - ARCP - close: 14.90 change: +0.10

Stop Loss: 14.35
Target(s): 16.00
Current Gain/Loss: + 2.1%

Entry on June 24 at $14.60
Listed on June 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.8 million
New Positions: see below

Comments:
07/02/13: Shares of ARCP continue to be volatile. The company was making headlines this morning after announcing they would acquire American Realty Capital Trust IV in a $3.1 billion merger.

The stock spiked higher this morning but failed again near technical resistance at its 30-dma and 100-dma. I am not suggesting new positions at this time.

NOTE: We are turning more cautious here and raising our stop loss to $14.35. More aggressive traders may want to keep their stop below support at the $14.00 mark.

*small positions*

current Position: Long ARCP stock @ $14.60

07/02/13 new stop loss @ 14.35



Community Health Systems - CYH - close: 46.54 change: -0.49

Stop Loss: 45.85
Target(s): 51.00
Current Gain/Loss: - 1.1%

Entry on June 26 at $47.05
Listed on June 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
07/02/13: CYH underperformed the market today with a -1.0% decline. It looks like the rebound off the $44 level (Monday, June 24th) is rolling over. We are turning more cautious here and raising the stop loss to $45.85.

current Position: Long CYH stock @ $47.05

07/02/13 new stop loss @ 45.85



Engility Holdings - EGL - close: 28.77 change: -0.16

Stop Loss: 27.45
Target(s): 32.50
Current Gain/Loss: + 1.8%

Entry on June 25 at $28.25
Listed on June 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 96 thousand
New Positions: see below

Comments:
07/02/13: EGL spent Tuesday's session consolidating sideways in a narrow range. If the market cooperates we should see shares breakout past $29.00 soon.

Earlier Comments:
A breakout could spark some short covering. The most recent data listed short interest a 10% of the small 12.7 million share float.

current Position: Long EGL stock @ $28.25

06/29/13 new stop loss @ 27.45



iShares Japan Index - EWJ - close: 11.44 change: +0.08

Stop Loss: 10.98
Target(s): 12.40
Current Gain/Loss: - 1.0%

Entry on July 02 at $11.55
Listed on July 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 66 million
New Positions: see below

Comments:
07/02/13: The rebound in Japan continued. Shares of the EWJ gapped open higher at $11.51 this morning. The ETF managed to hit $11.56 midday before paring its gains. Our trigger to launch positions was hit at $11.55. I would still consider new positions now at current levels or you could wait for a rally above today's high.

current Position: Long EWJ stock @ $11.55

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

Long 2014 Jan $12 call (EWJ1418a12) entry $0.58



MetLife, Inc. - MET - close: 46.57 change: +0.03

Stop Loss: 45.40
Target(s): 50.00
Current Gain/Loss: + 0.7%

Entry on July 01 at $46.25
Listed on June 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.7 million
New Positions: see below

Comments:
07/02/13: MET tagged a new high this morning but shares pared their gains by the closing bell. We are raising our stop loss up to $45.40.

*small positions*

current Position: Long MET stock @ $46.25

07/02/13 new stop loss @ 45.40



Nexstar Broadcasting - NXST - close: 34.50 change: +0.01

Stop Loss: 33.49
Target(s): 39.50
Current Gain/Loss: - 2.9%

Entry on June 27 at $35.53
Listed on June 26, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 615 thousand
New Positions: see below

Comments:
07/02/13: UBS raised their price target on NXST from $30 to $39 but the news failed to move the stock price. Shares closed almost unchanged on the session. The stock retested support near $34.00 and its 10-dma. More conservative traders may want to adjust their stop closer to yesterday's low (33.95).

*small positions*

current Position: Long NXST stock @ $35.53

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

Long Aug $40 call (NXST1317H40) entry $1.14

06/27/13 triggered on gap higher at $35.53 (trigger was 35.50)



Polypore Intl. Inc. - PPO - close: 41.05 change: -0.33

Stop Loss: 39.30
Target(s): 44.75
Current Gain/Loss: +0.7%

Entry on July 01 at $40.75
Listed on June 29, 2013
Time Frame: 3 to four weeks (unless you're trading the options)
Average Daily Volume = 3.3 million
New Positions: see below

Comments:
07/02/13: PPO rallied up to the $42 level only to reverse and eventually close down -0.79%. Traders can use a dip or a bounce near the $40.50 level as a new bullish entry point on PPO.

Earlier Comments:
If shares build on Friday's rally PPO could see another short squeeze. The most recent data listed short interest at 39% of the small 42.7 million share float.

*small positions*

current Position: Long PPO stock @ $40.75

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

Long Jul $40 call (PPO1320G40) entry $1.75*

*07/01/13 option entry price is an estimate since the option did not trade at the time our play was opened.



The Charles Schwab Corp. - SCHW - close: 21.30 change: -0.08

Stop Loss: 20.65
Target(s): 24.50
Current Gain/Loss: - 1.2%

Entry on July 01 at $21.55
Listed on June 29, 2013
Time Frame: Exit prior to earnings in 2 to 3 weeks
Average Daily Volume = 12.2 million
New Positions: see below

Comments:
07/02/13: SCHW marked a new 52-week high midday and then reversed. Shares settled with a -0.3% decline. Look for support near $21.00 and its 10-dma. Nimble traders may want to consider trying to buy a dip near $21.00.

Earlier Comments:
I would like to aim for $24.50 on this stock but we may not have enough time. The company could report earnings in the next two or three weeks and we'll plan to exit prior to the announcement. I am suggesting investors keep their position size small to limit risk.

*small positions*

current Position: Long SCHW stock @ $21.55



BEARISH Play Updates

Cliffs Natural Res. - CLF - close: 16.60 change: +0.18

Stop Loss: 16.51
Target(s): 12.15
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 26, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 11.5 million
New Positions: Yes, see below

Comments:
07/02/13: CLF is still trying to bounce and added +1.0% on Tuesday. The stock remains below its 10-dma and resistance in the $17.00 area (at least for now). Currently there is no change from my earlier comments.

Earlier Comments:
If the $15.50 level breaks the next stop could be its 2009 lows near $12.00 (actually $11.84). I am suggesting small bearish positions if CLF hits $15.40 or lower. If triggered our target is $12.15. I am suggesting small positions because CLF is arguably oversold here. Instead of shorting CLF you may want to try and limit your risk by using put options (your risk being the cost of the option).

Trigger @ 15.40 *small positions*

Suggested Position: short CLF stock @ (trigger)

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

Buy the Aug $15 PUT (CLF1317T15)



Energy XXI Ltd. - EXXI - close: 22.75 change: +0.15

Stop Loss: 23.55
Target(s): 20.25
Current Gain/Loss: + 2.8%

Entry on June 27 at $23.40
Listed on June 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
07/02/13: The Tuesday morning rebound in EXXI failed at the $23.00 level but shares still managed to close the day with a +0.66% gain. I am not suggesting new positions at this time.

Earlier Comments:
We are aiming for $20.25 as our exit target but the April 2013 lows could be support. More conservative traders may want to take profits early in the $22.00-21.50 area.

current Position: short EXXI stock @ $23.40

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

Long Jul $24 PUT (EXXI1320S24) entry $1.20

06/29/13 new stop loss @ 23.55