Editor's Note:
The major U.S. indices managed minor gains ahead of the July 4th holiday.

Our CYH trade was stopped out on Wednesday.


Current Portfolio:


BULLISH Play Updates

American Realty Capital Prop. - ARCP - close: 14.50 change: -0.32

Stop Loss: 14.35
Target(s): 16.00
Current Gain/Loss: - 0.7%

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:
07/03/13: Our ARCP trade could be over soon. The stock underperformed the market on Wednesday with a -2.1% decline. Shares look headed for the $14.00 level. Currently our stop loss is at $14.35.

*small positions*

current Position: Long ARCP stock @ $14.60

07/02/13 new stop loss @ 14.35



Engility Holdings - EGL - close: 28.85 change: +0.08

Stop Loss: 27.45
Target(s): 32.50
Current Gain/Loss: + 2.1%

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:
07/03/13: EGL delivered another quiet day with shares drifting sideways. The next hurdle for the bulls is the $29.00 level.

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: 11.45 change: +0.01

Stop Loss: 10.98
Target(s): 12.40
Current Gain/Loss: - 0.9%

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:
07/03/13: The EWJ saw some minor weakness this morning but traders eventually stepped in to buy the dip. I would still consider new positions now at current levels or you could wait for a rally above Tuesday'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



Fiesta Restaurant Group. - FRGI - close: 34.89 change: -0.10

Stop Loss: 33.80
Target(s): 39.50
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 245 thousand
New Positions: Yes, see below

Comments:
07/03/13: There is no change from my new play comments on Tuesday night. FRGI is still consolidating below resistance near $35.00 and looks poised to breakout higher.

Earlier Comments:
You can see on the daily chart below that FRGI has been struggling with resistance at the simple 30-dma. Now it's testing the 10-dma, 20-dma and the 30-dma. A breakout higher here could spark the next leg higher.

We are suggesting a trigger to open bullish positions at $35.25. If triggered our target is $39.50.

Trigger @ 35.25

Suggested Position: buy FRGI stock @ (trigger)



MetLife, Inc. - MET - close: 46.27 change: -0.30

Stop Loss: 45.40
Target(s): 50.00
Current Gain/Loss: + 0.0%

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:
07/03/13: MET dipped to short-term support at the $46.00 level this morning. I would still consider new positions here or you could wait for the bounce. Don't forget that the jobs report on Friday morning could spark a rally or a crash in stocks.

*small positions*

current Position: Long MET stock @ $46.25

07/02/13 new stop loss @ 45.40



Nexstar Broadcasting - NXST - close: 35.55 change: +1.05

Stop Loss: 33.49
Target(s): 39.50
Current Gain/Loss: + 0.1%

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:
07/03/13: NXST finally bounced and shares rallied +3.0%. The stock's next hurdle is resistance at the $36.00 level. More conservative traders may want to adjust their stop closer to Monday'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: 40.74 change: -0.31

Stop Loss: 39.30
Target(s): 44.75
Current Gain/Loss: -0.0%

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:
07/03/13: Hmm... PPO underperformed on Wednesday with a -0.75% decline. Traders did buy the dip near its 50-dma. On Tuesday I suggested buying a dip or a bounce near $40.50 and today's low was $40.40.

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: 21.40 change: +0.10

Stop Loss: 20.65
Target(s): 24.50
Current Gain/Loss: - 0.7%

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:
07/03/13: SCHW rebounded off its morning lows to close up +0.4%. I don't see any changes from my earlier comments.

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: 16.08 change: -0.52

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:
07/03/13: It looks like the rebound in CLF might be failing at its 10-dma. That's good news if you're bearish. 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: 23.06 change: +0.31

Stop Loss: 23.55
Target(s): 20.25
Current Gain/Loss: + 1.5%

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:
07/03/13: Our potential gains in EXXI are slowly fading as the stock continues to bounce. Today's close above $23.00 might signal trouble for the bears. 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



CLOSED BULLISH PLAYS

Community Health Systems - CYH - close: 45.60 change: -0.94

Stop Loss: 45.85
Target(s): 51.00
Current Gain/Loss: - 2.6%

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:
07/03/13: Healthcare stocks were weak this morning as the market reacted to news that the full implementation of Obamacare will be delayed. Shares of CYH gapped open lower at $45.93. Our stop loss was quickly hit at $45.85. CYH could still have support at its rising 100-dma.

closed Position: Long CYH stock @ $47.05 exit $45.85 (-2.6%)

07/03/13 stopped out
07/02/13 new stop loss @ 45.85

chart: