Editor's Note:
The U.S. markets rallied on Friday following a better than expected jobs report.

ARCP and EXXI were stopped out. FRGI was triggered. We've changed the entry on CLF.


Current Portfolio:


BULLISH Play Updates

Engility Holdings - EGL - close: 28.96 change: +0.11

Stop Loss: 27.85
Target(s): 32.50
Current Gain/Loss: + 2.5%

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:
07/06/13: EGL tagged a new high on Friday morning and then retreated. Shares are still struggling with resistance near the $29.00 level. I am raising our stop loss up to $27.85.

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

07/06/13 new stop loss @ 27.85
06/29/13 new stop loss @ 27.45

chart:



iShares Japan Index - EWJ - close: 11.60 change: +0.15

Stop Loss: 10.98
Target(s): 12.40
Current Gain/Loss: + 0.4%

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:
07/06/13: A rising dollar, weaker yen continues to fuel gains for the EWJ. On a short-term basis the dollar looks overbought and likely due for a pullback. That could spark a bounce in the yen and a dip in the EWJ.

current Position: Long EWJ stock @ $11.55

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

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

chart:



Fiesta Restaurant Group. - FRGI - close: 35.00 change: +0.11

Stop Loss: 33.80
Target(s): 39.50
Current Gain/Loss: -1.2%

Entry on July 05 at $35.42
Listed on July 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 245 thousand
New Positions: Yes, see below

Comments:
07/06/13: Our FRGI trade has been triggered. Friday saw shares gap open higher at $35.42. Since our trigger to launch bullish positions was at $35.25 the gap open triggered our play. Unfortunately FRGI was unable to hold those gains and shares spent the rest of the day hovering near round-number resistance at the $35.00 mark.

Traders may want to wait for a new rise past Friday's high (35.42) before initiating new positions.

current Position: Long FRGI stock @ $35.42

07/05/13 trade opened on gap higher at $35.42. Trigger was $35.25.

chart:



MetLife, Inc. - MET - close: 47.52 change: +1.25

Stop Loss: 45.40
Target(s): 50.00
Current Gain/Loss: + 2.7%

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:
07/06/13: MET displayed significant relative strength on Friday with a +2.7% gain. This is also a new 18-month high. Our target is $50.00 but keep in mind that the February 2011 highs near $48.70 could be resistance. Check out the chart below. MET is testing resistance and could see a pullback soon.

*small positions*

current Position: Long MET stock @ $46.25

07/02/13 new stop loss @ 45.40

chart:



Nexstar Broadcasting - NXST - close: 36.32 change: +0.77

Stop Loss: 33.85
Target(s): 39.50
Current Gain/Loss: + 2.2%

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:
07/06/13: Friday's rally in stocks helped NXST breakout past resistance at the $36.00 level. The stock closed at a new all-time high. I am adjusting our stop loss higher to $33.85.

*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

07/06/13 new stop loss @ 33.85
06/27/13 triggered on gap higher at $35.53 (trigger was 35.50)

chart:



Polypore Intl. Inc. - PPO - close: 41.56 change: +0.82

Stop Loss: 39.30
Target(s): 44.75
Current Gain/Loss: + 2.0%

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:
07/06/13: Traders bought the midday dip in PPO on Friday. The stock rebounded to close up +2.0%, outperforming the major indices. I would be tempted to buy this bounce if you were looking for an entry point.

Earlier Comments:
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.

chart:



The Charles Schwab Corp. - SCHW - close: 22.01 change: +0.61

Stop Loss: 20.65
Target(s): 24.50
Current Gain/Loss: + 2.1%

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:
07/06/13: SCHW hit new four and a half year highs with Friday's +2.8% gain. I am not suggesting new positions at this time. This stock is up three weeks in a row.

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

chart:



BEARISH Play Updates

Cliffs Natural Res. - CLF - close: 15.68 change: -0.40

Stop Loss: 16.31
Target(s): 12.15
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 26, 2013
Time Frame: exit PRIOR to earnings in late July
Average Daily Volume = 11.5 million
New Positions: Yes, see below

Comments:
07/06/13: CLF continues to underperform the market and fell -2.4% on Friday. The stock is testing support near $15.50 and actually traded at $15.41 on Friday morning. That means our trade is not open yet since our entry trigger was at $15.40.

I would like to see more follow through from CLF and catch the stock as it really breaks down to new lows. Therefore tonight I am suggesting a trigger to open bearish positions at $15.30, instead of $15.40. We will adjust the stop loss down to $16.31.

Earlier Comments:
The 2009 lows near $12.00 (actually $11.84) could be support if CLF continues to break down. I am suggesting small bearish positions if CLF hits our entry trigger. 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 @ 15.30 *small positions*

Suggested Position: short CLF stock @ (trigger)

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

Buy the Aug $15 PUT (CLF1317T15) current ask $1.16

07/06/13 CLF came close ($15.41) but did not hit our suggested entry trigger at $15.40. Tonight we are adjusting the entry trigger down to $15.30 and the stop loss to $16.31.

chart:



CLOSED BULLISH PLAYS

American Realty Capital Prop. - ARCP - close: 14.26 change: -0.24

Stop Loss: 14.35
Target(s): 16.00
Current Gain/Loss: - 1.7%

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:
07/06/13: We've been worried about ARCP since it started failing at the 100-dma a few days ago. Shares continued to underperform the market on Friday and dipped toward its 200-dma as expected. Our stop loss was hit at $14.35.

*small positions*

closed Position: Long ARCP stock @ $14.60 exit $14.35 (-1.7%)

07/05/13 stopped out
07/02/13 new stop loss @ 14.35

chart:



CLOSED BEARISH PLAYS

Energy XXI Ltd. - EXXI - close: 24.07 change: +1.01

Stop Loss: 23.55
Target(s): 20.25
Current Gain/Loss: - 0.8%

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:
07/06/13: Ouch! EXXI produced a big bounce on Friday. Actually it was a continuation of the bounce that started on Monday. Shares gapped open higher at $23.59 and since our stop was at $23.55 our trade was closed immediately. EXXI has completely retraced the breakdown from support near $24.00.

NOTE: The July $24 put didn't trade on Friday. Our exit price is an estimate.

closed Position: short EXXI stock @ $23.40 exit $23.59 (-0.8%)

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

Jul $24 PUT (EXXI1320S24) entry $1.20 exit $0.85* (-29.1%)

07/05/13 stopped out on gap open higher at $23.59
*option exit price is an estimate since the option did not trade at the time our play was closed.
06/29/13 new stop loss @ 23.55

chart: