Editor's Note:
The U.S. market has produced a four-day rally. That hasn't happened since April.

I've updated a handful of stop losses tonight.


Current Portfolio:


BULLISH Play Updates

Engility Holdings - EGL - close: 29.01 change: +0.16

Stop Loss: 28.25
Target(s): 32.50
Current Gain/Loss: + 2.7%

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:
07/09/13: EGL managed to post a gain today but you could argue the action in the stock was bearish. Shares spiked up toward potential round-number resistance at $30.00 and reversed.

I am raising our stop loss up to $28.25.

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

07/09/13 new stop loss @ 28.25
07/06/13 new stop loss @ 27.85
06/29/13 new stop loss @ 27.45



iShares Japan Index - EWJ - close: 11.58 change: +0.06

Stop Loss: 10.98
Target(s): 12.40
Current Gain/Loss: + 0.3%

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:
07/09/13: It was a quiet day for the EWJ. Shares of this ETF churned sideways near the $11.60 level.

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: -0.11

Stop Loss: 33.80
Target(s): 39.50
Current Gain/Loss: -1.5%

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:
07/09/13: I couldn't find any headlines to explain the relative weakness in FRGI this morning. Shares spike down toward $34.00 and then bounced right back toward resistance near $35.00.

Readers may want to use a trigger at $35.50 to initiate new positions.

current Position: Long FRGI stock @ $35.42

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



MetLife, Inc. - MET - close: 48.78 change: +0.73

Stop Loss: 45.90
Target(s): 49.75
Current Gain/Loss: + 5.5%

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:
07/09/13: Financial stocks continue to flex their relative strength muscles. MET surged +1.5% and closed above potential resistance at its February 2011 highs. Please note that I am adjusting our exit target down to $49.75. I am raising the stop loss to $45.90.

*small positions*

current Position: Long MET stock @ $46.25

07/09/13 new stop loss @ 45.90, adjust target down to $49.75
07/02/13 new stop loss @ 45.40



Nexstar Broadcasting - NXST - close: 38.53 change: +0.22

Stop Loss: 35.75
Target(s): 39.50
Current Gain/Loss: + 8.4%

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:
07/09/13: Traders bought the dip near $38.00 this morning but NXST is having trouble getting past the $39.00 level. Readers may want to go ahead and take profits now. I am raising our stop loss up to $35.75.

*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

07/09/13 new stop loss @ 35.75
07/08/13 new stop loss @ 34.85
07/06/13 new stop loss @ 33.85
06/27/13 triggered on gap higher at $35.53 (trigger was 35.50)



Polypore Intl. Inc. - PPO - close: 42.01 change: +0.94

Stop Loss: 39.90
Target(s): 44.75
Current Gain/Loss: + 0.8%

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:
07/09/13: Traders bought the dip in PPO and shares outperformed the market today with a +2.2% gain.

I am adjusting our stop loss up to $39.90.

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*

07/09/13 new stop loss @ 39.90
*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: 22.20 change: +0.01

Stop Loss: 21.35
Target(s): 24.50
Current Gain/Loss: + 3.0%

Entry on July 01 at $21.55
Listed on June 29, 2013
Time Frame: Exit prior to earnings on July 15th
Average Daily Volume = 12.2 million
New Positions: see below

Comments:
07/09/13: SCHW delivered a disappointing session. Gains faded and shares closed virtually unchanged on the day. The stock is near the top of its narrow channel. Readers may want to go ahead and exit now to lock in a gain. I am raising our stop loss up to $21.35, just below the simple 10-dma.

Note: we will probably exit SCHW by week's end to avoid holding over the earnings report (expected early next week).

*small positions*

current Position: Long SCHW stock @ $21.55

07/09/13 new stop loss @ 21.35



Seagate Tech. - STX - close: 45.73 change: +0.28

Stop Loss: 44.90
Target(s): 49.85
Current Gain/Loss: - 0.7%

Entry on July 08 at $46.05
Listed on July 06, 2013
Time Frame: exit PRIOR to earnings on July 24th
Average Daily Volume = 3.5 million
New Positions: see below

Comments:
07/09/13: STX came close to erasing yesterday's decline. Traders may want to wait for a new breakout past $46.00 before considering new bullish positions. I am adjusting our stop loss up to $44.90.

current Position: Long stock @ $46.05

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

Long Aug $47 call (STX1317H47) entry $1.80

07/09/13 new stop loss @ 44.90



Whole Foods Market - WFM - close: 54.71 change: +0.86

Stop Loss: 52.25
Target(s): 58.50
Current Gain/Loss: + 1.8%

Entry on July 08 at $53.75
Listed on July 06, 2013
Time Frame: exit PRIOR to earnings on July 31st.
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
07/09/13: WFM's rally continues after yesterday's bullish breakout. The stock outperformed the market with a +1.59% gain. I am not suggesting new positions at current levels.

Our target is $58.50. However, we will plan to exit prior to the earnings report on July 31st. FYI: The Point & Figure chart for WFM is bullish with a $78.00 target.

current Position: Long WFM stock @ $53.75

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

Long Aug $55 call (WFM1317H55) entry $1.60



BEARISH Play Updates

Cliffs Natural Res. - CLF - close: 16.39 change: +0.43

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:
07/09/13: The bounce in CLF continues. Shares are nearing resistance at the $17.00 level. If this rebound continues we will likely drop CLF as a candidate.

Currently we want to wait for shares to hit new lows. I am suggesting a trigger to open bearish positions at $15.30.

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)

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.



DR Horton Inc. - DHI - close: 21.22 change: +1.49

Stop Loss: 20.55
Target(s): 17.00
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 08, 2013
Time Frame: Exit PRIOT to earnings on July 25th
Average Daily Volume = 8.1 million
New Positions: Yes, see below

Comments:
07/09/13: Today's move in DHI is a good example of why we have been using entry triggers. Yesterday DHI broke down below support. You could have easily used yesterday's drop as an entry point for bearish plays. Yet the stock exploded higher today with a gap open this morning and then a +7.5% surge higher.

It wasn't just DHI. Several homebuilders were bouncing higher as the market reacted to new foreclosure data. CoreLogic came out with their latest foreclosure numbers that showed a -27% drop in foreclosed homes from a year ago in June. That is definitely improvement. Yet foreclosures were actually over +3% from a month ago.

The move in DHI looks more like a short squeeze and the foreclosure data was just the excuse. If DHI sees any follow through higher tomorrow we will likely remove it as a bearish candidate. For the moment our trade is unopened. I am suggesting a trigger to launch positions at $19.60.

Trigger @ 19.60

Suggested Position: short DHI stock @ (trigger)

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

Buy the Aug $20 PUT (DHI1317T20)