Editor's Note:
Comments from Ben Bernanke last night fueled new gains for the bull market in stocks.

HSP has been triggered.
We want to exit our FRGI and NXST trades tomorrow morning.
PPO, SCHW, and AZZ were stopped out.
DHI has been removed.


Current Portfolio:


BULLISH Play Updates

Engility Holdings - EGL - close: 29.32 change: +0.16

Stop Loss: 28.45
Target(s): 32.50
Current Gain/Loss: + 3.8%

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:
07/11/13: The slow drift higher in EGL continues with a +0.5% gain today. The $30.00 level likely remains round-number resistance. I am raising our stop loss to $28.45.

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

07/11/13 new stop loss @ 28.45
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: 11.88 change: +0.34

Stop Loss: 10.98
Target(s): 12.40
Current Gain/Loss: + 2.9%

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:
07/11/13: The NIKKEI index didn't move that much on Thursday but that didn't stop investors from betting on the EWJ. Shares of this Japan ETF soared +2.9% and closed at new six-week highs.

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: 34.90 change: +0.02

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:
07/11/13: Shares of FRGI just refuse to participate in the market rally. The stock barely closed in positive territory on Thursday. We are suggesting an immediately exit on Friday morning.

current Position: Long FRGI stock @ $35.42

07/11/13 prepare to exit on Friday morning
07/05/13 trade opened on gap higher at $35.42. Trigger was $35.25.



Hospira Inc. - HSP - close: 39.61 change: +0.21

Stop Loss: 38.20
Target(s): 44.00
Current Gain/Loss: -0.7%

Entry on July 11 at $39.89
Listed on July 10, 2013
Time Frame: Exit PRIOR to earnings on July 31st
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
07/11/13: As expected HSP broke out to a new 52-week high. Unfortunately shares gapped open higher at $39.89. The stock was unable to push through round-number resistance at the $40.00 mark, which was a hazard I mentioned last night.

Our plan was to open small bullish positions at $39.65 so the gap open triggered our play. Yet after today's performance readers may want to wait for a move above $40.00 before initiating positions.

Earlier Comments:
We will plan to exit positions prior to the company's earnings report on July 31st. FYI: The Point & Figure chart for HSP is bullish with a $60 target. NOTE: I am suggesting we keep our position size small since HSP appears to be near the top of a channel. Tonight's play is a more aggressive entry point.

*Small Positions*

current Position: Long HSP stock @ $39.89

07/11/13 trade opened on gap higher at $39.89. Trigger was $39.65



MetLife, Inc. - MET - close: 48.56 change: -0.05

Stop Loss: 46.25
Target(s): 49.75
Current Gain/Loss: + 5.0%

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:
07/11/13: Uh-oh! The action in MET today almost looks like a one-day bearish reversal pattern. The stock gapped higher at $49.21 but quickly reversed. Shares underperformed the broader market with a -0.1% decline. I am not suggesting new positions.

*small positions*

current Position: Long MET stock @ $46.25

07/10/13 new stop loss @ 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: 37.73 change: -0.66

Stop Loss: 35.75
Target(s): 39.50
Current Gain/Loss: + 6.2%

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:
07/11/13: Warning! The early morning rally in NXST reversed. Today's session looks like a one-day bearish reversal pattern. I am suggesting investors exit immediately on Friday morning.

*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

07/11/13 prepare to exit on Friday morning
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)



Seagate Tech. - STX - close: 46.31 change: +0.48

Stop Loss: 44.90
Target(s): 49.85
Current Gain/Loss: + 0.6%

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:
07/11/13: STX closed at another new high today but its performance underperformed the major indices. I am cautiously bullish here.

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: 55.77 change: +1.11

Stop Loss: 52.25
Target(s): 58.50
Current Gain/Loss: + 3.8%

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:
07/11/13: WFM continues to surge into blue-sky territory with another +2.0% gain. It's been a very bullish week so far for the stock. I would not chase it here.

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


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Polypore Intl. Inc. - PPO - close: 42.81 change: +1.16

Stop Loss: 39.90
Target(s): 44.75
Current Gain/Loss: - 2.1%

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 = 640 thousand
New Positions: see below

Comments:
07/11/13: Sometimes stocks do not want to cooperate. This morning PPO rallied to new four-week highs. Yet before the stock rallied shares saw a spike down. When I first saw it I thought it was a bad tick. One second PPO was trading near $42.00 and the next second it spiked down to $39.52 and then immediately bounced back. There's not much we can do on when a stock shows that much volatility on a one-second move (actually it was faster than that). Our stop loss was hit at $39.90.

NOTE: There is no way to value the option at our "exit". The option didn't trade during that split-second spike lower. A -$2 move in the stock could have pushed the call option down significantly!

*small positions*

closed Position: Long PPO stock @ $40.75 exit $39.90 (-2.1%)

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

Jul $40 call (PPO1320G40) entry $1.75* unable to determine an exit price.

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.

chart:



The Charles Schwab Corp. - SCHW - close: 21.47 change: -0.47

Stop Loss: 21.35
Target(s): 24.50
Current Gain/Loss: - 0.9%

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:
07/11/13: Many of the big national brokers were weak today. SCHW lost -2.1% and hit our stop loss at $21.35.

*small positions*

closed Position: Long SCHW stock @ $21.55 exit $21.35 (-0.9%)

07/11/13 stopped out
07/09/13 new stop loss @ 21.35

chart:



CLOSED BEARISH PLAYS

AZZ Inc. - AZZ - close: 36.68 change: +1.28

Stop Loss: 36.25
Target(s): 30.50
Current Gain/Loss: - 4.3%

Entry on July 10 at $34.75
Listed on July 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 231 thousand
New Positions: see below

Comments:
07/11/13: The stock market's big rally today did not help our bearish trade on AZZ. Shares gapped open at $35.74 and quickly surged past $36.00 to hit our stop at $36.25.

closed Position: short AZZ stock @ $34.75 exit 36.25 (-4.3%)

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

Aug $35 PUT (AZZ1317T35) entry $1.60 exit $0.88*(-45.0%)

07/11/13 stopped out @ 36.25
*option exit price is an estimate since the option did not trade at the time our play was closed.

chart:



DR Horton Inc. - DHI - close: 22.98 change: +1.93

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: see below

Comments:
07/11/13: DHI has produced a massive bounce off its Monday lows. Investor sentiment for the homebuilders may have reversed this week. Our trade did not open. Tonight we are removing DHI as a candidate.

Trade did not open.

07/11/13 removed DHI from the newsletter.

chart: