Editor's Note:
Mr. Bernanke's testimony failed to have much impact on the market today. He will speak again tomorrow before the Senate committee.

Our MET trade was stopped out.


Current Portfolio:


BULLISH Play Updates

CareFusion Corp. - CFN - close: 38.61 change: +0.00

Stop Loss: 37.75
Target(s): 42.50
Current Gain/Loss: - 0.4%

Entry on July 12 at $38.75
Listed on July 11, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
07/17/13: Traders were in an indecisive mood on Wednesday. Shares of CFN closed unchanged on the session. More conservative traders may want to raise their stops closer to the $38.25 area. I am not suggesting new positions at this time.

Earlier Comments:
Our target is $42.50 but we will plan on exiting prior to the company's earnings report in early August.

current Position: Long CFN stock @ $38.75

07/15/13 new stop loss @ 37.75



Engility Holdings - EGL - close: 29.89 change: +0.52

Stop Loss: 28.75
Target(s): 32.50
Current Gain/Loss: + 5.8%

Entry on June 25 at $28.25
Listed on June 24, 2013
Time Frame: Exit PRIOR to earnings on Aug. 12th
Average Daily Volume = 96 thousand
New Positions: see below

Comments:
07/17/13: The slow churn higher in EGL continues and today was another up day for the stocks. Shares hit a new intraday high but EGL is struggling to close over round-number resistance at the $30.00 mark.

I am not suggesting new positions.

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

07/15/13 new stop loss @ 28.75
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: 11.98 change: +0.11

Stop Loss: 11.55
Target(s): 12.40
Current Gain/Loss: + 3.7%

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:
07/17/13: After a small pullback yesterday, traders bought the dip in the EWJ and shares closed at a new six-week high. If you look at an intraday chart you can see how shares struggled with round-number resistance at the $12.00 level. There is still a good chance this ETF could see some profit taking here.

Please note our new stop loss at $11.55.

NOTE: The top of the gap down from May 22nd at $12.13 could be overhead resistance.

current Position: Long EWJ stock @ $11.55

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

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

07/17/13 new stop loss @ 11.55
07/15/13 new stop loss @ 11.45
07/13/13 new stop loss @ 11.24



Guidewire Software, Inc. - GWRE - close: 44.82 change: +0.07

Stop Loss: 43.90
Target(s): 49.75
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 598 thousand
New Positions: Yes, see below

Comments:
07/17/13: GWRE spent another day hovering near technical support at its rising 10-dma. I don't see any changes from my prior comments.

Earlier Comments:
We are suggesting a trigger to launch small bullish positions at $45.75. If triggered our target is $49.75. However, we will plan to exit prior to the earnings report expected in early September. FYI: The Point & Figure chart for GWRE is bullish with a $58.00 target.

Trigger @ 45.75

Suggested Position: buy GWRE stock @ (trigger)



Hospira Inc. - HSP - close: 39.45 change: +0.22

Stop Loss: 38.85
Target(s): 44.00
Current Gain/Loss: -1.1%

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:
07/17/13: HSP managed a bounce off its simple 10-dma this morning but the stock was paring its gains by the closing bell. Please note our new stop loss at $38.85. I am not suggesting new positions at current levels.

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. This is a more aggressive, higher-risk trade.

*Small Positions*

current Position: Long HSP stock @ $39.89

07/17/13 new stop loss @ 38.85
07/15/13 new stop loss @ 38.65
07/11/13 trade opened on gap higher at $39.89. Trigger was $39.65



R.R. Donnelley & Sons - RRD - close: 14.91 change: +0.15

Stop Loss: 14.35
Target(s): 16.25
Current Gain/Loss: + 0.4%

Entry on July 15 at $14.85
Listed on July 13, 2013
Time Frame: Exit PRIOR to earnings on July 30th
Average Daily Volume = 1.8 million
New Positions: see below

Comments:
07/17/13: RRD is looking healthier. Shares spent much of the day trading sideways but a late-day rally pushed shares to a new 52-week high. If you're waiting for a breakout past $15.00 then RRD is almost there.

Earlier Comments:
We want to keep our position size small to limit our risk. More conservative investors may want to wait for a breakout past the $15.00 mark instead since $15 could be round-number resistance. If we are triggered at $14.85 our target is $16.25. However, we will plan to exit prior to the earnings report on July 30th.

*small positions*

current Position: Long RRD stock @ $14.85

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

Long Aug $15 call (RRD1317H15) entry $0.55



Sinclair Broadcast Group - SBGI - close: 30.40 change: +0.24

Stop Loss: 29.90
Target(s): 36.00
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 13, 2013
Time Frame: exit PRIOR to earnings on Aug. 7th
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Comments:
07/17/13: SBGI tested round-number support near $30.00 and technical support at its rising 20-dma before rebounding to a +0.79% gain. Nimble traders may want to consider buying today's bounce and using a tight stop loss near today's low (29.86). Currently the newsletter is suggesting we wait for a rally above $32.00 before initiating positions.

There is no change from my earlier comments.

Earlier Comments:
SBGI is in the TV broadcasting industry. Right now there appears to be a land rush in this business as companies acquire their rivals. Shares of SBGI hit all-time highs near $32 just a few days ago. After a couple of days of profit taking traders were buying the dip again on Friday. More aggressive traders may want to jump in now. I am suggesting a trigger to launch positions at $32.15. If triggered our target is $36.00 but we will plan to exit prior to the earnings report on Aug. 7th.

Trigger @ 32.15

Suggested Position: buy SBGI stock @ (trigger)



Seagate Tech. - STX - close: 46.69 change: +0.13

Stop Loss: 45.65
Target(s): 49.85
Current Gain/Loss: + 1.4%

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:
07/17/13: STX is still trading sideways in a narrow range below short-term resistance at the $47.00 level. I am not suggesting new positions at this time.

current Position: Long stock @ $46.05

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

Long Aug $47 call (STX1317H47) entry $1.80

07/16/13 new stop loss @ 45.65
07/09/13 new stop loss @ 44.90



Whole Foods Market - WFM - close: 56.24 change: -0.15

Stop Loss: 54.65
Target(s): 58.00
Current Gain/Loss: + 4.6%

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:
07/17/13: WFM managed to tag a new intraday (all-time) high before paring its gains. The stock essentially spent another session digesting its two-week July rally. The simple 10-dma has risen to $55.08. We will raise our stop loss up to $54.65.

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

07/17/13 new stop loss @ 54.65
07/15/13 new stop loss @ 53.75
07/13/13 new stop loss @ 52.75, adjust exit target to $58.00



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

MetLife, Inc. - MET - close: 47.83 change: -0.23

Stop Loss: 47.75
Target(s): 49.75
Current Gain/Loss: + 3.2%

Entry on July 01 at $46.25
Listed on June 27, 2013
Time Frame: Exit PRIOR to earnings on July 31st
Average Daily Volume = 8.7 million
New Positions: see below

Comments:
07/17/13: MET spiked lower this morning and broke down below short-term support near $48.00 and its 10-dma. Our stop loss was hit at $47.75.

*small positions*

closed Position: Long MET stock @ $46.25 exit $47.75 (+3.2%)

07/17/13 stopped out
07/15/13 new stop loss @ 47.75
07/13/13 new stop loss @ 47.25
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

chart: