Editor's Note:
The U.S. market managed another day of new record highs on Thursday.

We have removed SBGI as an active candidate.


Current Portfolio:


BULLISH Play Updates

CareFusion Corp. - CFN - close: 38.82 change: +0.21

Stop Loss: 37.75
Target(s): 42.50
Current Gain/Loss: + 0.2%

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:
07/18/13: CFN bounced back toward its highs set a couple of days ago but shares pared their gains by the closing bell. 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: 30.79 change: +0.90

Stop Loss: 29.15
Target(s): 32.00
Current Gain/Loss: + 9.0%

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:
07/18/13: EGL looks like it's in breakout mode. The stock has finally conquered round-number resistance at the $30.00 level with a +3.0% gain today.

Please note that I am adjusting our exit target down to $32.00. We will move the stop loss up to $29.15. 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

07/18/13 new stop loss @ 29.15, adjust exit target to $32.00
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: 12.04 change: +0.06

Stop Loss: 11.55
Target(s): 12.40
Current Gain/Loss: + 4.2%

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:
07/18/13: The EWJ continued to drift higher and technically today's close above the $12.00 level is bullish. More conservative traders might want to consider taking some money off the table tomorrow. The Japanese market and the EWJ could be volatile on Monday. Japan will hold elections for its upper house on Sunday, July 21st. Current polling would suggest that Prime Minister Shinzo Abe's Liberal Democratic Party (LDP) is poised to win a strong majority. If there is a surprise the Japanese market could sell off. Even if there is no surprise there could be a sell-the-news reaction.

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



Flowers Foods, Inc. - FLO - close: 23.78 change: -0.10

Stop Loss: 22.99
Target(s): 26.50
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 17, 2013
Time Frame: exit PRIOR to earnings in mid-August
Average Daily Volume = 923 thousand
New Positions: Yes, see below

Comments:
07/18/13: FLO hit a new high on an intraday basis but the rally failed to stick. Shares traded to an intraday high of $24.24 before reversing into a -0.4% decline on the session. That means we are still on the sideline since our suggested entry point was $24.25. After today's near miss I am moving our trigger to $24.30.

If triggered our target is $26.50. However, we will plan to exit prior to the company's earnings report in mid August.

Trigger @ 24.30 *Small Positions*

Suggested Position: buy FLO stock @ (trigger)

07/18/13 move the suggested entry trigger to $24.30 from $24.25
FLO almost hit our initial target at $24.25 but missed it by a penny.



Guidewire Software, Inc. - GWRE - close: 44.81 change: -0.01

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:
07/18/13: Hmm... GWRE's failure to participate in the market's rally today is a little bit worrisome. At the moment 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: 39.42 change: -0.03

Stop Loss: 38.95
Target(s): 44.00
Current Gain/Loss: -1.2%

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:
07/18/13: HSP is not really seeing a lot of movement this week. That is a potential warning sign with the market's major indices hitting new highs. More conservative traders may want to just exit immediately. We are inching up our stop loss to $38.95. 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

07/18/13 new stop loss @ 38.95
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: 15.24 change: +0.33

Stop Loss: 14.49
Target(s): 16.25
Current Gain/Loss: + 2.6%

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:
07/18/13: Good news! RRD appears to be accelerating higher and today's display of relative strength (+2.2%) also produced a breakout past the $15.00 mark. We will raise our stop loss up to $14.49.

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

07/18/13 new stop loss @ 14.49



Seagate Tech. - STX - close: 46.90 change: +0.21

Stop Loss: 46.25
Target(s): 49.85
Current Gain/Loss: + 1.8%

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:
07/18/13: STX is still slowly drifting higher. Today the stock added +0.4%. Things could change tomorrow as the tech-sector might see some profit taking thanks to disappointing earnings from GOOG and MSFT tonight.

We are raising the stop loss to $46.25.

current Position: Long stock @ $46.05

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

Long Aug $47 call (STX1317H47) entry $1.80

07/18/13 new stop loss @ 46.25
07/16/13 new stop loss @ 45.65
07/09/13 new stop loss @ 44.90



Whole Foods Market - WFM - close: 56.22 change: -0.02

Stop Loss: 55.65
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:
07/18/13: Be careful here. WFM has been stuck churning sideways three days in a row. Has the rally run out of fuel? More conservative traders may want to exit now. We are raising the stop loss up to $55.65.

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

07/18/13 new stop loss @ 55.65
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

Sinclair Broadcast Group - SBGI - close: 30.63 change: +0.23

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: see below

Comments:
07/18/13: We are giving up on SBGI, at least for now. The larger trend is still bullish. One could argue that the two-week consolidation the stock is currently seeing almost looks like a bull-flag pattern. Yet the stock has been unable to shake the short-term trend of lower highs. Our trade has not opened yet (trigger 32.15) so we're removing SBGI as a candidate.

Trade did not open.

07/18/13 removed from the newsletter

chart: