Editor's Note:
It looks like the stock market's rally paused on Friday ahead of the weekend. After a four-week run up some of the major indices look overbought here and likely due for some profit taking.

WFM hit our new stop loss. We want to exit our STX trade on Monday.


Current Portfolio:


BULLISH Play Updates

CareFusion Corp. - CFN - close: 38.79 change: -0.03

Stop Loss: 37.75
Target(s): 42.50
Current Gain/Loss: + 0.1%

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:
07/20/13: CFN has not made much progress with the last few days stuck in the $38.50-39.00 area. Technically you could argue that Monday's rally and then Tuesday's reversal near $39.20 is a bearish reversal pattern but there has been no follow through lower.

We've got about three weeks until CFN reports earnings in mid August. Traders may want to wait for a dip or a bounce near the $38 level before considering new positions.

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

chart:



Engility Holdings - EGL - close: 31.40 change: +0.61

Stop Loss: 29.60
Target(s): 32.00
Current Gain/Loss: +11.2%

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:
07/20/13: The rally in EGL is accelerating with the stock hitting new record highs once it broke out past the $30 level. The stock is overbought given its multi-week rally. More conservative traders may want to exit right here and lock in gains.

The simple 10-dma has risen to $29.66. We will adjust our stop loss to $29.60. 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

07/20/13 new stop loss @ 29.60
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

chart:



iShares Japan Index - EWJ - close: 11.95 change: -0.09

Stop Loss: 11.55
Target(s): 12.40
Current Gain/Loss: + 3.5%

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:
07/20/13: The EWJ hit a little bit of profit taking on Friday. That's not surprising. This ETF has performed very well over the last few weeks. I am a little bit worried that the Japanese markets and the EWJ could see some volatility on Monday in reaction to the Japanese upper house elections scheduled for Sunday (July 21st). We are going to leave our stop loss at $11.55 but more conservative traders might want to tighten their stop closer to the simple 10-dma, currently near $11.82.

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

chart:



Flowers Foods, Inc. - FLO - close: 23.63 change: -0.15

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:
07/20/13: FLO pierced short-term technical support at the rising 10-dma on Friday but traders bought the dip. The stock managed to pare its losses to just 15 cents. Currently we are waiting for a breakout to new highs. I am suggesting a trigger to launch bullish positions at $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.

chart:



Guidewire Software, Inc. - GWRE - close: 44.58 change: -0.23

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:
07/20/13: The market is hitting new highs and yet GWRE has been stuck drifting sideways the last few days. It looks like shares have lost some momentum here. If GWRE doesn't improve soon we will likely drop it as a candidate.

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)

chart:



Hospira Inc. - HSP - close: 39.78 change: +0.36

Stop Loss: 38.95
Target(s): 44.00
Current Gain/Loss: -0.3%

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:
07/20/13: We've got less than two weeks to go on our HSP trade. I was turning much more cautious on this stock by Thursday thanks to HSP's slow drift lower. Yet shares displayed some relative strength on Friday (+0.9%). I do remain somewhat cautious here and readers may want to wait for a breakout past $40.00 before considering new positions. Keep in mind that we plan to exit prior to the earnings report on July 31st.

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

chart:



R.R. Donnelley & Sons - RRD - close: 15.25 change: +0.01

Stop Loss: 14.49
Target(s): 16.25
Current Gain/Loss: + 2.7%

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:
07/20/13: It was definitely a bullish week for RRD with the stock breaking out from a consolidation pattern and pushing past potential resistance at $15.00. We only have a few trading days left. The plan is to exit prior to the earnings report on July 30th.

Earlier Comments:
We want to keep our position size small to limit our risk.

*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

chart:



Seagate Tech. - STX - close: 47.52 change: +0.62

Stop Loss: 46.25
Target(s): 49.85
Current Gain/Loss: + 3.2%

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:
07/20/13: STX was upgraded on Friday and the news helped push the stock to a new all-time high. Unfortunately we are almost out of time for this trade. STX is due to report earnings on Wednesday, July 24th, before the opening bell. I am suggesting we exit positions on Monday, at the closing bell, to lock in gains. More aggressive traders may want to exit on Tuesday at the close instead.

current Position: Long stock @ $46.05

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

Long Aug $47 call (STX1317H47) entry $1.80

07/20/13 prepare to exit on Monday at the closing bell
07/18/13 new stop loss @ 46.25
07/16/13 new stop loss @ 45.65
07/09/13 new stop loss @ 44.90

chart:



BEARISH Play Updates

Compa - BVN - close: 13.55 change: +0.08

Stop Loss: 14.41
Target(s): 10.25
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.3 million
New Positions: Yes, see below

Comments:
07/20/13: Gold, silver, and copper prices all bounced on Friday. That may have helped BVN post a +0.59% gain. Shares did slip intraday but the low was only $13.26. Since our trigger to open bearish positions is at $13.25 we are still on the sidelines. I don't see any changes from my new play comments from Thursday night.

Earlier Comments:
Compania de Minas Buenaventura S.A.A. is a mining company based in Peru. BVN produces mostly precious metals (gold, silver) but also mines copper, lead and zinc. Thanks to a rising dollar and falling gold and silver prices, shares of BVN are in a serious down trend. The stock has fallen to multi-year lows.

BVN produced an oversold bounce in late June but the rebound failed near its 10-dma. Now, just over two weeks later, BVN is poised to breakdown to new lows again. Today's low was $13.33. I am suggesting a trigger to open bearish positions at $13.25. If triggered our target is $10.25.

Investors should also note that I can't find an earnings date for BVN. We do not like to hold over an earnings announcement so not knowing when BVN reports next does raise the risk here.

Trigger @ 13.25

Suggested Position: short BVN stock @ (trigger)

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

Buy the Aug $13 PUT (BVN1317T13) current ask $0.50

chart:




CLOSED BULLISH PLAYS

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

Stop Loss: 55.65
Target(s): 58.00
Current Gain/Loss: + 3.5%

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:
07/20/13: On Thursday night we decided to try and reduce our risk by raising the stop loss to $55.65, just below the simple 10-dma. Unfortunately, WFM hit some profit taking on Friday and the stock dipped to $55.64 midday. Our trade has been closed.

I would keep WFM on your watch list and look at it again after the company reports earnings on July 31st.

closed Position: Long WFM stock @ $53.75 exit $55.65 (+3.5%)

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

Aug $55 call (WFM1317H55) entry $1.60 exit $2.34 (+46.2%)

07/19/13 stopped out
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

chart: