Editor's Note:
Stocks continue to climb. Be careful as the S&P 500 nears the 1700 level, which could be round-number, psychological resistance.

EGL hit our target. SNTS was triggered. STX was closed as planned.


Current Portfolio:


BULLISH Play Updates

CareFusion Corp. - CFN - close: 38.88 change: +0.09

Stop Loss: 37.75
Target(s): 42.50
Current Gain/Loss: + 0.3%

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:
07/22/13: CFN saw some midday weakness but traders bought the dip and shares bounced back into positive territory.

We've got about three weeks until CFN reports earnings in mid August.

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



Celldex Therapeutics - CLDX - close: 21.42 change: +0.34

Stop Loss: 20.45
Target(s): 24.85
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 20, 2013
Time Frame: exit PRIOR to earnings in early August
Average Daily Volume = 2.6 million
New Positions: Yes, see below

Comments:
07/22/13: CLDX appears to be coiling for a bullish breakout past resistance near $22.00.

I am suggesting a trigger to open small bullish positions at $22.15. More aggressive traders might want to consider a trigger to open positions above Friday's high at $21.61 instead. If CLDX hits the newsletter's trigger at $22.15 our target is $24.85. However, we will plan to exit prior to the company's earnings report in mid August.

Trigger @ 22.15 *small positions*

Suggested Position: buy CLDX stock @ (trigger)



iShares Japan Index - EWJ - close: 11.98 change: +0.03

Stop Loss: 11.74
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:
07/22/13: As many expected Japan's Prime Minister Shinzo Abe's ruling party, the Liberal Democratic Party, won a majority in the upper house in Sunday's elections. Thankfully there was no sell-the-news reaction in the Japanese market. The EWJ added +0.25%.

We are raising our stop loss up to $11.74.

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

07/22/13 new stop loss @ 11.74
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: 23.54 change: -0.09

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:
07/22/13: Shares of FLO are still hovering near their simple 10-dma. We are waiting for a breakout higher. 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.



Guidewire Software, Inc. - GWRE - close: 44.63 change: +0.05

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:
07/22/13: I am about ready to give up and drop GWRE as a candidate. Shares drifted sideways again on Monday. If GWRE doesn't improve soon we will likely drop it.

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: 39.79 change: +0.01

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:
07/22/13: Twice today shares of HSP rallied up toward resistance at $40.00 and both times the rally failed. That doesn't bode well. The stock closed virtually unchanged on the session. We do not have much time left on this trade. We plan to exit prior to the earnings report on July 31st.

Earlier Comments:
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: 15.47 change: +0.22

Stop Loss: 14.80
Target(s): 16.25
Current Gain/Loss: + 4.2%

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:
07/22/13: RRD continues to show relative strength. The stock added +1.4% and closed at another new 52-week high. The simple 10-dma has risen to $14.88. I am adjusting our stop loss to $14.80. 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

07/22/13 new stop loss @ 14.80
07/18/13 new stop loss @ 14.49



Santarus, Inc. - SNTS - close: 24.88 change: -0.18

Stop Loss: 23.95
Target(s): 28.50
Current Gain/Loss: -1.3%

Entry on July 22 at $25.20
Listed on July 20, 2013
Time Frame: exit PRIOR to earnings in early August
Average Daily Volume = 1.4 million
New Positions: see below

Comments:
07/22/13: SNTS popped higher this morning. Shares hit our entry trigger at $25.20. Unfortunately there was no follow through and the stock faded lower to a -0.7% decline. Traders may want to wait for a new rise past $25.20 before initiating new positions.

Earlier Comments:
Our target is $28.50 but we will plan on exiting positions prior to the company's earnings report in early to mid August (no date yet).
FYI: The Point & Figure chart for SNTS is bullish with a long-term $36.00 target.

current Position: Long SNTS stock @ $25.20



BEARISH Play Updates

Compa - BVN - close: 14.18 change: +0.63

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:
07/22/13: Gold, silver and copper were all up sharply today. This fueled widespread gains across the mining stocks. BVN gained +4.6%. Currently we are still just spectators here. We are waiting on a breakdown to new lows.

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)




CLOSED BULLISH PLAYS

Engility Holdings - EGL - close: 31.62 change: +0.22

Stop Loss: 29.60
Target(s): 32.00
Current Gain/Loss: +13.3%

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:
07/22/13: Target achieved.

EGL extended its gains to four days in a row. The stock hit our exit target at $32.00 this morning.

closed Position: Long EGL stock @ $28.25 exit $32.00 (+13.3%)

07/22/13 target hit
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:



Seagate Tech. - STX - close: 46.82 change: -0.70

Stop Loss: 46.25
Target(s): 49.85
Current Gain/Loss: + 1.7%

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:
07/22/13: Hmm... it was an odd day for STX. The company won a legal battle versus WDC in a new appeals court decision and yet the stock turned lower. STX reversed most of Friday's gains. Technically today's session has created a bearish engulfing candlestick reversal pattern.

We had already decided to exit this trade today at the closing bell. Earnings are coming up on July 24th.

closed Position: Long stock @ $46.05 exit $46.82 (+1.7%)

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

Aug $47 call (STX1317H47) entry $1.80 exit $1.76 (-2.2%)

07/22/13 scheduled exit at the close today
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: