Editor's Note:
The U.S. stock market is finally starting to see some long overdue profit taking.

CLDX has been removed. EWJ was stopped out. HSP has been closed. ISIS was triggered.


Current Portfolio:


BULLISH Play Updates

CareFusion Corp. - CFN - close: 38.78 change: +0.01

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:
07/24/13: CFN closed virtually unchanged on the session after failing at resistance near $39.00 again.

Traders might want to adjust their stop loss closer to Monday's low (38.32). 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



R.R. Donnelley & Sons - RRD - close: 15.65 change: +0.07

Stop Loss: 15.20
Target(s): 16.25
Current Gain/Loss: + 5.4%

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:
07/24/13: RRD spent most of today's session churning sideways but managed to close on a high note. The relative strength is encouraging. I am moving our stop loss up to $15.20.

Please note that I am suggesting we exit our August $15 call position at the closing bell tomorrow.

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

07/24/13 new stop loss @ 15.20, exit the August calls tomorrow at the close
07/23/13 new stop loss @ 14.90
07/22/13 new stop loss @ 14.80
07/18/13 new stop loss @ 14.49



Santarus, Inc. - SNTS - close: 24.17 change: -0.23

Stop Loss: 23.95
Target(s): 28.50
Current Gain/Loss: -4.1%

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:
07/24/13: SNTS continued to slip lower today but shares are still respecting support at the $24.00 level - at least for now. The stock looks poised to breakdown below $24.00 soon. I am not suggesting new positions at this time.

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

Fiesta Restaurant Group - FRGI - close: 32.94 change: +0.30

Stop Loss: 34.05
Target(s): 30.15
Current Gain/Loss: - 0.1%

Entry on July 23 at $32.90
Listed on July 20, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 213 thousand
New Positions: see below

Comments:
07/24/13: FRGI recovered about half of yesterday's decline with a 30-cent bounce. I would still consider new bearish positions now.

current Position: short FRGI stock @ $32.90



Isis Pharmaceuticals - ISIS - close: 28.51 change: -0.61

Stop Loss: 30.15
Target(s): 25.35
Current Gain/Loss: + 0.2%

Entry on July 24 at $28.57
Listed on July 23, 2013
Time Frame: exit PRIOR to earnings in early August
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
07/24/13: Our new trade on ISIS has been opened. We wanted to launch positions at $28.70 but shares gapped open lower at $28.57 this morning. I don't see any changes from the new play description on Tuesday night.

Earlier Comments:
I am suggesting we keep our position size small. The latest data did list short interest at 16% of the 102.8 million share float.

*small positions*

current Position: short ISIS stock @ $28.57

07/24/13 triggered on gap down at $28.57. Trigger was $28.70



CLOSED BULLISH PLAYS

Celldex Therapeutics - CLDX - close: 19.78 change: -0.72

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:
07/24/13: CLDX is not performing. Shares accelerated lower today. Our trade has not been triggered yet so we're dropping CLDX as an active candidate.

Trade did not open.

07/24/13 removed from the newsletter

chart:



iShares Japan Index - EWJ - close: 11.87 change: -0.11

Stop Loss: 11.85
Target(s): 12.40
Current Gain/Loss: + 2.6%

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:
07/24/13: We've been ratcheting up our stop loss on the EWJ. This ETF broke down below its simple 10-dma today and hit our newest stop at $11.85.

closed Position: Long EWJ stock @ $11.55 exit $11.85 (+2.6%)

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

2014 Jan $12 call (EWJ1418a12) entry $0.58 exit $0.56 (-3.4%)

07/24/13 stopped out
07/23/13 new stop loss @ 11.85
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

chart:



Hospira Inc. - HSP - close: 39.52 change: +0.03

Stop Loss: 38.95
Target(s): 44.00
Current Gain/Loss: -0.4%

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:
07/24/13: After watching HSP struggle with resistance at the $40.00 level we decided to throw in the towel. Our plan was to exit positions this morning at the open. The stock opened at $39.72.

Earlier Comments:
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*

closed Position: Long HSP stock @ $39.89 exit $39.72 (-0.4%)

07/24/13 closed at the opening bell
07/23/13 prepare to exit tomorrow morning
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: