Editor's Note:
The U.S. market's major indices all managed a midday rebound to bounce back into positive territory.

RAX was triggered today. SNTS was stopped out. We want to exit our RRD trade tomorrow.


Current Portfolio:


BULLISH Play Updates

CareFusion Corp. - CFN - close: 38.72 change: -0.06

Stop Loss: 38.20
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:
07/25/13: Hmm... the major market indices all rebounded midday to close higher. Yet shares of CFN failed to follow suit. The lack of participation in this stock could be a warning signal. Readers may want to exit early now. I am not suggesting new positions. We will raise our stop loss to $38.20.

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

07/25/13 new stop loss @ 38.20
07/15/13 new stop loss @ 37.75



Rackspace Hosting - RAX - close: 45.59 change: +0.63

Stop Loss: 43.35
Target(s): 49.00
Current Gain/Loss: +0.5%

Entry on July 25 at $45.35
Listed on July 24, 2013
Time Frame: exit PRIOR to earnings on Aug. 8th
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
07/25/13: Our new play on RAX has been triggered. The stock saw a spike down this morning but almost immediately bounce from technical support at its 100-dma (previous resistance). Shares rallied to a new relative high and hit our entry trigger at $45.35.

*small positions*

current Position: Long RAX stock @ $45.35



R.R. Donnelley & Sons - RRD - close: 15.63 change: -0.02

Stop Loss: 15.40
Target(s): 16.25
Current Gain/Loss: + 5.3%

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:
07/25/13: RRD rallied this morning but shares failed at resistance near the $16.00 level. More conservative traders may want to exit immediately. The company is due to report earnings next Tuesday morning. Therefore I am suggesting we exit tomorrow (Friday) at the closing bell. I am adjusting our stop loss higher $15.40.

NOTE: The plan was to exit our August $15 calls at the closing bell today.

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) -

Aug $15 call (RRD1317H15) entry $0.55 exit $0.75 (+36.3%)

07/25/13 new stop loss @ 15.40, prepare to exit tomorrow (Friday) at the closing bell.
07/25/13 the plan was to exit our Aug. $15 calls at the close
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



BEARISH Play Updates

Fiesta Restaurant Group - FRGI - close: 32.10 change: -0.84

Stop Loss: 34.05
Target(s): 30.15
Current Gain/Loss: + 2.4%

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:
07/25/13: The relative weakness in FRGI resumed on Thursday. The stock gave up -2.55% and closed near the $32 level. I am not suggesting new positions at this time.

current Position: short FRGI stock @ $32.90



Isis Pharmaceuticals - ISIS - close: 29.27 change: +0.76

Stop Loss: 30.15
Target(s): 25.35
Current Gain/Loss: - 2.5%

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:
07/25/13: Ouch! A lot of the big biotech names were bouncing higher today and ISIS followed them. Shares briefly traded below their 30-dma and then rebounded to a +2.66% gain. Technically today's move looks like a bullish engulfing candlestick reversal pattern. I am not suggesting new positions at this time.

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

07/25/13 warning! Today's move looks like a one-day bullish reversal pattern
07/24/13 triggered on gap down at $28.57. Trigger was $28.70



CLOSED BULLISH PLAYS

Santarus, Inc. - SNTS - close: 23.95 change: -0.22

Stop Loss: 23.95
Target(s): 28.50
Current Gain/Loss: -5.0%

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:
07/25/13: The relative weakness in SNTS continued today. Shares opened at $24.10 but quickly spiked down toward the $22.00 level. Our stop loss was hit at $23.95. Shares fought back the rest of the day to close near the $24 level.

closed Position: Long SNTS stock @ $25.20 exit $23.95 (-5.0%)

07/25/13 stopped out at $23.95

chart: