Editor's Note:
Stocks started Friday's session with a decline but there was no follow through and traders stepped in to buy the dip (again).

CFN and RRD were stopped out. SFUN hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Best Buy Co. - BBY - close: 29.65 change: -0.28

Stop Loss: 29.25
Target(s): 33.50
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 25, 2013
Time Frame: exit PRIOR to earnings in late August
Average Daily Volume = 4.9 million
New Positions: Yes, see below

Comments:
07/27/13: BBY did not see any follow through on Thursday's rally. Shares are consolidating sideways just below round-number resistance at the $30.00 mark. There is no change from our Thursday night new-play comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $30.40. If triggered we will target a move to $33.50 but we do not want to hold over the late August earnings report.

Trigger @ 30.40

Suggested Position: buy the stock @ (trigger)

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

buy the Sep $32 call (BBY1321i32) current ask $0.91

chart:



Rackspace Hosting - RAX - close: 46.44 change: +0.85

Stop Loss: 43.35
Target(s): 49.00
Current Gain/Loss: +2.4%

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:
07/27/13: RAX continues to show relative strength and added another +1.8% on Friday. The stock ended the week at a new ten-week high. Traders may want to wait for a dip before considering new positions.

*small positions*

current Position: Long RAX stock @ $45.35

07/27/13 new stop loss @ 43.85

chart:



SouFun Holdings - SFUN - close: 36.29 change: +4.12

Stop Loss: 33.90
Target(s): 37.50
Current Gain/Loss: +11.8%

Entry on July 26 at $32.45
Listed on July 25, 2013
Time Frame: exit PRIOR to earnings in mid August
Average Daily Volume = 354 thousand
New Positions: see below

Comments:
07/27/13: We were expecting SFUN to rally towards $37 but not in one day. Shares gapped open higher at $32.45. That was above our suggested entry point at $32.35 so our trade was opened immediately. Nimble traders may have gotten a chance to buy the early morning dip back toward $32.00 before shares exploded higher with a +12.8% gain on the session. I didn't see any specific headlines that might explain the sudden rush higher. We did point out that SFUN had a significant amount of short interest and could see a short squeeze.

More conservative traders may want to lock in gains now and exit early. Currently we are still aiming to exit at $37.50. We will adjust our stop loss higher to $33.90.

*small positions*

current Position: long SFUN stock @ $32.45

07/26/13 new stop loss @ 33.90
07/26/13 trade opened on gap higher at $32.45. Trigger was $32.35

chart:



BEARISH Play Updates

Fiesta Restaurant Group - FRGI - close: 32.46 change: +0.36

Stop Loss: 34.05
Target(s): 30.15
Current Gain/Loss: + 1.3%

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:
07/27/13: FRGI slipped to a new eight-week low on Friday morning before bouncing. The stock reversed and closed up +1.1%. Shares could see a bounce back toward its simple 10-dma near $33.40. I am not suggesting new positions at this time.

current Position: short FRGI stock @ $32.90

07/27/13 do not be surprised to see a bounce toward the 10-dma

chart:



Isis Pharmaceuticals - ISIS - close: 28.97 change: -0.30

Stop Loss: 29.51
Target(s): 25.35
Current Gain/Loss: - 1.4%

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:
07/27/13: Thursday's bounce in ISIS is still troubling. The only good news was the lack of follow through higher on Friday. The $30.00 level should be overhead, round-number resistance but we are going to try and limit our risk even further by moving the stop loss down to $29.51. 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

07/27/13 new stop loss @ 29.51
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

chart:



CLOSED BULLISH PLAYS

CareFusion Corp. - CFN - close: 38.34 change: -0.38

Stop Loss: 38.20
Target(s): 42.50
Current Gain/Loss: - 1.4%

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:
07/27/13: We've been growing more cautious on CFN. Shares underperformed on Friday and hit our new stop loss at $38.20.

closed Position: Long CFN stock @ $38.75 exit $38.20 (-1.4%)

07/26/13 stopped out
07/25/13 new stop loss @ 38.20
07/15/13 new stop loss @ 37.75

chart:



R.R. Donnelley & Sons - RRD - close: 15.75 change: +0.12

Stop Loss: 15.40
Target(s): 16.25
Current Gain/Loss: + 3.7%

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:
07/27/13: We were planning to exit our RRD trade on Friday at the closing bell. Shares managed to outperform the broader market and add another +0.7% to close at a new 52-week high. Unfortunately, the market's decline on Friday morning pushed RRD down to $15.37 before bouncing back. That was low enough to hit our brand new stop loss at $15.40. Instead of exiting as planned we were stopped out.

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

*small positions*

closed Position: Long RRD stock @ $14.85 exit $15.40 (+3.7%)

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

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

07/26/13 stopped out at $15.40
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

chart: