Editor's Note:
The U.S. stock market churned sideways on Tuesday ahead of potential market-moving news tomorrow. Investors want to know what the U.S. Q2 GDP estimate is and what the FOMC statement will say. Both come out tomorrow.


Current Portfolio:


BULLISH Play Updates

Alliance Fiber Optic Products - AFOP - close: 32.56 change: -1.78

Stop Loss: 33.45
Target(s): 39.75
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 29, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 440 thousand
New Positions: Yes, see below

Comments:
07/30/13: Ouch! AFOP hit some heavy profit taking today with a -5.1% decline. I didn't see any specific news behind today's display of relative weakness. If AFOP doesn't recover soon then we'll drop it as a candidate. Currently we are on the sidelines waiting for a new high.

I am suggesting a trigger to open small bullish positions at $35.55. If triggered our target is $39.75.

Trigger @ 35.55 *Small Positions*

Suggested Position: buy AFOP stock @ (trigger)



Best Buy Co. - BBY - close: 29.34 change: +0.48

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:
07/30/13: As expected BBY found support at its simple 30-dma. Shares bounced with a +1.6% gain. Yet the stock remains below the $30.00 level.

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)



The Gap, Inc. - GPS - close: 46.11 change: +0.26

Stop Loss: 44.75
Target(s): 49.50
Current Gain/Loss: + 0.8%

Entry on July 29 at $45.75
Listed on July 27, 2013
Time Frame: exit PRIOR to earnings in late August
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
07/30/13: GPS keeps the rally alive with another gain today (+0.5%). We will adjust our stop loss higher to $44.75. Nimble traders may want to wait and try to buy a dip near $45.50.

We will plan to exit prior to GPS' earnings report in late August.

current Position: Long GPS stock @ $45.75

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

Long Sep $45 call (GPS1321i45) entry $2.27

07/30/13 new stop loss @ 44.75



L Brands, Inc. - LTD - close: 55.32 change: -0.09

Stop Loss: 52.45
Target(s): 58.50
Current Gain/Loss: + 2.7%

Entry on July 29 at $53.85
Listed on July 27, 2013
Time Frame: exit PRIOR to the earnings report on Aug. 21st
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
07/30/13: After Monday's big rally higher shares of LTD hit some profit taking today. Yet traders bought the dip twice and shares pared their losses to less than ten cents. I am not suggesting new positions at current levels.

FYI: The Point & Figure chart for LTD is bullish with a $68.00 target.

*small positions*

current Position: Long LTD stock @ $53.85

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

Long Sep $55 call (LTD1321i55) entry $1.45



Rackspace Hosting - RAX - close: 46.43 change: -0.29

Stop Loss: 43.85
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:
07/30/13: The rally in RAX paused today with a -0.6% decline. If the stock does see a dip I would look for support near $45.00 and its 10-dma. Our stop is at $43.85 but readers may want to inch theirs higher.

Keep in mind our time frame and plan to exit prior to earnings on August 8th.

*small positions*

current Position: Long RAX stock @ $45.35

07/27/13 new stop loss @ 43.85



BEARISH Play Updates

Fiesta Restaurant Group - FRGI - close: 31.45 change: +0.58

Stop Loss: 31.55
Target(s): 27.25
Current Gain/Loss: + 4.4%

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:
07/30/13: It looks like our FRGI play could be over soon. I cautioned readers that FRGI could bounce near $30 or near its 100-dma. We were expecting market weakness to help push FRGI lower through this potential support. The stock did bounce and shares added +1.8%. Today's high was $31.51, less than five cents from our new stop loss at $31.55. If there is any follow through higher tomorrow our trade will be closed.

current Position: short FRGI stock @ $32.90

07/29/13 adjust the exit strategy: target a drop to $27.25
new stop loss @ 31.55
07/27/13 do not be surprised to see a bounce toward the 10-dma



Isis Pharmaceuticals - ISIS - close: 28.36 change: +0.57

Stop Loss: 29.51
Target(s): 26.00
Current Gain/Loss: + 0.7%

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:
07/30/13: ISIS rallied this morning but the rebound ran out of steam by lunchtime under the $29.00 level. The stock did manage a +2.0% gain today. It looks like the support level to watch is the $27.75 level.

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

07/29/13 adjust exit target to $26.00
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