Editor's Note:
The post-FOMC announcement rally in stocks reversed late in the session.

We have removed AFOP as a candidate. FRGI and ISIS were stopped out.


Current Portfolio:


BULLISH Play Updates

Best Buy Co. - BBY - close: 30.09 change: +0.75

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:
07/31/13: BBY displayed some relative strength today with a +2.5% gain. The stock is testing resistance at its early July highs. If there is any follow through higher tomorrow we should see BBY hit our entry trigger at $30.40.

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)



Broadcom Corp. - BRCM - close: 27.57 change: -0.27

Stop Loss: 26.49
Target(s): 31.00
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 13.1 million
New Positions: Yes, see below

Comments:
07/31/13: BRCM failed at the $28.00 level this morning and then declined to a -0.96% loss on the session. Overall I don't see any changes from my prior comments (Tuesday's new play description).

I am suggesting a trigger to launch small bullish positions at $28.05. If triggered our target is $31.00 although I will point out that it is possible the $30.00 level could act like round-number resistance. We will start with a stop loss at $26.49 but more conservative traders may want to use a stop loss closer to $27.20 instead.

Trigger @ 28.05 *small positions*

Suggested Position: buy BRCM stock @ (trigger)

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

Buy the Sep $30 call (BRCM1321i30)



The Gap, Inc. - GPS - close: 45.90 change: -0.21

Stop Loss: 44.75
Target(s): 49.50
Current Gain/Loss: + 0.3%

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:
07/31/13: GPS underperformed its peers in the retail sector with a -0.4% decline today. Technically speaking today's session also created a bearish engulfing candlestick reversal pattern. I am not suggesting new positions at this time. We'll watch and see how it performs tomorrow.

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: 55.77 change: +0.45

Stop Loss: 53.45
Target(s): 58.50
Current Gain/Loss: + 3.6%

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:
07/31/13: The rally in LTD continues with shares adding +0.8% and closing at a new record high. I am raising our stop loss up to $53.45.

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

07/31/13 new stop loss @ 53.45



Rackspace Hosting - RAX - close: 45.29 change: -1.14

Stop Loss: 43.85
Target(s): 49.00
Current Gain/Loss: -0.1%

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:
07/31/13: RAX hit some profit taking today with a drop toward short-term technical support at its 10-dma. The intraday low was $44.62. A bounce from here could be used as a new entry point but 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


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Alliance Fiber Optic Products - AFOP - close: 31.81 change: -0.75

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:
07/31/13: AFOP underperformed the market for the second day in a row. We are removing it from the newsletter. Our trade did not open. Trigger was $35.55.

Trade did not open.

07/31/13 removed from the newsletter

chart:



CLOSED BEARISH PLAYS

Fiesta Restaurant Group - FRGI - close: 31.55 change: +0.10

Stop Loss: 31.55
Target(s): 27.25
Current Gain/Loss: + 4.1%

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:
07/31/13: As we feared the bounce from its 100-dma continued and FRGI hit our stop loss at $31.55. The trade still managed a small gain.

closed Position: short FRGI stock @ $32.90 exit $31.55 (+4.1%)

07/31/13 stopped out
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

chart:



Isis Pharmaceuticals - ISIS - close: 28.85 change: +0.49

Stop Loss: 29.51
Target(s): 26.00
Current Gain/Loss: - 3.3%

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:
07/31/13: Another bounce in the biotech stocks today helped ISIS rallied toward short-term resistance at their 10-dma. The stock hit our stop loss at $29.51 near its high for the session.

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*

closed Position: short ISIS stock @ $28.57 exit $29.51 (-3.3%)

07/31/13 stopped out
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

chart: