Editor's Note:

Is the S&P 500 index failing at resistance near the 1700 mark? Both the S&P 500 and the small cap Russell 2000 turned lower today but they were both overbought and due for a dip. It's hard to be alarmed by some profit taking after the run so far.

VC was removed as planned. ACN and MOS were both triggered.
QCOR has been removed.


Current Portfolio:


CALL Play Updates

Eastman Chemical Co. - EMN - close: 75.04 change: -0.77

Stop Loss: 73.75
Target(s): 79.75
Current Option Gain/Loss: -15.6%
Time Frame: exit PRIOR to earnings on July 29th
New Positions: see below

Comments:
07/24/13: EMN underperformed the market today. Shares briefly traded below short-term technical support at the 10-dma but managed to pare their losses. Our time is running out. We will raise the stop loss to $73.75.

EMN reports earnings next Monday. We will plan to exit this trade on Friday, July 26 if shares don't hit our target or stop by then.

- Suggested Positions -

Long Aug $75 call (EMN1317H75) entry $2.55

07/24/13 new stop loss @ 73.75

Entry on July 17 at $75.25
Average Daily Volume = 1.3 million
Listed on July 11, 2013


The Hain Celestial Group, Inc. - HAIN - close: 72.80 change: -0.57

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to August expiration
New Positions: Yes, see below

Comments:
07/24/13: HAIN spent most of today's session drifting sideways before accelerating lower in the last hour. The stock closed right on its 10-dma. We are still on the sidelines. There is no change from my prior comments.

Earlier Comments:
The most recent data listed short interest at 20% of the relatively small 38.6 million share float. The shorts might be ready to cover again. After a brief, two-day pullback traders are already buying the dip. HAIN outperformed the broader market today. Monday's high was $74.30. I am suggesting a trigger to launch small bullish positions at $74.40. If triggered our target is $79.50.

FYI: The Point & Figure chart for HAIN is bullish with a $99 target.

Trigger @ 74.40

- Suggested Positions -

Buy the Aug $75 call (HAIN1317H75)

Entry on July -- at $---.--
Average Daily Volume = 420 thousand
Listed on July 22, 2013


Harman Intl. Industries - HAR - close: 57.83 change: -0.16

Stop Loss: 55.40
Target(s): 59.50
Current Option Gain/Loss: +30.5%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/24/13: HAR is holding up reasonably well. However, if the market does begin to correct lower I would expect HAR to test the $56.00 level again. I am not suggesting new positions at this time.

Don't forget that we will plan on exiting positions prior to the company's earnings report on August 6th. FYI: The Point & Figure chart for HAR is bullish with a long-term $81 target.

- Suggested Positions -

Long Aug $57.50 call (HAR1317H57.5) entry $1.80*

07/23/13 new stop loss @ 55.40, adjust the exit target to $59.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on July 18 at $56.10
Average Daily Volume = 785 thousand
Listed on July 13, 2013


PUT Play Updates

Accenture Plc - ACN - close: 73.72 change: -0.53

Stop Loss: 75.21
Target(s): 70.25
Current Option Gain/Loss: -11.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/24/13: Our brand new put play on ACN has been triggered. The stock tried to rally this morning but traders continued to sell into strength. ACN broke down below short-term support near $74.00 and its 200-dma. Our trigger to buy puts was hit at $73.80. I would still consider new positions now at current levels.

FYI: The Point & Figure chart for ACN is bearish with a $54 target.

- Suggested Positions -

Long Aug $72.50 PUT (ACN1317T72.5) entry $0.85

Entry on July 24 at $73.80
Average Daily Volume = 4.9 million
Listed on July 23, 2013


The Mosaic Co. - MOS - close: 52.38 change: -1.07

Stop Loss: 54.65
Target(s): 50.25
Current Option Gain/Loss: +18.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/24/13: MOS is another new put play that continues to underperform the broader market. Shares broke down below support today and hit our trigger to buy puts at $52.95. MOS ended today's session at a new low for the year. Our target is $50.25 but more aggressive traders may want to aim lower.

The fertilizer stocks could see some volatility tomorrow after Potash Corp. of Saskatchewan, Inc. (POT) reports earnings tomorrow morning before the opening bell.

Earlier Comments:
The Point & Figure chart for MOS is bearish with a $45 target.

- Suggested Positions -

Long Aug $52.50 PUT (MOS1317T52.5) entry $1.40

Entry on July 24 at $52.95
Average Daily Volume = 4.0 million
Listed on July 23, 2013


SPDR S&P 500 ETF - SPY - close: 168.52 change: -0.62

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: +23.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/24/13: Good news! The SPY gapped open higher near yesterday's high and then reversed under resistance at the $170 level. It appears to be a great entry point for us since our plan was to buy puts at the open. The SPY followed that reversal with a drop toward its simple 10-dma where it paused this afternoon.

NOTE: There are a lot of different option symbols for the SPY. Make sure you get the right one. We're choosing the regular August $170 put that expires on the 17th.

- Suggested Positions -

Long Aug $170 PUT (SPY1317T170) entry $1.98

07/24/13 trade opened with the SPY gapping higher at $169.79
07/23/13 adjust entry strategy. Do not wait for a trigger. Buy puts at the opening bell tomorrow.

Entry on July 24 at $169.79
Average Daily Volume = 123 million
Listed on July 22, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 61.28 change: -0.97

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: +17.6%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/24/13: CBI lost -1.5% and is now back below its 10-dma. We are not suggesting new positions at this time.

The company is expected to report earnings on July 30th.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

07/20/13 new stop loss @ 55.75
06/29/13 CBI might be poised to dip into the $57-55 zone again.
06/24/13 triggered @ 56.75
06/22/13 adjust entry trigger to $56.75
06/15/13 entry strategy change: change the breakout trigger at $65.25 to a buy-the-dip trigger at $56.50. Adjust the stop loss to $53.75.
Adjust the option strike to the 2014 Jan. $65 call

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


CLOSED BULLISH PLAYS

Visteon Corp. - VC - close: 65.97 change: +0.57

Stop Loss: 64.40
Target(s): 72.50
Current Option Gain/Loss: -60.7%
Time Frame: Exit PRIOR to earnings on Aug. 8th
New Positions: see below

Comments:
07/24/13: VC has not been performing very well. Last night we decided the best move was to just abandon ship and exit this morning. Naturally Murphy's law meant that VC would outperform the broader market today. Shares are still testing short-term resistance at $66.00 though.

- Suggested Positions -

Long Aug $70 call (VC1317H70) entry $1.40 exit $0.55*(-60.7%)

07/24/13 scheduled exit this morning
*option exit price is an estimate since the option did not trade at the time our play was closed.
07/23/13 prepare to exit tomorrow at the open
07/16/13 triggered on gap open higher at $66.89
suggested trigger was $66.75

chart:

Entry on July 16 at $66.89
Average Daily Volume = 484 thousand
Listed on July 13, 2013


CLOSED BEARISH PLAYS

Questcor Pharma. - QCOR - close: 46.15 change: -0.56

Stop Loss: 47.01
Target(s): 42.25
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 30th
New Positions: see below

Comments:
07/24/13: QCOR does look poised to keep moving lower but we're just running out of time. The company is poised to report earnings on July 30th. We do not like to hold over an announcement. Since our trade is not open yet we're removing QCOR as a candidate.

Trade did not open.

07/24/13 removed from the newsletter

chart:

Entry on July -- at $---.--
Average Daily Volume = 1.2 million
Listed on July 20, 2013