9:00pm (EST)

The Dow advanced 75 points, or 0.5%, to end at 15,300 on Tuesday.  The blue-chips reached a peak of 15,320 and came within 30 points our triggering our next “go” level at 15,350.  A close above this level gets 15,500 in play.  Support is trying to move up from 15,000 to 15,200.

The S&P 500 surged 12 points, or 0.7%, to settle at 1,652.  The index kissed 1,654 and more importantly, held 1,650 into the close.  This sets up a possible run to 1,675 and all-time highs.  Support is at 1,640 followed by 1,625.

The Nasdaq added nearly 20 points, or 0.6%, to finish at 3,504.  Tech was choppy for much of the morning but gained momentum in the afternoon to trade up to 3,508.  The recent 52-week and decade high is at 3,532 and if cleared could get 3,550-3,600 in the picture.  Short-term support is at 3,450.

The Russell 2000 jumped 9 points, or 0.9%, to close at 1,018.  The small-caps continue to work their way towards our 1,025 target following the close above 1,000 last Friday and went out near their high.  If cleared, we may have to pencil-in 1,050.  Support at 1,000 is now 2% behind us.

The S&P 500 Volatility Index ($VIX, 14.35, down 0.43) dropped another 3% after trading down to 14.26 and holding 15.  We mentioned a continued move towards 13.50 could be in store if the bulls pushed the next layer of resistance and fresh highs.

We have a lot to cover this morning and as we head to press, futures look like this:  Dow (+6); S&P 500 (-1); Nasdaq 100 (-1).

Subscribers, check the Members Area for the updates.

 

MEMBERS AREA

Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades.  Please remember, ALL “Exit Targets” and “Stop Targets” are targets.  You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one.  We will send out a “Profit Alert” or “New Trade” if we want you to close a position OR if a new trade comes out.  Otherwise, follow instructions at all times in the 9am and 1pm updates.  Also, we will usually give you a heads-up if we think we are going to send an email outside of these time frames.  Closed Trades for 2013: 78-41, including the Weekly Wrap that is 26-3).

 

Riverbed Technology (RVBD, $16.09, up $0.28)

August 18 calls (RVBD130817C00018000, $0.60, up $0.08)

Entry Price:  $0.60 (7/9/13)
Exit Target:  $1.20
Return:  0%
Stop Target:  None

Action:  Shares touched a high of $16.25 yesterday and held $16 into the close.  We have a near-term target of $18-$20 for the stock by mid-August.

 

JPMorgan Chase (JPM, $54.89, up $0.19)

August 57.50 calls (JPM130817C00057500, $0.50, up $0.02)

Entry Price:  $0.38 (7/8/13)
Exit Target:  $1.00+
Return:  32%
Stop Target:  None

Action:  We would like to see a close above $55 heading into earnings which are due out on Friday.  Yesterday’s peak was $55.17.  The 52-week high is at $55.90 and a break above this level should get shares challenging $58-$60.  Support is at $52.50.

 

Aruba Networks (ARUN, $15.90, down $0.22)

August 17 calls (ARUN130817C00017000, $0.40, down $0.05)

Entry Price:  $0.55 (7/8/13)
Exit Target:  $1.10
Return:  -27%
Stop Target:  None

Action:  We are looking for shares to make a run at $18, possibly $20 by mid-August.  Support is at $15.50 if $16 fails to hold.

 

Apollo Group (APOL, $17.55, up $0.02)

August 16 puts (APOL130817P00016000, $0.60, down $0.05)

Entry Price:  $0.65 (6/26/13)
Exit Target:  $1.30
Return:  -8%
Stop Target:  None

Action:  Resistance is holding at $18 but there is risk up to $20 given the current volatility.  We will stick with the trade as long as this level holds.  A close below $17.25 this week should get this trade back on track and these are August puts so we have plenty of time to wait for the breakdown.

 

Rambus (RMBS, $9.61, up $0.19)

August 9 calls (RMBS130817C00009000, $0.90, up $0.10)

Entry Price:  $0.55 (6/18/13)
Exit Target:  $1.10
Return:  64%
Stop Target:  None

Action:  We are looking for double-digits this week.  At $10, these options will be worth at least $1-$1.10 for a 100% return.  Support is at $9.

 

Scientific Games (SGMS, $12.19, up $0.04)

July 12.50 calls (SGMS130720C00012500, $0.20, down $0.05)

Entry Price:  $0.20 (5/31/13)

Exit Target:  $0.60

Return:  0%

Stop Target:  None

Action:  Shares have another 52-week high of $12.40 yesterday.  We have to be careful too as these are July options that expire next Friday.  If shares slip back below $12, we will likely close the trade for a scratch.

 

Other 2013 Portfolio OPEN positions (4):  These are trades that are still open in the portfolio but are down over 50%.  They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around.  This means we would not open any new positions.  We are still keeping track of the trades and we will record the results, accordingly, when we close them or if the options expire.  Click on the 2013Portfolio link in the Members Area to view ALL open/ closed trades.

MGM Resorts International July 17 calls (from May 2013)– HOLD

Clean Energy Fuels July 16 calls (from May 2013) – HOLD

Spiders Dow Jones July 141 puts (from June 2013) – HOLD

iShares Russell 2000 Index July 90 puts (from June 2013) – HOLD

 

WATCH LIST SECTION

These trades are NOT recommendations.  They are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices.  We try not to have more than 12-15 open trades at any one time which is why we created a Watch List.  We will not list entry prices because these stocks are on the verge of breaking out or they could sell off but these are the trades we are watching as new candidates.

 

Yahoo (YHOO, $26.67, up $1.15)

August 26 calls (YHOO130817C00026000, $1.50, up $0.60)

August 28 calls (YHOO130817C00028000, $0.56, up $0.28)

Thoughts:  Support is at $25 and a close below this level would get $24 in play.  A close back above $27 would be bullish for a run to $30.

 

Applied Materials (AMAT, $15.66, up $0.52)

August 15 calls (AMAT130817C00015000, $0.95, up $0.35)

September 16 calls (AMAT130921C00016000, $0.55, up $0.20)

Thoughts:  We think shares can test $17 over the next month.  Support is at $15.

 

Domino’s Pizza (DPZ, $62.14, up $0.96)

July 60 calls (DPZ130720C00060000, $2.40, up $0.70)

August 60 calls (DPZ130817C00060000, $3.85, up $0.60)

Thoughts: We mentioned a surge past $60 was coming and if you are in these trades, sweet, and protect profits on a drop back below $60.

 

Sony (SNE, $21.78, up $0.17)

August 23 calls (SNE130817C00023000, $0.80, flat)

Action:  A close above $22 could lead to $24.  Support is at $20 with risk down to $18 on an overshoot.

 

Salesforce.com (CRM, $38.72, up $0.29)

August 42.50 calls (CRM130817C00042500, $0.45, up $0.05)

Thoughts:  Support is at $36.  We are waiting for $40 to clearbeforepossibly getting into a trade.  If resistance is taken out, we could see shares make a quick run to $42-$43 with a shot at $45.