9:00am (EST) continued…

The Dow added 20 points, or 0.3%, to finish at 15,484.  The blue-chips traded to a high of 15,509 but continue to struggle in getting a strong push past resistance.  A close above 15,500, and more importantly, 15,600, should be enough to get new all-time highs in play.

The S&P 500 advanced 2 points, or 0.1%, to settle at 1,682.  The index traded up to 1,684 after testing a low of 1,677.  Support at 1,675 continues to hold and a break above 1,687 (May 22 intraday peak) should get 1,700 in play.  Monday’s win made it 8-straight sessions of gains for the index.

The Nasdaq jumped 7 points, or 0.2%, to close at 3,607.  Tech dipped below the 3,600 level to 3,591 but easily held near-term support at 3,575-3,550.  We mentioned a run to 3,650-3,700 is possible on continued strength over the next few weeks as long as support holds up.

The Russell 2000 was up 7 points, or 0.7%, to end at 1,043- and another all-time high.  The small-caps continue to lead the charge higher and are rapidly approaching our fluff target of 1,050 after holding green start to finish.  Support is trying to move up from 1,000 to 1,025.

The S&P 500 Volatility Index ($VIX, 13.79, down 0.05) was quiet as it traded in a tight range along with the indexes.  A close below 13.50 could lead to a continued run higher on the S&P while a break back above 15 could signal a pause in the recent rally.

As we head to press, futures look like this:  Dow (+3); S&P 500 (+1); Nasdaq 100 (+3).  Subscribers, check the Members Area for the current 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 tradesor “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: 79-41, including the Weekly Wrap that is 26-3).

 

Aruba Networks (ARUN, $17.59, up $0.61)

August 17 calls (ARUN130817C00017000, $1.15, up $0.40)

Entry Price:  $0.55 (7/8/13)
Exit Target:  $1.10
Return:  109%
Stop Target:  75 cents, (Hard Stop)

 

August 18 calls (ARUN130817C00018000, $0.60, up $0.20)

Entry Price:  $0.55 (7/15/13)
Exit Target:  $1.10
Return:  9%
Stop Target:  None

 

October 22 calls (ARUN131019C00022000, $0.55, up $0.15)

Entry Price:  $0.50 (7/15/13)
Exit Target:  $1.00
Return:  10%
Stop Target:  None

Action:  We added the August 18 and the October 22 calls yesterday on the break above $17.50.  These are also “piggy-back” trades on the original position we have open that is now up triple-digits.

 

Sony (SNE, $22.24, up $0.05)

August 24 calls (SNE130817C00024000, $0.55, down $0.05)

Entry Price:  $0.50 (7/11/13)
Exit Target:  $1.00
Return:  10%
Stop Target:  None

August 26 calls (SNE130817C00026000, $0.20, flat)

Entry Price:  $0.20 (7/11/13)
Exit Target:  $0.60
Return:  0%
Stop Target:  None

October 25 calls (SNE131019C00025000, $0.90, flat)

Entry Price:  $0.80 (7/11/13)
Exit Target:  $1.60
Return:  13%
Stop Target:  None

Action:  Resistance is at $23-$24 and a close above $22.50 should get 52-week highs in play.  News that China is lifting the ban of gaming counsels could have a huge impact on this stock.  Support is at $21 and the 50-day MA and we like these trades going forward as long as $20 holds.

 

Riverbed Technology (RVBD, $17.11, down $0.04)

August 18 calls (RVBD130817C00018000, $0.90, down $0.10)

Entry Price:  $0.60 (7/9/13)
Exit Target:  $1.20 (closed 1/3 at 80 cents on 7/11/13)
Return:  44%
Stop Target:  70 cents (Hard Stop)

Action:  We have a near-term target of $18-$20 for the stock by mid-August on a close above $17.50.  Support is at $16 and we have set a Hard Stop of 70 cents on the other 2/3’s of the trade to protect profits.

 

JPMorgan Chase (JPM, $54.89, down $0.08)

August 57.50 calls (JPM130817C00057500, $0.35, down $0.05)

Entry Price:  $0.38 (7/8/13)
Exit Target:  $1.00+  (closed 1/2 at 50 cents on 7/11/13)
Return:  12%
Stop Target:  30 cents (Hard Stop)

Action:  We have set a Hard Stop of 30 cents on the other half of the trade and yesterday’s low was 31 cents.  Support is at $52.50 and the 50-day MA but a break below $54.50 will likely knock us out of the trade for a scratch.

 

Apollo Group (APOL, $18.69, up $0.20)

August 16 puts (APOL130817P00016000, $0.25, down $0.05)

Entry Price:  $0.65 (6/26/13)
Exit Target:  $1.30
Return:  -62%
Stop Target:  None

Action:  We will stick with the trade as long as $20.25 holds and we would like to see a trip below $18 this week.  Yesterday’s low was $18.05.

 

Rambus (RMBS, $9.89, up $0.14)

August 9 calls (RMBS130817C00009000, $1.05, up $0.05)

Entry Price:  $0.55 (6/18/13)
Exit Target:  $1.10
Return:  91%
Stop Target:  None

Action:  Earnings are due out on Thursday.  A break above $10 is possible on a match or beat while $9 could come back into play on a miss.  Analysts are looking for 11 cents a share on revenue of $149 million.

 

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.

 

MGM Resorts (MGM, $15.72, up $0.46)

August 16 calls (MGM130817C00016000, $0.55, up $0.10)

September 17 calls (MGM130921C00017000, $0.45, up $0.10)

Thoughts:  Shares are on the verge of fresh 52-week peaks.  A close above $16 would be supper bullish for a push towards $20 by yearend.

 

Nvidia (NVDA, $14.61, down $0.03)

August 15 call (NVDA130817C00015000, $0.35, down $0.05)

Thoughts:  Shares cleared resistance at $14.25 and a close above $14.75 should get $15-$15.50 in play.  Support is at $13.75, if $14,25 fails.  We have a 6-12 month price target of $20 for the stock.

 

Finisar (FNSR, $18.33, up $0.16)

August 19 calls (FNSR130817C00019000, $0.60, up $0.05)

Thoughts:  Shares should challenge $20 over the near-term with support moving up from $16 to $17.

 

Applied Materials (AMAT, $16.47, down $0.19)

August 17 calls (AMAT130817C00017000, $0.35, down $0.05)

September 17 calls (AMAT130921C00017000, $0.50, down $0.05)

Thoughts:  We think shares can test $17 over the next month.  Support is at $15.75.

 

Scientific Games (SGMS, $12.58, down $0.01)

August 12.50 calls (SGMS130817C00012500, $0.80, flat)

Thoughts:  We may get into this trade on a close above $12.50.

 

Salesforce.com (CRM, $41.98, down $0.45)

August 45 calls (CRM130817C00045000, $0.60, down $0.15)

November 50 calls (CRM131116C00050000, $0.95, down $0.10)

Thoughts:  Shares could make a run at $45 as long as $40 holds.

 

Yahoo (YHOO, $27.34, up $0.11)

August 28 calls (YHOO130817C00028000, $0.80, up $0.05)

Thoughts:  A close back above $27 would be bullish for a run to $30.  Support is at $26.