Editor's Note:
The stock market's start to the second quarter has been plagued with profit taking.

We saw CSX, LAD, SNTS, and SYNA hit our stop losses today.


Current Portfolio:


BULLISH Play Updates

AmSurg Corp. - AMSG - close: 32.66 change: -0.71

Stop Loss: 32.25
Target(s): 36.75
Current Gain/Loss: -1.7%

Entry on March 26 at $33.23
Listed on March 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 218 thousand
New Positions: see below

Comments:
04/03/13: AMSG displayed some relative weakness today with a -2.1% decline. The stock has pulled back toward the bottom of its recent trading range. If there is any follow through lower we could see AMSG hit our stop loss at $32.25.

The Point & Figure chart for AMSG is bullish with a long-term $50.00 target.

Current Position: Long AMSG stock @ $33.23

03/30/13 new stop loss @ 32.25



iShares Japan Index - EWJ - close: 10.47 change: -0.04

Stop Loss: 10.28
Target(s): 11.40
Current Gain/Loss: + 0.3%

Entry on March 12 at $10.44
Listed on March 11, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 30 million
New Positions: see below

Comments:
04/03/13: The Japanese NIKKEI was up almost +3% today. Yet these gains did not translate over to the EWJ. Shares of the EWJ gapped open higher but then failed near $10.60 and its 20-dma. I am not suggesting new positions at this time.

Earlier Comments:
We have a longer-term time frame for this trade to work. If you're going to play it, be patient.

Current Position: Long the EWJ @ $10.44

03/30/13 new stop loss @ 10.28
03/20/13 new stop loss @ 10.18



Mattel, Inc. - MAT - close: 42.99 change: -1.03

Stop Loss: 42.85
Target(s): 44.50
Current Gain/Loss: + 4.0%

Entry on March 06 at $41.35
Listed on March 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.7 million
New Positions: see below

Comments:
04/03/13: Shares of MAT just erased the last few days worth of trading with today's -2.3% plunge. The stock's close below its simple 10-dma is short-term bearish. Readers will want to seriously consider an early exit now. Of course if there is any follow through lower tomorrow we'll likely see MAT hit our stop loss at $42.85.

Earlier Comments:
We may have to exercise some patience on this trade. It could take a while to get to the $45.00 level since MAT doesn't move very fast but the long-term trend is definitely higher.

current Position: Long MAT stock @ $41.35

04/02/13 new stop loss at $42.85
03/30/13 new stop loss at $42.40
03/25/13 new stop loss at $41.80
03/23/13 new stop loss at $41.40, adjust exit target to $44.50
03/21/13 new stop loss at $40.95
03/20/13 new stop loss at $40.75



Plum Creek Timber Co. - PCL - close: 51.05 change: -0.94

Stop Loss: 49.90
Target(s): 54.50
Current Gain/Loss: +1.0%

Entry on March 25 at $50.56
Listed on March 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 732 thousand
New Positions: see below

Comments:
04/03/13: PCL gave up -1.8% today but managed to settle on short-term technical support at its 10-dma. If the market continues to sink we'll likely see PCL testing support near $50.00.

If you are holding the May $50 calls you might want to exit early now to avoid or minimize any losses. I am not suggesting new positions at this time.

*Small Positions*

Current Position: Long PCL stock @ $50.56

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

Long May $50 call (PCL1318E50) entry $1.40*

03/30/13 new stop loss @ 49.90
*option entry price is an estimate since the option did not trade at the time our play was opened.



BEARISH Play Updates

Brunswick Corp - BC - close: 31.52 change: -0.68

Stop Loss: 34.25
Target(s): 30.30
Current Gain/Loss: + 7.0%

Entry on March 18 at $33.78
Listed on March 12, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 786 thousand
New Positions: see below

Comments:
04/03/13: The market sell-off is working well for us in BC. Shares posted another -2.1% decline and tested technical support at its 100-dma today. I would not be surprised to see a small oversold bounce right here.

Please note our new stop loss at $34.25.

Suggested Position: short BC stock @ $33.78

04/03/13 new stop loss @ 34.25
04/01/13 new stop loss @ 34.75
03/18/13 triggered on gap down at $33.78. Trigger was $33.90



Cabot Microelectronics - CCMP - close: 32.85 change: +0.15

Stop Loss: 34.05
Target(s): 30.25
Current Gain/Loss: -0.5%

Entry on April 03 at $32.69
Listed on April 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 104 thousand
New Positions: see below

Comments:
04/03/13: I am surprised by the strength displayed in CCMP today. The SOX semiconductor index continued to fall with a -1.9% decline. Yet CCMP managed to churn sideways in a narrow range and eke out a very small gain. Readers may want to wait for a new relative low in CCMP before initiating new bearish positions.

We want to keep our position size small. We want to limit our risk because CCMP is arguably already short-term oversold. Of course it can get a lot more oversold. We are using somewhat of a wide stop loss at $34.05. Our target is $30.25.

*Small Positions*

current Position: short CCMP stock @ $32.69



Teck Resources - TCK - close: 26.55 change: -0.86

Stop Loss: 28.25
Target(s): 26.25
Current Gain/Loss: +8.4%

Entry on March 19 at $29.00
Listed on March 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
04/03/13: The plunge in TCK continues with a -3.1% drop today. The intraday low was $26.51. Our exit target is $26.25. Please note our new stop loss at $28.25. I am not suggesting new positions at current levels.

current Position: short TCK stock @ $29.00

04/03/13 new stop loss @ 28.25
03/19/13 new stop loss @ 29.25



W&T Offshore Inc. - WTI - close: 13.02 change: -0.42

Stop Loss: 14.25
Target(s): 12.15
Current Gain/Loss: + 6.0%

Entry on April 01 at $13.85
Listed on March 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 696 thousand
New Positions: see below

Comments:
04/03/13: WTI is still collapsing with a -3.1% drop. Shares are off five days in a row. Today's decline breaks below the June 2012 low. I am lowering our stop loss down to $14.25.

Earlier Comments:
Our initial target is $12.15. More aggressive traders could aim lower. FYI: The Point & Figure chart for WTI is bearish with a $9.50 target.

current Position: short WTI stock @ $13.85

04/03/13 new stop loss @ 14.25



CLOSED BULLISH PLAYS

CSX Corp. - CSX - close: 23.95 change: -0.24

Stop Loss: 23.85
Target(s): 26.50
Current Gain/Loss: - 2.3%

Entry on March 27 at $24.40
Listed on March 19, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.7 million
New Positions: see below

Comments:
04/03/13: The profit taking in the transportation stocks, especially the rail stocks, continued on Wednesday. CSX pierced what should have been support near $24.00 and near its 20-dma. Our stop loss was hit at $23.85.

closed Position: Long CSX stock @ $24.40 exit $23.85 (-2.3%)

04/03/13 stopped out
04/02/13 transport stocks and the rails look weak. Readers may want to exit early right now.
new stop loss @ 23.85

chart:



Lithia Motors - LAD - close: 47.61 change: -2.70

Stop Loss: 44.95
Target(s): 49.50
Current Gain/Loss: -3.9%

Entry on March 27 at $46.75
Listed on March 23, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 242 thousand
New Positions: see below

Comments:
04/03/13: Ouch! I didn't see any news to account for the sudden relative weakness in shares of LAD. The stock was in "sell" mode until about 2:00 p.m. this afternoon where it finally bounce near $44.00 and its 30-dma. Shares ended the session down -5.7% and our stop loss was hit at $44.95.

*Small Positions*

closed Position: Long LAD stock @ $46.75 exit $44.95 (-3.9%)

04/03/13 stopped out
04/01/13 new stop loss @ 44.95
03/30/13 adjust exit to $49.50

chart:



Santarus, Inc. - SNTS - close: 16.83 change: -0.96

Stop Loss: 17.25
Target(s): 19.90
Current Gain/Loss: - 4.7%

Entry on April 02 at $18.10
Listed on April 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
04/03/13: The recent strength in the biotech sector evaporated today. Shares of SNTS underperformed both the broader market and its peers with a sharp -5.4% plunge. The pain was worse near its intraday low of $16.27. Our stop loss was hit at $17.25 along the way.

Earlier Comments:
I do consider this a higher-risk, more aggressive trade. Investors will want to keep their position size small.

*Small Positions*

closed Position: Long SNTS stock @ $18.10 exit $17.25 (-4.7%)

chart:



Synaptics Inc. - SYNA - close: 38.17 change: -1.75

Stop Loss: 38.70
Target(s): 44.50
Current Gain/Loss: - 3.9%

Entry on March 28 at $40.25
Listed on March 27, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 643 thousand
New Positions: see below

Comments:
04/03/13: SYNA was a significant underachiever today with a -4.3% decline. Technology stocks in general were weak on Wednesday but SYNA underperformed the sector. The stock hit our stop loss at $38.70. Thus far the trading this week is forming a big, bearish engulfing candlestick reversal pattern on SYNA's weekly chart.

closed Position: Long SYNA stock @ $40.25 exit $38.70 (-3.9%)

chart: