Editor's Note:
After yesterday's big oversold bounce in gold there was no follow through higher today. Shares of GG, our bearish play, reversed lower.

We closed our XHB trade at the open this morning.


Current Portfolio:


BULLISH Play Updates

Cognex Corp. - CGNX - close: 45.43 change: -0.38

Stop Loss: 43.95
Target(s): 49.50
Current Gain/Loss: - 0.2%

Entry on May 20 at $45.50
Listed on May 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 269 thousand
New Positions: see below

Comments:
05/21/13: CGNX might be poised for a pullback with traders selling the rally today. Shares spiked higher this morning and then reversed to a -0.8% decline. Look for a dip to the $44.00 area or potential support at its rising 10-dma (currently 44.33).

FYI: The Point & Figure chart for CGNX is bullish with a $57.00 target.

*Small Positions*

current Position: Long CGNX stock @ $45.50



Delphi Automotive - DLPH - close: 49.05 change: +0.26

Stop Loss: 47.75
Target(s): 49.75
Current Gain/Loss: + 4.9%

Entry on May 16 at $46.75
Listed on May 14, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
05/21/13: DLPH managed to outperform the market with a +0.5% gain and another new record high. More conservative traders may want to take profits now. Officially our exit target is $49.75. Tonight we are raising the stop loss to $47.75.

current Position: Long DLPH stock @ $46.75

05/21/13 new stop loss @ 47.75
05/20/13 new stop loss @ 46.75
05/18/13 new stop loss @ 45.95



The Hartford Financial Serv. Group - HIG - close: 31.02 change: -0.08

Stop Loss: 29.95
Target(s): 32.00
Current Gain/Loss: +6.1%

Entry on May 07 at $29.23
Listed on May 06, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 7.3 million
New Positions: see below

Comments:
05/21/13: The upward momentum in HIG is still on pause with shares consolidating sideways two days in a row. Shares remain short-term overbought here. I am not suggesting new positions. More conservative traders may want to exit early right now to lock in gains.

Earlier Comments:
Keep in mind this is a multi-week trade so we'll need patience for the trend to play out for us. I would start this trade with small positions to limit our risk.

current Position: Long HIG stock @ $29.23

05/18/13 new stop loss @ 29.95, adjust exit to $32.00
05/16/13 new stop loss @ 29.75
05/14/13 new stop loss @ 28.45
05/07/13 trade opened on gap open higher at $29.23



Loews Corp. - L - close: 46.66 change: -0.05

Stop Loss: 45.95
Target(s): 49.75
Current Gain/Loss: +2.5%

Entry on May 08 at $45.52
Listed on May 07, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
05/21/13: Shares of L saw a little bit of volatility this morning but traders bought the dip near $46.40. I am not suggesting new positions at this time.

Earlier Comments:
I am suggesting we keep our position size small. Our multi-week target is $49.50 and we may need to be patient. Shares of L don't usually move that fast. FYI: The Point & Figure chart for L is bullish with a $58 target.

*Small Positions*

current Position: Long L stock @ $45.52

05/20/13 new stop loss @ 45.95
05/15/13 new stop loss @ 44.90



Lions Gate Entertainment - LGF - close: 27.31 change: -0.48

Stop Loss: 26.60
Target(s): 29.75
Current Gain/Loss: - 1.0%

Entry on May 20 at $27.59
Listed on May 18, 2013
Time Frame: Exit PRIOR to earnings on May 30th
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
05/21/13: LGF spiked lower this morning with a plunge to $27.20. This looks like a normal pullback from resistance at $28.00. Granted LGF did underperform the market today with a -1.7% decline. Nimble traders can try and buy another bounce from its rising 10-dma, currently at $26.92.

Earlier Comments:
Any further gains could spark more short covering. The most recent data listed short interest at 12% of the 78 million-share float. More conservative traders may want to wait for a rally past $28.00 as an alternative entry point. Our short-term target is $29.75 but we will plan on exiting positions prior to LGF's earnings report due out on May 30th.

*Small Positions*

current Position: Long LGF stock @ $27.59



Altria Group - MO - close: 36.92 change: -0.42

Stop Loss: 36.75
Target(s): 40.00
Current Gain/Loss: + 1.2%

Entry on April 29 at $36.50
Listed on April 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.6 million
New Positions: see below

Comments:
05/21/13: Tobacco-related stocks were down today as the market reacted to news that Minnesota lawmakers approved a new bill that will double the excise tax on cigarettes from $1.59 to $3.19 per pack. The fear could be other states might do the same. If this weakness sees any follow through lower tomorrow then MO will likely hit our stop loss at $36.75.

Earlier Comments:
Our target is $40.00 but keep in mind that MO does not move very fast. This could be a multi-week trade.

current Position: Long MO stock @ $36.50

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

Long Jun $35 call (MO1322F35) entry $1.80

05/18/13 new stop loss @ 36.75
05/07/13 new stop loss @ 35.95



Netnet, Inc. - NNI - close: 37.80 change: +0.29

Stop Loss: 35.90
Target(s): 39.50
Current Gain/Loss: +5.7%

Entry on May 14 at $35.75
Listed on May 13, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 68.7 thousand
New Positions: see below

Comments:
05/21/13: NNI is still melting higher and the stock added another +0.77% today. I am inching our stop loss up to $35.90.

Earlier Comments:
I do want to urge traders to keep their position size small. NNI does not trade a lot of daily volume. If triggered our target is $39.50.

*small positions*

current Position: Long NNI stock @ $35.75

05/21/13 new stop loss @ 35.90
05/18/13 new stop loss @ 35.65



Prologis, Inc. - PLD - close: 44.77 change: +0.59

Stop Loss: 43.30
Target(s): 47.50
Current Gain/Loss: + 2.8%

Entry on May 15 at $43.55
Listed on May 11, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.4 million
New Positions: see below

Comments:
05/21/13: PLD continues to outperform and added +1.3% today. Readers may want to adjust their stop loss closer to the 10-dma, currently at $43.65.

*small positions*

current Position: Long PLD stock @ $43.55

05/18/13 new stop loss @ 43.30
05/16/13 new stop loss @ 42.75



Semiconductor ETF - SMH - close: 38.56 change: -0.09

Stop Loss: 38.15
Target(s): 40.00
Current Gain/Loss: + 2.1%

Entry on May 03 at $37.75
Listed on May 02, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 2.6 million
New Positions: see below

Comments:
05/21/13: Today marks two down days in a row for the SMH. Shares dipped to short-term technical support at the rising 10-dma. A breakdown here will probably signal a drop toward $38.00 and hit our stop loss at $38.15 in the process.

I am not suggesting new positions at this time.

Earlier Comments:
Our short-term target is $40.00 although traders could aim for the 2007 high near $41.40 instead. FYI: The Point & Figure chart for SMH is bullish with a $44.00 target.

current Position: Long SMH @ $37.75

05/18/13 new stop loss @ 38.15
05/16/13 new stop loss @ 37.65
05/03/13 triggered on gap open at $37.75, trigger was $37.55



SunTrust Banks - STI - close: 32.15 change: -0.15

Stop Loss: 30.95
Target(s): 34.50
Current Gain/Loss: + 2.4%

Entry on May 16 at $31.40
Listed on May 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.4 million
New Positions: see below

Comments:
05/21/13: STI snapped a six-day winning streak with a 15-cent pullback. I don't see any changes from my prior comments.

I want to remind you that the 2011 highs near $33.00-33.15 could prove to be resistance. More conservative traders may want to exit near $33.00. Tonight we are raising our stop loss to $30.95.

current Position: Long STI stock @ $31.40

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

Long Jul $32 call (STI1320G32) entry $0.78

05/20/13 new stop loss @ 30.95



BEARISH Play Updates

Goldcorp Inc. - GG - close: 26.64 change: -0.64

Stop Loss: 27.55
Target(s): 22.00
Current Gain/Loss: -0.9%

Entry on May 17 at $26.40
Listed on May 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.3 million
New Positions: see below

Comments:
05/21/13: Good news for gold miner bears. There was no follow through on yesterday's oversold bounce. Gold resumed its down trend today and shares of GG actually gapped open lower as equities tried to catch up with the weakness in gold futures.

We are adjusting our stop loss down to $27.55 in an effort to reduce our risk.

Earlier Comments:
Gold and gold stocks can be volatile. I am suggesting we keep our position size small to limit our risk.

*Small Positions*

Current Position: short GG stock @ $26.40

05/21/13 new stop loss @ 27.55



Vitamin Shoppe, Inc. - VSI - close: 43.91 change: -0.45

Stop Loss: 45.75
Target(s): 40.25
Current Gain/Loss: + 1.3%

Entry on May 21 at $44.48
Listed on May 20, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 587 thousand
New Positions: see below

Comments:
05/21/13: The relative weakness in shares of VSI continued today. The stock fell to a -1.0% decline and looks poised to test its early May lows soon.

Earlier Comments:
The most recent data listed short interest at 11% of the 29.0 million-share float. That does raise the risk of a short squeeze.

We are a little concerned that VSI might bounce at its May low of $43.16 but the trend would suggest a pattern of lower lows. We will target a drop to $40.25. FYI: The Point & Figure chart for VSI is bearish with a $26.00 target.

*Small Positions*

current Position: short VSI stock @ $44.48



CLOSED BULLISH PLAYS

SPDR S&P Homebuilders ETF - XHB - close: 32.06 change: -0.07

Stop Loss: 31.65
Target(s): 34.50
Current Gain/Loss: + 2.9%

Entry on May 09 at $31.34
Listed on May 08, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 5.3 million
New Positions: see below

Comments:
05/21/13: Last night we decided to close our XHB trade this morning. The ETF was kind enough to gap open higher for us at $32.25. Shares did breakdown intraday but managed a rebound.

The long-term trend is still up. I would keep XHB on your watch list for a correction as a potential entry point for new bullish positions.

*Small Positions*

closed Position: Long the XHB @ $31.34 exit $32.25 (+2.9%)

05/21/13 closed this morning
05/20/13 prepare to exit tomorrow at the opening bell
05/18/13 new stop loss @ 31.65
05/16/13 new stop loss @ 30.70

chart: