Editor's Note:
The stock market struggled with how it wanted to interpret Fed Chairman Bernanke's comments today. In the end, traders decided to sell. While it probably needs to see some confirmation today's session looks like a bearish reversal pattern.

LGF, PLD, SMH, and GG were all stopped out today.


Current Portfolio:


BULLISH Play Updates

Cognex Corp. - CGNX - close: 44.31 change: -1.12

Stop Loss: 43.95
Target(s): 49.50
Current Gain/Loss: - 2.6%

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:
05/22/13: CGNX is now down two days in a row. Shares underperformed the market today with a -2.4% decline. The close below its simple 10-dma is short-term bearish. If there is any follow through lower tomorrow we will likely see CGNX hit our stop loss at $43.95. FYI: The low today was $43.98.

*Small Positions*

current Position: Long CGNX stock @ $45.50



Delphi Automotive - DLPH - close: 48.77 change: -0.28

Stop Loss: 47.75
Target(s): 49.75
Current Gain/Loss: + 4.3%

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:
05/22/13: DLPH tagged another new high before succumbing to the market's widespread weakness. By today's closed DLPH fell just enough to erase yesterday's gain. More conservative traders may want to take profits early right now.

FYI: DLPH almost hit our exit target (49.75) with today's intraday high at $49.63.

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: 30.64 change: -0.38

Stop Loss: 29.95
Target(s): 32.00
Current Gain/Loss: +4.8%

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:
05/22/13: HIG slipped lower as well today but that's not surprising after seeing shares drift sideways for two sessions. Traders did buy the dip near its 10-dma but I would not buy HIG at current levels. 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: 46.39 change: -0.27

Stop Loss: 45.95
Target(s): 49.75
Current Gain/Loss: +1.9%

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:
05/22/13: Loews briefly traded higher this morning but the rally didn't last. The stock reversed with the market to close down -0.5%. Shares look poised to test what should be short-term support near its 10-dma and the $46.00 level soon.

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



Altria Group - MO - close: 36.90 change: -0.02

Stop Loss: 36.75
Target(s): 40.00
Current Gain/Loss: + 1.1%

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:
05/22/13: The good news is that MO only lost two cents today. The bad news is that the intraday reversal looks bearish and MO is about to hit our stop loss.

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: 38.12 change: +0.32

Stop Loss: 35.90
Target(s): 39.50
Current Gain/Loss: +6.6%

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:
05/22/13: NNI displayed some relative strength with a +0.8% gain. The stock is up four days in a row and up seven out of the last eight session. While I applaud today's show of strength if the market continues lower we would expect NNI to reverse. I am not suggesting new positions at this time.

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



SunTrust Banks - STI - close: 31.88 change: -0.27

Stop Loss: 30.95
Target(s): 34.50
Current Gain/Loss: + 1.5%

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:
05/22/13: STI managed to shrug off an analyst downgrade this morning but the intraday rally failed around lunchtime. STI reversed to follow the stock market lower. Look for a dip back toward its 10-dma or the $31.00 level, which could offer some short-term support.

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

Rackspace Holdings - RAX - close: 37.56 change: -0.45

Stop Loss: 40.55
Target(s): 31.00
Current Gain/Loss: +1.2%

Entry on May 22 at $38.02
Listed on May 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.0 million
New Positions: see below

Comments:
05/22/13: RAX popped higher this morning, which provided nimble traders an even better entry point to enter bearish positions. Today's rally failed below yesterday's high and RAX eventually reversed to a -1.1% decline. I would still consider new positions at current levels.

FYI: The Point & Figure chart for RAX is bearish with a $24.00 target.

If you're concerned about shorting RAX then buy the put option to limit your risk to the cost of your option.

current Position: short RAX stock @ $38.02

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

Long Jun $37.50 PUT (RAX1322r37.5) entry $1.60



Vitamin Shoppe, Inc. - VSI - close: 44.51 change: +0.60

Stop Loss: 45.75
Target(s): 40.25
Current Gain/Loss: - 0.1%

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:
05/22/13: Hmm... the action in VSI today was odd. I couldn't find any news to account for the stock's show of relative strength. Readers may want to wait for a failed rally at the 10-dma (currently near $45.11) before initiating new bearish positions.

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

Lions Gate Entertainment - LGF - close: 26.55 change: -0.76

Stop Loss: 26.60
Target(s): 29.75
Current Gain/Loss: - 3.6%

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:
05/22/13: The stock market's weakness sparked some profit taking in LGF. Shares underperformed with a -2.7% decline and a breakdown below their 10-dma. Our stop loss was hit at $26.60.

*Small Positions*

closed Position: Long LGF stock @ $27.59 exit $26.60 (-3.6%)

05/22/13 stopped out

chart:



Prologis, Inc. - PLD - close: 43.50 change: -1.27

Stop Loss: 43.30
Target(s): 47.50
Current Gain/Loss: - 0.6%

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:
05/22/13: Wednesday proved to be a very volatile session for PLD today. The stock spiked to a new high and hit $45.52 and then shares reversed with a -5% plunge from its intraday high. The stock broke down below its rising 10-dma and hit our stop loss at $43.30.

*small positions*

closed Position: Long PLD stock @ $43.55 exit $43.30 (-0.6%)

05/22/13 stopped out
05/18/13 new stop loss @ 43.30
05/16/13 new stop loss @ 42.75

chart:



Semiconductor ETF - SMH - close: 38.01 change: -0.55

Stop Loss: 38.15
Target(s): 40.00
Current Gain/Loss: + 1.1%

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:
05/22/13: We have been cautious on the SMH these last several days. The ETF broke down below its 10-dma and quickly hit our stop loss at $38.15.

I would not be surprised to see a correction lower back down to support near $36.00.

closed Position: Long SMH @ $37.75 exit $38.15 (+1.1%)

05/22/13 stopped out
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

chart:



CLOSED BEARISH PLAYS

Goldcorp Inc. - GG - close: 27.15 change: +0.51

Stop Loss: 27.55
Target(s): 22.00
Current Gain/Loss: -4.4%

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:
05/22/13: The U.S. dollar saw some volatility today. This morning's weakness in the dollar sparked a rally in gold prices and the gold miners followed. GG rallied to short-term resistance at its 10-dma before reversing. Our stop loss was hit at $27.55.

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

*Small Positions*

closed Position: short GG stock @ $26.40 exit $27.55 (-4.4%)

05/22/13 stopped out
05/21/13 new stop loss @ 27.55

chart: