Editor's Note:
The U.S. markets struggled this morning in reaction to weakness overseas. The major indices did manage to pare their losses by the closing bell.

We still saw four bullish trades get stopped out on the morning weakness (CGNX, HIG, L, MO).

I am suggesting we exit our VSI trade at the open tomorrow.


Current Portfolio:


BULLISH Play Updates

Delphi Automotive - DLPH - close: 48.35 change: -0.42

Stop Loss: 47.75
Target(s): 49.75
Current Gain/Loss: + 3.4%

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:
05/23/13: DLPH held up reasonably well today. The stock did gap down this morning but DLPH bounced at $47.90. I am not suggesting new positions. Our stop loss remains at $47.75. More conservative traders may want to take profits early right now.

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



Molina Healthcare - MOH - close: 38.21 change: +0.07

Stop Loss: 37.40
Target(s): 42.00
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 660 thousand
New Positions: Yes, see below

Comments:
05/23/13: MOH held up pretty well today. Traders bought the dip near its 10-dma and the stock closed up on the session. Shares still look poised for a bullish breakout from its sideways consolidation.

I am suggesting small bullish positions if MOH can trade at $38.60 or higher. If triggered our target is $42.00. I want to repeat that we are suggesting small positions. If the broader market continues lower we could see MOH reverse.

Trigger @ 38.60 *Small Positions*

Suggested Position: buy MOH stock @ (the trigger)



Netnet, Inc. - NNI - close: 38.10 change: -0.02

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:
05/23/13: NNI also held up well today. There was a very brief spike lower this morning, down to $37.34. NNI quickly recover and spent the session drifting sideways. 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: 31.75 change: -0.13

Stop Loss: 30.95
Target(s): 34.50
Current Gain/Loss: + 1.1%

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:
05/23/13: STI managed a rebound off its rising 10-dma. Shares pared their losses to -0.4%. More conservative traders might want to raise their stop loss.

Earlier 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.

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: 38.18 change: +0.62

Stop Loss: 40.55
Target(s): 31.00
Current Gain/Loss: -0.4%

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:
05/23/13: RAX dipped to a new relative low and then bounced back to a +1.6% gain. That's a little too much relative strength for my tastes. Readers may want to lower their stop loss. I am not suggesting new positions.

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: 44.90 change: +0.39

Stop Loss: 45.75
Target(s): 40.25
Current Gain/Loss: - 0.9%

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:
05/23/13: VSI is not cooperating. The stock market has suffered the last two session and yet VSI is bouncing. Bears can argue that VSI is still below short-term resistance at its simple 10-dma. The larger trend is still a bearish one of lower highs. Yet we are throwing this one back. I am suggesting an immediate exit at the open tomorrow.

*Small Positions*

current Position: short VSI stock @ $44.48

05/23/13 prepare to exit tomorrow at the opening bell



CLOSED BULLISH PLAYS

Cognex Corp. - CGNX - close: 43.63 change: -0.68

Stop Loss: 43.95
Target(s): 49.50
Current Gain/Loss: - 3.9%

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:
05/23/13: The profit taking in shares of CGNX continued on Thursday. The stock gapped open lower, like many stocks did today. Unfortunately, CGNX gapped open lower at $43.74, which was below our stop loss at $43.95.

*Small Positions*

closed Position: Long CGNX stock @ $45.50 exit $43.74 (-3.9%)

chart:



The Hartford Financial Serv. Group - HIG - close: 30.38 change: -0.26

Stop Loss: 29.95
Target(s): 32.00
Current Gain/Loss: +2.4%

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:
05/23/13: We've been concerned about HIG's lack of momentum these last few days. It was not a surprised to see shares gap down this morning with so much market weakness. The stock opened at $29.92. That was below our stop loss at $29.95. The play was closed immediately.

Earlier Comments:
I would start this trade with small positions to limit our risk.

closed Position: Long HIG stock @ $29.23 exit $29.92 (+2.4%)

05/23/13 stopped out on gap down at $29.92
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

chart:



Loews Corp. - L - close: 46.06 change: -0.33

Stop Loss: 45.95
Target(s): 49.75
Current Gain/Loss: +0.9%

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:
05/23/13: Shares of L also gapped open lower this morning. The stock opened at $46.08, which was below short-term support at its 10-dma. Loews quickly hit our stop loss at $45.95.

Earlier Comments:
I am suggesting we keep our position size small.

*Small Positions*

closed Position: Long L stock @ $45.52 exit $45.95 (+0.9%)

05/23/13 stopped out
05/20/13 new stop loss @ 45.95
05/15/13 new stop loss @ 44.90

chart:



Altria Group - MO - close: 36.86 change: -0.04

Stop Loss: 36.75
Target(s): 40.00
Current Gain/Loss: + 0.3%

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:
05/23/13: Shares of MO only lost four cents on the session. Unfortunately the stock gapped open lower like so many stocks did today. MO opened at $36.62, which was below our stop loss at $36.75. Our trade was closed immediately.

closed Position: Long MO stock @ $36.50 exit $36.62 (+0.3%)

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

Jun $35 call (MO1322F35) entry $1.80 exit $1.86 (+3.3%)

05/23/13 stopped out on gap down at $36.62
05/18/13 new stop loss @ 36.75
05/07/13 new stop loss @ 35.95

chart: