Editor's Note:
Traders bought the dip again and the market's major indices closed in positive territory.

MOH hit our stop loss. SWY was triggered.


Current Portfolio:


BULLISH Play Updates

Barnes Group - B - close: 30.34 change: +0.12

Stop Loss: 29.90
Target(s): 34.75
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 310 thousand
New Positions: Yes, see below

Comments:
06/03/13: B is little changed for Monday with traders buying the dip near $30.00 again. Currently we are waiting for a bullish breakout past resistance at $31.00. The trigger to launch positions is $31.10 but if we see B close below $30.00 we will most likely drop this stock as a candidate.

Earlier Comments:
We definitely want to keep our position size small to limit our risk.

Trigger @ 31.10 *Small Positions*

Suggested Position: buy B stock @ (trigger)



Electronic Arts - EA - close: 22.99 change: +0.00

Stop Loss: 22.40
Target(s): 25.75
Current Gain/Loss: - 0.5%

Entry on May 28 at $23.10
Listed on May 23, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 6.0 million
New Positions: see below

Comments:
06/03/13: EA saw a dip just below its rising 10-dma. Fortunately traders bought the dip and shares closed unchanged on the session. The low today was $22.51.

Earlier Comments:
If triggered our target is $25.75. However, that is a slightly aggressive target. The $25.00 level has been resistance in the past and could be resistance again.

current Position: Long EA stock @ $23.10

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

Long Jul $25 call (EA1320G25) Entry $0.62

06/01/13 new stop loss @ 22.40



Financial Engines - FNGN - close: 42.64 change: -0.48

Stop Loss: 42.25
Target(s): 49.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 29, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 396 thousand
New Positions: Yes, see below

Comments:
06/03/13: FNGN has pulled back to the bottom of its $42-44 trading range. We are waiting for a breakout to new highs.

Earlier Comments:
If FNGN can breakout past resistance it could see a short squeeze. The most recent data listed short interest at 19% of the 47.7 million-share float.

The May 20th high was $44.33. I am suggesting small bullish positions at $44.50. If triggered our target is $49.50. We do want to keep our position size small because FNGN is arguably overbought here.

Trigger @ 44.50 *small positions*

Suggested Position: buy FNGN stock @ (trigger)



Groupon, Inc. - GRPN - close: 7.14 change: -0.55

Stop Loss: 6.99
Target(s): 9.00
Current Gain/Loss: - 3.6%

Entry on May 28 at $ 7.41
Listed on May 25, 2013
Time Frame: 10 to 12 weeks
Average Daily Volume = 20.5 million
New Positions: see below

Comments:
06/03/13: Ouch! What happened to GRPN today? The stock has reversed sharply lower. Today's -7.1% plunge erased several days of gains. I could not find any news to explain this sudden show of weakness. Technically today's session is a huge bearish engulfing candlestick reversal pattern.

The low today was $7.03. Our stop is at $6.99. I am not suggesting new positions.

Earlier Comments:
Due to the stock's volatility in the last couple of months I am suggesting we keep our position size small to limit risk.
FYI: The Point & Figure chart for GRPN is bullish with a $10.50 target.

current Position: Long GRPN stock @ $7.41

06/01/13 new stop loss @ 6.99



Spirit Airlines - SAVE - close: 30.15 change: -0.28

Stop Loss: 29.20
Target(s): 34.00
Current Gain/Loss: - 0.3%

Entry on May 28 at $30.25
Listed on May 25, 2013
Time Frame: 8 to 9 weeks
Average Daily Volume = 686 thousand
New Positions: see below

Comments:
06/03/13: SAVE saw a mild sell-off this morning. Yet traders bought the dip midday at SAVE's rising 20-dma. Shares managed to pared their losses to just 28 cents. I am urging caution here. SAVE looks poised to rally with today's afternoon bounce. Yet the XAL airline index looks poised to breakdown. If the industry declines it could make gains tougher for SAVE.

FYI: The low today was $29.29. Our stop is at $29.20.

current Position: Long SAVE stock @ $30.25

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

Long Jul $30 call (SAVE1320G30) entry $1.50

06/01/13 new stop loss @ 29.20



SunTrust Banks - STI - close: 32.24 change: +0.15

Stop Loss: 30.95
Target(s): 34.50
Current Gain/Loss: + 2.7%

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:
06/03/13: STI also saw some volatility today with a morning decline and an afternoon rebound. Today's low was $31.54. More conservative traders may want to raise their stop closer to today's low.

If you're holding the July calls you may want to take profits now. I am not suggesting new positions at this time.

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

05/28/13 call option traders might want to take profits early right now.
note: STI will begin trading ex-dividend tomorrow (10 cents)
05/20/13 new stop loss @ 30.95



Wells Fargo & Co - WFC - close: 40.73 change: +0.18

Stop Loss: 39.90
Target(s): 44.50
Current Gain/Loss: - 1.3%

Entry on May 30 at $41.25
Listed on May 29, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 20.5 million
New Positions: see below

Comments:
06/03/13: WFC had a similar session to STI's. The stock dipped this morning but traders bought the dip near round-number support at $40.00. If both WFC and the S&P 500 index open positive tomorrow then I would go ahead and launch new positions.

*Small Positions*

current Position: Long WFC stock @ $41.25



BEARISH Play Updates

ConAgra Foods - CAG - close: 33.45 change: -0.24

Stop Loss: 35.05
Target(s): 30.15
Current Gain/Loss: +0.7%

Entry on June 03 at $33.67
Listed on June 01, 2013
Time Frame: Exit PRIOR to earnings on June 27th
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
06/03/13: As we expected shares of CAG continued to slip. The stock opened at $33.67 and fell to a new three-month low at $32.81 before paring its losses. If the broader market continues to rally tomorrow then I would not be surprised to see CAG produce a bounce back toward the $34.00-34.50 area.

Earlier Comments:
Nimble traders could wait for an oversold bounce and maybe a failed rally near $34.50 as an alternative entry point. Our target is $30.15. However, we will plan on exiting positions prior to CAG's earnings report on June 27th.

Suggested Position: short CAG stock @ $33.67

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

Long Jul $33 PUT (CAG1320S33) entry $0.80



Rackspace Holdings - RAX - close: 36.83 change: -0.70

Stop Loss: 40.10
Target(s): 31.00
Current Gain/Loss: +3.1%

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:
06/03/13: RAX tagged a new 18-month low before paring its losses with an afternoon bounce. Shares still underperformed the market with a -1.8% decline.

Earlier Comments:
If you're concerned about shorting RAX then buy the put option to limit your risk to the cost of your option. Although you may want to buy the July puts. June puts only have three weeks left.

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

05/25/13 new stop loss at $40.10, more conservative traders may want to exit early now.
05/24/13 RAX confirms the bullish reversal pattern.
05/23/13 RAX produced a bullish reversal candlestick.



Safeway Inc. - SWY - close: 23.20 change: +0.19

Stop Loss: 23.75
Target(s): 20.00
Current Gain/Loss: - 1.3%

Entry on June 03 at $22.90
Listed on June 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.4 million
New Positions: see below

Comments:
06/03/13: SWY spiked lower this morning before bouncing back toward its 100-dma. The morning weakness was enough to hit our entry trigger at $22.90. Given the bounce back into positive territory today readers may want to wait on launching new positions. You could look for a failed rally at the 10-dma (near $23.50) or wait for a new relative low (under $22.64).

Earlier Comments:
I am suggesting we keep our position size small because the most recent data listed short interest at 23% of the 234 million-share float. That does raise the risk of a short squeeze. You could try and limit your risk by trading the options.

*Small Positions*

Suggested Position: short SWY stock @ $22.90

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

Long Jul $23 PUT (SWY1320S23) entry $1.35



CLOSED BULLISH PLAYS

Molina Healthcare - MOH - close: 37.06 change: -0.74

Stop Loss: 37.40
Target(s): 42.00
Current Gain/Loss: - 3.1%

Entry on May 29 at $38.60
Listed on May 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 660 thousand
New Positions: see below

Comments:
06/03/13: The profit taking in MOH continued on Monday and shares hit our stop loss at $37.40. The stock has fallen to new two-week lows. There was no news to explain the relative weakness today. The next level of support should be the $34-35 area.

Earlier Comments:
I want to repeat that we are suggesting small positions. If the broader market continues lower we could see MOH reverse.

*Small Positions*

closed Position: Long MOH stock @ $38.60 exit $37.40 (-3.1%)

chart: