Editor's Note:
The S&P 500 has fallen two days in a row and its worst drop since mid April.

Our B and WFC trades were stopped out. AKAM was triggered.


Current Portfolio:


BULLISH Play Updates

Electronic Arts - EA - close: 22.88 change: +0.16

Stop Loss: 22.40
Target(s): 25.75
Current Gain/Loss: - 1.0%

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:
06/05/13: Shares of EA are holding up pretty well. The stock managed to eke out a +0.7% gain in spite of the market's widespread decline. Yet I would hesitate to launch new positions here.

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: 42.38 change: -0.03

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:
06/05/13: Hmm... it was another quiet day for FNGN. If you're feeling optimistic the fact that FNGN did not breakdown below support near $42.00 in the face of a widespread market sell-off is arguably bullish. Yet at the same time shares do look poised to breakdown below this level. If we see a close under $42.00 we will likely drop FNGN as a bullish candidate. Currently we're still 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)



Spirit Airlines - SAVE - close: 30.16 change: -0.35

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:
06/05/13: SAVE essentially erased yesterday's gains with a -1.1% decline today. I don't see any changes from my earlier comments. SAVE looks bullish but the XAL airline index looks weak and if the industry starts accelerating lower it could pull SAVE down with it.

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: 31.55 change: -0.47

Stop Loss: 31.40
Target(s): 34.50
Current Gain/Loss: + 0.5%

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:
06/05/13: Ouch! It could be lights out for our STI trade. The financials underperformed the broader indices again. Shares of STI appear to be rolling over. If there is any follow through tomorrow then we'll see STI hit our stop at $31.40 (breakeven).

current Position: Long STI stock @ $31.40

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

Long Jul $32 call (STI1320G32) entry $0.78

06/04/13 new stop loss @ 31.40
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



BEARISH Play Updates

Akamai Tech. - AKAM - close: 44.30 change: -0.35

Stop Loss: 46.25
Target(s): 40.25
Current Gain/Loss: + 0.3%

Entry on June 05 at $44.45
Listed on June 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
06/05/13: Our new trade on AKAM has been triggered at $44.45. Shares lost -0.78% today. I don't see any changes from last night's new play description.

Our target is $40.25. More aggressive traders could aim lower.

*Small Positions*

Suggested Position: short AKAM stock @ $44.45



ConAgra Foods - CAG - close: 33.01 change: -0.52

Stop Loss: 35.05
Target(s): 30.15
Current Gain/Loss: +2.0%

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:
06/05/13: CAG continues to sink and gave up -1.55% today. I don't see any changes from my prior comments.

Earlier Comments:
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: 34.46 change: -1.23

Stop Loss: 37.75
Target(s): 31.00
Current Gain/Loss: +9.4%

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:
06/05/13: RAX continues to underperform and shares lost -3.4% today. This is a new 18-month low. I am lowering our stop loss down to $37.75. If you're holding the June $37.50 put then you might want to take profits now since the bid is up to $3.40 (+112%).

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

06/05/13 new stop loss @ 37.75
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: 22.47 change: -0.50

Stop Loss: 23.75
Target(s): 20.00
Current Gain/Loss: + 1.9%

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:
06/05/13: SWY gave up half a point and fell to new four-week lows with today's -2.1% decline. News that online retail behemoth Amazon.com was going to dip its toe into the grocery business probably didn't sit well with SWY investors. However, that's probably a longer-term challenge for SWY.

On a short-term basis the stock is nearing the late April lows and could actually bounce.

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

Barnes Group - B - close: 29.49 change: -0.62

Stop Loss: 29.90
Target(s): 34.75
Current Gain/Loss: -7.6%*

Entry on June 05 at $32.35
Listed on May 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 310 thousand
New Positions: see below

Comments:
06/05/13: Sometimes the stock market is just out to get you and nothing works right. This morning shares of B gapped open higher at $32.35 and immediately reversed. We had a trigger to launch small bullish positions if B traded at $31.10. This gap higher technically opened our trade. However, I doubt any readers were filled.

Looking at the time and sales today, at 9:30:03 this morning there was one trade for 100 shares at $32.35. a few seconds later the next trade was $30.13 and then $30.97. If somehow you were triggered on that gap higher we would have been stopped out at $29.90 around 09:56 a.m. this morning.

While I doubt anyone reading this newsletter was affected by the unexpected and unexplained spike higher the newsletter still has to post it as a loss.

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

closed Position: Long B stock @ $32.35, stopped @ 29.90 (-7.6%)

*06/05/13 triggered on gap higher (see note above) and then stopped out less than 30 minutes later.

chart:



Wells Fargo & Co - WFC - close: 39.82 change: -0.62

Stop Loss: 39.90
Target(s): 44.50
Current Gain/Loss: - 3.3%

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:
06/05/13: The underperformance in the financials was definitely evident in shares of WFC. The stock lost -1.5% and broke down below round-number support at $40.00. Our stop was hit at $39.90.

I would keep WFC on your watch list for a dip toward $38.00 or its 50-dma, which might be a new bullish entry point.

*Small Positions*

closed Position: Long WFC stock @ $41.25 exit $39.90 (-3.3%)

chart: