Editor's Note:
Stocks rallied off their midday lows. The afternoon rebound was accelerating but volume was light ahead of tomorrow's jobs report.

ACAD was triggered. FNGN has been removed. STI was stopped out. We have updated stop losses on our bearish trades.


Current Portfolio:


BULLISH Play Updates

ACADIA Pharma. - ACAD - close: 16.57 change: +1.86

Stop Loss: 14.95
Target(s): (see below)
Current Gain/Loss: +9.2%

Entry on June 06 at $15.17
Listed on June 05, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 3.1 million
New Positions: see below

Comments:
06/06/13: Wow! We thought ACAD looked bullish and was showing relative strength but today's move was unexpected. This morning it was announced that Baker Bros. Advisors disclosed a 22.6% stake in the company. Yet it looks like this news didn't hit the wires until 10:20 a.m. Is it possible this news hit prior to the market open? Shares of ACAD gapped open higher at $15.17 and surged to a +12.6% gain.

Our trigger to buy calls was $15.05 so the gap higher opened our trade. At this point I would not chase it. We are going to adjust our exit strategy. I am removing the exit target. We'll just see how far it runs. More conservative traders may still want to exit near $17.00 or $18.00 since both levels have been resistance in the past. We will move the stop loss to $14.95.

*Small Positions*

current Position: Long ACAD stock @ $15.17

06/06/13 new stop loss @ 14.95, adjust exit target to $17.90
06/06/13 trade opened on gap higher at $15.17



Electronic Arts - EA - close: 23.28 change: +0.40

Stop Loss: 22.40
Target(s): 25.75
Current Gain/Loss: + 0.8%

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:
06/06/13: EA continues to show relative strength and posted a +1.7% gain today. Shares will soon challenge their May highs near $23.60. I would be tempted to buy the stock here or on a breakout higher.

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



Spirit Airlines - SAVE - close: 30.64 change: +0.48

Stop Loss: 29.20
Target(s): 34.00
Current Gain/Loss: + 1.3%

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:
06/06/13: SAVE continues to work its way higher and added another +1.59% today. Traders might want to adjust their stop loss closer to the 20-dma near $29.53.

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



BEARISH Play Updates

Akamai Tech. - AKAM - close: 44.56 change: +0.26

Stop Loss: 45.15
Target(s): 40.25
Current Gain/Loss: - 0.2%

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:
06/06/13: AKAM bounced off the $44.00 level but underperformed the market with a +0.5% gain. We are turning more defensive here and lowering the stop loss to $45.15.

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

*Small Positions*

Suggested Position: short AKAM stock @ $44.45

06/06/13 new stop loss @ 45.15



ConAgra Foods - CAG - close: 33.16 change: +0.15

Stop Loss: 33.85
Target(s): 30.15
Current Gain/Loss: +1.5%

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:
06/06/13: CAG fell to a new relative low today. Yet the stock bounced off its rising 150-dma. Shares look poised to rebound higher tomorrow. We are moving the stop loss to $33.85. More aggressive traders may want to keep their stop above the simple 10-dma (currently at $34.01).

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

06/06/13 new stop loss @ 33.85



Rackspace Holdings - RAX - close: 34.90 change: +0.44

Stop Loss: 37.25
Target(s): 31.00
Current Gain/Loss: +8.2%

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:
06/06/13: Shares of RAX were downgraded again but that didn't stop shares from producing a +1.2% oversold bounce. The stock is short-term oversold here and if the market rallies on the jobs data tomorrow I would expect RAX to rally with it.

We are lowering the stop loss to $37.25. If you're holding the June $37.50 put then you might want to take profits now.

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

06/06/13 new stop loss @ 37.25
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: 22.53 change: +0.06

Stop Loss: 23.15
Target(s): 20.00
Current Gain/Loss: + 1.6%

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:
06/06/13: SWY eked out a small gain of six cents. Shares could be trying to bounce from their late April lows and just not doing a very good job at it. We are adjusting the stop loss down to $23.15.

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

06/06/13 new stop loss @ 23.15



CLOSED BULLISH PLAYS

Financial Engines - FNGN - close: 42.62 change: +0.24

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: see below

Comments:
06/06/13: We are dropping FNGN for lack of movement. The stock didn't fall when the market was falling and it didn't rally when the market rallies. Technically shares look poised to breakdown below support near $42.00. If that happens FNGN might see a correction to $40.00 or even $38.00.

Trade did not open.

06/06/13 removed from the newsletter. trade did not open.

chart:



SunTrust Banks - STI - close: 31.88 change: +0.33

Stop Loss: 31.40
Target(s): 34.50
Current Gain/Loss: + 0.0%

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:
06/06/13: STI delivered a +1.0% bounce today. Unfortunately, shares fell to a new two-week low midday and the stock hit our stop loss at $31.40.

closed Position: Long STI stock @ $31.40 exit $31.40 (+00.0%)

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

Jul $32 call (STI1320G32) entry $0.78 exit $0.80 (+2.5%)

06/06/13 stopped out
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

chart: