Editor's Note:
The stock market's rally paused on Wednesday with the major indices churning sideways.

Unfortunately, we saw more than one stock completely erase yesterday's rally and form a one-day bearish reversal pattern.

TSN hit our entry point today.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 12.10 change: +0.30

Stop Loss: 11.55
Target(s): 12.95
Current Gain/Loss: + 4.8%

Entry on February 19 at $11.55
Listed on February 11, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 39 million
New Positions: see below

Comments:
03/05/14: AA was an outperformer on Wednesday with a +2.5% surge toward its recent highs. The challenge now is breaking out past resistance in the $12.15-12.30 area. Tonight we'll adjust the stop loss to $11.55. I am not suggesting new positions at this time.

Earlier Comments:
Our multi-week target is $12.95. The Point & Figure chart for AA is very bullish with a $20.00 target.

current Position: Long AA stock @ $11.55

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

Long APR $12 call (AA1419D12) entry $0.47

03/05/14 new stop loss @ 11.55
02/26/14 new stop loss @ 11.45
02/22/14 new stop loss @ 11.25
02/19/14 triggered at $11.55



DR Horton Inc. - DHI - close: 23.96 change: -0.37

Stop Loss: 23.65
Target(s): 27.50
Current Gain/Loss: -1.6%

Entry on February 26 at $24.35
Listed on February 25, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.0 million
New Positions: see below

Comments:
03/05/14: The homebuilders struggled today. Homebuilder Hovnanian (HOV) reported earnings this morning that missed estimates on both the top and bottom line. The company blamed the weather for its profit miss. Shares of HOV plunged -10% on its results and dragged the rest of the industry lower. DHI fell -1.5%.

More conservative investors might want to abandon ship on our DHI trade right here. We are going to raise our stop loss to $23.65. I am not suggesting new positions.

current Position: Long DHI stock @ $24.35

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

Long Apr $25 call (DHI1419D25) entry $0.96*

03/05/14 new stop loss @ 23.65
02/26/14 triggered @ 24.35
*option entry price is an estimate since the option did not trade at the time our play was opened.



Dunkin' Brands Group - DNKN - close: 51.40 change: -0.80

Stop Loss: 50.65
Target(s): 57.50
Current Gain/Loss: + 1.5%

Entry on February 19 at $50.65
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
03/05/14: Hmm... I didn't see any specific news to account for today's relative weakness in DNKN (-1.5%). Technically today's move has created a bearish engulfing candlestick reversal pattern. I am not suggesting new positions. More conservative traders could raise their stop again.

Earlier Comments:
FYI: The Point & Figure chart for DNKN is bullish with a $60.00 target.

current Position: long DNKN stock @ $50.65

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

Long MAR $50 call (DNKN1422C50) entry $1.50*

03/04/14 new stop @ 50.65
02/25/14 new stop @ 49.75
02/19/14 triggered @ 50.65
*option entry price is an estimate since the option did not trade at the time our play was opened.



Electronic Arts - EA - close: 29.09 change: +0.28

Stop Loss: 27.60
Target(s): 34.00
Current Gain/Loss: + 0.8%

Entry on March 04 at $28.85
Listed on March 01, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 5.0 million
New Positions: see below

Comments:
03/05/14: GameStop (GME) was making headlines today after raising its dividend. That gave GME shares a boost and the halo effect could have helped EA. Shares of EA outperformed the market with a +0.9% today.

Earlier Comments:
We want to keep our position size small to limit our risk. Our multi-week target is $34.00. The Point & Figure chart for EA is bullish with a $43.00 target.

*small positions*

current Position: Long EA stock @ $28.85

03/04/14 new stop @ 27.60
03/04/14 triggered @ 28.85



Flotek Industries - FTK - close: 26.72 change: -0.01

Stop Loss: 24.90
Target(s): 29.50
Current Gain/Loss: + 6.2%

Entry on February 24 at $25.15
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 976 thousand
New Positions: see below

Comments:
03/05/14: After big gains yesterday FTK managed to hold on to almost all of them with a sideways consolidation on Wednesday. I am not suggesting new positions at this time.

Earlier Comments:

FYI: The Point & Figure chart for FTK is bullish with a $31.00 target.

*small positions*

current Position: long FTK stock @ $25.15

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

Long Mar $25 call (FTK1422C25) entry $0.90*

03/04/14 new stop loss @ 24.90, adjust target to $29.50
03/03/14 new stop loss @ 24.40
02/24/14 triggered @ $25.15
*option entry price is an estimate since the option did not trade at the time our play was opened.



The Manitowoc Co. - MTW - close: 30.44 change: -0.88

Stop Loss: 29.90
Target(s): 34.85
Current Gain/Loss: - 1.1%

Entry on February 27 at $30.79
Listed on February 26, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.9 million
New Positions: see below

Comments:
03/05/14: MTW underperformed the market today with a -2.8% decline. I did not see any specific headlines out today that might account for this sell-off. Shares have technically created a bearish engulfing candlestick reversal pattern with today's move. I am not suggesting new positions.

I did hear some stories about how elevated geopolitical tensions in Russia could slow down investment in the area and that could filter through to fewer sales of cranes and thus impact MTW. Yet these comments came out yesterday morning so I don't see a connection to today's decline.

Earlier Comments:
The plan was to keep our position size small to limit risk.

*Small positions*

current Position: Long MTW stock @ $30.79

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

Long Apr $30 call (MTW1419D30) entry $2.05*

03/04/14 new stop loss @ 29.90
02/27/14 trade opens at $30.79
*option entry price is an estimate since the option did not trade at the time our play was opened.



Oasis Petroleum - OAS - close: 44.16 change: -1.33

Stop Loss: 42.90
Target(s): 49.85
Current Gain/Loss: - 2.2%

Entry on March 04 at $45.15
Listed on March 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.7 million
New Positions: see below

Comments:
03/05/14: Ouch! Energy stocks were hammered today thanks to a plunge in crude oil prices. Shares of OAS fell -2.9% and erased yesterday's rally. Technically today's move in OAS is a bearish engulfing candlestick reversal pattern. I am adjusting our stop loss to $42.90. More conservative traders may want to raise their stop loss even higher.

Earlier Comments:
Our target is $49.85. I do expect OAS to see some short-term resistance near $48.00.

current Position: Long OAS stock @ $45.15

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

Long Apr $45 call (OAS1419D45) entry $2.50*

03/05/14 new stop @ 42.90
03/04/14 triggered @ 45.15
*option entry price is an estimate since the option did not trade at the time our play was opened.



Penn Virginia Corp. - PVA - close: 15.20 change: -0.39

Stop Loss: 14.29
Target(s): 18.50
Current Gain/Loss: + 0.0%

Entry on February 28 at $15.20
Listed on February 27, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
03/05/14: PVA reversed at the $16 level this morning and fell to a -2.5% decline on the session. Readers may want to raise their stop loss. If shares breakdown below $15.00 the next support level could be the 10-dma (near 14.85). I am not suggesting new positions.

Earlier Comments:
A breakout could spark some short covering. The most recent data listed short interest at 14% of the very small 19.4 million share float.

current Position: Long PVA stock @ $15.20

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

Long APR $15 call (PVA1419D15) entry $1.25*

02/28/14 triggered @ 15.20
*option entry price is an estimate since the option did not trade at the time our play was opened.



Quanta Services, Inc. - PWR - close: 35.80 change: -0.06

Stop Loss: 34.65
Target(s): 39.85
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 04, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: Yes, see below

Comments:
03/05/14: Wednesday turned out to be a quiet session for shares of PWR. The stock drifted sideways in a narrow range. There is no change from my prior comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $36.05. If triggered our target is $39.85.

Trigger @ 36.05

Suggested Position: buy PWR stock @ (trigger)

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

buy the Apr $35 call (PWR1419D35)



Sprint Corp. - S - close: 9.12 change: -0.07

Stop Loss: 8.40
Target(s): 10.50
Current Gain/Loss: +1.4%

Entry on March 04 at $ 8.99
Listed on March 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 21 million
New Positions: see below

Comments:
03/05/14: It was a volatile day for S. The stock was outperforming the market and at new multi-week highs right up until the close. Then in the last six minutes of trading shares of S plunged on a sharp increase in volume. The sudden drop appears to be a reaction to comments from Deutsche Telekom (DTE) Chief Executive Office Timotheus Hoettges. A Bloomberg story mentions how Hoettges told directors that a sale of T-Mobile US Inc. (TMUS) is unlikely to happen any time soon due to regulatory hurdles. DTE was planning to sell its 67% stake in TMUS to Japan's SoftBank, who happens to own 80% of Sprint (S).

Shares of Sprint managed to hold support near the $9.00 level and I'm not seeing a lot of movement in after hours trading. I cautioned readers that we could see S retest $9.00 but today's late-day move was a surprise.

I am raising our stop loss to $8.40.

Earlier Comments:
Our multi-week target is $10.50. The Point & Figure chart for S is bullish with an $11 target.

current Position: Long S stock @ $8.99

03/05/14 new stop @ 8.40
03/04/14 trade opens on gap higher at $8.99



Tyson Foods, Inc. - TSN - close: 40.42 change: +0.82

Stop Loss: 38.45
Target(s): 44.50
Current Gain/Loss: + 0.7%

Entry on March 05 at $40.15
Listed on March 01, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.3 million
New Positions: see below

Comments:
03/05/14: Our TSN trade is open. The stock displayed relative strength today with a +2.0% gain and a bullish breakout past the $40.00 mark. Our trigger to launch positions was hit at $40.15.

Earlier Comments:
We are suggesting small bullish positions if TSN can trade at $40.15. If triggered our multi-week target is $44.50.

*small positions*

current Position: Long TSN stock @ $40.15

03/05/14 triggered @ 40.15



Tata Motors - TTM - close: 34.63 change: -0.35

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 04, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.75 million
New Positions: Yes, see below

Comments:
03/05/14: TTM saw some profit taking this morning but the selling slowed by midday. TTM hovered near the $34.50 level much of the session. There is no change from my prior comments.

Earlier Comments:
TTM is below round-number resistance near $35.00. Tuesday's high was $35.25. I am suggesting a trigger to launch bullish positions at $35.40. If triggered our target is $39.75. More aggressive investors may want to aim higher since the Point & Figure chart for TTM is very bullish with a long-term $52.00 target.

Trigger @ 35.40

Suggested Position: buy TTM stock @ (trigger)

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

Buy the Apr $35 call (TTM1419D35)



BEARISH Play Updates


None. We do not have any active bearish trades.