Editor's Note:
The small cap Russell 2000 index is leading the market rebound higher as the U.S. stock market quickly recovers last week's losses. Some are calling it the Putin rally as stocks continue to rebound following the Crimea vote on Sunday. Russian President Putin said he has no plans to annex Eastern Ukraine and Wall Street seems to believe him.

We want to exit our AA trade tomorrow morning.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 12.00 change: +0.10

Stop Loss: 11.59
Target(s): 12.95
Current Gain/Loss: + 3.9%

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:
03/18/14: The upward momentum in AA seems to be slowing down. Shares still have a bullish trend of higher lows but dip buying seems to be slowing down. I am suggesting we exit positions tomorrow morning to lock in any potential gains.

current Position: Long AA stock @ $11.55

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

Long APR $12 call (AA1419D12) entry $0.47

03/18/14 prepare to exit tomorrow morning (03/19/14)
03/17/14 new stop loss @ 11.59
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



AVG Technologies - AVG - close: 20.86 change: -0.04

Stop Loss: 19.95
Target(s): 24.75
Current Gain/Loss: -1.1%

Entry on March 13 at $21.10
Listed on March 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 716 thousand
New Positions: see below

Comments:
03/18/14: Hmm... AVG did not participate in the market's bounce today. Traders bought the dip at its 10-dma again but AVG didn't make it very far. I see this as an early warning signal to turn more defensive. Investors may want to adjust their stops higher. I am not suggesting new positions at the moment.

FYI: The Point & Figure chart for AVG is bullish with a $32.50 target.

current Position: Long AVG stock @ $21.10

03/13/14 triggered @ 21.10



Dunkin' Brands Group - DNKN - close: 52.67 change: +0.20

Stop Loss: 50.65
Target(s): 57.50
Current Gain/Loss: + 4.0%

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:
03/18/14: DNKN is still consolidating sideways below resistance at the $53.00 level. If you were looking for a new bullish entry point then a breakout past $53.00 would qualify.

In last night's newsletter we decided to exit our March calls if DNKN could trade at $53.00. The stock hit $52.96 today. Now we only have three days left on our March calls. I am suggesting we exit these calls tomorrow at the closing bell (Wednesday, March 19th).

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*

03/18/14 plan to exit our March calls tomorrow at the closing bell
03/15/14 only five days left on our March options
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: 30.24 change: +0.14

Stop Loss: 28.45
Target(s): 34.00
Current Gain/Loss: + 4.8%

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:
03/18/14: EA shares received bullish analyst comments today. Yet the stock underperformed the broader market with a +0.4% gain. Shares do look poised to breakout past short-term resistance at $30.50 but EA also looks overbought with the stock up several weeks in a row. I am not suggesting new positions at this time.

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

03/15/14 new stop @ 28.45
03/11/14 new stop @ 27.90
03/04/14 new stop @ 27.60
03/04/14 triggered @ 28.85



Flotek Industries - FTK - close: 27.37 change: +0.34

Stop Loss: 25.70
Target(s): 29.50
Current Gain/Loss: + 8.8%

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:
03/18/14: FTK continues to show relative strength with a +1.25% gain on Tuesday. The stock closed just below resistance at its March highs near $27.50. A breakout would mark new six-year highs. I am adjusting our exit target from $29.00 to $29.50. 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) -

Mar $25 call (FTK1422C25) entry $0.90* exit $2.50++ (+177.7%)

03/18/14 adjust the exit target from $29.00 to $29.50
03/13/14 new stop loss @ 25.70
03/11/14 new stop loss @ 25.45
03/07/14 planned exit for the March $25 calls
++option exit price is an estimate since the option did not trade at the time our play was closed.
03/06/14 new stop loss @ 25.25, adjust target to 29.00
prepare to exit our March $25 calls Friday morning.
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.



LogMeln - LOGM - close: 46.99 change: +1.04

Stop Loss: 43.60
Target(s): 52.50
Current Gain/Loss: + 1.8%

Entry on March 17 at $46.15
Listed on March 15, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 490 thousand
New Positions: see below

Comments:
03/18/14: LOGM continues to push higher and outperformed the broader market with a +2.2% gain today. The stock is testing major resistance in the $47.00-47.50 zone from the 2010-2011 time frame. If shares can breakout to new highs we expect LOGM to run. We're adjusting our exit target from $49.85 to $52.50.

Earlier Comments:
We want to keep our position size small to limit our risk since LOGM does have potential resistance in the $47-48 zone dating back to 2010. Our short-term target is $49.85. More aggressive investors may want to aim higher since the Point & Figure chart for LOGM is bullish with a $68.50 target.

*small positions*

current Position: long LOGM stock @ $46.15

03/18/14 adjust exit target from $49.85 to $52.50
03/17/14 triggered @ 46.15



Quanta Services, Inc. - PWR - close: 36.15 change: +0.32

Stop Loss: 34.85
Target(s): 39.85
Current Gain/Loss: + 0.3%

Entry on March 06 at $36.05
Listed on March 04, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
03/18/14: The rebound in PWR continues with shares up three days in a row. The close above $36.00 and its 10-dma is short-term bullish. Investors may want to use today's move as a new entry point.

current Position: Long PWR stock @ $36.05

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

Long Apr $35 call (PWR1419D35) entry $1.70*

03/13/14 new stop loss @ 34.85
03/06/14 triggered @ 36.05
*option entry price is an estimate since the option did not trade at the time our play was opened.



Tyson Foods, Inc. - TSN - close: 42.33 change: +0.66

Stop Loss: 39.90
Target(s): 46.50
Current Gain/Loss: + 5.4%

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:
03/18/14: The rally in TSN seems to be gaining momentum. The stock added another +1.5% today. We are adjusting our exit target from $44.50 to $46.50. I am moving our stop loss to $39.90.

*small positions*

current Position: Long TSN stock @ $40.15

03/18/14 new stop @ 39.90, adjust exit target from $44.50 to $46.50
03/15/14 new stop @ 39.45
03/12/14 new stop @ 38.95
03/05/14 triggered @ 40.15



BEARISH Play Updates

CH Robinson Worldwide Inc. - CHRW - close: 50.96 change: -0.11

Stop Loss: 52.35
Target(s): 40.75
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 15, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.6 million
New Positions: Yes, see below

Comments:
03/18/14: CHRW is still underperforming the market but losses were mild today. We are still on the sidelines waiting for a breakdown under support at $50.00. I am suggesting a trigger to launch bearish positions at $49.75. Tonight we are adjusting our exit target from $45.00 to $40.75.

Trigger @ 49.75

Suggested Position: short CHRW stock @ (trigger)

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

Buy the Apr $50 PUT (CHRW1419P50)

03/18/14 adjust exit target from $45.00 to $40.75



Pegasystems Inc. - PEGA - close: 38.35 change: +0.92

Stop Loss: 40.30
Target(s): 36.05
Current Gain/Loss: + 3.5%

Entry on March 10 at $39.75
Listed on March 08, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 140 thousand
New Positions: see below

Comments:
03/18/14: PEGA produced an oversold bounce with a +2.4% gain today. Look for resistance at its 10-dma (near 39.00) or the $40.00 level. I am not suggesting new positions at this time.

Earlier Comments:
Readers may want to use the put options to limit their risk. FYI: The Point & Figure chart for PEGA is bearish with a $35.00 target.

current Position: short PEGA stock @ $39.75

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

Long APR $40 PUT (PEGA1419P40) entry $2.25*

03/15/14 adjust exit target to $36.05 (from 35.25).
03/13/14 new stop @ 40.30
03/12/14 new stop @ 41.10
03/10/14 triggered @ 39.75
*option entry price is an estimate since the option did not trade at the time our play was opened.



Rackspace Hosting - RAX - close: 35.21 change: +0.46

Stop Loss: 36.55
Target(s): 31.10
Current Gain/Loss: + 0.2%

Entry on March 12 at $35.28
Listed on March 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.7 million
New Positions: see below

Comments:
03/18/14: The bounce in RAX hit $35.74 before starting to fade. I would be tempted to launch positions here or on a bounce closer to the $36.00 level, which should be resistance.

Earlier Comments:
Due to RAX's recent volatility I am suggesting small positions or you may want to buy put options to limit your risk. The Point & Figure chart for RAX is bearish with a $21.00 target.

current Position: short RAX stock @ $35.28

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

Long Apr $35 PUT (RAX1419P35) entry $1.85*

03/15/14 new stop @ 36.55
03/12/14 triggered on gap down at $35.28. Suggested entry was $35.45
*option entry price is an estimate since the option did not trade at the time our play was opened.



Symantec Corp. - SYMC - close: 20.51 change: +0.21

Stop Loss: 20.75
Target(s): 18.00
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 13, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 6.9 million
New Positions: Yes, see below

Comments:
03/18/14: Hmm... SYMC is up three days in a row. If shares continue to bounce tomorrow we might drop SYMC as a candidate. Currently we are on the sidelines waiting for a breakdown below $20.00.

I am suggesting a trigger to open bearish positions at $19.85. If triggered our target is the $18.00-17.00 zone.

Trigger @ 19.85

Suggested Position: short SYMC stock @ (trigger)

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

Buy the JUL $20 PUT (SYMC1419S20)



Theravance Inc. - THRX - close: 33.78 change: +0.69

Stop Loss: 34.75
Target(s): to be determined
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 17, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 761 thousand
New Positions: Yes, see below

Comments:
03/18/14: THRX displayed relative strength with a +2.0% bounce. Yet today's move is also an "inside day", which suggests indecision by investors. I don't see any changes from last night's new play description.

Earlier Comments:
I am suggesting a trigger to open small bearish positions at $32.85. I am not setting a target yet but more conservative traders might want to exit near $30.00, which could be round-number support.

I want to remind investors that biotechs can be volatile stocks to trade. You may want to consider buying the put options as a way to limit your risk. THRX does have above average short interest. The most recent data listed short interest at 25% of the 58 million share float. That does raise the risk of a short squeeze.

It's also worth noting that THRX just announced plans to split their company into two listed companies sometime in the second quarter of this year.

FYI: The Point & Figure chart for THRX is bearish with a $25.00 target.

Trigger @ 32.85

Suggested Position: short THRX stock @ (trigger)

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

Buy the Apr $30 PUT (THRX1419P30)