Editor's Note:
Friday's performance was a little bit ominous with lots of bearish candlesticks and potential reversal-looking patterns.

PODD and THRX hit our entry triggers.
SWIR and CHRW have been removed.


Current Portfolio:


BULLISH Play Updates

AVG Technologies - AVG - close: 20.39 change: -0.26

Stop Loss: 19.85
Target(s): 24.75
Current Gain/Loss: -3.4%

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:
03/22/14: AVG is still slowly drifting towards support near $20.00 and its simple 200-dma. Currently the simple 200-dma is at $19.90. I am moving our stop loss from $19.95 to $19.85. 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

03/22/14 new stop @ 19.85
03/13/14 triggered @ 21.10

chart:



Dunkin' Brands Group - DNKN - close: 52.26 change: -0.08

Stop Loss: 50.65
Target(s): 57.50
Current Gain/Loss: + 3.2%

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:
03/22/14: The $53.00 level has been overhead resistance for about two weeks. DNKN tagged this level again on Friday morning before reversing. If you're looking for a new bullish entry point then a breakout past $53.00 (or a close above $53.00) could be your trigger.

current Position: long DNKN stock @ $50.65

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

(closed on March 19th)
MAR $50 call (DNKN1422C50) entry $1.50* exit $1.90 (+26.6%)

03/19/14 planned exit for the March calls
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.

chart:



Electronic Arts - EA - close: 29.75 change: -0.50

Stop Loss: 29.20
Target(s): 34.00
Current Gain/Loss: + 3.1%

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:
03/22/14: Uh-oh! EA has spent the last few days trying and failing to breakout past resistance at the $30.50 level. Friday morning the stock hit $30.56 and immediately reversed. More importantly Friday's reversal has produced a bearish engulfing candlestick sell signal on the daily chart (and a close below its 10-dma).

More conservative traders may want to exit now to lock in potential gains. I am raising our stop loss to $29.20.

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

03/22/14 new stop @ 29.20
03/20/14 new stop @ 28.95
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

chart:



Flotek Industries - FTK - close: 27.30 change: -0.89

Stop Loss: 25.95
Target(s): 29.50
Current Gain/Loss: + 8.5%

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:
03/22/14: Ouch! After big gains on Thursday FTK reversed with a -3.15% pullback on Friday. Shares are nearing what should be short-term support near $27.00 and its 10-dma.

More conservative traders may want to exit now to lock in potential gains. 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) -

(options closed on March 7th)
Mar $25 call (FTK1422C25) entry $0.90* exit $2.50++ (+177.7%)

03/20/14 new stop loss @ 25.95
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.

chart:



LogMeln - LOGM - close: 46.39 change: -0.41

Stop Loss: 44.45
Target(s): 52.50
Current Gain/Loss: + 0.5%

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:
03/22/14: LOGM erased Thursday's gains. Nimble traders could look for a dip near its 10-dma (currently 45.65) as an alternative entry point to launch bullish positions.

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

03/20/14 new stop @ 44.45
03/18/14 adjust exit target from $49.85 to $52.50
03/17/14 triggered @ 46.15

chart:



NanoString Technologies - NSTG - close: 20.45 change: -0.34

Stop Loss: 19.45
Target(s): to be determined
Current Gain/Loss: -0.3%

Entry on March 20 at $20.85
Listed on March 19, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 141 thousand
New Positions: see below

Comments:
03/22/14: NSTG hit some profit taking on Friday (-1.6%) but traders were buying the dips near $20.15-20.20. I would not be surprised to see NSTG tag the $20.00 mark (and its 20-dma) before moving higher.

Earlier Comments:
NSTG can be a volatile stock and with any biotech stock I suggest caution. We want to use small positions to limit our risk. I am not setting an exit target yet but probably somewhere near $25.00. The Point & Figure chart for NSTG is bullish with a $33.50 target.

*small positions*

current Position: Long NSTG stock @ $20.85

03/20/14 triggered $ 20.85

chart:



Insulet Corp. - PODD - close: 49.84 change: -0.34

Stop Loss: 48.75
Target(s): 58.50
Current Gain/Loss: - 2.0%

Entry on March 21 at $50.88
Listed on March 20, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 617 thousand
New Positions: see below

Comments:
03/22/14: Our new trade on PODD is open. The plan was to launch bullish positions at $50.50 but the stock gapped open higher at $50.88 on Friday morning. PODD's rally reversed thanks to the market's widespread decline on Friday. At this point I would wait for a new rally past $50.50 before initiating new positions.

Earlier Comments:
A breakout here could spark some short covering. The most recent data listed short interest at 16% of the 51.7 million share float.

current Position: Long PODD stock @ $50.88

03/21/14 triggered on gap higher at $50.88. Suggested entry point was $50.50

chart:



Quanta Services, Inc. - PWR - close: 36.78 change: +0.21

Stop Loss: 35.45
Target(s): 39.85
Current Gain/Loss: + 2.0%

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:
03/22/14: PWR managed to ignore most of the market's weakness on Friday and hit new multi-year highs. Even though PWR's short-term and intermediate trend is up I would hesitate to launch positions at current levels.

Tonight we are adjusting our stop loss to $35.45.

current Position: Long PWR stock @ $36.05

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

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

03/22/14 new stop loss @ 35.45
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.

chart:



Tyson Foods, Inc. - TSN - close: 42.37 change: +0.08

Stop Loss: 40.65
Target(s): 46.50
Current Gain/Loss: + 5.5%

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:
03/22/14: TSN continues to show relative strength and tagged another new high on Friday morning. The stock is now up six weeks in a row. I am raising our stop loss to $40.65.

*small positions*

current Position: Long TSN stock @ $40.15

03/22/14 new stop @ 40.65
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

chart:



BEARISH Play Updates

Pegasystems Inc. - PEGA - close: 37.35 change: -0.86

Stop Loss: 39.05
Target(s): 36.05
Current Gain/Loss: + 6.0%

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:
03/22/14: The recent bounce in PEGA is rolling over. Shares lost -2.2% on Friday. Currently our exit target is $36.05 but we will plan to exit prior to PEGA's 2-for-1 split in early April is the stock doesn't hit our target by then. 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*

03/19/14 new stop @ 39.05
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.

chart:



Rackspace Hosting - RAX - close: 33.01 change: -0.93

Stop Loss: 36.05
Target(s): 31.10
Current Gain/Loss: + 6.4%

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:
03/22/14: RAX is also performing well for us with another -2.74% drop on Friday. I am adjusting our stop loss to $36.05. I am not suggesting new positions at this time.

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*

03/22/14 new stop @ 36.05
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.

chart:



Theravance Inc. - THRX - close: 32.38 change: -0.74

Stop Loss: 34.75
Target(s): to be determined
Current Gain/Loss: + 1.4%

Entry on March 21 at $32.85
Listed on March 17, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 761 thousand
New Positions: see below

Comments:
03/22/14: Our new play on THRX has been opened. Weakness across the biotech industry helped push THRX to new multi-month lows and hit our trigger at $32.85. Broken support in the $33-34 area should be new overhead resistance.

Earlier Comments:
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.

current Position: short THRX stock @ $32.85

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

Long Apr $30 PUT (THRX1419P30) entry $0.90*

03/21/14 triggered @ 32.85
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:




CLOSED BULLISH PLAYS

Sierra Wireless Inc. - SWIR - close: 23.41 change: -0.45

Stop Loss: 23.40
Target(s): 29.75
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 857 thousand
New Positions: see below

Comments:
03/22/14: SWIR is not cooperating. Shares are breaking down below their simple 10-dma after failing at resistance last week. Our plan was to launch positions at $24.55. Since our trade is unopened we're removing SWIR from the newsletter.

Trade did not open.

03/22/14 removed from the newsletter. suggested entry was $24.55

chart:



CLOSED BEARISH PLAYS

CH Robinson Worldwide Inc. - CHRW - close: 51.03 change: +0.40

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: see below

Comments:
03/22/14: CHRW is not working out for us. The larger trend is down but we've been waiting for a breakdown below support at $50.00. Instead the stock is bouncing from support near $50.

Tonight we're choosing to remove CHRW.

Trade did not open.

03/22/14 removed from the newsletter. suggested entry was $49.75
03/18/14 adjust exit target from $45.00 to $40.75

chart: