Editor's Note:
The stock market continued to sink on Monday thanks to some disappointing economic data out of China.

PEGA hit our bearish exit target.
SHEN hit our entry trigger. AVG, EA, LOGM, PODD were stopped out.


Current Portfolio:


BULLISH Play Updates

Dunkin' Brands Group - DNKN - close: 51.31 change: -0.95

Stop Loss: 50.65
Target(s): 57.50
Current Gain/Loss: + 1.3%

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:
03/24/14: DNKN was not immune to the market's broad-based sell-off today. Shares fell -1.8% to settle near their 30-dma. The low today was $51.10, which reinforced the $51.00 level as short-term support. If there is any follow through lower then DNKN will likely hit our stop at $50.65.

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.



Flotek Industries - FTK - close: 26.76 change: -0.54

Stop Loss: 25.95
Target(s): 29.50
Current Gain/Loss: + 6.4%

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:
03/24/14: The volatility in FTK continues with a drop to $26.26 this morning. Shares pared their losses but still closed down -1.9%.

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.



Kandi Technologies - KNDI - close: 17.60 change: -1.30

Stop Loss: 17.60
Target(s): 24.00
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 22, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: Yes, see below

Comments:
03/24/14: KNDI is a new candidate to the newsletter and I warned readers that this was an aggressive trade due to KNDI's volatility. That volatility made an appearance today with a plunge from $19.00 this morning to $16.70 before lunchtime. After trimming its losses KNDI ended the session down -6.8%. Shares appear to have bounced off their simple 30-dma (and near its mid-March lows).

We are currently on the sidelines with a suggested entry point at $19.30. Let's see how KNDI performs tomorrow and then we might adjust our entry point strategy or remove KNDI as a candidate.

Earlier Comments:
It is important to note that this trade is not without some risk. In KNDI's recent 10-K report they disclosed an SEC investigation that began last November. They haven't unveiled what the investigation is about yet. If there any new (negative) headlines about this investigation it could seriously hurt the stock price.

This is an aggressive, higher-risk trade due to the volatility in the stock and the SEC news. Keep position size small. Traders may want to buy the call options to limit your risk to the cost of your option.

Trigger @ 19.30 *small positions*

Suggested Position: buy KNDI stock @ (trigger)

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

buy the Apr $20 call (KNDI1419D20)



NanoString Technologies - NSTG - close: 20.43 change: -0.02

Stop Loss: 19.45
Target(s): to be determined
Current Gain/Loss: -2.0%

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:
03/24/14: NSTG dipped to short-term support near $19.50 and bounced back to virtually unchanged on the session. I would hesitate to launch new positions here. Traders may want to wait for a rally past Friday's high ($21.17).

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



Quanta Services, Inc. - PWR - close: 36.47 change: -0.31

Stop Loss: 35.45
Target(s): 39.85
Current Gain/Loss: + 1.2%

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:
03/24/14: PWR spent most of Monday's session drifting sideways in the $36.35-36.60 range. Technically today's pullback has created a potential bearish reversal candlestick pattern. I am not suggesting new positions at this time.

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.



Shenandoah Telecom - SHEN - close: 33.27 change: -0.18

Stop Loss: 31.75
Target(s): 39.50
Current Gain/Loss: -1.7%

Entry on March 24 at $33.85
Listed on March 22, 2014
Time Frame: 8 to 9 weeks
Average Daily Volume = 110 thousand
New Positions: see below

Comments:
03/24/14: Our new play on SHEN has been opened. The stock traded to new highs and hit our trigger at $33.85. Unfortunately the rally reversed at the $34.00 level. Investors may want to wait for a new high above $34.00 before initiating new positions.

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

*small positions to limit risk*

current Position: long SHEN stock @ $33.85

03/24/14 triggered @ 33.85



Tyson Foods, Inc. - TSN - close: 42.37 change: +0.00

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:
03/24/14: TSN is still holding up well. Shares did not see that much volatility and closed unchanged on the session. I am not suggesting new positions at this time.

*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



BEARISH Play Updates

Rackspace Hosting - RAX - close: 32.72 change: -0.29

Stop Loss: 36.05
Target(s): 31.10
Current Gain/Loss: + 7.3%

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:
03/24/14: RAX posted its fourth decline in a row with today's -08% drop. At this rate RAX could hit our target before the week is out. 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.



Theravance Inc. - THRX - close: 31.37 change: -1.01

Stop Loss: 34.75
Target(s): to be determined
Current Gain/Loss: + 4.5%

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:
03/24/14: The selling in the biotech stocks continued on Monday and THRX lost -3.1% at the closing bell. I am not suggesting new positions at this time.

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.




CLOSED BULLISH PLAYS

AVG Technologies - AVG - close: 20.18 change: -0.21

Stop Loss: 19.85
Target(s): 24.75
Current Gain/Loss: -5.9%

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:
03/24/14: The stock market's widespread drop today was too much for shares of AVG. The stock pierced support near $20.00 and its 200-dma. Shares were down -4.4% at their lows near $19.50 midday. Our stop was hit at $19.85.

closed Position: Long AVG stock @ $21.10 exit $19.85 (-5.9%)

03/24/14 stopped out
03/22/14 new stop @ 19.85
03/13/14 triggered @ 21.10

chart:



Electronic Arts - EA - close: 29.00 change: -0.75

Stop Loss: 29.20
Target(s): 34.00
Current Gain/Loss: + 1.2%

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:
03/24/14: The profit taking in EA continued on Monday. Today's -2.5% decline confirms Friday's bearish reversal signal. The stock has erased more than two week's of gains with this two-day drop. Our stop was hit at $29.20 today.

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

*small positions*

closed Position: Long EA stock @ $28.85 exit $29.20 (+1.2%)

03/24/14 stopped
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:



LogMeln - LOGM - close: 44.67 change: -1.72

Stop Loss: 44.45
Target(s): 52.50
Current Gain/Loss: - 3.7%

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:
03/24/14: LOGM was a big underperformer today. During the market's sell-off this morning LOGM fell toward its 20-dma and hit our stop loss at $44.45 in the process.

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

*small positions*

closed Position: long LOGM stock @ $46.15 exit $44.45 (-3.7%)

03/24/14 stopped out
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:



Insulet Corp. - PODD - close: 48.99 change: -0.85

Stop Loss: 48.75
Target(s): 58.50
Current Gain/Loss: - 4.2%

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:
03/24/14: The market's widespread weakness helped pull PODD below its 10-dma and below the $49.00 level. Our stop loss was hit at $48.75.

The longer-term trend on PODD still looks promising. I would keep this stock on your radar screen.

closed Position: Long PODD stock @ $50.88 exit $48.75 (-4.2%)

03/24/14 stopped out
03/21/14 triggered on gap higher at $50.88. Suggested entry point was $50.50

chart:



CLOSED BEARISH PLAYS

Pegasystems Inc. - PEGA - close: 36.43 change: -0.92

Stop Loss: 39.05
Target(s): 36.05
Current Gain/Loss: + 9.3%

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:
03/24/14: Target achieved.

The early morning plunge pushed PEGA to potential support near $36.00 and its 300-dma. Our exit target was hit at $36.05.

closed Position: short PEGA stock @ $39.75 exit $36.05 (+9.3%)

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

APR $40 PUT (PEGA1419P40) entry $2.25* exit $4.15** (+84.4%)

03/24/14 target hit
**option exit price is an estimate since the option did not trade at the time our play was closed.
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: