Editor's Note:
The U.S. market suffered a widespread decline after failing to hold its morning gains.

NLNK and SHEN were stopped out. KNDI has been removed.


Current Portfolio:


BULLISH Play Updates

American Airlines - AAL - close: 36.70 change: -1.20

Stop Loss: 36.70
Target(s): to be determined
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 25, 2014
Time Frame: exit PRIOR to earnings on April 24th
Average Daily Volume = 9.2 million
New Positions: Yes, see below

Comments:
03/26/14: It was a rough day for the bulls with the market delivering widespread declines. AAL completely erased yesterday's gains. Fortunately the intraday high today was only $38.26. At the moment I do not see any changes from my prior comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $38.30. We're not listing a target today but we are expecting AAL to breakout past resistance near $40.00.

Trigger @ 38.30

Suggested Position: buy AAL stock @ $38.30



Flotek Industries - FTK - close: 26.33 change: -0.60

Stop Loss: 25.95
Target(s): 29.50
Current Gain/Loss: + 4.7%

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:
03/26/14: FTK is not looking too good with three big drops in the last four sessions. The stock is poised to test support near $26.00 soon. Our stop loss is at $25.95.

I am not suggesting new positions at this time.

*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.



MasTec, Inc. - MTZ - close: 43.11 change: -0.27

Stop Loss: 41.75
Target(s): 49.75
Current Gain/Loss: - 1.0%

Entry on March 25 at $43.55
Listed on March 24, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 750 thousand
New Positions: see below

Comments:
03/26/14: The sideways trading in MTZ looks a lot like yesterday. Unfortunately today's move has painted a bearish looking candlestick on the daily chart. I am not suggesting new positions at this time.

Earlier Comments:
MTZ could see more short covering. The most recent data listed short interest at 15% of the 58.4 million-share float.

FYI: The Point & Figure chart for MTZ is bullish with a $70 target.

current Position: long MTZ stock @ $43.55

03/25/14 triggered @ 43.55



NanoString Technologies - NSTG - close: 20.41 change: +0.24

Stop Loss: 19.45
Target(s): to be determined
Current Gain/Loss: -2.1%

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:
03/26/14: NSTG displayed some relative strength with a +1.1% gain. I wouldn't get too excited. The stock continued to churn sideways and is developing a short-term trend of lower highs. I am not suggesting new positions at this time.

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: 36.30 change: -0.05

Stop Loss: 35.45
Target(s): 39.85
Current Gain/Loss: + 0.7%

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:
03/26/14: PWR spent most of Wednesday's session drifting sideways. I don't see any changes from my prior comments. Traders may want to move their stop loss closer to the $36.00 level. 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.



Tyson Foods, Inc. - TSN - close: 42.87 change: +0.44

Stop Loss: 40.65
Target(s): 46.50
Current Gain/Loss: + 6.8%

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:
03/26/14: TSN ignored the market's weakness and continued to push higher with a +1.0% gain. 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: 32.17 change: -1.69

Stop Loss: 35.75
Target(s): 31.10
Current Gain/Loss: + 8.8%

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:
03/26/14: Traders continued to sell yesterday's bounce in RAX. The stock plunged another -5% today. 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*

03/25/14 new stop @ 35.75 (shares were upgraded this morning)
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: 30.77 change: -0.39

Stop Loss: 34.75
Target(s): to be determined
Current Gain/Loss: + 6.3%

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:
03/26/14: THRX lost -1.25% today and continues to work on its sixth weekly decline in a row. More conservative traders may want to consider taking profits near $30.00, which could be potential round-number, psychological support.

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

Kandi Technologies - KNDI - close: 16.22 change: -1.23

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: see below

Comments:
03/26/14: KNDI is not cooperating. Shares failed at the $18.00 level again this morning and then plunged to a -7.0% decline. The next level of support should be the $15.00 area. Our trade has not opened yet so we're dropping KNDI as a candidate.

Trade did not open.

03/26/14 removed from the newsletter, suggested entry trigger was $19.30

chart:



NewLink Genetics Corp. - NLNK - close: 27.45 change: -1.47

Stop Loss: 27.95
Target(s): 39.75
Current Gain/Loss: -9.1%

Entry on March 25 at $30.75
Listed on March 24, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 818 thousand
New Positions: see below

Comments:
03/26/14 The biotech stocks saw another big drop today and this time NLNK decided to participate. Shares actually underperformed the biotechs and the broader market with a -5.0% plunge. Today's move broke down below technical support at the 100-dma.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. Keep position size small to limit risk. Traders may want to use call options to limit their risk. Keep in mind the April options only have four weeks left.

*small positions*

closed Position: long NLNK stock @ $30.75 exit $27.95 (-9.1%)

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

Apr $35 call (NLNK1419D35) entry $0.85 exit $0.31* (-63.5%)

03/26/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
03/25/14 triggered @ 30.75

chart:



Shenandoah Telecom - SHEN - close: 32.31 change: -0.49

Stop Loss: 31.75
Target(s): 39.50
Current Gain/Loss: -10.5%

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:
03/26/14: The dangers of low-volume stocks!

SHEN does not trade a lot of volume. The average daily volume is 110 thousand. The low volume can make price action erratic which is why I suggested small positions to limit our risk. Sadly SHEN saw a spike down this morning. At first we thought it was just a bad tick. Unfortunately SHEN actually gapped down at the open and traded at $30.29. That is well below our stop loss and closed our trade.

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

*small positions to limit risk*

closed Position: long SHEN stock @ $33.85 exit $30.29 (-10.5%)

03/26/14 stopped out on gap down at $30.29
03/24/14 triggered @ 33.85

chart: