Editor's Note:
The U.S. market continued to sink in spite of some better than expected economic data today.

RAX hit our bearish exit target this afternoon.
AAL has been removed. OSI hit our entry trigger. FTK was stopped out.


Current Portfolio:


BULLISH Play Updates

MasTec, Inc. - MTZ - close: 43.58 change: +0.47

Stop Loss: 41.75
Target(s): 49.75
Current Gain/Loss: + 0.1%

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:
03/27/14: Traders bought the dip in MTZ this morning at $42.85. The stock reversed and outperformed the broader market with a +1.0% gain. A move past $43.70 would be a new relative high and a potential entry point to launch new positions.

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: 20.30 change: -0.11

Stop Loss: 19.45
Target(s): to be determined
Current Gain/Loss: -2.6%

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:
03/27/14: The sideways consolidation in NSTG is narrowing. That would suggest a breakout, one way or the other, is coming soon. More conservative traders may want to raise their stop loss. 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: 36.10 change: -0.20

Stop Loss: 35.75
Target(s): 39.85
Current Gain/Loss: + 0.1%

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:
03/27/14: PWR bounced off its March 20th lows near $35.90. We are raising our stop loss to $35.75. 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*

03/27/14 new stop loss @ 35.75
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: +0.00

Stop Loss: 41.35
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:
03/27/14: Traders bought the dip in TSN this morning but the stock struggled to get past the $43.00 level. We are moving the stop loss to $41.35. I am not suggesting new positions at this time.

*small positions*

current Position: Long TSN stock @ $40.15

03/27/14 new stop @ 41.35
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

OSI Systems, Inc. - OSIS - close: 59.45 change: -0.69

Stop Loss: 62.05
Target(s): to be determined
Current Gain/Loss: + 0.5%

Entry on March 27 at $59.75
Listed on March 26, 2014
Time Frame: exit PRIOR to earnings in late April
Average Daily Volume = 155 thousand
New Positions: see below

Comments:
03/27/14: Our brand new play on OSIS is open. As expected the stock continued to sink and shares hit our suggested entry point at $59.75. I would still consider new bearish positions at current levels.

current Position: short OSIS stock @ $59.75

03/27/14 triggered @ 59.75



Theravance Inc. - THRX - close: 30.21 change: -0.56

Stop Loss: 32.85
Target(s): to be determined
Current Gain/Loss: + 8.0%

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:
03/27/14: THRX continues to sink now down six days in a row (and likely down six weeks in a row). THRX is testing potential round-number support at $30.00 and since the stock is oversold I would not be surprised to see a bounce. More conservative traders may want to take profits right here. We are moving our stop loss to breakeven at $32.85.

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*

03/27/14 new stop @ 32.85
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

American Airlines - AAL - close: 35.77 change: -0.93

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: see below

Comments:
03/27/14: AAL is not cooperating. Shares have reversed sharply in the last two days. Traders did buy the dip at its 50-dma today and the $35.00 level could be support. However, we're choosing to drop AAL since our play is not open yet and replace it with DAL, which is looking a lot stronger.

Trade did not open.

03/27/14 removed from the newsletter, suggested trigger was $38.30

chart:



Flotek Industries - FTK - close: 26.26 change: -0.07

Stop Loss: 25.95
Target(s): 29.50
Current Gain/Loss: + 3.2%

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:
03/27/14: Another market drop this morning was too much for shares of FTK and the stock traded below support near $26.00. Our stop loss was hit at $25.95.

*small positions*

closed Position: long FTK stock @ $25.15 exit $25.95 (+3.2%)

- (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%)

03/27/14 stopped out
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:



CLOSED BEARISH PLAYS

Rackspace Hosting - RAX - close: 31.28 change: -0.89

Stop Loss: 35.75
Target(s): 31.10
Current Gain/Loss: +11.8%

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:
03/27/14: Target achieved.

RAX hit our suggested exit target at $31.10 this afternoon. The stock actually traded below its February low ($30.96) before paring its losses this afternoon.

closed Position: short RAX stock @ $35.28 exit $31.10 (+11.8%)

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

Apr $35 PUT (RAX1419P35) entry $1.85* exit $4.15** (+124.3%)

03/27/14 target hit @ 31.10
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart: