Editor's Note:
The market produced a lot of bearish engulfing candlestick reversal patterns on Friday. Investors will be closely watching to see if there is any confirmation of this pattern on Monday.

CTRX hit our entry trigger. BOBE has been removed.


Current Portfolio:


BULLISH Play Updates

Applied Materials - AMAT - close: 20.25 change: -0.59

Stop Loss: 19.75
Target(s): to be determined
Current Gain/Loss: - 2.9%

Entry on April 03 at $20.85
Listed on April 01, 2014
Time Frame: exit PRIOR to earnings on May 15th
Average Daily Volume = 14.8 million
New Positions: see below

Comments:
04/05/14: The market suffered an ugly pullback on Friday and AMAT was not immune. Shares actually underperformed with a -2.8% drop that erased nearly four days of gains. AMAT should find support near $20.00. Nimble traders could use a bounce from the $20.00 level as a new entry point. I will point out that technically Friday's move has created a bearish engulfing candlestick reversal pattern.

Plan on exiting positions prior to earnings on May 15th.

current Position: Long AMAT stock @ $20.85

04/03/14 triggered @ 20.85

chart:



Delta Air Lines - DAL - close: 34.61 change: -0.76

Stop Loss: 34.25
Target(s): to be determined
Current Gain/Loss: + 0.0%

Entry on March 28 at $34.60
Listed on March 27, 2014
Time Frame: exit PRIOR to earnings on April 23rd
Average Daily Volume = 11.6 million
New Positions: Yes, see below

Comments:
04/05/14: The airline industry was hitting new multi-year highs last week. That may have been why airline stocks underperformed on Friday. Traders were rushing to lock in profits. DAL gave up -2.1% on Friday to close near short-term support.

We are going to try and reduce our risk by moving the stop loss to $34.25. More aggressive traders may want to keep their stop below the 50-dma instead.

We will plan to exit prior to DAL's earnings report on April 23rd.

current Position: long DAL stock @ $34.60

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

Long May $35 call (DAL1417E35) entry $1.55*

04/05/14 new stop @ 34.25
03/28/14 triggered @ 34.60

chart:



Genworth Financial - GNW - close: 17.82 change: -0.41

Stop Loss: 16.90
Target(s): 20.00
Current Gain/Loss: + 0.1%

Entry on April 01 at $17.81
Listed on March 31, 2014
Time Frame: exit PRIOR to earnings on April 30th
Average Daily Volume = 7.4 million
New Positions: see below

Comments:
04/05/14: GNW was another target for profit taking on Friday. Shares had produced a five-day bounce and traders decided to take some money off the table on Friday with a -2.2% pullback in GNW. Technically Friday's move is a bearish engulfing candlestick reversal pattern but it needs to see confirmation. I am not suggesting new positions at this time.

Our short-term target is $20.00. More aggressive investors may want to aim higher. The Point & Figure chart for GNW is bullish with a $23.25 target.

current Position: long GNW stock @ $17.81

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

Long MAY $18 call (GNW1417E18) entry $0.70*

04/01/14 trade opens at $17.81
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Quanta Services, Inc. - PWR - close: 36.45 change: -0.38

Stop Loss: 35.75
Target(s): 39.85
Current Gain/Loss: + 1.1%

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:
04/05/14: I will confess that the action in PWR looks troubling. Shares struggled with resistance in the $37.00-37.25 area all week. Friday saw a breakout to new highs early in the morning but momentum reversed. More conservative traders may want to raise their stop. 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.

chart:



BEARISH Play Updates

Catamaran Corp. - CTRX - close: 42.64 change: -1.12

Stop Loss: 45.55
Target(s): to be determined
Current Gain/Loss: + 1.8%

Entry on April 04 at $43.40
Listed on April 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.4 million
New Positions: see below

Comments:
04/05/14: Our brand new play on CTRX hit our entry point on Friday. As expected the stock broke down to new relative lows. A widespread market drop didn't hurt. CTRX underperformed with a -2.5% decline and hit our suggested entry point at $43.40 along the way.

Plan on exiting prior to CTRX's earnings report in early May.

current Position: short CTRX stock @ $43.40

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

Long May $45 PUT (CTRX1417Q45) entry $2.90*

04/04/14 triggered @ 43.40
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Textura Corp. - TXTR - close: 22.31 change: -1.04

Stop Loss: 25.55
Target(s): 20.25
Current Gain/Loss: + 9.3%

Entry on April 03 at $24.60
Listed on March 29, 2014
Time Frame: 4 to 8 weeks
Average Daily Volume = 386 thousand
New Positions: see below

Comments:
04/05/14: TXTR continues to drop for us with another -4.4% decline on Friday. Shares were down -8.2% at their lows for the session. The stock has started to see an oversold bounce. I would not be surprised to see the bounce continue on Monday. I'm not suggesting new positions.

Earlier Comments:
NOTE: Traders may want to use put options to limit their risk instead of shorting the stock.

*small positions*

current Position: short TXTR stock @ $24.60

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

Long JUN $22.50 PUT (TXTR1421R22.5) entry $2.35*

04/03/14 new stop @ 25.55
04/03/14 triggered @ 24.60

chart:




CLOSED BULLISH PLAYS

Bob Evans Farms - BOBE - close: 49.64 change: -0.76

Stop Loss: 49.90
Target(s): 58.50
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 02, 2014
Time Frame: 8 to 10 weeks
Average Daily Volume = 459 thousand
New Positions: see below

Comments:
04/05/14: BOBE is not cooperating. Shares have reversed at resistance. Friday's session saw BOBE breakdown under what should have been support near $50.00 and its 50-dma.

Our trade has not opened yet so we're removing BOBE as a candidate.

Trade did not open.

04/05/14 removed from the newsletter. suggested entry trigger was $52.25

chart: