Editor's Note:
Stocks seem to be struggling to build any gains even though the Dow Industrials are near a new high.

GES hit our stop loss. We have removed SYMC.


Current Portfolio:


BULLISH Play Updates

CenturyLink, Inc. - CTL - close: 34.83 change: -0.13

Stop Loss: 34.35
Target(s): to be determined
Current Gain/Loss: +1.4%

Entry on April 16 at $34.35
Listed on April 14, 2014
Time Frame: exit PRIOR to earnings on May 7th
Average Daily Volume = 5.5 million
New Positions: see below

Comments:
05/03/14: CTL managed to hit new multi-month highs above the $35.00 level on Friday. Unfortunately shares failed to hold these gains and Friday's move looks a little bit like a bearish reversal pattern.

More conservative traders may want to exit immediately. We only have a couple of days left. CTL is scheduled to report earnings on May 7th and we do not want to hold over the announcement.

current Position: long CTL stock @ $34.35

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

Long May $34 call (CTL1417E34) entry $0.95*

05/03/14 readers may want to exit immediately.
05/01/14 new stop @ 34.35
04/26/14 new stop @ 34.25
04/16/14 new stop @ 33.35
04/16/14 triggered @ 34.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



BEARISH Play Updates

Arctic Cat Inc. - ACAT - close: 41.54 change: -0.15

Stop Loss: 41.25
Target(s): to be determined
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 29, 2014
Time Frame: about 2 weeks
Average Daily Volume = 159 thousand
New Positions: Yes, see below

Comments:
05/03/14: Good news! It looks like the oversold bounce in ACAT is already reversing. We are still on the sidelines waiting for a breakdown below support near $40.00. I don't see any changes from my prior comments.

Earlier Comments:
This is going to be a relatively short-term trade. The company is due to report earnings in mid May. No date has been set yet but it's probably two, maybe three weeks out.

Tonight we're suggesting a trigger for bearish positions at $39.75. We are not setting an exit target yet. I will note that the Point & Figure chart for ACAT is bearish with a $31.00 target.

Trigger @ $39.75

Suggested Position: short ACAT stock @ (trigger)

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

Buy the May $40 PUT (ACAT1417Q40)

chart:



DSW Inc. - DSW - close: 33.67 change: +0.04

Stop Loss: 34.55
Target(s): to be determined
Current Gain/Loss: + 1.0%

Entry on April 21 at $34.02
Listed on April 19, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.25 million
New Positions: see below

Comments:
05/03/14: It certainly looks like DSW's oversold bounce is stalling under the $34.00 level. More conservative investors might want to move their stop loss closer to $34.00. I am not suggesting new positions at this time.

Earlier Comments:
We're not setting a target yet but $30.00 would be a good start. The Point & Figure chart for DSW is bearish with a $26.00 target.

current Position: short DSW stock @ $34.02

04/26/14 new stop loss @ 34.55

chart:



Johnson Controls Inc. - JCI - close: 45.21 change: +0.03

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 3.3%

Entry on April 28 at $43.75
Listed on April 26, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.5 million
New Positions: see below

Comments:
05/03/14: JCI is hovering just below short-term resistance at its 10-dma. The high on Friday was $45.65. On Thursday the high was $45.61. Our stop loss is at $45.75. More aggressive traders may want to move their stop so it's above the $46.00 level and the 200-dma. I am concerned that JCI might see a spike to $46.00 and then reverse lower.

A new decline before $44.90 could be used as a bearish entry point.

Earlier Comments:
The Point & Figure chart for JCI is bearish with a $40.00 target.

Current Position: short JCI stock @ $43.75

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

Long Jul $40 PUT (JCI1419S40) entry $0.63*

04/28/14 triggered @ 43.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Pacific Ethanol, Inc. - PEIX - close: 13.74 change: +0.06

Stop Loss: 15.10
Target(s): 10.25
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 01, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: Yes, see below

Comments:
05/03/14: PEIX's bounce on Friday morning ran out of steam in the $14.25-14.30 area and beneath its 50-dma. That's good news if you're bearish. I do not see any changes from our new play description from Thursday night's newsletter.

Earlier Comments:
Recent weakness has produced a new sell signal on its point & figure chart now that forecasts a $10.50 target. Shares might correct lower toward the $10.00 region. There are already a lot of shorts in this name with the latest data listing short interest at 17.7% of the very small 17.4 million share float.

I am suggesting small bearish positions if PEIX trades below $13.25. If it hits our trigger then we will aim for $10.25. We'll try and limit our risk with a stop loss at $15.10. This should be considered an aggressive, higher-risk trade. You may want to use the put options to limit your risk.

Trigger @ 13.25 *small positions*

Suggested Position: short PEIX stock @ (trigger)

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

Buy the Jun $12.50 PUT (PEIX1421R12.5) current ask $1.15

chart:



Rackspace Hosting, Inc. - RAX - close: 28.13 change: -0.83

Stop Loss: 30.25
Target(s): to be determined
Current Gain/Loss: + 5.4%

Entry on April 24 at $29.75
Listed on April 22, 2014
Time Frame: exit PRIOR to earnings on May 12th
Average Daily Volume = 2.7 million
New Positions: see below

Comments:
05/03/14: So far so good with RAX. The bounce attempt appears to be failing. Shares underperformed on Friday with a -2.8% decline. I am moving our stop loss down to $30.25.

We will plan on exiting prior to earnings on May 12th.

Earlier Comments:
There are already a lot of bears in RAX. The most recent data listed short interest at 19% of the 116.9 million share float. That can make any bounce in RAX a potential short squeeze. I would consider this a higher-risk, more aggressive trade.

We are not setting a bearish target just yet. Considering the high short interest I suggest limiting your risk with a put option. FYI: The Point & Figure chart for RAX is bearish with a $21.00 target.

current Position: short RAX @ $29.75

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

Long May $30 PUT (RAX1417Q30) entry $2.00*

05/03/14 new stop @ 30.25
04/26/14 new stop @ 31.15
04/24/14 triggered @ 29.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Youku Tudou Inc. - YOKU - close: 22.04 change: -0.26

Stop Loss: 25.05
Target(s): to be determined
Current Gain/Loss: + 6.0%

Entry on April 28 at $23.45
Listed on April 26, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: see below

Comments:
05/03/14: YOKU continues to underperform with a -1.1% decline on Friday. The stock is down several days in a row so I would not be surprised to see an oversold bounce soon. I am not suggesting new positions at this time.

Earlier Comments:
I would consider this an aggressive trade because YOKU can be a volatile stock and the most recent data listed short interest at 8% of the 80.6 million share float. FYI: The P&F chart is very bearish and forecasting at $10 target.

*small positions*

current Position: short YOKU stock @ $23.45

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

Long Jun $20 PUT (YOKU1421R20) entry $1.05

04/28/14 triggered @ 23.45

chart:



CLOSED BEARISH PLAYS

Guess' Inc. - GES - close: 27.32 change: +0.28

Stop Loss: 27.55
Target(s): 23.00
Current Gain/Loss: - 3.4%

Entry on April 25 at $26.65
Listed on April 21, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 871 thousand
New Positions: see below

Comments:
05/03/14: The bounce in shares of GES accelerated on Friday morning. The stock pierced its 20-dma and 30-dma before paring its gains. Our stop loss was hit at $27.55.

closed Position: short GES stock @ $26.65 exit $27.55 (-3.4%)

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

Jun $27 PUT (GES1421R27) entry $1.70* exit $1.10** (-35.2%)

05/02/14 stopped out @ 27.55
**option exit price is an estimate since the option did not trade at the time our play was closed.
04/26/14 new stop @ 27.55
04/25/14 triggered @ 26.65
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Symantec Corp. - SYMC - close: 20.37 change: +0.21

Stop Loss: 20.65
Target(s): 18.10
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 28, 2014
Time Frame: exit PRIOR to earnings on May 8th
Average Daily Volume = 9.4 million
New Positions: see below

Comments:
05/03/14: SYMC is not cooperating. Shares actually outperformed the market on Friday with a +1.0% gain. The larger trend is still very bearish but we are running out of time. SYMC is scheduled to report earnings on May 8th and we do not want to hold over the announcement.

Our plan was to open bearish positions at $19.90 but that hasn't happened yet. We're removing SYMC as a candidate.

Trade did not open.

05/03/14 removed from the newsletter, suggested trigger was $19.90

chart: