Editor's Note:
It looked like investors were in the mood to buy the dip this morning. U.S. stocks surged off their morning spike lower.

DAL and PEIX hit our entry triggers.

We want to exit our CTL trade tomorrow at the close.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 40.91 change: -0.59

Stop Loss: 39.95
Target(s): to be determined
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: Yes, see below

Comments:
05/05/14: ATI did not see any follow through on Friday's relative strength. The stock reversed and underperformed on Monday with a -1.4% decline. If the stock closes below its simple 10-dma we'll probably drop it.

Currently I don't see any changes from our weekend new play description. Friday's high was $41.65. I am suggesting a trigger to open small bullish positions at $41.75. We will try and limit our risk with a stop loss at $39.95. More conservative investors may want to consider a stop closer to $40.60 instead.

Trigger @ $41.75 *small positions*

Suggested Position: buy ATI stock @ (trigger)

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

buy the Jul $40 call (ATI1419G40)



CenturyLink, Inc. - CTL - close: 34.84 change: +0.01

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:
05/05/14: CTL retested short-term support at its 10-dma and drifted sideways. That's not terribly surprising since the company will announce earnings soon on May 7th. We do not want to hold over the report. Therefore we'll plan on exiting positions tomorrow at the closing bell.

current Position: long CTL stock @ $34.35

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

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

05/05/14 plan to exit tomorrow at the closing bell
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.



Delta Air Lines - DAL - close: 37.55 change: +0.32

Stop Loss: 34.95
Target(s): to be determined
Current Gain/Loss: - 0.3%

Entry on May 05 at $37.65
Listed on May 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 13.5 million
New Positions: see below

Comments:
05/05/14: Stocks were weak across the board this morning with a sharp spike lower. DAL dipped to short-term technical support at its 10-dma and bounce. The rebound pushed shares to a new relative high and hit our suggested entry point at $37.65. I would still consider new positions now at current levels.

There were some interesting headlines regarding the airline industry today. The U.S. Department of Transportation and bureau of transportation statistics said that domestic airlines made $3.5 billion on baggage fees last year. Delta was at the top of the list with $833 million in baggage fees. DAL was also at the top of the list for charging passengers to change or cancel reservations.

Current Position: long DAL stock @ $37.65

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

Long Sept $40 call (DAL1420i40) entry $2.20*

05/05/14 triggered @ 37.65
*option entry price is an estimate since the option did not trade at the time our play was opened.



BEARISH Play Updates

Arctic Cat Inc. - ACAT - close: 40.77 change: -0.77

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:
05/05/14: The bounce in ACAT is fading fast. Shares underperformed with a -1.8% decline. We could see shares break support near $40.00 soon. 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)



DSW Inc. - DSW - close: 33.49 change: -0.18

Stop Loss: 34.55
Target(s): to be determined
Current Gain/Loss: + 1.6%

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:
05/05/14: DSW gapped down this morning and spent the rest of the day churning sideways. 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



Johnson Controls Inc. - JCI - close: 45.05 change: -0.16

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 3.0%

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:
05/05/14: JCI is not seeing a lot of movement. We still expect this bounce from its late April lows to roll over. Look for overhead resistance near $45.65 or its 10-dma (45.33).

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.



Pacific Ethanol, Inc. - PEIX - close: 12.56 change: -1.18

Stop Loss: 15.10
Target(s): 10.25
Current Gain/Loss: + 5.2%

Entry on May 05 at $13.25
Listed on May 01, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
05/05/14: Our PEIX trade is open and off to a good start. I don't see any company specific news behind today's display of relative weakness. We're certainly not complaining about PEIX's -8.5% decline. This is a clear breakdown below support. Our trigger to open bearish positions was hit at $13.25. If PEIX sees any sort of oversold bounce tomorrow I would look for resistance near $13.50.

Earlier Comments:
This should be considered an aggressive, higher-risk trade. You may want to use the put options to limit your risk. 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.

*small positions*

current Position: short PEIX stock @ $13.25

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

Long Jun $12.50 PUT (PEIX1421R12.5) entry $1.15*

05/05/14 triggered @ 13.25
*option entry price is an estimate since the option did not trade at the time our play was opened.



Rackspace Hosting, Inc. - RAX - close: 27.72 change: -0.41

Stop Loss: 30.25
Target(s): to be determined
Current Gain/Loss: + 6.8%

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:
05/05/14: RAX gapped down at the open and then quietly drifted sideways the rest of the session.

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.



Youku Tudou Inc. - YOKU - close: 22.25 change: +0.21

Stop Loss: 23.60
Target(s): to be determined
Current Gain/Loss: + 5.1%

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:
05/05/14: YOKU spiked down to new relative lows and hit $21.25 before rebounding. The market's big bounce off its Monday lows helped YOKU rally to a +0.9% gain. The stock was oversold and due for a bounce. The question now is how far will the bounce go? Broken support near $23.50 should be new resistance. We'll move our stop loss down to $23.60.

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

05/05/14 new stop @ 23.60
04/28/14 triggered @ 23.45