Editor's Note:
The stock market did not see any follow through on yesterday's intraday bounce. The major indices reversed lower in a widespread decline.

Our plan was to exit the CTL trade at the closing bell today.

CRAY hit our bearish entry trigger.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 41.04 change: +0.13

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:
05/06/14: ATI managed a bounce near its 10-dma but the rebound lost momentum. We are still waiting for a breakout to new highs. Currently I don't see any changes from our weekend new play description.

Earlier Comments:
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)



Delta Air Lines - DAL - close: 37.69 change: +0.14

Stop Loss: 34.95
Target(s): to be determined
Current Gain/Loss: + 0.1%

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:
05/06/14: Shares of DAL surged this morning on news the company had authorized a new $2 billion stock buyback program and boosting their dividend by 50%. The dividend will jump from 6 cents to 9 cents a share. If you're a shareholder that's one way to get a little money back from all the baggage fees DAL charges.

DAL's stock spiked up to $38.82 before paring its gains today.

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: 39.81 change: -0.96

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:
05/06/14: ACAT finally broke support near $40.00 yet failed to hit our suggested entry point. Our trigger is at $39.75. The low today was $39.77. Odds are good we will see ACAT hit our entry point tomorrow morning.

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. 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) current ask $2.10



Cray Inc. - CRAY - close: 26.33 change: -1.54

Stop Loss: 30.20
Target(s): to be determined
Current Gain/Loss: + 4.8%

Entry on May 06 at $27.65
Listed on May 05, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 464 thousand
New Positions: see below

Comments:
05/06/14: Our new bearish play on CRAY has been triggered. The stock accelerated lower with a -5.5% plunge. Our suggested entry point was hit at $27.65 early this morning.

Earlier Comments:
I am not setting an exit target yet but the Point & Figure chart is bearish with a $19.00 target. I suspect that CRAY might find some support in the $21.50-25.00 area.

current Position: short CRAY stock @ $27.65

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

Long Jul $25 PUT (CRAY1419S25) entry $1.55

05/06/14 triggered@ 27.65



DSW Inc. - DSW - close: 32.86 change: -0.63

Stop Loss: 34.10
Target(s): to be determined
Current Gain/Loss: + 3.4%

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:
05/06/14: It looks like the down trend in DSW has resumed with today's -1.88% decline. I am adjusting our stop loss down to $34.10.

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

05/06/14 new stop loss @ 34.10
04/26/14 new stop loss @ 34.55



Johnson Controls Inc. - JCI - close: 44.16 change: -0.89

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 0.9%

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:
05/06/14: The oversold bounce in JCI is rolling over. Shares fell -1.9% today. Today's move looks like a new entry point for bearish positions.

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: 11.32 change: -1.24

Stop Loss: 13.75
Target(s): to be determined.
Current Gain/Loss: +14.6%

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:
05/06/14: The sell-off in PEIX accelerated with a -9.8% plunge. We are adjusting our stop loss down to $13.75.

Please note that I am suspending our exit target. More conservative traders may want to exit bearish positions in the $10.25-10.00 area since the $10 mark could be support. We're going to see how far PEIX might fall. The January peak near $8.35 might be another spot to consider exiting.

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*

05/06/14 new stop @ 13.75
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: 27.71 change: -0.01

Stop Loss: 30.25
Target(s): to be determined
Current Gain/Loss: + 6.9%

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:
05/06/14: Shares of RAX spiked higher midday on new M&A rumors it was a takeover target. The rally didn't last long and shares closed virtually unchanged on 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: 21.70 change: -0.55

Stop Loss: 23.60
Target(s): to be determined
Current Gain/Loss: + 7.5%

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:
05/06/14: YOKU did not see any follow through on yesterday's bounce. The stock reversed into a -2.4% decline.

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




CLOSED BULLISH PLAYS

CenturyLink, Inc. - CTL - close: 34.46 change: -0.38

Stop Loss: 34.35
Target(s): to be determined
Current Gain/Loss: +0.3%

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:
05/06/14: Shares of CTL appear to be reversing ahead of its earnings report due out tomorrow night. Today's decline broke through short-term support at its 10-dma. Our plan was to exit positions at the closing bell.

closed Position: long CTL stock @ $34.35 exit $34.46 (+0.3%)

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

May $34 call (CTL1417E34) entry $0.95* exit $0.95 (+0.0%)

05/06/14 planned exit
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.

chart: