Editor's Note:
Early morning losses faded as stocks produced an intraday reversal higher. The small cap Russell 2000 index looks like it could bounce from support tomorrow.

ACAT and BC hit our entry trigger.

Some of our bearish plays are testing support and readers may want to take some profits now.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 41.29 change: +0.25

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:
05/07/14: Traders continue to buy the dips in ATI and the stock looks poised to breakout to new relative highs soon. 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: 38.24 change: +0.61

Stop Loss: 35.75
Target(s): to be determined
Current Gain/Loss: + 1.6%

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:
05/07/14: DAL continues to show relative strength. Traders bought the dip this morning and shares reversed into a +1.6% gain. I am raising the stop loss to $35.75.

Current Position: long DAL stock @ $37.65

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

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

05/07/14 new stop @ 35.75
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: 39.92 change: +0.11

Stop Loss: 41.25
Target(s): to be determined
Current Gain/Loss: - 0.7%

Entry on May 07 at $39.75
Listed on April 29, 2014
Time Frame: about 2 weeks
Average Daily Volume = 159 thousand
New Positions: see below

Comments:
05/07/14: We were expecting ACAT to hit our trigger today after yesterday's close below the $40.00 mark. Sure enough the stock hit our entry point at $39.75. Actually the stock saw a gap down intraday at $39.66 around 9:35 a.m. Shares fell to $39.12 and then bounced back into positive territory. The intraday rebound is frustrating if you're bearish and readers may want to lower their stop.

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.

current Position: short ACAT stock @ $39.66

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

Long May $40 PUT (ACAT1417Q40) entry $2.15*

05/07/14 opened @ 39.66, suggested trigger was $39.75
*option entry price is an estimate since the option did not trade at the time our play was opened.



Brunswick Corp. - BC - close: 39.29 change: -0.23

Stop Loss: 41.15
Target(s): 32.00
Current Gain/Loss: - 0.2%

Entry on May 07 at $39.20
Listed on May 06, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
05/07/14: Our new play on BC is open. Shares spiked down to new lows this morning and hit our suggested entry point at $39.20. The intraday low was $38.53. I would still consider new bearish positions here at current levels.

current Position: short BC stock @ $39.20

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

Long Jun $40 PUT (BC1421R40) entry $1.95*

05/07/14 triggered @ 39.20
*option entry price is an estimate since the option did not trade at the time our play was opened.



Cray Inc. - CRAY - close: 25.40 change: -0.93

Stop Loss: 30.20
Target(s): to be determined
Current Gain/Loss: + 8.1%

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:
05/07/14: The sell-off in CRAY continued today with a -3.5% decline.

Traders may want to take some money off the table immediately since CRAY is testing potential round-number support at $25 and potential technical support at its 300-dma.

I am not suggesting new positions.

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

05/07/14 readers may want to take some money off the table
05/06/14 triggered@ 27.65



DSW Inc. - DSW - close: 32.83 change: -0.03

Stop Loss: 34.10
Target(s): to be determined
Current Gain/Loss: + 3.5%

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:
05/07/14: Hmm... I am urging caution here. DSW bounced at its late April low at $32.40. A bounce here could look like a bullish double bottom. Readers may want to take some money off the table.

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

05/07/14 caution, DSW could be forming a bullish double bottom
05/06/14 new stop loss @ 34.10
04/26/14 new stop loss @ 34.55



Johnson Controls Inc. - JCI - close: 44.44 change: +0.28

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 1.6%

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:
05/07/14: JCI did not see any follow through on yesterday's decline. Shares managed to slightly outpace the S&P 500 with a +0.6% gain. I am not suggesting new positions at this time.

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: 10.88 change: -0.44

Stop Loss: 13.05
Target(s): to be determined.
Current Gain/Loss: +17.9%

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:
05/07/14: Attention! PEIX continues to plunge with a -3.88% drop today. The stock is nearing what could be support at its 100-dma ($10.52) or the $10.00 mark.

I am suggesting we exit half of our position at $10.50. We'll then aim to exit the rest in the $8.50 area.

We are also lowering the stop loss to $13.05.

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*

05/07/14 new stop @ 13.05
We want to exit HALF of our position(s) at $10.50
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: 26.91 change: -0.80

Stop Loss: 28.55
Target(s): to be determined
Current Gain/Loss: + 9.5%

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:
05/07/14: Technology stocks continued to underperform and RAX lost -2.8%. We are lowering the stop loss to $28.55, just above the 10-dma. More conservative traders could use a stop loss at $28.25 instead, which is just above the short-term trend line of lower highs.

RAX has earnings coming up on Monday, May 12th. We will likely close this trade on Friday.

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*

05/07/14 new sop @ 28.55
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.



Sears Holding Corp. - SHLD - close: 41.74 change: +1.16

Stop Loss: 43.25
Target(s): 32.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 06, 2014
Time Frame: exit PRIOR to earnings on May 22nd
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Comments:
05/07/14: The Wall Street Journal ran an article today about Sears planning to close more stores. Meanwhile the stock managed to bounce at round-number support near the $40.00 mark. I don't see any changes from last night's new play description.

Earlier Comments:
There are a lot of bears betting that SHLD will trade lower. The most recent data listed short interest at 60% of the 43.3 million share float. That figure alone makes any bearish trade on SHLD a relatively high-risk and more aggressive trade.

We want to keep our position size small to limit our risk and traders may want to use put options instead of trying to short SHLD stock. Tonight we're suggesting a trigger for bearish positions at $39.90. If triggered our target is $32.50 but remember to exit before May 22nd.

Trigger @ $39.90 *small positions*

Suggested Position: short SHLD stock @ (trigger)

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

Buy the Jun $40 put (SHLD1421R40)



Youku Tudou Inc. - YOKU - close: 20.72 change: -0.98

Stop Loss: 23.60
Target(s): to be determined
Current Gain/Loss: +11.6%

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:
05/07/14: Caution! I am worried YOKU could see a bounce tomorrow. Internet-related stocks were big underperformers today and YOKU fell another -4.5%. The stock dipped toward round-number support at $20.00 and bounced. After reaching oversold conditions I am concerned YOKU could rebound. Therefore more conservative traders will want to seriously consider taking profits right here.

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

05/07/14 testing the $20.00 level, readers may want to take profits right here!
05/05/14 new stop @ 23.60
04/28/14 triggered @ 23.45