Editor's Note:
It looks like traders are selling the rallies, especially in the NASDAQ and the Russell 2000.

ATI hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 42.05 change: +0.76

Stop Loss: 40.60
Target(s): to be determined
Current Gain/Loss: + 0.7%

Entry on May 08 at $41.75
Listed on May 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
05/08/14: Shares of ATI shot higher this morning and broke out to new relative highs. Our trigger to launch bullish positions was hit at $41.75. Please note our new stop loss at $40.60.

*small positions*

Current Position: Long ATI stock @ $41.75

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

Long Jul $40 call (ATI1419G40) entry $2.80

05/08/14 new stop @ 40.60
05/08/14 triggered @ 41.75



Delta Air Lines - DAL - close: 37.70 change: -0.54

Stop Loss: 35.75
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:
05/08/14: DAL gave back nearly all of yesterday's gains. The stock looks like it could be headed back to its 10-dma near $37.00. I am not suggesting new positions at this time.

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.



Six Flags Entertainment - SIX - close: 40.69 change: -0.45

Stop Loss: 38.90
Target(s): 49.00
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 07, 2014
Time Frame: 9 to 12 weeks
Average Daily Volume = 807 thousand
New Positions: Yes, see below

Comments:
05/08/14: SIX rallied to new multi-week highs this morning but shares did not hit our suggested entry point at $41.50. The intraday high was only $41.42 before shares rolled over and followed the market lower. Nimble traders could use a bounce from $40.00 as an alternative entry point. I am suggesting readers stick to our plan and wait for $41.50.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $41.50. If triggered our multi-week, potentially multi-month target is $49.00. The Point & Figure chart for SIX is bullish with a $48.00 target.

Trigger @ $41.50

Suggested Position: buy SIX stock @ (trigger)

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

Buy the Sep $40 call (SIX1420i40)



BEARISH Play Updates

Arctic Cat Inc. - ACAT - close: 39.43 change: -0.49

Stop Loss: 41.25
Target(s): to be determined
Current Gain/Loss: + 0.6%

Entry on May 07 at $39.75
Listed on April 29, 2014
Time Frame: Exit PRIOR to earnings on May 15th
Average Daily Volume = 159 thousand
New Positions: see below

Comments:
05/08/14: ACAT's attempt at a bounce failed near $40.00, which is good news for the bears. The stock rolled over into a -1.2% decline.

Plan on exiting prior to ACAT's earnings report on Thursday, May 15th.

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: 38.95 change: -0.34

Stop Loss: 41.15
Target(s): 32.00
Current Gain/Loss: + 0.6%

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:
05/08/14: It was a good day for BC bears. The stock's bounce failed near resistance at $40.00 and its 10-dma. Today's intraday reversal looks like a new bearish entry point.

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: 24.97 change: -0.43

Stop Loss: 27.25
Target(s): to be determined
Current Gain/Loss: + 9.7%

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:
05/08/14: Good news! CRAY's bounce from support near $25.00 failed before noon and shares closed below the $25.00 level.

We are moving the stop loss down to $27.25.

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

05/08/14 new stop @ 27.25
05/07/14 readers may want to take some money off the table
05/06/14 triggered@ 27.65



DSW Inc. - DSW - close: 33.19 change: +0.36

Stop Loss: 34.10
Target(s): to be determined
Current Gain/Loss: + 2.4%

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:
05/08/14: Some analyst firm gave DSW a new "buy" rating this morning and the stock reacted with a spike up to short-term resistance at $34.00. Fortunately the rally failed there and gave back most of its gains. 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

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: 44.86 change: +0.42

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 2.5%

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:
05/08/14: Hmm... JCI was showing some relative strength today with a +0.9% gain. More conservative traders may want to move their stop loss closer to today's intraday high ($45.34). 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: 10.98 change: +0.10

Stop Loss: 13.05
Target(s): to be determined.
Current Gain/Loss: +17.1%

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:
05/08/14: It was another volatile session for PEIX with a bounce fro $10.56 to $11.55. Gains faded and shares closed on technical support near their 100-dma. I don't see any changes from my prior comments. Yesterday I suggested we exit half of our position at $10.50. We'll then aim to exit the rest in the $8.50 area.

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: 26.64 change: -0.27

Stop Loss: 28.55
Target(s): to be determined
Current Gain/Loss: +10.5%

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:
05/08/14: RAX's bounce failed near $27.55 and the stock reversed into a new closing low. More conservative traders may want to lower their stop loss again.

I am suggesting we exit this trade tomorrow, Friday, May 9th, at the closing bell.

RAX has earnings coming up on Monday, May 12th and we do not want to hold over the announcement.

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.

current Position: short RAX @ $29.75

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

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

05/08/14 prepare to exit tomorrow at the closing bell.
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: 41.76 change: +0.02

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:
05/08/14: The intraday gains faded and SHLD closed virtually unchanged on the session. I don't see any changes from Tuesday 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: 20.84 change: +0.12

Stop Loss: 22.60
Target(s): to be determined
Current Gain/Loss: +11.1%

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:
05/08/14: YOKU bounced up to $21.54 before paring its gains. More conservative traders may want to lock in gains now. We are moving our stop loss down to $22.60.

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

05/08/14 new stop @ 22.60
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