Editor's Note:
The S&P 500 and the Dow Industrials may be near their highs but our bearish plays are still performing well.

NDLS hit our entry trigger. RAX has been closed. SHLD has been removed.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 41.61 change: -0.44

Stop Loss: 40.60
Target(s): to be determined
Current Gain/Loss: - 0.3%

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:
05/10/14: ATI did not see any follow through on Thursday's bullish breakout. Instead shares reversed but fortunately traders bought the dip at its 10-dma. The afternoon bounce is encouraging but readers may want to wait for a rise above $42.00 before initiating new positions.

*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

chart:



Delta Air Lines - DAL - close: 37.67 change: -0.03

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:
05/10/14: Traders were also in a buy-the-dip mood with DAL. The stock pierced its 10-dma before paring its losses on Friday. I would consider buying this dip but traders might want to wait for a new rise past $38.00 as an alternative entry point.

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.

chart:



Six Flags Entertainment - SIX - close: 40.99 change: +0.30

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:
05/10/14: SIX did not see any follow through on Thursday's profit taking. Traders bought the dip at $40.51 on Friday and shares bounced. We are suggesting a trigger to launch bullish positions at $41.50 but I would be tempted to jump in now at current levels.

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) current ask $2.20

chart:



BEARISH Play Updates

Arctic Cat Inc. - ACAT - close: 38.60 change: -0.83

Stop Loss: 40.55
Target(s): to be determined
Current Gain/Loss: + 2.7%

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: Comments:
05/10/14: ACAT continued to underperform on Friday with a -2.1% decline. We only have a few days left. ACAT's earnings are coming up on Thursday, May 15th. We'll plan on exiting Wednesday to avoid holding over the report. Tonight we're adjusting the stop loss down to $40.55.

current Position: short ACAT stock @ $39.66

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

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

05/10/14 new stop $ 40.55
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.

chart:



Brunswick Corp. - BC - close: 39.29 change: +0.34

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:
05/10/14: BC managed a bit of an oversold bounce after its four-day decline. Friday's 34-cent gain erased Thursday's loss. Last week was bearish with a breakdown below significant support in the $39-40 zone. Nimble traders can watch for a bounce back toward $40 and its 10-dma, both of which should be overhead resistance, and use a rebound there as a new entry point for bearish positions.

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.

chart:



Cray Inc. - CRAY - close: 26.08 change: +1.11

Stop Loss: 27.25
Target(s): to be determined
Current Gain/Loss: + 5.7%

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:
05/10/14: Shares of CRAY also produced an oversold bounce on Friday after a five-day drop. I cautioned investors last week that the $25.00 level might be support. If shares see any follow through on Friday's bounce we could see CRAY hit our stop at $27.25. The closest area of resistance is probably $28.00 with its 10-dma and 200-dma. Cautious traders may want to lock in profits now.

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

chart:



DSW Inc. - DSW - close: 33.30 change: +0.11

Stop Loss: 34.10
Target(s): to be determined
Current Gain/Loss: + 2.1%

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:
05/10/14: DSW didn't really see any follow through on Thursday's upgrade-inspired pop higher. There is still a chance that DSW has formed a bullish double bottom with the two recent lows at $32.40. 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

chart:



Johnson Controls Inc. - JCI - close: 44.50 change: -0.36

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 1.7%

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:
05/10/14: JCI has spent the last two weeks consolidating sideways in a pennant-shaped pattern of lower highs and higher lows. These are supposed to be neutral patterns but more often than not the preceding trend resumes. In JCI's case that means the stock should see a bearish breakdown lower from its current consolidation. A new drop below last week's low of $43.88 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:



Noodles & Co. - NDLS - close: 30.92 change: -0.62

Stop Loss: 33.25
Target(s): to be determined
Current Gain/Loss: +0.5%

Entry on May 09 at $31.25
Listed on May 08, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 288 thousand
New Positions: see below

Comments:
05/10/14: Our new trade on NDLS has been opened. The sell-off continued on Friday and NDLS broke down to new all-time lows. Our suggested entry point to launch bearish positions was hit at $31.25. I do not see any changes from our Thursday night newsletter's new play description.

EDIT: Looking at the intraday chart NDLS actually gapped down about 9:31 a.m. from $31.53 to $31.08, bypassing our suggested entry point at $31.25. Traders did have plenty of opportunity to launch positions in the $31.25 area.

Earlier Comments:
There are already a lot of bears in the name with the most recent data listing short interest at 27% of the 21.2 million share float. That does raise our risk of a short squeeze and investors might want to buy puts instead of shorting the stock.

current Position: short NDLS stock @ $31.08

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

Long Jun $30 PUT (NDLS14R30) entry $1.55*

05/09/14 triggered on gap down at $31.08, suggested entry point was $31.25
*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: 10.66 change: -0.32

Stop Loss: 13.05
Target(s): to be determined.
Current Gain/Loss: +19.5%

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:
05/10/14: Our first target on PEIX has been hit. The plan was to exit half of our position at $10.50. The stock traded to a low of $10.43 before eventually settling on technical support at its 100-dma.

First half exit: PEIX @ $10.50 (+20.7%)
PEIX June $12.50 PUT @ $10.50, option @ $2.65 (+130.4%)

PEIX is short-term oversold here and could very well bounce. I am not suggesting new positions at this time. More conservative traders may want to lower their stop.

Our target to exit the rest of our positions is $8.50.

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*

05/09/14 1st target hit to sell half at $10.50
PEIX exit (1/2) at $10.50 (+20.7%)
PEIX Jun $12.50 PUT exit (1/2) at $10.50, option $2.65 (+130.4%)
option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:



Youku Tudou Inc. - YOKU - close: 20.97 change: +0.13

Stop Loss: 22.40
Target(s): to be determined
Current Gain/Loss: +10.6%

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:
05/10/14: We might be closing this trade soon. YOKU could be announcing earnings this week. We can't find a confirmed earnings date but one source has listed YOKU's earnings date as May 14th. That would be this Wednesday. More conservative investors may want to exit immediately to lock in potential gains. This is especially true if you're holding the June $20 put option, which really has not move much for us.

We are going to lower our stop loss to $22.40.

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

05/10/14 new stop @ 22.40
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

chart:



CLOSED BEARISH PLAYS

Rackspace Hosting, Inc. - RAX - close: 26.28 change: -0.36

Stop Loss: 28.55
Target(s): to be determined
Current Gain/Loss: +11.7%

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:
05/10/14: RAX continues to cooperate. The plan was to exit on Friday at the closing bell to avoid holding over the company's earnings report on Monday. Shares lost another -1.35% on Friday.

closed Position: short RAX @ $29.75 exit $26.28 (+11.7%)

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

May $30 PUT (RAX1417Q30) entry $2.00* exit $3.90 (+95.0%)

05/09/14 planned exit at the close
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.

chart:



Sears Holding Corp. - SHLD - close: 42.94 change: +1.18

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: see below

Comments:
05/10/14: SHLD does not want to participate in our bearish trade. We've been waiting for a breakdown under $40 but SHLD is bouncing instead. That does not mean the stock is bullish but we are going to remove SHLD as a candidate.

Trade did not open.

05/10/14 removed from the newsletter. suggested entry point was $39.90

chart: