Editor's Note:
Most of the market struggled to build on yesterday's rally and plenty of stocks reversed lower.

JCI was closed this morning. PRTA has been removed.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 41.98 change: -0.37

Stop Loss: 40.60
Target(s): to be determined
Current Gain/Loss: + 0.6%

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:
05/13/14: ATI, like most of the market today, did not see any follow through on yesterday's rally. The stock gave back -0.8%. Look for support at its 10-dma near $41.50.

*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



Chesapeake Energy - CHK - close: 30.04 change: -0.29

Stop Loss: 28.90
Target(s): to be determined
Current Gain/Loss: - 0.4%

Entry on May 12 at $30.15
Listed on May 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.5 million
New Positions: see below

Comments:
05/13/14: CHK is another stock that saw some profit taking today. Shares fell -0.95%. If the $30.00 level doesn't hold as support then look for support near $29.50.

I'm not setting an exit target yet but the Point & Figure chart for CHK is bullish with a $34.00 target.

current Position: Long CHK stock @ $30.15

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

Long Jul $30 call (CHK140719C30)* entry $1.53

05/12/14 triggered @ 30.15
*I've provided the more standardized option symbol format.
symbol-year-month-day-call-strike



Delta Air Lines - DAL - close: 38.78 change: +0.13

Stop Loss: 36.45
Target(s): to be determined
Current Gain/Loss: + 3.0%

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:
05/13/14: DAL inched ahead and managed another new relative high. 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*

05/12/14 new stop @ 36.45
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.



Oasis Petroleum - OAS - close: 49.35 change: +0.78

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

Entry on May 13 at $48.91
Listed on May 12, 2014
Time Frame: 6 to 12 weeks
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
05/13/14: Our brand new play on OAS is off to a decent start. Shares displayed relative strength with a +1.6% gain. Unfortunately the stock gapped open higher and opened at $48.91. The next hurdle for the bulls is lifting shares above potential resistance at the $50.00 level.

Earlier Comments:
More conservative investors may want to wait for a close above the $50.00 level as an alternative entry point. We're not setting a bullish exit target yet but the Point & Figure chart for OAS is bullish with a $65.00 target.

current Position: Long OAS stock @ $48.91

05/13/14 trade opened on gap higher at $48.91



BEARISH Play Updates

Noodles & Co. - NDLS - close: 31.53 change: -0.91

Stop Loss: 33.25
Target(s): to be determined
Current Gain/Loss: -1.4%

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:
05/13/14: The market's lack of follow through on yesterday's rally allowed NDLS to give back a good chunk of yesterday's bounce. The stock lost -2.8% today. Readers could use this move as a new bearish entry point.

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.



Pacific Ethanol, Inc. - PEIX - close: 11.59 change: +0.16

Stop Loss: 13.05
Target(s): to be determined.
Current Gain/Loss: +12.5%

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:
05/13/14: PEIX is still bouncing and added +1.39%. I am not suggesting new positions. More conservative investors may want to exit immediately.

Earlier Comments:
PEIX is short-term oversold here and could very well bounce. Our target to exit the rest of our positions is $8.50.

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.



Youku Tudou Inc. - YOKU - close: 21.32 change: +0.02

Stop Loss: 22.40
Target(s): to be determined
Current Gain/Loss: + 9.1%

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:
05/13/14: YOKU did not see a lot of movement today. Traders did buy the midday dip but the stock remains below its 10-dma. More conservative traders may want to take profits now and exit early. 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



CLOSED BEARISH PLAYS

Johnson Controls Inc. - JCI - close: 45.08 change: -0.24

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 3.7%

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:
05/13/14: JCI's bounce seems to be failing at its 20-dma. Shares reversed with a -0.5% decline. We had decided in last night's newsletter to exit positions this morning. JCI opened at $45.38.

closed Position: short JCI stock @ $43.75 exit $45.38 (-3.7%)

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

Jul $40 PUT (JCI1419S40) entry $0.63* exit $0.30** (-52.3%)

05/13/14 planned exit
**option exit price is an estimate since the option did not trade at the time our play was closed.
05/12/14 prepare to exit tomorrow morning
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:



Prothena Corp. - PRTA - close: 21.06 change: +0.20

Stop Loss: 20.15
Target(s): to be determined
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 682 thousand
New Positions: Yes, see below

Comments:
05/13/14: PRTA is not cooperating. Shares gapped open higher at $22.50 and spiked up to $23.48 before reversing. It could be a while before we see this stock hit our suggested entry point at $18.40. Therefore we are removing PRTA as a candidate.

Trade did not open.

05/13/14 removed from the newsletter. suggested entry trigger was $18.40

chart: