Editor's Note:
The small caps led the market lower today with the Russell 2000 index losing -1.6%.

FNGN hit our bearish entry trigger.


Current Portfolio:


BULLISH Play Updates

Allegheny Technologies - ATI - close: 41.86 change: -0.12

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:
05/14/14: ATI held up reasonably well today only losing -0.28% versus the S&P 500's -0.47%. Shares should find some short-term support at the simple 10-dma near $41.55.

*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: 29.23 change: -0.81

Stop Loss: 28.90
Target(s): to be determined
Current Gain/Loss: - 3.1%

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:
05/14/14: I do not see any news to account for the relative weakness in CHK today. The stock lost -2.69% in a slow and steady sell-off all day long. I would be tempted in buying a bounce near the $29.00 level or the 10-dma at $29.15.

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: 38.44 change: -0.34

Stop Loss: 36.45
Target(s): to be determined
Current Gain/Loss: + 2.1%

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:
05/14/14: DAL gave up -0.8% on the session. If you look at an intraday chart you'll notice that traders bought the dip three times near $38.20 today. If the $38.20 level fails the next support level is probably the 10-dma near $37.90. 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: 48.78 change: -0.57

Stop Loss: 45.75
Target(s): to be determined
Current Gain/Loss: - 0.3%

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:
05/14/14: OAS suffered some profit taking with a -1.1% decline. Technically you could label today's move as a bearish engulfing candlestick reversal pattern but we'll have to wait and see if there is any follow through lower tomorrow. OAS should have technical support at its 20-dma near $47.00.

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

Financial Engines, Inc. - FNGN - close: 38.96 change: -0.17

Stop Loss: 42.25
Target(s): to be determined
Current Gain/Loss: - 0.5%

Entry on May 14 at $38.75
Listed on May 13, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 567 thousand
New Positions: see below

Comments:
05/14/14: Our new play on FNGN is open. Shares hit our trigger at $38.75 this morning. I am a little bit surprised that FNGN did not display more weakness considering the widespread market declines today. Readers still looking for an entry point might want to wait for a new drop under $38.00.

Earlier Comments:
FYI: The most recent data listed short interest at about 13% of the 50.4 million share float.

current Position: short FNGN stock @ $38.75

05/14/14 triggered @ 38.75



Noodles & Co. - NDLS - close: 30.80 change: -0.73

Stop Loss: 33.25
Target(s): to be determined
Current Gain/Loss: +0.9%

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:
05/14/14: NDLS continues to underperform and lost -2.3% today. Shares look poised to hit new all-time lows soon.

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: 10.99 change: -0.60

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:
05/14/14: It looks like PEIX's oversold bounce could be rolling over. The stock lost -5.1% today. More conservative traders could lower their stop closer to the $12.00 area.

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: 21.38 change: +0.06

Stop Loss: 22.40
Target(s): to be determined
Current Gain/Loss: + 8.8%

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:
05/14/14: YOKU pierced technical resistance at its 10-dma but the rally failed near $22.00 this morning. 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