Editor's Note:
The U.S. market turned in a broad-based decline on Thursday. Even the big cap names participated in the selling.

ATI and CHK hit our stop loss.


Current Portfolio:


BULLISH Play Updates

Delta Air Lines - DAL - close: 38.13 change: -0.31

Stop Loss: 36.45
Target(s): to be determined
Current Gain/Loss: + 1.3%

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:
05/15/14: DAL pierced its 10-dma again before paring its losses. If the market accelerates lower I would expect DAL to follow and shares will likely hit our stop at $36.45. More conservative traders may want to adjust their stop higher. Today's low was $37.33. 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: 48.07 change: -0.71

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

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:
05/15/14: Shares of OAS also traded below their 10-dma before bouncing. The stock ended the session down -1.45%. More conservative traders may want to raise their stop loss closer to the 20-dma near $47.10. I am not suggesting new positions at this time.

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: 38.40 change: -0.56

Stop Loss: 42.25
Target(s): to be determined
Current Gain/Loss: + 0.9%

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:
05/15/14: FNGN bounced at its early May low at $37.14. If the market bounces tomorrow I would expect FNGN to rebound toward $40.00.

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



Jacobs Engineering Group - JEC - close: 53.85 change: -0.63

Stop Loss: 56.75
Target(s): to be determined
Current Gain/Loss: + 1.2%

Entry on May 15 at $54.48
Listed on May 14, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.4 million
New Positions: see below

Comments:
05/15/14: JEC spiked down at the open and fell to $52.57 before bouncing. If the market can manage a bounce tomorrow I would not be surprised to see JEC rebound toward the $55 level but we can use such a move as a new bearish entry point.

current Position: short JEC stock @ $54.48

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

Long Jun $55 PUT (JEC140621P55) entry $1.65**

05/15/14 trade opened at $54.48
**option entry price is an estimate since the option did not trade at the time our play was opened.
*I've provided the more standardized option symbol format.
symbol-year-month-day-put-strike



Medidata Solutions - MDSO - close: 35.35 change: +0.62

Stop Loss: 36.55
Target(s): to be determined
Current Gain/Loss: - 2.6%

Entry on May 15 at $34.45
Listed on May 14, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
05/15/14: MDSO bucked the trend today and managed a gain. I don't see any news to account for today's display of relative strength. The stock opened at $34.45. MDSO should encounter resistance in the $35.50-36.50 zone.
FYI: The Point & Figure chart for MDSO is bearish with a $23.00 target.

current Position: short MDSO stock @ $34.45

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

Long Jul $35 PUT (MDSO140719P35) entry $3.30**

05/15/14 trade opened at $34.45
**option entry price is an estimate since the option did not trade at the time our play was opened.
*I've provided the more standardized option symbol format.
symbol-year-month-day-put-strike



Noodles & Co. - NDLS - close: 30.69 change: -0.11

Stop Loss: 33.25
Target(s): to be determined
Current Gain/Loss: +1.3%

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:
05/15/14: NDLS tagged new all-time lows today at $30.28. It is possible that the $30.00 level could be round-number support but if the market is accelerating lower I would expect NDLS to break down below $30.

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: 11.07 change: +0.08

Stop Loss: 13.05
Target(s): to be determined.
Current Gain/Loss: +16.5%

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:
05/15/14: I do not see any news to account for the relative strength in PEIX today. Biotech ETFs did bounce from the intraday low and PEIX's bounce was just a little bit stronger. I am not suggesting new positions. 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: 20.94 change: -0.44

Stop Loss: 22.40
Target(s): to be determined
Current Gain/Loss: +10.7%

Entry on April 28 at $23.45
Listed on April 26, 2014
Time Frame: exit PRIOR to earnings on May 22nd.
Average Daily Volume = 4.1 million
New Positions: see below

Comments:
05/15/14: YOKU spiked down toward its early May lows and bounced. Shares still lost -2.0% for the day. It looks like the $20.00 level might be support and investors may want to just exit early now to lock in potential gains.

We do not want to hold over the May 22nd earnings report.

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 BULLISH PLAYS

Allegheny Technologies - ATI - close: 40.48 change: -1.38

Stop Loss: 40.60
Target(s): to be determined
Current Gain/Loss: - 2.8%

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:
05/15/14: The market's widespread decline today sparked some heavy profit taking in ATI. Shares gapped lower at $41.60 and then plunged to a -3.29% decline. Our new stop was hit at $40.60.

*small positions*

closed Position: Long ATI stock @ $41.75 exit $40.60 (-2.8%)

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

Jul $40 call (ATI1419G40) entry $2.80 exit $1.95* (-30.3%)

05/15/14 stopped out
05/08/14 new stop @ 40.60
05/08/14 triggered @ 41.75

chart:



Chesapeake Energy - CHK - close: 28.99 change: -0.24

Stop Loss: 28.90
Target(s): to be determined
Current Gain/Loss: - 4.1%

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:
05/15/14: CHK's recent breakout past resistance at $30.00 has proven to be a bull trap pattern. The stock has done nothing but drop since its breakout past $30.00. Today saw CHK spike down toward its 30-dma and hit $28.22 before trimming its losses. Our stop loss was hit at $28.90.

closed Position: Long CHK stock @ $30.15 exit $28.90 (-4.1%)

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

Jul $30 call (CHK140719C30)* entry $1.53 exit $0.79** (-48.3%)

05/15/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
05/12/14 triggered @ 30.15
*I've provided the more standardized option symbol format.
symbol-year-month-day-call-strike

chart: