Editor's Note:
The U.S. market did not see any follow through on Thursday's widespread decline.

Prepare to exit our MDSO and PEIX trades on Monday morning.


Current Portfolio:


BULLISH Play Updates

Delta Air Lines - DAL - close: 37.86 change: -0.27

Stop Loss: 36.45
Target(s): to be determined
Current Gain/Loss: + 0.6%

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:
05/17/14: DAL's momentum might be slowing down a bit. Shares underperformed on Friday with a -0.7% decline. DAL has closed below its simple 10-dma for the first time in about three weeks. More conservative traders may want to adjust their stop higher. 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.

chart:



Oasis Petroleum - OAS - close: 47.78 change: -0.29

Stop Loss: 46.75
Target(s): to be determined
Current Gain/Loss: - 2.3%

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:
05/17/14: OAS is testing the next level of support at its rising 20-dma. We are raising our stop loss to $46.75. More conservative investors might want to raise their stop closer to Friday's low ($47.18). 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

05/17/14 new stop @ 46.75
05/13/14 trade opened on gap higher at $48.91

chart:



BEARISH Play Updates

Financial Engines, Inc. - FNGN - close: 39.29 change: +0.89

Stop Loss: 42.25
Target(s): to be determined
Current Gain/Loss: - 1.4%

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:
05/17/14: FNGN erased Thursday's loss with a +2.3% gain on Friday. Shares got a boost Friday morning with a new analyst upgrade. FNGN should still find resistance near $40.00 and its 10-dma. Readers may want to wait for FNGN to fail near $40 before initiating new bearish positions.

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

chart:



Jacobs Engineering Group - JEC - close: 53.28 change: -0.57

Stop Loss: 56.15
Target(s): to be determined
Current Gain/Loss: + 2.2%

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:
05/17/14: JEC continues to sink. The stock is down six out of the last seven sessions. It is starting to look short-term oversold. JEC tried to bounce on Friday but failed at the $54.00 level. I am moving our stop loss down to $56.15.

current Position: short JEC stock @ $54.48

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

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

05/17/14 new stop @ 56.15
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

chart:



Medidata Solutions - MDSO - close: 35.84 change: +0.49

Stop Loss: 36.55
Target(s): to be determined
Current Gain/Loss: - 4.0%

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:
05/17/14: MDSO is not performing as expected. The stock has outperformed the market two days in a row. Friday's move is a close above the 10-dma. We're suggesting an immediate exit to cut our losses early.

current Position: short MDSO stock @ $34.45

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

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

05/17/14 prepare to exit on Monday morning
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

chart:



Noodles & Co. - NDLS - close: 31.63 change: +0.94

Stop Loss: 33.25
Target(s): to be determined
Current Gain/Loss: -1.8%

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:
05/17/14: NDLS found support near $30.30 two days in a row. When shares started to bounce on Friday it looks like there could have been some short covering. NDLS surged +3.0% before stalling at technical resistance at its 10-dma. More conservative traders may want to lower their stop closer to the $32 level. I am not suggesting new positions.

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: 11.65 change: +0.58

Stop Loss: 13.05
Target(s): to be determined.
Current Gain/Loss: +12.1%

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:
05/17/14: We are pulling the plug on this PEIX trade. Shares have spent over a week now consolidating sideways near its 100-dma. This could be a new short-term bottom.

We're suggesting an immediate exit on Monday morning.

*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*

05/17/14 prepare to exit on Monday morning
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:



500.com Limited - WBAI - close: 31.14 change: +0.10

Stop Loss: 34.05
Target(s): to be determined
Current Gain/Loss: - 0.1%

Entry on May 16 at $31.10
Listed on May 15, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 389 thousand
New Positions: see below

Comments:
05/17/14: Friday proved to be a quiet day for shares of WBAI. The stock opened at $31.10 and spent most of the session drifting sideways. I do not see any changes from our Thursday night newsletter's new play description and would still consider new bearish positions at current levels.

Earlier Comments:
Technically the stock is sinking in a bearish pattern of lower highs and lower lows. I am suggesting small bearish positions at the opening bell tomorrow morning. We'll try and limit our risk with a stop loss at $34.05 but that's a relatively wide stop loss. Readers should consider this an aggressive, higher-risk trade.

I am not setting a bearish target just yet but the Point & Figure chart for WBAI is bearish with a $26.00 target.

*Small positions*

Suggested Position: short WBAI stock @ $31.10

05/16/14 trade begins. WBAI opened at $31.10

chart:



Youku Tudou Inc. - YOKU - close: 20.60 change: -0.34

Stop Loss: 21.75
Target(s): 18.50 or exit on Tuesday at the close
Current Gain/Loss: +12.2%

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:
05/17/14: YOKU continues to underperform. The stock lost -1.6% on Friday but it's worth noting that the $20.00 level is still holding up as support.

We only have a few days left. YOKU is scheduled to report earnings on May 22nd. More conservative investors may want to exit now to lock in potential gains. We will plan on exiting Tuesday at the closing bell unless YOKU hits $18.50 first (new exit target).

Due to our limited time remaining I am moving our stop loss down to $21.75.

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

05/17/14 new stop @ 21.75, new target @ 18.50, plan on exiting on Tuesday at the closing bell if YOKU does not hit our stop or target first.
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: