Editor's Note:

The stock market's mid April bounce appears to be rolling over. Is the market forming a top?

Small caps and energy stocks were hit hard on Friday. The IWM, EOG and GPOR hit our stop loss.


Current Portfolio:


CALL Play Updates

Adobe Systems - ADBE - close: 63.22 change: -1.17

Stop Loss: 59.45
Target(s): to be determined
Current Option Gain/Loss: -41.5%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
04/26/14: The two-day sell-off in technology stocks tripped up ADBE and shares fell from almost $65 to $61.61. We've been expecting a dip toward $62.00 so hopefully Friday's move was a bit of an overreaction with its -2.5% decline. If ADBE does not immediately rebound then it will most likely test round-number support near $60.00. Nimble traders could use a bounce from $60 as a new entry point.

- Suggested Positions -

Long Jul $65 call (ADBE1419G65) entry $3.20

04/21/14 ADBE opened at $64.00

chart:

Entry on April 21 at $64.00
Average Daily Volume = 4.8 million
Listed on April 19, 2014


Devon Energy - DVN - close: 70.40 change: -1.51

Stop Loss: 69.45
Target(s): 74.75
Current Option Gain/Loss: - 8.7%
Time Frame: exit PRIOR to earnings on May 7th
New Positions: see below

Comments:
04/26/14: After outperforming the last two weeks we saw energy stocks hit some profit taking on Friday. DVN plunged -2.0% and looks poised to test potential round-number support at $70.00. We are moving our stop loss up to $69.45. Wait for a bounce before considering new positions.

We will plan on exiting prior to earnings on May 7th. FYI: The Point & Figure chart for DVN is bullish with a $95 target.

- Suggested Positions -

Long May $70 call (DVN1417E70) entry $1.94*

04/17/14 triggered @ 70.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on April 17 at $70.35
Average Daily Volume = 3.7 million
Listed on April 16, 2014


Diamondback Energy, Inc. - FANG - close: 71.44 change: -3.98

Stop Loss: 69.25
Target(s): to be determined
Current Option Gain/Loss: -20.5%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
04/26/14: Energy stocks have been some of the market's best performers these last couple of weeks. Yet the group was hammered on Friday and FANG fell -5.2%. The stock appears headed for what should be support near the $70.00 mark. Nimble traders could use a dip or a bounce near $70 as a new bullish entry point. We are going to adjust our stop loss just a bit and move it to $69.25.

Earlier Comments:
FANG could see some short covering. The most recent data listed short interest at 37% of the small 32.5 million share float. That's plenty of fuel for a short squeeze. FYI: The Point & Figure chart for FANG is bullish with an $85 target.

- Suggested Positions -

Long May $75 call (FANG1417E75) entry $1.70*

04/25/14 adjust stop to $69.25
04/21/14 new stop @ 69.45
04/19/14 new stop @ 68.75
04/16/14 triggered @ 71.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on April 16 at $71.25
Average Daily Volume = 948 thousand
Listed on April 14, 2014


Nu Skin Enterprises - NUS - close: 87.74 change: -0.78

Stop Loss: 85.45
Target(s): $96.50
Current Option Gain/Loss: +11.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/26/14: NUS weathered the market's weakness on Friday relatively well. Traders bought the dip at $85.80 and the stock bounced. We are moving our stop loss up to $85.45.

Earlier Comments:
Currently the Point & Figure chart for NUS is bullish with a $102 target.

- Suggested Positions -

Long May $90 call (NUS1417E90) entry $3.04

04/26/14 new stop @ 85.45
04/22/14 set bullish exit target at $96.50
04/21/14 triggered @ 84.50

chart:

Entry on April 21 at $84.50
Average Daily Volume = 1.8 million
Listed on April 19, 2014




PUT Play Updates

Catamaran - Corp. - CTRX - close: 38.95 change: -0.04

Stop Loss: 40.65
Target(s): to be determined
Current Option Gain/Loss: - 6.8%
Time Frame: Exit PRIOR to earnings on May 1st
New Positions: see below

Comments:
04/26/14: CTRX spiked higher at the open on Friday but the rally didn't last. At the same time there wasn't any follow through lower and CTRX closed relatively unchanged. There appears to be short-term support near $38.50 and readers may want to wait for a new drop under $38.50 before initiating new positions.

Earlier Comments:
CTRX is scheduled to earnings again on May 1st. We do not want to hold over the announcement. We're not setting at target to tonight but I would probably aim for the $35 region.

FYI: The Point & Figure chart for CTRX is bearish with a long-term $23 target.

- Suggested Positions -

Long May $40 PUT (CTRX1417Q40) entry $2.20

04/21/14 CTRX opened @ $39.06

chart:

Entry on April 21 at $39.06
Average Daily Volume = 3.3 million
Listed on April 19, 2014


Ralph Lauren Corp. - RL - close: 153.09 change: -1.52

Stop Loss: 156.15
Target(s): to be determined
Current Option Gain/Loss: - 5.4%
Time Frame: exit PRIOR to earnings on May 9th
New Positions: see below

Comments:
04/26/14: There was no follow through on RL's intraday rebound on Thursday. Shares reversed again into a -0.9% decline on Friday and closed near their lows for the session. I would be tempted to buy puts here but more conservative traders may want to wait for a new relative low under $152.00 instead.

We are moving our stop loss down to $156.15

Earlier Comments:
If you are patient enough traders could aim for a drop toward $140. The Point & Figure chart is actually very bearish and forecasting at $112 target. We're not setting an exit target yet but plan on exiting positions prior to RL's next earnings report on May 9th.

- Suggested Positions -

Long May $150 PUT (RL1417Q150) entry $3.70

04/26/14 new stop @ 156.15
04/24/14 triggered @ 152.45

chart:

Entry on April 24 at $152.45
Average Daily Volume = 891 thousand
Listed on April 21, 2014


Toyota Motor Corp. - TM - close: 106.49 change: -0.55

Stop Loss: 109.25
Target(s): 100.50
Current Option Gain/Loss: +28.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/26/14: A disappointing earnings report from Ford (F) weighed on the major auto makers and TM lost another -0.5%. We are adjusting our stop loss down to $109.25.

Earlier Comments:
Our target is $100.50. However, we will plan to exit prior to TM's earnings report in May. The company has not set a date yet but we expect the announcement to be in the first half of May and will update our exit when they publish their earnings date. FYI: The Point & Figure chart for TM is bearish with a $90 target.

- Suggested Positions -

Long May $105 PUT (TM1417Q105) entry $1.11

04/26/14 new stop @ 109.25
04/23/14 TM opens at $108.28

chart:

Entry on April 23 at $108.28
Average Daily Volume = 602 thousand
Listed on April 22, 2014



CLOSED BULLISH PLAYS

EOG Resources - EOG - close: 99.04 change: -4.44

Stop Loss: 99.65
Target(s): 109.00
Current Option Gain/Loss: -36.8%
Time Frame: exit PRIOR to earnings on May 5th
New Positions: see below

Comments:
04/26/14: EOG is another energy stock that was hit hard by profit taking on Friday. Shares were tagging new all-time highs earlier in the week and then started to reverse on Thursday. The reversal picked up speed on Friday with a -4.29% plunge and a breakdown below what should have been support at $100.00. Our stop was hit at $99.65.

- Suggested Positions -

May $105 call (EOG1417E105) entry $1.90* exit $1.20 (-36.8%)

04/25/14 stopped out
04/19/14 new stop @ 99.65
04/16/14 triggered @ 101.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on April 16 at $101.75
Average Daily Volume = 2.9 million
Listed on April 15, 2014


Gulfport Energy - GPOR - close: 71.79 change: -3.37

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: -52.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/26/14: After six weeks of gains GPOR lost momentum last week. Energy stocks were hit with some heavy selling on Friday and GPOR broke down below short-term support near $72.00. Our stop was hit at $71.20.

The overall trend for GPOR remains bullish. I would keep this stock on your watch list.

- Suggested Positions -

May $75 call (GPOR1417E75) entry $3.85* exit $1.81** (-52.9%)

04/25/14 stopped out @ 71.70
**option exit price is an estimate since the option did not trade at the time our play was closed.
04/14/14 triggered @ 74.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on April 14 at $74.25
Average Daily Volume = 1.45 million
Listed on April 12, 2014


iShares Russell 2000 ETF - IWM - close: 111.61 change: -2.00

Stop Loss: 112.45
Target(s): to be determined
Current Option Gain/Loss: -13.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/26/14: The down trend in stocks that started in March has resumed. The IWM rallied six days in a row only to fail at resistance near its 100-dma. This small cap ETF is now down three days in a row and hit our stop loss at $112.45. It looks poised to retest support in the $109-110 zone.

- Suggested Positions -

JUN $115 call (IWM1421F115) entry $2.37 exit $2.09* (-13.5%)

04/25/14 stopped out
04/22/14 new stop @ 112.45
04/21/14 new stop @ 111.45
04/16/14 triggered $ 112.15

chart:

Entry on April 16 at $112.15
Average Daily Volume = 55 million
Listed on April 15, 2014