In This Edition... Market Update: Too Late, Already Broken  New Trade Ideas: One Short (TSRA), One Long (WBMD)  'To Do' - Lower the Stop on OZRK Trade, Make Three Exits (at least) Too Late, Already Broken You probably don't need me to tell you the breakdown I was worried about happening has indeed actually happened.  In Monday's edition I suggested we were on the verge of a major break in not just a key moving average line, but also a long-standing support line. Tuesday's low of 911.60 clinched it. Wednesday was no help for the bulls either, and today's euphoria has been challenged a couple of times too.  As far as how I see things playing out, I suspect the bulls are going to muster one more head fake. That just means the investors who became nervous over this week's early implosion are going to ease their worries with a decent gain. Maybe today's the day it'll happen.  As we see all too often though, that kind of undue confidence (well, actually a lack of worry) is a recipe for bearishness. In the short run, the market has a way of punishing most of the people most of the time.  Unless that support line as well the 20 day moving average are re-crossed though, I think being long is a bit of a liability here (and even then I'm not sure getting back above those lines will help the bulls that much).  The near-term target is still around 846.    New Trading Ideas As we've been doing in this indecisive market environment, today we're again going to offer a short as well as a long trading idea. We'll at least have the wind at our backs for one of them, even if we don't know for sure which one yet. Both of them, however, have a shot at moving in a profitable direction for us. WebMD Health Corp. (WBMD) - Long This one was almost taken off our watchlist a few days ago, when it looked like the March breakout effort was starting to fade. Today though, WBMD shares are up a little more than 3% after announcing they'd be fully merging with HLTH Corp.  Looks like the market liked it, as we do too. More importantly, we think the news and potential upside of the union is likely to keep driving the stock higher.  Even without the news, however, we'd be interested in WebMD shares following their break above last year's major resistance lines. We just happen to have the luxury of the technicals and fundamentals working together on this one. The only thing we're not crazy about is volume ...we'd like to see a little more of it fueling the recent gain. Maybe we'll see it as the market starts to crunch the combined numbers. Still, the risk/reward ratio looks favorable.  Tessera Technologies Inc. (TSRA) - Short We applaud the 100% gain (more, actually) we've seen from Tessera since early March, but let's face it - that's a little much, and very possibly undeserved. The move back from the recent peak of $27.60 to the current price of $24.21 suggests the market is starting to figure that out. The pullback filled one gap, but there are still two gaps aching to be closed - one of them all the way back at $16.99. That could be a pretty sweet trade if the market decides to fill in those holes on the chart. The clincher is today's move under the 20 day average, but we've also seen some decent distribution (high volume selling) days since last week's peak.  This isn't a judgment call on the company's performance - it's strictly a trade based on an overbought chart.    A Little Trade Management  I know I seem incessant with my ongoing trade management, but honestly, I think it's the number one way to improve anybody's portfolio results.... protecting profits once you have them. Don't worry - we've only got one for today. Which one? Lower the stops on the Bank of the Ozarks, Inc. (OZRK) short position. This chart has continued to sink, hitting a low of $19.70 yesterday, and hovering around $19.97 as I write this. From our entry at $23.36, we're now up about 15%. By how much to you lower your stop? That's up to you, but with a decent gain like that, I'd suggest protecting the bulk of it. Don't forget we were only targeting a move roughly to the next support line, which looks like it'll be around $18.00 by the time it's tested (if it's tested). If OZRK doesn't seem to stall there and instead blows right under it, I'd be willing to keep riding the downtrend. Let's cross that bridge when we come to it though. By the way, if I don't update the stops on a particular stock in any given edition, that generally means I see no particular reason to at that time. In other words, none of the other trades have moved enough in the last few days to bother fooling with. That said, there were a handful of picks that would/should have been stopped out since our last update (some for losses, most for at least small gains). Beazer Homes USA Inc. (BZH) is the first one that comes to mind. We urged you on June 2nd to raise your stops after the stock made its way back up to a high of $2.88 that day. We were up 33% at the time. Assuming you don't 'give back' more than 10% points of any gain (a good rule of thumb), you would have been out late last week or earlier this week. Drugstore.com Inc. (DSCM) is another one that comes to mind when thinking about trades that would have been auto-exited. We suggested raising the stop on DSCM back on June 10th when it was trading at $1.93; we were up by 32% at the time. Though the stock hasn't given up a whole lot of ground this week, a long string of lower highs and lower lows should be concerning.  In other words, if you're still in, I recommend you get out. The trade will still generate a profit of about 25% if you get out around the current price of $1.82. The iShares Preferred Stock ETF (PFF) would have likely been stopped out too, if you were protecting profits as tightly as you should have been.  PFF's low of $32.14 on the 16th was a clear break in the uptrend, as well as a break of a support line. (I like to use a parabolic SAR as a 'trailing stop' for some of my picks.) If you got out at the low for the day, you still would have netted a 29% gain on this January pick.  That's it for today, but be sure to check in again next time - we may be updating some of the other trades soon.