Editor's Note:
Be careful if you're trading bearish positions here. The market's big intraday bounce could be signaling a short-term bottom. We saw three of our bearish trades get triggered today (ENDP, NTAP, VC). Nearly all of our bearish trades joined the market in the afternoon rebound higher. I'm concerned we could see the market produce a big oversold bounce soon.

Current Portfolio:


BULLISH Play Updates

U.S. Bancorp - USB - close: 31.57 change: -0.27

Stop Loss: 30.90
Target(s): 34.75
Current Gain/Loss: - 2.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: USB held up reasonably well. Shares still have a very short-term bearish trend of lower highs inside its longer-term up trend. I am expecting a dip toward support near $31.00 and its 50-dma.

Our target is $34.75 but more aggressive traders could aim higher.

current Position: Long USB stock @ $32.25

- or -

Long May $32 call (USB1219E32) Entry $0.70

05/01/12 triggered @ 32.25

Entry on May 01 at $32.25
Earnings Date 07/18/12 (unconfirmed)
Average Daily Volume = 10.3 million
Listed on April 30, 2011


BEARISH Play Updates

Endo Pharma. - ENDP - close: 33.75 change: -0.05

Stop Loss: 35.05
Target(s): 30.25
Current Gain/Loss: - 0.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: I am suggesting caution here. ENDP did slip to new relative lows but it bounced back to almost unchanged. There is a good chance ENDP could bounce back toward its 10-dma near $34.60ish. I would wait for this rebound to reverse before considering new bearish positions.

Our target is $30.50. More aggressive traders could aim lower. The Point & Figure chart for ENDP is bearish with a $28 target.

current Position: short ENDP stock @ $33.45

- or -

Long May $35 put (ENDP1219Q35) Entry $1.85

05/08/12 triggered at $33.45

Entry on May 08 at $33.45
Earnings Date 05/01/12
Average Daily Volume = 1.4 million
Listed on May 5, 2011


Greenhill & Co. - GHL - close: 37.13 change: +0.23

Stop Loss: 38.75
Target(s): 34.25
Current Gain/Loss: + 0.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: I remain concerned with our GHL trade. The stock has bounced two days in a row following Friday's intraday reversal higher. I have warned readers that GHL will likely bounce toward the $38.00 level. I'd wait for shares to near $38.00 or fail near $38.00 before considering new positions.

Earlier Comments:
We do want to keep our position size small since being short GHL is a popular trade. The most recent data listed short interest at 18.5% of the small 26.8 million share float. That does raise the risk of a short squeeze.
FYI: The Point & Figure chart for GHL is bearish with a $29 target.

(small positions)

current Position: short GHL stock @ 37.25

05/05/12 new stop loss @ 38.75
05/03/12 triggered @ 37.25

Entry on May 03 at $37.25
Earnings Date 07/18/12 (unconfirmed)
Average Daily Volume = 508 thousand
Listed on May 2, 2011


Groupon, Inc. - GRPN - close: 10.33 change: -0.13

Stop Loss: 11.55
Target(s): 8.50
Current Gain/Loss: + 4.4%
Time Frame: exit prior to May 14th earnings report
New Positions: see below

Comments:
05/08 update: Hmm... the stock market was plunging lower today and yet GPRN did not breakdown under support near $10.00. If the stock is not going to drop on a day like today then what will it take for GRPN to start its next leg lower?

Readers may want to exit early now and take profits early. I am not suggesting new positions at this time. Remember this is an aggressive, higher-risk trade.

Earlier Comments:
Investors are unhappy with management, worried about earnings, and concerned that the upcoming lock up expiration could put even more pressure on the stock. The lock up period expires on June 1st (delayed from May 2nd). I do consider this an aggressive, higher-risk trade. The trend is down but GRPN is definitely oversold at this point. We want to use small positions to limit our risk. Readers may want to use options to limit their risk even further. We do not want to hold over the May 14th earnings report.

(Small positions)

Suggested Position: short GRPN stock @ $10.80

- or -

Long May $10 put (GRPN1219Q10) Entry $0.90

05/05/12 new stop loss @ 11.55. more conservative traders may want to take profits now (trade is up +7.7%).
Adjusted exit target to $8.50

Entry on May 02 at $10.80
Earnings Date 05/14/12 (confirmed)
Average Daily Volume = 2.6 million
Listed on May 01, 2011


Hi Tech Pharmacal - HITK - close: 33.40 change: +0.33

Stop Loss: 34.65
Target(s): $30.50
Current Gain/Loss: + 2.9%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
05/08 update: Warning! HITK did not see much of a sell-off this morning and shares outperformed the market with a +0.99% gain and a close over short-term resistance at its 10-dma. This is a warning signal for the bears. Readers may want to exit immediately. I am not suggesting new positions at this time.

current Position: short HITK stock @ $34.40

05/08/12 readers may want to exit immediately
05/07/12 new stop loss @ 34.65
04/21/12 new stop loss @ 35.05, adjust exit target to $30.50
04/19/12 planned exit for our April put: $1.30 (-13.3%)
04/18/12 prepare to exit our April $35 puts at the close tomorrow
04/14/12 new stop loss @ 35.55
04/10/12 triggered at $34.40

Entry on April 10 at $34.40
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 155 thousand
Listed on April 09, 2011


NetApp, Inc. - NTAP - close: 37.81 change: -0.18

Stop Loss: 39.65
Target(s): 34.50
Current Gain/Loss: - 0.2%
Time Frame: exit prior to the late May earnings report
New Positions: see below

Comments:
05/08 update: I am suggesting caution here. NTAP broke down to new relative lows and hit our trigger to launch bearish positions early this morning. Unfortunately the stock bounced back sharply. Broken support near $38.00 should be new resistance but if the market rallies tomorrow I would expect NTAP to regain the $38 level. On the other hand, a failure here, at resistance, can be used as a new entry point.

Earlier Comments:
The plan was to keep our position size small to limit our risk. We do not want to hold over the late May earnings report (date still unconfirmed). FYI: The Point & Figure chart for NTAP is bearish with a $31 target.

(small positions)

current Position: short NTAP stock @ $37.75

- or -

Long May $37 PUT (NTAP1219Q37) Entry $0.86

05/08/12 triggered @ 37.75
05/05/12 new stop loss @ 39.65, only use small positions.

Entry on May 08 at $37.75
Earnings Date 05/23/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on May 3, 2011


St. Jude Medical - STJ - close: 37.96 change: +0.10

Stop Loss: 39.35
Target(s): 34.25
Current Gain/Loss: - 1.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: Warning! STJ dipped toward its April lows and bounced. Today's move looks like a potential bullish reversal pattern. Readers may want to lower their stops toward the 10 or 20-dma. I am not suggesting new positions at this time.

current Position: short STJ stock @ $37.45

- or -

Long May $37.50 PUT (STJ1219Q37.5) Entry $1.20

05/08/12 warning! Today looks like a potential bullish reversal
05/05/12 new stop loss @ 39.35
04/23/12 new stop loss @ 40.05
04/23/12 triggered at $37.45

Entry on April 23 at $37.45
Earnings Date 04/18/12
Average Daily Volume = 5.1 million
Listed on April 21, 2011


Tesoro Corp. - TSO - close: 21.55 change: -0.19

Stop Loss: 23.25
Target(s): 18.25
Current Gain/Loss: - 0.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/08 update: It was a volatile session for TSO. Shares gapped open lower at $21.53, dipped to $20.77, and then bounced back to where it opened for trading. After a six-day decline TSO looks poised for an oversold bounce thanks to the big intraday rebound today. Look for a rally into the $22.00-22.50 zone if the market moves higher from here.

Earlier Comments:
There is possible support at the $20.00 mark but we are aiming for $18.25. This is a multi-week trade. We will start with a stop loss above the simple 20-dma. FYI: The Point & Figure chart for TSO is bearish with a long-term $13.00 target.

current Position: short TSO stock @ $21.53

- or -

Long Jun $20 put (TSO1216R20) Entry $0.66

Entry on May 08 at $21.53
Earnings Date 05/02/12
Average Daily Volume = 3.3 million
Listed on May 7, 2011


Visteon Corp. - VC - close: 45.57 change: -0.92

Stop Loss: 48.25
Target(s): 40.50
Current Gain/Loss: + 0.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/08 update: VC has broken support near $46.00 and hit our trigger at $45.75. The stock closed the session with a -1.9% decline. I would still consider new positions now but if the market opens positive readers may want to hesitate on launching new positions. The big rebound intraday in the market's major indices could be trouble for the bears. FYI: The Point & Figure chart for VC is bearish with a $35 target. NOTE: VC does have options but the bid/ask spread seems too wide to trade.

current Position: short VC stock @ $45.75

05/08/12 triggered @ 45.75

Entry on May 08 at $45.75
Earnings Date 05/02/12
Average Daily Volume = 513 thousand
Listed on May 5, 2011


CLOSED BULLISH PLAYS

The Home Depot - HD - close: 50.62 change: -0.77

Stop Loss: 50.95
Target(s): 54.75
Current Gain/Loss: - 2.5%
Time Frame: exit prior to the May 15th earnings report
New Positions: see below

Comments:
05/08 update: The widespread market sell-off this morning was too much for HD. The stock spiked down through several layers of potential support and briefly traded under its 50-dma and under the $50.00 mark. Our stop loss was hit at $50.95 along the way.

Suggested Position: Long HD stock @ $52.25 exit $50.95 (-2.5%)

- or -

May $52.50 call (HD1219E52.5) Entry $0.85 exit $0.27 (-68.2%)

05/08/12 stopped out at $50.95
05/05/12 new stop loss @ 50.95
04/27/12 triggered at $52.25

chart:

Entry on April 27 at $52.25
Earnings Date 05/15/12 (confirmed)
Average Daily Volume = 8.6 million
Listed on April 26, 2011