Editor's Note:
Stocks rallied off their morning lows but the healthcare and financial sectors underperformed the broader market.

STJ was an exception thanks to an upgrade and a new approval from the FDA. The stock rallied and hit our stop loss.

Current Portfolio:


BULLISH Play Updates

U.S. Bancorp - USB - close: 31.47 change: -0.10

Stop Loss: 30.90
Target(s): 34.75
Current Gain/Loss: - 2.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: USB dipped to technical support at its 50-dma. A bounce from here could be used as a new bullish entry point but at this time I'd probably wait for a close over $32.00 before considering new positions.

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


Meridian Biosciences - VIVO - close: 19.80 change: +0.06

Stop Loss: 19.10
Target(s): 22.00
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/09 update: VIVO continues to show relative strength with another gain. The stock is approaching potential resistance at its 10-dma, 300-dma and the $20.00 mark.

Aggressive traders may want to launch bullish positions now. I am suggesting a trigger at $20.25. We'll use a stop loss at $19.10. Our multi-week target is $22.00.

Trigger @ $20.25

Suggested Position: buy VIVO stock @ (trigger)

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 281 thousand
Listed on May 8, 2011


BEARISH Play Updates

Endo Pharma. - ENDP - close: 33.02 change: -0.73

Stop Loss: 35.05
Target(s): 30.25
Current Gain/Loss: + 1.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: There was no follow through on yesterday's intraday bounce. ENDP underperformed the market with a -2.1% decline.

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: 37.42 change: +0.29

Stop Loss: 38.75
Target(s): 34.25
Current Gain/Loss: - 0.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: The oversold bounce in GHL continues. The stock is now up three days in a row. I am expecting the bounce to stall at what should be resistance near $38.00. 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: 10.07 change: -0.26

Stop Loss: 11.55
Target(s): 8.50
Current Gain/Loss: + 6.8%
Time Frame: exit prior to May 14th earnings report
New Positions: see below

Comments:
05/09 update: GRPN drifted back down toward support near $10.00 and ended the session with a -2.5% decline. A breakdown under $10 would be very bearish. More conservative traders may want to take profits now or lower their stop loss. 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: 32.17 change: -1.23

Stop Loss: 34.05
Target(s): $30.50
Current Gain/Loss: + 6.5%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
05/09 update: What a difference a day can make. Yesterday HITK looked poised to break the bearish trend of lower highs. Today the stock reversed lower with a sharp -3.6% decline. HITK is now testing support near $32.00 and its 300-dma. More conservative traders will definitely want to take profits now! The newsletter is aiming for $30.50. We will lower our stop loss down to $34.05.

current Position: short HITK stock @ $34.40

05/09/12 new stop loss @ 34.05
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: 37.78 change: -0.03

Stop Loss: 39.65
Target(s): 34.50
Current Gain/Loss: - 0.1%
Time Frame: exit prior to the late May earnings report
New Positions: see below

Comments:
05/09 update: NTAP is not being very cooperative. For the second day in a row shares bounced near $37.10 but stalled at new resistance near $38.00. I am not suggesting new positions at this time.

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


Tesoro Corp. - TSO - close: 22.25 change: +0.70

Stop Loss: 23.25
Target(s): 18.25
Current Gain/Loss: - 3.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/09 update: I cautioned readers last night that the action in TSO yesterday looked like a potential bullish reversal and that we should expect a bounce back into the $22.00-22.50 zone. Sure enough that is what TSO delivered today. The question is whether or not resistance near the $22.50 level will hold or not. I am not suggesting new positions at this time. We'll wait and reconsider tomorrow.

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: 45.12 change: -0.45

Stop Loss: 48.25
Target(s): 40.50
Current Gain/Loss: + 1.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/09 update: VC gapped down at the open again. The stock lost about -1% on the session. More conservative traders may want to start lowering their stop loss. 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 BEARISH PLAYS

St. Jude Medical - STJ - close: 39.23 change: +1.27

Stop Loss: 39.35
Target(s): 34.25
Current Gain/Loss: - 5.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: As I feared, yesterday was indeed a bullish reversal. Shares rallied +3.3% today. Of course the stock may have gotten a boost from an analyst upgrade this morning and news that the F.D.A. has approved STJ's latest implantable cardioverter defibrillator, the Ellipse. Our stop loss was hit at $39.35.

closed Position: short STJ stock @ $37.45 exit $39.35 (-5.1%)

- or -

May $37.50 PUT (STJ1219Q37.5) Entry $1.20 exit $0.23 (-80.8%)

05/09/12 stopped out at $39.35
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

chart:

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