Editor's Note:
The market's widespread weakness helped trigger some of our bearish trades in HSP and SOHU.

Current Portfolio:


BULLISH Play Updates

Ryland Group - RYL - close: 22.08 change: -0.58

Stop Loss: 21.80
Target(s): 25.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/14 update: RYL slipped closer to the bottom of its trading range near support at $22.00. If we see RYL close under $22.00 we will drop it as a bullish candidate although we might reconsider if shares bounce near the $20 area.

Currently I am suggesting a trigger to open small bullish positions at $23.60. We'll use a stop loss at 21.80. We want to keep our position size small because the homebuilders can be so volatile. Our target is $25.75. FYI: The Point & Figure chart for RYL is bullish with a $34.50 target.

Trigger @ 23.60

Suggested Position: buy RYL stock @ (trigger)

- or -

buy the Jun $24 call (RYL1216F24)

Entry on May xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on May 9, 2011


U.S. Bancorp - USB - close: 31.56 change: -0.65

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

Comments:
05/14 update: The financial sector was hit hard by weakness in Europe. USB was no exception. The stock lost -2.0% although it remains inside its bullish channel for now.

FYI: Our May calls will expire after Friday. We'll need to plan an exit for these soon.

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: 19.70 change: -0.15

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

Comments:
05/14 update: VIVO drifted lower today. Shares remain under resistance near $20.00. If we see VIVO close under $19.50 we will drop it as a bullish candidate.

Currently 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

Acme Packet, Inc. - APKT - close: 24.71 change: +0.30

Stop Loss: 26.25
Target(s): 20.25
Current Gain/Loss: - 2.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/14 update: We do not want to see relative strength in our bearish candidates. Yet that's what APKT displayed today. The stock spiked down at the open and hit $23.89 only to bounce back and close up +1.2%. I didn't see any news to account for this sudden strength in APKT. More conservative traders might want to consider a stop loss closer to the $25.75 area.

Earlier Comments:
Our target is $20.25. We'll try and limit our risk with a stop at $26.25. We also want to keep our position size small because the most recent data listed short interest at 17% of the 58.2 million-share float, which does raise the risk of a short squeeze. FYI: The Point & Figure chart for APKT is bearish with a $13.00 target.

(small positions)

Current Position: short APKT stock @ $24.18

- or -

Long Jun $25 PUT (APKT1216R25) Entry $1.90

Entry on May 14 at $24.18
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on May 12, 2011


DeVry Inc. - DV - close: 29.55 change: -0.40

Stop Loss: 31.55
Target(s): 26.25
Current Gain/Loss: + 0.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/14 update: DV sank to new multi-year lows on Monday. Shares opened lower at $29.62. The intraday bounce attempt failed at new resistance near $30.00. I would still consider new bearish positions now at current levels. FYI: The Point & Figure chart for DV is bearish with a $19.00 target.

current Position: short DV stock @ $29.62

- or -

Long Jun $30 PUT (DV1216R30) Entry $1.35

Entry on May 14 at $29.62
Earnings Date 08/09/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on May 12, 2011


Endo Pharma. - ENDP - close: 33.48 change: -0.07

Stop Loss: 34.51
Target(s): 30.25
Current Gain/Loss: - 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/14 update: ENDP is still not cooperating and readers may want to just exit early now. I am not suggesting new positions and we will lower our stop loss to $34.51. The stock is churning sideways between support near $33 and its 200-dma directly overhead.

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

05/14/12 new stop loss @ 34.51
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: 35.49 change: -1.09

Stop Loss: 38.75
Target(s): 34.25
Current Gain/Loss: + 4.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/14 update: GHL underperformed the market with a sharp -2.9% decline. The stock is now testing its May 4th lows. I am not suggesting new positions at this time. We will lower our stop loss to $38.05.

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

05/14/12 new stop loss @ 38.05
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


Hi Tech Pharmacal - HITK - close: 31.47 change: -0.42

Stop Loss: 33.60
Target(s): $30.50
Current Gain/Loss: + 8.5%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
05/14 update: Good news for the bears! HITK has now closed under its simple 300-dma. The stock is also setting new relative lows. I am not suggesting new positions at this time.

current Position: short HITK stock @ $34.40

05/12/12 new stop loss @ 33.60
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


Hospira Inc. - HSP - close: 32.74 change: -0.60

Stop Loss: 34.25
Target(s): 30.25
Current Gain/Loss: + 0.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/14 update: Our HSP trade has been triggered. We wanted to open bearish positions at $33.20 but the stock gapped open lower at $32.95 this morning. Readers may want to wait for a bounce into the $33.15-33.25 zone as a new entry point for bearish positions.

FYI: Readers should note that HSP does have above average short interest. The most recent data listed short interest at 7.8% of the 165 million share float.

current Position: short HSP stock @ $32.95

- or -

Long Jun $30 PUT (HSP1216R30) Entry $0.35

05/14/12 opened on the gap down at $32.95, trigger was 33.20

Entry on May 14 at $32.95
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 9, 2011


NetApp, Inc. - NTAP - close: 35.79 change: -0.29

Stop Loss: 38.25
Target(s): 34.50
Current Gain/Loss: + 5.2%
Time Frame: exit prior to the May 23rd earnings report
New Positions: see below

Comments:
05/14 update: Hmm... I am surprised that NTAP did not show more weakness today especially considering the drop in the NASDAQ. The path of least resistance appears to be down but I am not suggesting new positions.

Please note that we will plan to close our May $37 puts at the open tomorrow. They closed with a bid at $1.56.

NOTE: We need to plan on exiting our May puts soon. They will expire this coming weekend.

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

05/14/12 prepare to exit our May $37 puts at the open tomorrow
05/10/12 new stop loss @ 38.25
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


Sohu.com - SOHU - close: 44.54 change: -1.21

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: + 0.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/14 update: Our SOHU trade has been opened. The stock gapped open lower at $45.28. Shares quickly spiked down and hit our trigger to open positions at $44.90. I would still consider new positions now at current levels.

Earlier Comments:
I do consider this a more aggressive, higher-risk trade. We want to keep our position small because the most recent data listed short interest at almost 34% of the small 29.75 million-share float. Our target is $40.25.
FYI: The Point & Figure chart for SOHU is bearish with a $35.00 target.

current Position: short SOHU stock @ $44.90

- or -

Long Jun $42.50 PUT (SOHU1216R42.5) Entry $1.95

05/14/12 triggered @ 44.90

Entry on May 14 at $44.90
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 915 thousand
Listed on May 10, 2011


Visteon Corp. - VC - close: 43.65 change: -1.07

Stop Loss: 47.25
Target(s): 40.50
Current Gain/Loss: + 4.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/14 update: VC is accelerating lower. Shares underperformed the market with a -2.3% decline today. I am lowering our stop loss down to $46.25.

Earlier Comments:
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

05/14/12 new stop loss @ 46.25
05/12/12 new stop loss @ 47.25
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