Editor's Note:
GHL hit our bearish exit target with today's -2.5% decline.

Meanwhile RYL hit our trigger and I have removed VIVO from the newsletter as a candidate.

We want to exit our ENDP trade at the open tomorrow.

Current Portfolio:


BULLISH Play Updates

Ryland Group - RYL - close: 22.79 change: +0.71

Stop Loss: 21.80
Target(s): 25.75
Current Gain/Loss: - 2.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/16 update: RYL displayed relative strength for the second day in a row. Unfortunately the intraday bullish breakout over resistance didn't last. The stock pared its gains. Now it looks like a failed rally near the top of its trading range. Our trigger to open bullish positions was hit at $23.60. While our trade is open I am not suggesting new positions at this time. Wait for a new high over $23.75 or a close over $23.60.

Earlier Comments:
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.

current Position: Long RYL stock @ $23.60

- or -

Long Jun $24 call (RYL1216F24) Entry $1.05

05/16/12 triggered at $23.60

Entry on May 16 at $23.60
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on May 9, 2011


SCANA Corp. - SCG - close: 46.33 change: -0.32

Stop Loss: 44.99
Target(s): 49.85
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
05/16 update: It was another quiet day for SCG. The stock dipped toward its 10-dma before bouncing back. I am suggesting a trigger to launch small positions at $46.85. More conservative traders could use a stop closer to $46.00 instead.

Trigger @ 46.85 (small positions)

Suggested Position: buy SCG stock @ (trigger)

Entry on May xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 607 thousand
Listed on May 14, 2011


U.S. Bancorp - USB - close: 31.06 change: -0.24

Stop Loss: 30.90
Target(s): 34.75
Current Gain/Loss: - 3.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/16 update: Continued weakness in the financials is weighing on USB. The stock has broken down below technical support at the 50-dma. If banks are weak again tomorrow there is a very good chance that USB will hit our stop loss at $30.90.

FYI: Our May calls will expire after Friday.

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

Acme Packet, Inc. - APKT - close: 23.94 change: -0.57

Stop Loss: 26.25
Target(s): 20.25
Current Gain/Loss: + 1.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/16 update: Shares failed at short-term resistance near $25 this morning and APKT sank to a -2.3% decline. I would consider new positions here at current levels. 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


American Railcar Ind. - ARII - close: 21.69 change: -0.36

Stop Loss: 24.05
Target(s): 20.05 or 18.55
Current Gain/Loss: + 2.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/16 update: ARII opened at $22.23 an made it to $22.58 before reversing lower. The stock underperformed the market with a -1.6% decline.

We have two targets. Our conservative target is $20.05. Our aggressive target is $18.55. FYI: The Point & Figure chart for ARII is bearish with a long-term $14.00 target.

Suggested Position: short ARII stock @ $22.23

Entry on May 16 at $22.23
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 108 thousand
Listed on May 15, 2011


DeVry Inc. - DV - close: 29.45 change: +0.07

Stop Loss: 31.55
Target(s): 26.25
Current Gain/Loss: + 0.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/16 update: The oversold bounce in DV today failed at resistance near $30.00. Readers can use today's move as a new bearish entry point.

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: 33.45 change: +0.69

Stop Loss: 34.10
Target(s): 30.25
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/16 update: Uh-oh! It's time to get out. ENDP dipped down to $31.95 this morning and then bounced all the way back to a +2.1% gain. This move looks like a bullish reversal candlestick. I am suggesting we exit immediately at the open tomorrow morning.

It was our plan to exit the May puts at the close today.

current Position: short ENDP stock @ $33.45

- or -

May $35 put (ENDP1219Q35) Entry $1.85 exit $1.55 (-16.2%)

05/16/12 prepare to exit remaining positions at the open tomorrow
05/16/12 exited May puts at the close
05/15/12 prepare to exit our May$35 puts at the close tomorrow
05/15/12 new stop loss @ 34.10
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


General Motors - GM - close: 21.91 change: +0.49

Stop Loss: 23.05
Target(s): 19.25
Current Gain/Loss: - 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/16 update: The Buffett bounce in GM wasn't as big as we thought. Shares opened higher at $22.05, tagged $22.62 and then pared its gains. I would still be tempted to open bearish positions here. Readers might want to consider lowering their stops toward today's high.

current Position: short GM stock @ $21.57

- or -

Long Jun $20 PUT (GM1216R20) Entry $0.39

05/15/12 after the closing bell it is discovered in a 13F filing that Berkshire Hathaway has initiated a position in GM.
Shares of GM are trading higher after hours.

Entry on May 15 at $21.57
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 10.5 million
Listed on May 14, 2011


Hospira Inc. - HSP - close: 32.85 change: +0.14

Stop Loss: 34.25
Target(s): 30.25
Current Gain/Loss: + 0.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/16 update: HSP saw an oversold bounce back toward resistance near its 150-dma and the $33.00-33.25 area. Readers can use this move as a new bearish entry point.

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: 34.64 change: -0.53

Stop Loss: 37.25
Target(s): 34.50
Current Gain/Loss: + 8.2%
Time Frame: exit prior to the May 23rd earnings report
New Positions: see below

Comments:
05/16 update: The early morning bounce in NTAP failed at resistance near $36.00. Our exit target is $34.50 but the low today was only $34.60 Readers may want to exit immediately anyway. Aggressive traders could aim lower instead.

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 -

May $37 PUT (NTAP1219Q37) Entry $0.86, exit $1.52 (+76.7%)

05/15/12 new stop loss @ 37.25
05/15/12 planned exit for the May puts: exit @ 1.52
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: 44.13 change: +0.34

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: + 1.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/16 update: SOHU saw an oversold bounce back to $45.54 this morning before trimming its gains. More conservative traders might want to tighten their stops. I am not suggesting new positions at this time.

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: 41.74 change: -1.05

Stop Loss: 45.05
Target(s): 41.00
Current Gain/Loss: + 8.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/16 update: The plunge in VC is getting faster. Shares lost another -2.4% today. Readers may want to take profits now. I am adjusting our exit target to $41.00 and moving our stop loss down to $45.05.

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

05/16/12 new stop loss @ 45.05, adjust exit target to $41.00
05/15/12 new stop loss @ 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


CLOSED BULLISH PLAYS

Meridian Biosciences - VIVO - close: 19.53 change: -0.12

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

Comments:
05/16 update: VIVO is still slowly fading lower after failing at resistance near $20 a few days ago. Our trigger to open bullish positions has not been hit. I am removing VIVO from the newsletter.

Trigger @ $20.25

Our Trade Did Not Open.

05/16/12 removed from the newsletter

chart:

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


CLOSED BEARISH PLAYS

Greenhill & Co. - GHL - close: 33.98 change: -0.88

Stop Loss: 38.05
Target(s): 34.25
Current Gain/Loss: + 8.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/16 update: Target achieved.

GHL continues to underperform the market. The stock lost -2.5% today and hit our exit target at $34.25.

(small positions)

closed Position: short GHL stock @ 37.25 exit $34.25 (+8.1%)

05/16/12 exit target hit
05/14/12 new stop loss @ 38.05
05/05/12 new stop loss @ 38.75
05/03/12 triggered @ 37.25

chart:

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