Editor's Note:
Shares of NTAP and VC both hit our bearish exit targets thanks to the market's widespread weakness.

We also closed ENDP at the open this morning. CALM was triggered. RYL and USB were both stopped out.

Current Portfolio:


BULLISH Play Updates

Cal-Maine Foods, Inc. - CALM - close: 38.09 change: -0.31

Stop Loss: 36.75
Target(s): 42.00
Current Gain/Loss: - 1.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/17 update: Our new CALM trade is open but it's starting on the wrong foot. Shares were strong this morning but the rally reversed and CALM lost -0.8%. It might just be a reaction to the widespread market weakness I would be a little cautious here. Readers may want to wait for a bounce off the $38 level before considering new positions.

Earlier Comments:
CALM could see a short squeeze. The most recent data listed short interest at 21.5% of a very small 13.8 million share float.

Trigger @ 38.55

current Position: Long CALM stock @ $38.55

05/17/12 triggered at $38.55

Entry on May 17 at $38.55
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 123 thousand
Listed on May 16, 2011


SCANA Corp. - SCG - close: 46.07 change: -0.29

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

Comments:
05/17 update: SCG dipped toward potential short-term support near $46 and its 20-dma. I don't see any changes from my prior comments. 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


BEARISH Play Updates

Acme Packet, Inc. - APKT - close: 22.85 change: -1.09

Stop Loss: 25.55
Target(s): 20.25
Current Gain/Loss: + 5.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/17 update: The sell-off in APKT is accelerating lower with a -4.5% decline today. I am lowering our stop loss down to $25.55.

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

05/17/12 new stop loss @ 25.55

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: 21.23 change: -0.46

Stop Loss: 23.55
Target(s): 20.05 or 18.55
Current Gain/Loss: + 4.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/17 update: ARII sank to new multi-month lows with today's -2.1% decline. I am lowering our stop loss down to $23.55.

Earlier Comments:
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

05/17/12 new stop loss @ 23.55

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: 29.05 change: -0.40

Stop Loss: 30.35
Target(s): 26.25
Current Gain/Loss: + 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: DV fell to new multi-year lows with today's -1.3% decline. I am lowering our stop loss down to $30.35.

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

05/17/12 new stop loss @ 30.35

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


Foster Wheeler AG - FWLT - close: 18.77 change: -0.68

Stop Loss: 21.35
Target(s): 17.25
Current Gain/Loss: + 3.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: FWLT is off to a good start with a -3.5% decline. Shares are starting to look a little bit oversold. Don't be surprised to see a bounce but the trend is down.

current Position: short FWLT stock @ $19.53

- or -

Long Jun $20 PUT (FWLT1216R20) Entry $1.40

Entry on May 17 at $19.53
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on May 16, 2011


General Motors - GM - close: 21.61 change: -0.30

Stop Loss: 23.05
Target(s): 19.25
Current Gain/Loss: - 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: GM continues to roll over after the Buffett bounce from the 16th. I don't see any changes from my prior comments. 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: 32.56 change: -0.29

Stop Loss: 34.25
Target(s): 30.25
Current Gain/Loss: + 1.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/17 update: HSP hovered under the $33 level this morning before sinking to its lows for the date in the last few minutes of trading. 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


Sohu.com - SOHU - close: 43.17 change: -0.96

Stop Loss: 46.25
Target(s): 40.25
Current Gain/Loss: + 3.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: SOHU lost -2.1% and closed at new 52-week lows. There does not appear to be any support between current levels and the $40.00 level. More conservative traders might want to tighten their stops. I am not suggesting new positions at this time.

Please note our new stop at $46.25.

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

05/17/12 new stop loss @ 46.25
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


CLOSED BULLISH PLAYS

Ryland Group - RYL - close: 21.33 change: -1.59

Stop Loss: 21.80
Target(s): 25.75
Current Gain/Loss: - 7.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/17 update: Murphy's Law strikes again! I cautioned readers that RYL was a volatile stock and it proved that today. Yesterday RYL traded just high enough above resistance to hit our trigger at $23.60 before reversing. Then today the homebuilding stocks were crushed with widespread declines. RYL fell -6.9% and broke down through the bottom of its prior trading range. Our stop loss was hit at $21.80.

Earlier Comments:
We want to keep our position size small because the homebuilders can be so volatile.

closed Position: Long RYL stock @ $23.60 exit $21.80 (- 7.6%)

- or -

Jun $24 call (RYL1216F24) Entry $1.05 exit $0.45 (-57.1%)

05/17/12 stopped out on sharp declines in the homebuilding stocks
05/16/12 triggered at $23.60

chart:

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


U.S. Bancorp - USB - close: 30.65 change: -0.41

Stop Loss: 30.90
Target(s): 34.75
Current Gain/Loss: - 4.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: As we feared the financial stocks continued to sink on Thursday. USB broke down under the $31.00 level and hit our stop loss at $30.90.

closed Position: Long USB stock @ $32.25 exit $30.90 (-4.1%)

- or -

May $32 call (USB1219E32) Entry $0.70 exit $0.01 (-98.5%)

05/01/12 triggered @ 32.25

chart:

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


CLOSED BEARISH PLAYS

Endo Pharma. - ENDP - close: 33.29 change: -0.16

Stop Loss: 34.10
Target(s): 30.25
Current Gain/Loss: - 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: After yesterday's bullish reversal in ENDP it was our plan to exit at the opening bell today.

closed Position: short ENDP stock @ $33.45 exit $33.41 (+0.1%)

- or -

(closed 05/16/12)
May $35 put (ENDP1219Q35) Entry $1.85 exit $1.55 (-16.2%)

05/17/12 planned exit at the open
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

chart:

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


NetApp, Inc. - NTAP - close: 34.27 change: -0.37

Stop Loss: 37.25
Target(s): 34.50
Current Gain/Loss: + 8.6%
Time Frame: exit prior to the May 23rd earnings report
New Positions: see below

Comments:
05/17 update: Target achieved.

As expected NTAP continues to sink and shares hit our target at $34.50.

(small positions)

closed Position: short NTAP stock @ $37.75 exit $34.50 (+ 8.6%)

- or -

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

05/17/12 target hit at $34.50
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.

chart:

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


Visteon Corp. - VC - close: 40.82 change: -0.92

Stop Loss: 45.05
Target(s): 41.00
Current Gain/Loss: +10.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/17 update: Target achieved.

As expected VC continues to plunge and the stock hit our exit target at $41.00. Shares are looking pretty oversold here. I would not be surprised to see a big oversold bounce near the $40 level.

closed Position: short VC stock @ $45.75 exit $41.00 (+10.4%)

05/17/12 target hit @ 41.00
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

chart:

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