Editor's Note:
After almost three weeks of declines the market finally delivered a widespread oversold bounce. Naturally this was a rough day for our many bearish positions. Oddly enough our bullish trade on CALM was stopped out. The LEDR trade is open.

Current Portfolio:


BULLISH Play Updates

Market Leader, Inc. - LEDR - close: 4.44 change: +0.19

Stop Loss: 3.77
Target(s): 6.00
Current Gain/Loss: + 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/21 update: Our new trade on LEDR is off to a good start. Shares hit our trigger to open positions at $4.35 and ended the day up +4.4%. If you're looking for a new entry point you may want to wait for a dip.

Earlier Comments:
We'll try and limit our risk by keeping our position size small. FYI: The Point & Figure chart for LEDR is bullish with a $6.75 target. Remember, small positions. Don't go overboard just because the share price is low. I would consider this a higher-risk trade.

Current Position: Long LEDR stock @ $4.35

05/21/12 triggered at $4.35

Entry on May 21 at $4.35
Earnings Date 05/01/12
Average Daily Volume = 77 thousand
Listed on May 19, 2011


SCANA Corp. - SCG - close: 46.02 change: +0.15

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

Comments:
05/21 update: SCG inched up +0.3% and has yet to break the very short-term trend of lower highs. I am suggesting a trigger to launch small positions at $46.85. More conservative traders could use a stop closer to $46.00 instead.

Remember that SCG doesn't move very fast.

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


AT&T, Inc. - T - close: 33.63 change: -0.03

Stop Loss: 32.90
Target(s): 36.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
05/21 update: Hmm... shares of T underperformed the market today. The stock rallied toward $34.00 but didn't break out and eventually settled with a minor loss on the session.

I am suggesting a trigger at $34.05 to launch bullish positions. We'll use a stop at $32.90. FYI: The Point & Figure chart for T is bullish with a long-term $54.50 target.

Trigger @ 34.05

Suggested Position: buy T stock @ (trigger)

- or -

buy the Jun $33 call (T1216F33)

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 28 million
Listed on May 19, 2011


BEARISH Play Updates

Acme Packet, Inc. - APKT - close: 23.38 change: +0.75

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: + 3.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/21 update: APKT dipped to $22.16, a new multi-month low, before bouncing to a +3.3% gain. I am expecting the bounce to lift APKT toward resistance near its 10-dma or the $25.00 level.

I am not suggesting new positions.

Earlier Comments:
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

05/19/12 new stop loss @ 25.05, adjust exit target to $20.50
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: 21.21 change: +0.06

Stop Loss: 23.55
Target(s): 20.05 or 18.55
Current Gain/Loss: + 4.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/21 update: ARII churned sideways and looks like it would have closed in negative territory if it was given a little bit more time. Shares remain oversold here and due for a bounce. I am not suggesting new positions at this time.

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: 28.84 change: +0.20

Stop Loss: 30.35
Target(s): 26.25
Current Gain/Loss: + 2.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/21 update: Shares of DV also slipped lower this morning before reversing higher and closing in positive territory. The move looks like a one-day bullish reversal candlestick pattern but it needs to see follow through. DV should have resistance near $30.00 and the top of its bearish channel. I am not suggesting new positions at this time.

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


Fusion-io, Inc. - FIO - close: 20.18 change: +0.46

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: - 0.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/21 update: After big declines last week FIO produced a +2.3% bounce today but shares remain under their simple 10-dma. I would wait for a failed rally before considering new bearish positions.

Earlier Comments:
This is a higher-risk, aggressive trade. We want to keep our position size small because there has been some M&A rumors with FIO as a takeover target. Traders may want to limit their risk by using put options. FYI: The Point & Figure chart for FIO is bearish with a $16.00 target.

(small positions)

Suggested Position: short FIO stock @ $20.09

- or -

Long Jun $17.50 PUT (FIO1216R17.5) Entry $0.85

Entry on May 18 at $20.09
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on May 17, 2011


Foster Wheeler AG - FWLT - close: 19.50 change: +0.76

Stop Loss: 21.35
Target(s): 17.25
Current Gain/Loss: + 0.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/21 update: European stock markets witnessed big declines last week so they were due for an oversold bounce. Shares of FWLT were also oversold and due for a bounce. I suggested looking for a rebound back toward the $20.00 level, which should be new resistance. I am not suggesting new positions at this time.

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: 21.54 change: +0.36

Stop Loss: 22.65
Target(s): 19.25
Current Gain/Loss: + 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/21 update: GM gapped open higher and ended the session up +1.7% but the trend is still down. Look for resistance near $22 or the 20-dma.

current Position: short GM stock @ $21.57

- or -

Long Jun $20 PUT (GM1216R20) Entry $0.39

05/19/12 new stop loss @ 22.65
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: 32.65 change: +0.78

Stop Loss: 34.25
Target(s): 30.25
Current Gain/Loss: + 0.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/21 update: HSP erased a good chunk of our unrealized gains with today's +2.4% bounce. The stock should have resistance near $33 and near $34. Wait for a failed rally type of move before considering new bearish positions. More conservative traders might want to consider inching down their stop loss.

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: 44.29 change: +2.35

Stop Loss: 45.55
Target(s): 40.50
Current Gain/Loss: + 1.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/21 update: Our SOHU trade could be in trouble. The stock is doing a pretty good impression of a bullish reversal with today's gain (+5.6%). SOHU should have resistance near $45.00 and its 10-dma. If it rallies past $45 then we'll likely see it hit our stop loss at $45.55. 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

05/19/12 new stop loss @ 45.55, adjust exit to $40.50
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

Cal-Maine Foods, Inc. - CALM - close: 37.03 change: -0.08

Stop Loss: 36.75
Target(s): 42.00
Current Gain/Loss: - 4.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/21 update: The stock market produced a very widespread oversold bounce today and yet CALM did not participate. Instead the stock slipped lower and hit our stop loss at $36.75.

closed Position: Long CALM stock @ $38.55 exit $36.75 (-4.6%)

05/21/12 stopped out
05/17/12 triggered at $38.55

chart:

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