Editor's Note:
The stock market's oversold bounce is already losing steam.

Current Portfolio:


BULLISH Play Updates

Market Leader, Inc. - LEDR - close: 4.52 change: +0.08

Stop Loss: 3.77
Target(s): 6.00
Current Gain/Loss: + 3.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/22 update: LEDR continues to show relative strength and closed with another new 52-week high thanks to a +1.8% gain today. 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


PSS World Medical - PSSI - close: 19.17 change: -0.16

Stop Loss: 18.60
Target(s): 21.50
Current Gain/Loss: - 0.9%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
05/22 update: Uh-oh! There was no follow through on PSSI's oversold bounce. Shares faded back to the $19.00 level instead. I would be cautious on launching new positions. Readers may want to wait and buy a dip near $18.80 or wait for a new rally past $19.35 instead.

(small positions)

current Position: Long PSSI stock @ $19.35

- or -

Long Jun $20 call (PSSI1216F20) Entry $0.50

Entry on May 23 at $19.35
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 928 thousand
Listed on May 21, 2011


SCANA Corp. - SCG - close: 46.49 change: +0.47

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

Comments:
05/22 update: Defensive utility names like SCG were showing relative strength today. SCG rallied +1.0%. Readers may want to buy it now. The newsletter is suggesting a trigger to open 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: 33.54 change: -0.09

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

Comments:
05/22 update: AT&T spent another day churning sideways in a relatively narrow range. I don't see any changes from my prior comments.

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: 23.31 change: -0.07

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: + 3.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/22 update: The bounce in APKT is already losing steam. Shares appeared to fail under the $24.00 level and its simple 10-dma, which is a good sign if you're bearish.

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: 22.03 change: +0.83

Stop Loss: 23.55
Target(s): 20.05 or 18.55
Current Gain/Loss: + 0.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/22 update: Ouch! We knew ARII was due for a bounce but today's +3.8% rebound hurts. The rally stalled near technical resistance at the 10-dma. A failed rally near $23.00 and its 200-dma could be used as a new entry point.

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: 27.94 change: -0.90

Stop Loss: 30.35
Target(s): 26.25
Current Gain/Loss: + 5.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/22 update: DV displayed relative weakness with a -3.1% drop to new multi-year lows. More conservative traders might want to inch their stop loss lower. 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: 19.84 change: -0.34

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: + 1.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/22 update: FIO underperformed the market today with a -1.6% decline but shares continue to hover near round-number, psychological support at $20.00. I would consider new bearish positions here but readers may want to wait for a drop to $19.50 to initiate 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: 18.99 change: -0.51

Stop Loss: 20.35
Target(s): 17.25
Current Gain/Loss: + 2.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/22 update: It was a good day for the bears. There was no follow through on yesterday's oversold bounce. FWLT gave back two thirds of yesterday's rebound. I am lowering our stop loss down to $20.35. 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

05/22/12 new stop loss @ 20.35

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: 21.50 change: -0.04

Stop Loss: 22.65
Target(s): 19.25
Current Gain/Loss: + 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/22 update: The Moody's credit rating agency reaffirmed GM's rating at Ba1 and said their outlook remains positive for the company. Yet this news failed to have much impact on the stock price. GM's bounce is rolling over under the trend of lower highs.

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: 32.77 change: +0.12

Stop Loss: 34.25
Target(s): 30.25
Current Gain/Loss: + 0.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/22 update: The oversold bounce in HSP stalled at its descending 150-dma this morning. Shares almost closed unchanged on the day. I don't see any changes from my prior comments. 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: 43.66 change: -0.63

Stop Loss: 45.55
Target(s): 40.50
Current Gain/Loss: + 2.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/22 update: Good news! There was no follow through on yesterday's big bounce in SOHU. The stock underperformed today with a -1.4% decline. I remain cautious here. We are 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