Editor's Note:
The market produced a sharp bounce this afternoon, led by small caps.

Meanwhile we did see our new CBD trade triggered. I am removing SCG as a candidate.

Current Portfolio:


BULLISH Play Updates

Market Leader, Inc. - LEDR - close: 4.47 change: -0.05

Stop Loss: 3.95
Target(s): 6.00
Current Gain/Loss: + 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/23 update: after three days of gains LEDR took today off to rest. Shares gave up -1.1%. The stock could easily dip toward its simple 10-dma near $4.20, which would be a good spot to look for a new entry point. We are raising our stop loss up to $3.95.

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

05/23/12 new stop loss @ 3.95
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: 19.00 change: -0.17

Stop Loss: 18.60
Target(s): 21.50
Current Gain/Loss: - 1.8%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
05/23 update: PSSI is not cooperating. The stock spent the session churning sideways in a very narrow range near $19.00. Now you could argue that's bullish since it did not plunge this morning with the market (although it did gap down at the open). On the other hand PSSI did not bounce with the market this afternoon either. The stock's recent performance does not inspire confidence. I am suggesting we exit positions at the open tomorrow morning to cut our losses.

(small positions)

current Position: Long PSSI stock @ $19.35

- or -

Long Jun $20 call (PSSI1216F20) Entry $0.50

05/23/12 prepare to exit tomorrow at the open to cut our losses

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


AT&T, Inc. - T - close: 33.36 change: -0.18

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

Comments:
05/23 update: Hmm... T isn't looking so hot. Shares close under the simple 10-dma today. It's only done that once in the last four weeks. If T doesn't improve tomorrow we will likely drop it as a candidate.

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


EXCO Resources - XCO - close: 7.90 change: +0.20

Stop Loss: 7.45
Target(s): 9.25
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/23 update: XCO displayed relative strength today with a +2.5% gain. Shares are poised to breakout past resistance near $8.00 soon. If XCO can breakout it could see a short squeeze. The most recent data listed short interest at 27% of the 135 million-share float.

I am suggesting a trigger to open bullish positions at $8.05. We'll use a stop loss at $7.45. Our target is $9.25.

Trigger @ $8.05

Suggested Position: buy XCO stock @ (trigger)

- or -

buy the JUN $8.00 call (XCO1216F8)

Entry on May xx at $ xx.xx
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 7.0 million
Listed on May 22, 2011


BEARISH Play Updates

Acme Packet, Inc. - APKT - close: 24.27 change: +0.96

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: - 0.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: Ouch! APKT produced a big bounce (+4.1%) and erased our unrealized gains. The close above $24.00 and its 10-dma is short-term bullish. Odds are really good we're going to see APKT rally towards the next resistance level near $25.00. More aggressive traders may want to adjust their stop loss so it's a little bit higher (maybe $25.25 or 25.51).

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: 22.29 change: +0.26

Stop Loss: 23.55
Target(s): 20.05 or 18.55
Current Gain/Loss: - 0.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23 update: I have been warning readers to look for a bounce back toward $23 and its 200-dma. Looks like ARII could be there soon. A failure near the 200-dma can 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


Companhia Brasileira de Distribuicao - CBD - cls: 38.60 chg: -1.35

Stop Loss: 40.55
Target(s): 35.25
Current Gain/Loss: + 2.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: Our new trade on CBD is off to a strong start. Shares actually gapped down below our trigger of $39.70 and opened at $39.59. The stock dipped to $37.72 intraday before closing with a -3.3% loss. I am moving our stop loss down to $40.55.

Earlier Comments:
We'll try and limit our risk by using small positions

(small positions)

Current Position: short CBD stock @ $39.59

05/23/12 new stop loss @ 40.55
05/23/12 traded opened on gap down at $39.59, below our trigger 39.70

Entry on May 23 at $39.59 (gap down)
Earnings Date 05/23/12 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on May 22, 2011


DeVry Inc. - DV - close: 28.23 change: +0.29

Stop Loss: 30.35
Target(s): 26.25
Current Gain/Loss: + 4.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: DV tagged another new low before bouncing back to a +1% gain. Shares are oversold so they are due for a bounce. The simple 10-dma at $29.20 and the $30.00 levels should be overhead resistance. Cautious traders may want to go ahead and take profits now. 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: 20.39 change: +0.55

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: - 1.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: FIO spent most of the day in the $19.50-20.00 zone before rebounding to a +2.7% gain. More conservative traders might want to exit if we see FIO close above its simple 10-dma near $20.60. I am expecting the $22.00 level to act as overhead resistance but you may not want to take that much risk.

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: 18.56 change: -0.43

Stop Loss: 20.35
Target(s): 17.25
Current Gain/Loss: + 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: Worries over Greece sent the European markets lower and FWLT gapped down at the open. Shares dipped to $18.19 intraday. More conservative traders may want to inch down their stops. 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: 22.13 change: +0.63

Stop Loss: 22.65
Target(s): 19.25
Current Gain/Loss: - 2.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/23 update: GM spent most of the day meandering sideways until the last hour when the stock shot higher and closed above short-term technical resistance at its 10-dma. Of course the real test the last few weeks has been the 20-dma, currently at $22.28. A failure in the $22.25-22.50 zone could be used as a new bearish entry point.

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: 31.93 change: -0.84

Stop Loss: 33.55
Target(s): 30.25
Current Gain/Loss: + 3.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23 update: HSP underperformed the market today with a -2.5% decline. Shares were worse intraday with a dip to $31.45. I am lowering our stop loss down to $33.55.

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

05/23/12 new stop loss @ 33.55
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: 44.84 change: +1.18

Stop Loss: 45.55
Target(s): 40.50
Current Gain/Loss: + 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: Another big bounce in SOHU is putting our trade at risk. More conservative traders may want to exit at the open tomorrow. There was no follow through on Monday's big bounce so there is a chance there will be no follow through tomorrow but if there is SOHU will likely hit our stop 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

SCANA Corp. - SCG - close: 46.08 change: -0.41

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

Comments:
05/23 update: SCG also failed to participate in the stock market's afternoon bounce. I am giving up on this stock as a candidate. Since the play is not open yet we are dropping it tonight.

Trigger @ 46.85 (small positions)

Trade did not open.

05/23/12 removed from the newsletter.

chart:

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