Editor's Note:
The market's major indices chopped sideways but the market's were not that volatile. Some of our bearish candidates failed to see any follow through on yesterday's bounce.

We did close our PSSI trade as planned. The new EBIX trade was triggered.

Current Portfolio:


BULLISH Play Updates

Market Leader, Inc. - LEDR - close: 4.51 change: +0.04

Stop Loss: 3.95
Target(s): 6.00
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/24 update: LEDR saw some volatility today with an intraday spike down to $4.20 near its 10-dma before quickly bouncing back. The $4.20 area remains a good spot to look for a new bullish entry point.

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


AT&T, Inc. - T - close: 33.64 change: +0.28

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

Comments:
05/24 update: Shares of T displayed some strength with a +0.8% gain and a new close back above its 10-dma.

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: 7.95 change: +0.05

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

Comments:
05/24 update: Thursday was a quiet session for XCO with shares churning sideways in a very narrow range under resistance at the $8.00 level. You could view this as the stock coiling, like a spring, for a breakout higher.

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: 22.96 change: -1.31

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: + 5.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/24 update: Good news! There was no follow through on yesterday's big bounce in APKT. As a matter of fact the stock reversed sharply lower and today's -5.39% plunge erased yesterday's gains.

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: 22.01 change: -0.28

Stop Loss: 23.55
Target(s): 20.05 or 18.55
Current Gain/Loss: + 1.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/24 update: ARII also erased yesterday's gains but the stock is still poised to bounce toward technical resistance at its 200-dma. 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: 38.79 chg: +0.19

Stop Loss: 40.55
Target(s): 35.25
Current Gain/Loss: + 2.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/24 update: After yesterday's big drop CBD produced a bit of a bounce today. Readers can look for a bounce or a failed rally near $40 as a new bearish entry point.

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: 27.90 change: -0.33

Stop Loss: 30.35
Target(s): 26.75
Current Gain/Loss: + 5.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/24 update: The oversold bounce in DV is already fading. Shares lost -1.1% today. More conservative traders may want to go ahead and start taking profits now, especially if you're holding the June $30 puts. I am not suggesting new positions at this time.

Please note that I am adjusting our exit target to $26.75.

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

05/24/12 adjusting exit target to $26.75
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


Ebix, Inc. - EBIX - close: 17.97 change: -0.23

Stop Loss: 19.05
Target(s): 16.05
Current Gain/Loss: - 0.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/24 update: We did not have to wait very long for EBIX to break support at $18.00 and hit our trigger at $17.90. Shares fell to $17.52 intraday before trimming its losses. I would still consider new bearish positions at current levels.

Our first target is $16.15. We want to keep our position size small to limit our risk because EBIX could see a short squeeze. The most recent data listed short interest at 29% of the small 34.6 million share float. Readers may want to use put options to limit risk instead of shorting the stock.
FYI: The Point & Figure chart for EBIX is bearish with a $12.00 target.

Current Position: short EBIX stock @ $17.90

- or -

Long JUN $18 PUT (EBIX1216R18) Entry $0.90

05/24/12 triggered @ 17.90

Entry on May 23 at $17.90
Earnings Date 08/07/12 (unconfirmed)
Average Daily Volume = 386 thousand
Listed on May 23, 2011


Fusion-io, Inc. - FIO - close: 20.56 change: +0.17

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: - 2.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/24 update: FIO is not cooperating. The early morning rally did fade and shares trimmed their gains to just +0.8% but the stock looks poised to bounce again. Shares are sitting about four cents under their 10-dma at $20.60. Cautious traders may want to abandon ship early and exit now. I am not suggesting new positions at this time.

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: 18.98 change: +0.42

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

Comments:
05/24 update: FWLT produced another oversold bounce with a +2.2% gain. Yet shares remain under short-term technical resistance at their 10-dma. 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: 22.04 change: -0.09

Stop Loss: 22.65
Target(s): 19.25
Current Gain/Loss: - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/24 update: It was a quiet day for shares of GM, which didn't provide any clues if the stock would continue to bounce or roll over. A failure near the descending 20-dma 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: 31.98 change: +0.05

Stop Loss: 33.55
Target(s): 30.25
Current Gain/Loss: + 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/24 update: The sideways trading in HSP today did not offer any clues. The current trend is down. The $33 level should be overhead resistance. I am not suggesting new positions at this time.

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: 44.40 change: -0.44

Stop Loss: 45.55
Target(s): 40.50
Current Gain/Loss: + 1.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/24 update: Once again there was no follow through on SOHU's big bounce. I still consider our trade to be in danger here. A breakout past resistance near $45.00 probably leads to SOHU hitting our stop loss at $45.55 shortly thereafter. 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

PSS World Medical - PSSI - close: 19.58 change: +0.58

Stop Loss: 18.60
Target(s): 21.50
Current Gain/Loss: - 2.1%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
05/24 update: It's tough to keep our emotions out of a trade when a stock moves against you. In this case PSSI had been underperforming and last night we decided to exit early this morning at the open to cut our losses. PSSI opened at $18.94 and churned sideways for a while before surging higher midday to a +3.0% gain. I don't see any specific news to account for the rally that began around 1:00 o'clock this afternoon.

(small positions)

closed Position: Long PSSI stock @ $19.35 exit $18.94 (-2.1%)

- or -

Jun $20 call (PSSI1216F20) Entry $0.50 exit $0.25 (-50.0%)

05/24/12 scheduled exit at the open
05/23/12 prepare to exit tomorrow at the open to cut our losses

chart:

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