Editor's Note:
Equity markets around the world were in rebound mode today. The U.S. market delivered another widespread bounce.

We saw both CRUS and POT hit our triggers to open bullish positions. APKT and SOHU were stopped out. GM was closed as planned.

Current Portfolio:


BULLISH Play Updates

Cirrus Logic - CRUS - close: 29.39 change: +1.94

Stop Loss: 26.35
Target(s): 32.00
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/29 update: It was a strong day for semiconductor stocks but CRUS outpaced them with a +7.0% gain. The stock has broken out past resistance near $28.00 and hit our trigger to open bullish positions at $28.35. A large part of today's rally may have been due to rumors that CRUS will be a big winner if Apple Inc. (AAPL) decides to move into the TV set top box market (or some other Apple-TV product).

I would not chase CRUS now. Wait for a pull back. $28.00 should be new support.

current Position: Long CRUS stock @ $28.35

- or -

Long Jul $30 call (CRUS1221G30) Entry $1.85

05/29/12 triggered @ 28.35

Entry on May 29 at $28.35
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on May 26, 2011


Market Leader, Inc. - LEDR - close: 4.40 change: -0.06

Stop Loss: 4.15
Target(s): 6.00
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/29 update: LEDR hit some profit taking today (-1.3%). Shares look poised to dip to their 10-dma near $4.33 but I suspect LEDR could dip to $4.20, which is where I would look for a new entry point.

We are going to try and reduce our risk by raising the stop loss to $4.15.

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

05/29/12 new stop loss @ 4.15
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


Potash Corp. - POT - close: 40.04 change: +0.26

Stop Loss: 38.90
Target(s): the 50-dma (currently 43.15)
Current Gain/Loss: - 0.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29 update: The stock market's morning rally was strong enough to lift POT past resistance near $40.00. The stock hit our trigger to open small bullish positions at $40.30. I would still consider new positions now. More conservative traders may want to wait for a rally past $40.50.

Earlier Comments:
POT can be a volatile stock so I am suggesting we keep our position size small. We want to use a trigger at $40.30 to open small bullish positions. We'll stop loss at $38.90. There is potential resistance near $42.00 but we're aiming for the 50-dma (currently at $43.20).

(small positions)

current Position: Long POT stock @ $40.30

- or -

Long JUN $40 call (POT1216F40) Entry $1.36

05/29/12 triggered @ 40.30

Entry on May 29 at $40.30
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 5.4 million
Listed on May 24, 2011


EXCO Resources - XCO - close: 7.92 change: -0.03

Stop Loss: 7.45
Target(s): 9.25
Current Gain/Loss: - 1.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/29 update: XCO is struggling to get past resistance near the $8.00 level. Shares rallied to $8.25 intraday but then closed back under $8.00. This failed breakout is potentially bearish. I am not suggesting new positions with XCO trading under $8.00.

Earlier Comments:
If XCO can see a convincing breakout it could see a short squeeze. The most recent data listed short interest at 27% of the 135 million-share float.

current Position: Long XCO stock @ $8.05

- or -

Long JUN $8.00 call (XCO1216F8) Entry $0.50

05/25/12 triggered at $8.05

Entry on May 25 at $8.05
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 7.0 million
Listed on May 22, 2011


BEARISH Play Updates

American Railcar Ind. - ARII - close: 21.57 change: +0.21

Stop Loss: 22.75
Target(s): 20.05 or 18.55
Current Gain/Loss: + 3.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/29 update: ARII produced a +1% bounce but shares stalled near their 10-dma. The bear-flag pattern is still intact.

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

05/26/12 new stop loss @ 22.75
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: 28.59 change: +0.37

Stop Loss: 29.05
Target(s): 26.75
Current Gain/Loss: + 3.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/29 update: DV bounced toward the $29.00 level this morning but gains faded to a +1.3% gain. More aggressive traders will want to keep their stop loss above resistance near $30.00 and the top of its bearish channel. We have a tighter stop at $29.05 to limit our risk. 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

05/26/12 new stop loss @ 29.05
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: +0.04

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

Comments:
05/29 update: Tuesday proved to be another very quiet day for EBIX. Shares are still hovering near the $18.00 level. The stock did underperform the major averages today. I would still consider new positions now at current levels.

Earlier Comments:
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: 21.09 change: +1.17

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: - 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/29 update: FIO continues to see a lot of volatility. Positive analyst comments in an article out this morning helped fuel a +5.8% gain. If the market rally continues we could see FIO hit our stop loss at $22.05. 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: 19.32 change: +0.50

Stop Loss: 19.75
Target(s): 17.25
Current Gain/Loss: + 1.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/29 update: Widespread gains in Asia and Europe today helped lift the U.S. markets and FWLT outperformed with a +2.6% bounce. Today's close above the simple 10-dma is short-term bullish. 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

05/26/12 new stop loss @ 19.75
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


Hospira Inc. - HSP - close: 32.60 change: +0.22

Stop Loss: 33.55
Target(s): 30.25
Current Gain/Loss: + 1.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/29 update: The market's widespread rally today fueled a pop in HSP. Shares challenged resistance near $33 and its 150-dma before paring its gains. 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


Netgear Inc. - NTGR - close: 30.88 change: +1.02

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: - 3.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/29 update: Technology stocks were in rally mode today and NTGR outperformed the major indices with a +3.4% gain. The close back above $30.00 is short-term bullish. Odds just jumped that we will see NTGR bounce back toward short-term resistance near $32.00 and its 10-dma. A move that high would hit our stop loss at $31.55.

current Position: short NTGR stock @ $29.75

- or -

Long Jun $30 PUT (NTGR1216R30) Entry $1.70

05/25/12 triggered @ 29.75

Entry on May 25 at $29.75
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 549 thousand
Listed on May 24, 2011


Silicon Motion Tech. - SIMO - close: 14.31 change: +0.89

Stop Loss: 14.15
Target(s): 10.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/29 update: The rally in tech stocks today sparked some short covering in SIMO. The stock soared to a +6.6% gain. If the rally continues tomorrow we'll probably drop SIMO as a candidate. Currently the plan is to launch bearish positions if SIMO hits $12.85.

Trigger @ 12.85

Suggested Position: short SIMO stock @ (trigger)

- or -

buy the Jun $15 PUT (SIMO1216R15)

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 819 thousand
Listed on May 26, 2011


Marriott Vacations Worldwide - VAC - close: 28.69 change: +0.74

Stop Loss: 29.25
Target(s): 25.25
Current Gain/Loss: - 2.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/29 update: Hmm... the rebound in VAC was a big stronger than expected. The stock outperformed with a +2.6% gain. Yet the rally stalled at technical resistance near the 50-dma. If shares turn lower tomorrow then readers could use this move as a new entry point for bearish positions.

(small positions)

current Position: short VAC stock @ $28.10

05/26/12 new stop loss @ 29.25

Entry on May 25 at $28.10
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 495 thousand
Listed on May 24, 2011


CLOSED BEARISH PLAYS

Acme Packet, Inc. - APKT - close: 24.48 change: +1.24

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

Comments:
05/29 update: Big gains in Asian markets and a pop for tech stocks this morning helped push APKT past resistance near $25.00. Shares hit our stop loss at $25.05.

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)

closed Position: short APKT stock @ $24.18 exit $25.05 (-3.6%)

- or -

Jun $25 PUT (APKT1216R25) Entry $1.90 exit $1.05 (-44.7%)

05/29/12 stopped out at $25.05
05/19/12 new stop loss @ 25.05, adjust exit target to $20.50
05/17/12 new stop loss @ 25.55

chart:

Entry on May 14 at $24.18
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on May 12, 2011


General Motors - GM - close: 22.85 change: +0.41

Stop Loss: 22.65
Target(s): 19.25
Current Gain/Loss: - 4.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/29 update: Ouch! The timing of today's market bounce did not help with our exit plans in GM. Friday saw GM breakout above key technical resistance at the 20-dma so we decided to exit early on Monday morning. Unfortunately widespread gains across the globe today fueled a pop for the U.S. markets and GM gapped open higher at $22.62.

closed Position: short GM stock @ $21.57 exit $22.62 (-4.9%)

- or -

Jun $20 PUT (GM1216R20) Entry $0.39 exit $0.07 (-82.0%)

05/29/12 planned exit at the open
05/26/12 prepare to exit at the open on Tuesday morning
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.

chart:

Entry on May 15 at $21.57
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 10.5 million
Listed on May 14, 2011


Sohu.com - SOHU - close: 45.47 change: +1.63

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

Comments:
05/29 update: Gains in the Asian markets and then a pop in the U.S. markets this morning helped fuel more short covering in SOHU. The stock rallied past resistance near $45.00 and hit our stop loss at $45.55.

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.

closed Position: short SOHU stock @ $44.90 exit $45.55 (-1.4%)

- or -

Jun $42.50 PUT (SOHU1216R42.5) Entry $1.95 exit 0.90 (-53.8%)

05/29/12 stopped out at $45.55
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

chart:

Entry on May 14 at $44.90
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 915 thousand
Listed on May 10, 2011