Editor's Note:
Shares of Foster Wheeler (FWLT) hit our bearish target on Friday. CRUS hit our stop loss and we closed FIO as planned. SCHN was triggered. We want to exit ARII and TEVA at the open on Monday.

Current Portfolio:


BULLISH Play Updates

Market Leader, Inc. - LEDR - close: 4.52 change: +0.02

Stop Loss: 4.15
Target(s): 6.00
Current Gain/Loss: + 3.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/02 update: LEDR continues to show relative strength. The stock bounced between support near $4.40 and resistance near $4.60 and managed to close in positive territory on the session.

I am not suggesting new positions at current levels.

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

chart:

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


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 32.14 change: -1.40

Stop Loss: 34.55
Target(s): 30.50
Current Gain/Loss: + 5.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: The widespread market declines helped push ANF to a -4.1% decline and a new 52-week low. We want to try and protect ourselves so we're adjusting the stop loss down to $34.55. More aggressive traders may want to keep their stop loss just above the $35.00 level or the 10-dma instead. I am not suggesting new positions at this time. Please note we are also adjusting our exit target to $30.50 (from 30.25).

current Position: short ANF stock @ $33.93

- or -

Long Jul $30 PUT (ANF1221S30) Entry $1.05

06/02/12 new stop loss @ 34.55, adjust exit to $30.50

chart:

Entry on May 31 at $33.93
Earnings Date 08/15/12 (unconfirmed)
Average Daily Volume = 3.9 million
Listed on May 30, 2011


American Railcar Ind. - ARII - close: 21.11 change: -0.04

Stop Loss: 22.75
Target(s): 20.05 or 18.55
Current Gain/Loss: + 5.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/02 update: ARII only lost four cents on Friday. Traders bought the dip on Friday morning just like they did on Thursday morning. This is troubling if you're bearish. Has ARII found a bottom?

The market was melting lower on Friday. If ARII isn't going to decline now when is it going to decline! I am suggesting we exit positions at the open on Monday morning.

Suggested Position: short ARII stock @ $22.23

06/02/12 prepare to exit on Monday at the open
05/26/12 new stop loss @ 22.75
05/17/12 new stop loss @ 23.55

chart:

Entry on May 16 at $22.23
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 108 thousand
Listed on May 15, 2011


Coherent Inc. - COHR - close: 42.64 change: -1.50

Stop Loss: 45.25
Target(s): 40.50
Current Gain/Loss: + 1.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: COHR continues to decline as we expected. Unfortunately the stock gapped open lower on Friday at $43.16, which impacted our entry point. We are going to adjust the stop loss lower to $45.25. I am not suggesting new positions at this time.

Earlier Comments:
The plan was to keep our position size small to limit our risk.

(small positions)

current Position: short COHR stock @ $43.16

06/12/12 new stop loss @ 45.25
06/01/12 COHR gapped open lower at $43.16

chart:

Entry on June 01 at $43.16
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 127 thousand
Listed on May 31, 2011


Ebix, Inc. - EBIX - close: 16.86 change: -0.54

Stop Loss: 17.75
Target(s): 16.15
Current Gain/Loss: + 5.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: EBIX accelerated lower on Friday with a -3.1% decline. More conservative traders may want to go ahead and start taking profits now. Our exit target is $16.15. More aggressive traders could aim lower. We are adjusting our stop loss down to $17.75. I am not suggesting new positions at this time.

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

06/02/12 new stop loss @ 17.75
05/31/12 new stop loss @ 18.35
05/24/12 triggered @ 17.90

chart:

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


Hospira Inc. - HSP - close: 31.36 change: +0.10

Stop Loss: 32.35
Target(s): 30.25
Current Gain/Loss: + 4.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/02 update: Uh-oh! HSP displayed relative strength on Friday. Shares did spike down to $30.81 on Friday morning but the stock bounced back to close positive on the session. That's worrisome. Cautious traders may want to take profits now. 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

05/31/12 new stop loss @ 32.35
05/23/12 new stop loss @ 33.55
05/14/12 opened on the gap down at $32.95, trigger was 33.20

chart:

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: 30.20 change: -1.19

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: - 1.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/02 update: Declines in the tech sector helped push NTGR to an intraday low of $29.45. NTGR pared its losses by the close to end the session down -3.79%. I remain cautious here. I am not suggesting new positions at this time.

current Position: short NTGR stock @ $29.75

- or -

Long Jun $30 PUT (NTGR1216R30) Entry $1.70

05/25/12 triggered @ 29.75

chart:

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


Schnitzer Steel - SCHN - close: 25.68 change: -0.40

Stop Loss: 27.25
Target(s): 21.50
Current Gain/Loss: - 0.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: I am disappointed with the action in SCHN on Friday. Given the market's sharp declines I expected SCHN to see larger weakness. The stock did hit a new relative low and did hit our trigger at $25.45 but SCHN only lost -1.5% on the session.

Readers may want to wait for a new decline under $25.00 before initiating new positions. We want to keep our position size small.

(small positions)

current Position: short SCHN stock @ $25.45

- or -

Long Jul $25 PUT (SCHN1221S25) Entry $2.10*

*06/01/12 entry price on the option is an estimate. Option failed to trade on Friday.

chart:

Entry on June 01 at $25.45
Earnings Date 06/28/12 (unconfirmed)
Average Daily Volume = 474 thousand
Listed on May 31, 2011


Silicon Motion Tech. - SIMO - close: 13.16 change: -0.38

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

Comments:
06/02 update: It's taken three days but SIMO has finally erased the May 29th bounce. Shares are once again poised to break down from this four-week consolidation pattern. FYI: The June options expire in two weeks.

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)

chart:

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


Teva Pharmaceuticals - TEVA - close: 39.01 change: -0.18

Stop Loss: 40.05
Target(s): 35.25
Current Gain/Loss: - 3.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: TEVA refuses to cooperate. Traders continue to buy the dips in the $38.00-38.25 zone. I am suggesting we abandon ship and exit positions immediately on Monday morning.

current Position: short TEVA stock @ $37.81

- or -

Long Jun $37.50 PUT (TEVA1216R37.5) Entry $0.95

06/02/12 prepare to exit at the open on Monday
05/30/12 trade opened with TEVA gapping down at $37.81

chart:

Entry on May 30 at $37.81
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on May 29, 2011


Marriott Vacations Worldwide - VAC - close: 27.00 change: -1.30

Stop Loss: 29.25
Target(s): 25.25
Current Gain/Loss: + 3.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: After hovering under resistance the last few days shares of VAC finally broke down. The stock fell -4.59% on Friday and closed at new six-week lows. More conservative traders may want to inch down their stops. I am not suggesting new positions. Be aware that the $26.00 level could be support. I would not be surprised to see a little bounce near $26.00 but the $28.00 level should be new resistance.

(small positions)

current Position: short VAC stock @ $28.10

05/26/12 new stop loss @ 29.25

chart:

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


CLOSED BULLISH PLAYS

Cirrus Logic - CRUS - close: 25.93 change: -2.79

Stop Loss: 26.35
Target(s): 32.00
Current Gain/Loss: - 7.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/02 update: Technology stocks were some of the worst performers on Friday with the NASDAQ down -2.8%. Yet shares of CRUS underperformed that by a wide margin. The stock just collapsed with a -9.7% plunge. Our stop loss was hit at $26.35.

closed Position: Long CRUS stock @ $28.35 exit $26.35 (-7.0%)

- or -

Jul $30 call (CRUS1221G30) Entry $1.85 exit $1.05 (-43.2%)

06/01/12 stopped out at $26.35
05/29/12 triggered @ 28.35

chart:

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


CLOSED BEARISH PLAYS

Fusion-io, Inc. - FIO - close: 19.57 change: -1.31

Stop Loss: 22.05
Target(s): 17.00
Current Gain/Loss: - 0.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: The daily volatility in FIO continues although on Friday shares lost -6.2%. We had already decided to exit positions at the open on Friday and shares gapped down at $20.12.

Aggressive traders may want to keep an eye on FIO. Shares look poised to breakdown from their three-week sideways consolidation.

(small positions)

closed Position: short FIO stock @ $20.09 exit $20.12 (- 0.1%)

- or -

Jun $17.50 PUT (FIO1216R17.5) Entry $0.85 exit $0.20 (-76.4%)

06/01/12 closed at the open
05/31/12 prepare to exit early at the open tomorrow

chart:

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: 17.89 change: -0.27

Stop Loss: 19.75
Target(s): 17.25
Current Gain/Loss: +11.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/02 update: Target achieved.

Shares of FWLT were upgraded on Friday but that didn't stop shares from plunging to a new relative low. The intraday low was $17.19. Our exit target was hit at $17.25. The $17.00 level looks like significant support.

closed Position: short FWLT stock @ $19.53 exit $17.25 (+11.7%)

- or -

Jun $20 PUT (FWLT1216R20) Entry $1.40 exit $2.65*(+ 89.2%)

*option exit price is an estimate. option did not trade on Friday.
06/01/12 target hit @ 17.25
05/26/12 new stop loss @ 19.75
05/22/12 new stop loss @ 20.35

chart:

Entry on May 17 at $19.53
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on May 16, 2011