Editor's Note:
The market continues to sink but stocks are oversold. Equities will see an oversold bounce sooner or later. When the bounce shows up we want to avoid or minimize any losses so tonight we're adjusting several stop losses.

Meanwhile LEDR was stopped out. ARII and TEVA were closed as planned.

Current Portfolio:


BULLISH Play Updates

Idenix Pharmaceuticals - IDIX - close: 8.74 change: -0.30

Stop Loss: 8.49
Target(s): 11.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
06/04 update: IDIX underperformed today but shares are still hovering about support near $8.50 and its 200-dma. I don't see any changes from my prior comments.

If there is any bounce in the market shares of IDIX could see a short squeeze. The most recent data listed short interest at 18.4% of the 55.5 million share float.

I am suggesting a trigger to open bullish positions at $9.25 with a stop loss at $8.49. That's a wide stop to start and we'll try and narrow it once the trade is opened. Our multi-week target is $11.50. FYI: The Point & Figure chart for IDIX is bullish with a $15.50 target.

Trigger @ 9.25

Suggested Position: buy IDIX stock @ (trigger)

- or -

buy the Jul $10 call (IDIX1221G10)

Entry on June xx at $ xx.xx
Earnings Date 05/02/12
Average Daily Volume = 1.5 million
Listed on June 01, 2011


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 31.78 change: -0.36

Stop Loss: 33.85
Target(s): 30.50
Current Gain/Loss: + 6.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: ANF continues to sink. It's growing more and more oversold. Readers may want to take profits now! When the bounce arrives I would expect a rebound toward the simple 10-dma. We are adjusting our stop loss down to $33.85. I am suggesting we exit our July $30 puts at the open tomorrow. They currently have a bid of $1.58.

current Position: short ANF stock @ $33.93

- or -

Long Jul $30 PUT (ANF1221S30) Entry $1.05

06/04/12 new stop loss @ 33.85
prepare to exit our July $30 puts at the open tomorrow.
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


Coherent Inc. - COHR - close: 42.49 change: -0.15

Stop Loss: 43.75
Target(s): 40.50
Current Gain/Loss: + 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: COHR sank below $42.00 midday before paring its losses to just -0.35%. The stock is oversold and could see a bounce. Aggressive traders will want to keep their stop loss above the simple 10-dma (currently at $45.21). We are trading defensively here and are adjusting the stop loss down to $43.75. 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

06/04/12 new stop loss @ 43.75
06/02/12 new stop loss @ 45.25
06/01/12 COHR gapped open lower at $43.16

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: 16.84 change: -0.02

Stop Loss: 17.25
Target(s): 16.15
Current Gain/Loss: + 5.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: EBIX really didn't see much movement either way. More aggressive traders will want to keep their stop loss above the simple 10-dma (currently at 17.81). We are trading more defensively here and we're moving the stop loss down to $17.25. Cautious traders may want to take profits now. 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

06/04/12 new stop loss @ 17.25
06/02/12 new stop loss @ 17.75
05/31/12 new stop loss @ 18.35
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


Hospira Inc. - HSP - close: 32.00 change: +0.64

Stop Loss: 32.35
Target(s): 30.25
Current Gain/Loss: + 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/04 update: Uh-oh! HSP displayed relative strength today with a +2.0% gain. The overall trend remains lower but if the bounce continues we could see HSP hit our stop at $32.35. 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

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: 29.60 change: -0.60

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: + 0.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/04 update: The early morning bounce in NTGR ran out of gas and shares underperformed the market with a -1.9% drop on the day. Shares look vulnerable here but I'm not suggesting new positions.

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


Schnitzer Steel - SCHN - close: 25.29 change: -0.39

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 0.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: SCHN slipped to new multi-year lows under the $25.00 level before trimming its declines this afternoon. Shares ended the session down -1.5%. More aggressive traders will want to keep their stop loss above the simple 10-dma (currently 26.95). We are choosing to be more defensive and adjusting the stop loss down to $26.75.

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*

06/04/12 new stop loss @ 26.75
*06/01/12 entry price on the option is an estimate. Option failed to trade on Friday.

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: 13.33 change: +0.17

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

Comments:
06/04 update: SIMO briefly traded under support at $13.00 this morning but the intraday low was only $12.91.

Currently the plan is to launch bearish positions if SIMO hits $12.85.

Keep in mind that the June puts expire in two weeks. You might want to trade September puts instead.

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


Tempur Pedic Intl. - TPX - close: 42.70 change: -0.44

Stop Loss: 45.55
Target(s): 38.50
Current Gain/Loss: + 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: TPX continues to sink. Shares opened at $43.52 and fell to a -1.0% decline. Nimble traders could use bounces into the $44-45 zone as a new entry point since the $45.00 level should be resistance.

We are aiming for $38.50 but more conservative traders will want to exit near $40.00, which might offer some round-number support.

(small positions)

current Position: short TPX stock @ $43.52

- or -

Long July $40 PUT (TPX1221S40) Entry $3.00

Entry on June 04 at $43.52
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 4.7 million
Listed on June 01, 2011


Marriott Vacations Worldwide - VAC - close: 26.92 change: -0.08

Stop Loss: 27.55
Target(s): 25.25
Current Gain/Loss: + 4.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: VAC drifted lower on Monday but momentum definitely stalled. More aggressive traders will want to keep their stop loss above the simple 10-dma (currently 28.24). We are choosing to play more defensively and moving the stop to $27.55. I am not suggesting new positions. Be aware that the $26.00 level could be support.

(small positions)

current Position: short VAC stock @ $28.10

06/04/12 new stop loss @ 27.55
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 BULLISH PLAYS

Market Leader, Inc. - LEDR - close: 4.63 change: +0.11

Stop Loss: 4.15
Target(s): 6.00
Current Gain/Loss: - 4.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/04 update: LEDR is still relative strength and the stock rallied +2.4% to set a new multi-year high. Unfortunately there was a spike down early this morning and LEDR dipped to $4.00 before bouncing back. I blame this on the low volume in this stock. The move hit our stop loss at $4.15.

closed Position: Long LEDR stock @ $4.35 exit $4.15 (-4.6%)

06/04/12 stopped out at $4.15
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


CLOSED BEARISH PLAYS

American Railcar Ind. - ARII - close: 21.54 change: +0.43

Stop Loss: 22.75
Target(s): 20.05 or 18.55
Current Gain/Loss: + 4.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/04 update: Over the weekend we decided that ARII was not cooperating and we would exit positions at the open on Monday. Shares gapped higher at $21.24 and outperformed the market with a +2.0% gain on the session.

Suggested Position: short ARII stock @ $22.23

06/04/12 planned exit at the open
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


Teva Pharmaceuticals - TEVA - close: 38.92 change: -0.09

Stop Loss: 40.05
Target(s): 35.25
Current Gain/Loss: - 3.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04 update: TEVA was not cooperating so we wanted to exit positions at the open this morning. Shares of TEVA gapped higher at $39.25.

closed Position: short TEVA stock @ $37.81, exit $39.25 (-3.8%)

- or -

Jun $37.50 PUT (TEVA1216R37.5) Entry $0.95 exit $0.43 (-54.7%)

06/04/12 planned exit at the open
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