Editor's Note:
Shares of TPX gapped open lower, underneath our bearish exit target. The put option values soared on this move in TPX. Elsewhere it was a rough day for the bears. COHR, EBIX, and HSP were all stopped out.

MCP was triggered.

Current Portfolio:


BULLISH Play Updates

Idenix Pharmaceuticals - IDIX - close: 9.13 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:
06/06 update: IDIX is starting to look a bit stronger here with a +3.3% gain today. The high was only $9.22.

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


Molycoorp, Inc. - MCP - close: 21.68 change: +0.29

Stop Loss: 20.49
Target(s): 24.95
Current Gain/Loss: - 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: MCP posted a +1.3% gain for the day but the action during today's session actually looks a little bit bearish. The stock rallied to $23.07 and then reversed to give back most of its gains. Our trigger to open bullish positions was hit at $22.10 but I would wait for a new rise past $22.10 again before considering new positions.

Earlier Comments:
The most recent data listed short interest at 41% of the 56.6 million share float. That is significant and definitely raises the risk of a short squeeze higher.

current Position: Long MCP stock @ $22.10

- or -

Long Jul $23 call (MCP1221G23) Entry $1.45

06/06/12 triggered @ 22.10

Entry on June 06 at $22.10
Earnings Date 08/09/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on June 05, 2011


Nationstar Mortgage Holdings - NSM - close: 19.20 change: -0.60

Stop Loss: 18.69
Target(s): 21.00
Current Gain/Loss: - 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: It was a disappointing session for NSM. After showing relative strength yesterday the stock underperformed today with a -3.0% drop. This was mostly due to a broker downgrade of the stock this morning. The intraday low was $18.80. I would wait for a new rise past $19.50 before considering new positions again.

Our plan was to keep our position size small.

(small positions)

current Position: buy NSM stock @ $19.60

Entry on June 05 at $19.60
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 639 thousand
Listed on June 04, 2011


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 32.64 change: +0.23

Stop Loss: 33.85
Target(s): 30.50
Current Gain/Loss: + 3.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: ANF gains were relatively mild compared to the major indices. There is no change from my prior comments. If the bounce continues ANF will likely it our stop as it nears the 10-dma.

I am not suggesting new positions at this time.

current Position: short ANF stock @ $33.93

- or -

(exited on June 5th)
Jul $30 PUT (ANF1221S30) Entry $1.05 exit $1.56 (+48.5%)

06/05/12 exited July $30 puts at the open (bid) $1.56 (+48.5%)
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

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


Netgear Inc. - NTGR - close: 31.31 change: +1.09

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: - 5.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/06 update: Ouch! The sharp two-day bounce in NTGR is not helping. Readers may want to abandon ship now that NTGR is back above its simple 10-dma. Odds are good that if the market rally (and NTGR's) bounce continues tomorrow we'll see this stock hit our stop loss at $31.55. I am 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: 25.53 change: +0.68

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: - 0.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: Material-related names were some of the strongest performers today. SCHN rallied toward short-term resistance near $26.00 before settling with a +2.7% gain. More conservative traders might want to inch their stops down toward the 10-dma near $26.50 or toward $26.00 instead. I am not suggesting new positions at this time.

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


Marriott Vacations Worldwide - VAC - close: 27.06 change: +0.14

Stop Loss: 27.55
Target(s): 25.25
Current Gain/Loss: + 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: Good news! VAC did not truly participate in the market's big rally today. The stock struggled with the $27.00 level all day long. 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 BEARISH PLAYS

Coherent Inc. - COHR - close: 43.54 change: +0.76

Stop Loss: 43.75
Target(s): 40.50
Current Gain/Loss: - 1.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: The oversold bounce pushed COHR to $43.81 intraday. Our stop was hit at $43.75. The larger trend is still down and readers could use a failed rally in the $45 area as a new entry point for bearish positions.

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

(small positions)

closed Position: short COHR stock @ $43.16 exit $43.75 (-1.4%)

06/06/12 stopped out at $43.75
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

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: 17.40 change: +0.45

Stop Loss: 17.25
Target(s): 16.15
Current Gain/Loss: + 3.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: EBIX outperformed the market with a +2.8% gain. The stock hit our new stop loss at $17.25. The larger trend is still down. Readers may want to look for a failed rally under $18.00 as a potential entry point for bearish positions.

closed Position: short EBIX stock @ $17.90 exit $17.25 (+3.6%)

- or -

JUN $18 PUT (EBIX1216R18) Entry $0.90 exit $$0.90 (+ 0.0%)

06/06/12 stopped out at $17.25
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

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: 32.47 change: +0.36

Stop Loss: 32.35
Target(s): 30.25
Current Gain/Loss: + 1.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/06 update: The oversold bounce in HSP continues and shares opened higher at $32.35, which just happens to be our stop loss - immediately closing this trade.

closed Position: short HSP stock @ $32.95 exit $32.35 (+1.8%)

- or -

Jun $30 PUT (HSP1216R30) Entry $0.35 exit 0.10 (-71.4%)

06/06/12 stopped out at $32.35
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


Tempur Pedic Intl. - TPX - close: 22.39 change: -21.28

Stop Loss: 45.55
Target(s): 38.50
Current Gain/Loss: +38.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06 update: We just won the lottery of you're a short in TPX. The company issued an earnings warning. Management said competition was eating into sales and expected full year 2012 earnings in the $2.70 range compared to prior guidance in the $3.80-3.95 zone.

The stock collapsed on this news, gapping down at $26.71 and then falling to a -48.7% loss on the session. Since our target was $38.50 our trade was closed at the open.

(small positions)

closed Position: short TPX stock @ $43.52 exit $26.71 (+38.6%)

- or -

July $40 PUT (TPX1221S40) Entry $3.00 exit $14.55 (+385%)

06/06/12 target exceeded on TPX's gap open lower at $26.71

chart:

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