Editor's Note:
The market's early morning strength quickly faded for most stocks.

We did see FRX and IDIX get triggered but NSM, NTGR, and VAC were all stopped out.

Current Portfolio:


BULLISH Play Updates

Forest Labs - FRX - close: 35.03 change: -0.26

Stop Loss: 33.95
Target(s): 38.00
Current Gain/Loss: - 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/07 update: FRX is not off to the strongest start. Shares gapped open higher, hit our trigger to open positions at $35.50, and then quickly reversed lower. The move today looks like a bull trap or failed rally pattern. I am not suggesting new positions at this time. The intraday high was $35.59. Wait for a move over $35.60 before considering new positions.

current Position: Long FRX stock @ $35.50

- or -

Long Jul $36 call (FRX1221G36) Entry $1.25*

06/07/12 triggered at $35.50
*option price is an estimate. option did not trade at the time our play was opened.

Entry on June 07 at $35.50
Earnings Date 07/17/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 06, 2011


Idenix Pharmaceuticals - IDIX - close: 8.81 change: -0.32

Stop Loss: 8.49
Target(s): 11.50
Current Gain/Loss: - 4.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/07 update: We see a similar issue here. IDIX displayed enough strength this morning to hit our trigger than then quickly reversed lower. Our trade is open but I'm not suggesting new positions here. Readers can wait for a new bounce off the $8.50 level as an entry point or wait for a new relative high at $9.30 as an entry point.

FYI: The Point & Figure chart for IDIX is bullish with a $15.50 target.

current Position: Long IDIX stock @ $9.25

- or -

Long Jul $10 call (IDIX1221G10) Entry $1.10

06/07/12 triggered at $9.25

Entry on June 07 at $ 9.25
Earnings Date 05/02/12
Average Daily Volume = 1.5 million
Listed on June 01, 2011


Molycoorp, Inc. - MCP - close: 21.33 change: -0.35

Stop Loss: 20.49
Target(s): 24.95
Current Gain/Loss: - 3.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: The early morning rally in MCP faded. By the end of the day this stock had erased yesterday's gain as well. I would expect MCP to hit $21.00 tomorrow and potentially trade down to $20.50. No new positions at this time.

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


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 32.13 change: -0.51

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

Comments:
06/07 update: The early morning rally attempt in ANF ran out of steam under the $33.50 level. Shares eventually settled with a -1.5% decline. Technically today's move is a small bearish engulfing candlestick reversal pattern. Nimble traders could use it as a new bearish entry point although more conservative traders may want to lower their stop loss closer to $33.50.

We are aiming for $30.50. Readers could aim for $30.00 instead.

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


Heritage-Crystal Clean - HCCI - close: 16.17 change: -0.92

Stop Loss: 18.25
Target(s): 14.50
Current Gain/Loss: + 6.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/07 update: HCCI continues to underperform the market. Shares opened higher at $17.20, which proved to be the high for the day. The stock plunged to a -5.2% drop on the session. I am not suggesting new positions at this time.

Earlier Comments:
I want to warn you that this is an aggressive trade. The average volume of 55,000 is very, very light, which can lead to sharp intraday spikes. Plus, the most recent data listed short interest at 14% of the very, very small 8.4 million share float. That raises the risk of a short squeeze. FYI: The Point & Figure chart for HCCI is bearish with a $14.00 target.

(SMALL positions to limit risk)

current Position: short HCCI stock @ $17.20

Entry on June 07 at $17.20
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 55 thousand
Listed on June 06, 2011


Schnitzer Steel - SCHN - close: 25.41 change: -0.12

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 0.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: SCHN crossed above short-term resistance near $26.00 and its 10-dma before quickly reversing lower. Today's move looks like a new bearish entry point.

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


CLOSED BULLISH PLAYS

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

Stop Loss: 18.69
Target(s): 21.00
Current Gain/Loss: - 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: The last few days have been a bit volatile for NSM with news of its acquisition and then the analyst downgrade. The profit taking continued today and NSM underperformed the market with a -3.2% decline. Our stop loss was hit at $18.69.

Our plan was to keep our position size small.

(small positions)

closed Position: buy NSM stock @ $19.60 exit $18.69 (-4.6%)

06/07/12 stopped out at $18.69

chart:

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


CLOSED BEARISH PLAYS

Netgear Inc. - NTGR - close: 31.79 change: +0.48

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: - 7.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/07 update: The back and forth volatility in NTGR the last several days has been very challenging to try and trade around. Shares gapped higher this morning at $31.95, which was above our stop loss at $31.55, quickly ending our play.

closed Position: short NTGR stock @ $29.75 exit $31.95 (-7.4%)

- or -

Jun $30 PUT (NTGR1216R30) Entry $1.70 exit $0.05 (-97.0%)

06/07/12 stopped out at $31.55
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


Marriott Vacations Worldwide - VAC - close: 27.22 change: +0.16

Stop Loss: 27.55
Target(s): 25.25
Current Gain/Loss: + 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: It was choppy trading session for VAC. The spike higher this morning looks like it may have been a reaction to some positive analyst comments. Shares did struggle with short-term resistance near $28.00 but our stop was hit early on at $27.55.

(small positions)

closed Position: short VAC stock @ $28.10 exit $27.55 (+2.0%)

06/04/12 new stop loss @ 27.55
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