Editor's Note:
The stock market's early strength this morning quickly faded. For many stocks today has created a bearish reversal pattern.

We saw JBLU and BHI both get triggered while FRX and MCP were stopped out.

Current Portfolio:


BULLISH Play Updates

Idenix Pharmaceuticals - IDIX - close: 8.64 change: -0.36

Stop Loss: 8.49
Target(s): 11.50
Current Gain/Loss: - 6.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/11/12 update: The early morning rally attempt failed. IDIX underperformed the market with a -4.0% decline. Shares look poised to test support near $8.50 and its simple 200-dma soon. A bounce near $8.50 can be used as a new bullish entry point.

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


JetBlue Airways - JBLU - close: 5.22 change: -0.01

Stop Loss: 4.99
Target(s): 6.00
Current Gain/Loss: - 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/11/12 update: Be careful here. JBLU only lost -0.2%, which was better than the S&P 500's -1.2%. Yet today's move still looks like a failed rally pattern. The stock did hit our trigger to launch positions at $5.30 before reversing. I am not suggesting new positions at this time. Wait for a new relative high (5.35).

Earlier Comments:
If a breakout does occur JBLU could see a short squeeze. The most recent data listed short interest at 20% of the 233 million-share float.

Trigger @ 5.30

Suggested Position: buy JBLU stock @ $5.30

- or -

Long Jul $5.00 call (JBLU1221G5) Entry $0.55

06/11/12 triggered @ 5.30

Entry on June 11 at $5.30
Earnings Date 07/24/12 (unconfirmed)
Average Daily Volume = 5.7 million
Listed on June 09, 2011


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 31.07 change: -1.09

Stop Loss: 33.85
Target(s): 30.50
Current Gain/Loss: + 8.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/12 update: The bounce attempt failed at technical resistance at ANF's 10-dma this morning. Shares accelerated lower with a -3.3% decline and a new relative low. Our exit target is $30.50.

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


Baker Hughes Inc. - BHI - close: 38.62 change: -0.63

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: + 0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/11/12 update: Our new trade on BHI is off to a good start. The stock's bounce attempt this morning failed under resistance at $40.00. Shares hit our trigger to launch bearish positions at $38.85. I would still consider new positions now.

Suggested Position: short BHI stock @ $38.85

- or -

Long Jul $37 PUT (BHI1221S37) Entry $1.50

06/11/12 triggered @ 38.85

Entry on June 11 at $38.85
Earnings Date 07/20/12 (unconfirmed)
Average Daily Volume = 6.8 million
Listed on June 09, 2011


Heritage-Crystal Clean - HCCI - close: 17.41 change: +0.29

Stop Loss: 18.25
Target(s): 14.50
Current Gain/Loss: - 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/11/12 update: Hmm... the relative strength today in HCCI is worrisome. The market produced a widespread decline but HCCI did not participate. The larger pattern for this stock remains bearish but the action today would make me hesitate on launching new positions.

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


InterDigital, Inc. - IDCC - close: 23.05 change: -1.36

Stop Loss: 25.55
Target(s): 21.50
Current Gain/Loss: + 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/12 update: So far, so good. IDCC underperformed the market with a -5.5% decline. Shares closed at new two-year lows. Our target is $21.50.

current Position: short IDCC stock @ 424.15

- or -

Long Jul $22.50 PUT (IDCC1221S22.5) Entry $1.15

06/08/12 traded opened with IDCC gapping down at $24.15

Entry on June 08 at $24.15
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 648 thousand
Listed on June 07, 2011


Polypore Intl. - PPO - close: 34.96 change: -0.43

Stop Loss: 36.85
Target(s): 30.25
Current Gain/Loss: - 0.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/12 update: PPO's attempt to rally failed at its 10-dma. I don't see any changes from my weekend comments. The overall pattern looks weak but readers may want to wait for a new drop under $33.60 before initiating new positions.

Earlier Comments:
We want to keep our position size small because a lot of investors are already short this stock. The most recent data listed short interest at 33% of the 46.3 million share float. If something happens and PPO starts to suddenly show strength it could spark some short covering. Considering buying put options to limit your risk.

(SMALL Positions)

current Position: short PPO stock @ $34.82

- or -

Long Jul $32.50 PUT (PPO1221S32.5) Entry $1.95

Entry on June 08 at $34.82
Earnings Date 08/01/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on June 07, 2011


Schnitzer Steel - SCHN - close: 23.10 change: -2.02

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 9.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/12 update: It was a good day for bears in the steel names. SCHN underperformed the market with a sharp -8.0% decline. More conservative traders may want to start taking profits now, especially if you're holding the put options. 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


CLOSED BULLISH PLAYS

Forest Labs - FRX - close: 34.43 change: -1.26

Stop Loss: 34.75
Target(s): 38.00
Current Gain/Loss: + 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/11/12 update: It was a volatile session for FRX thanks to the company issuing an earnings warning. I am surprised that the stock only fell -3.5%. Our stop loss was hit at $34.75.

closed Position: Long FRX stock @ $35.50 exit $34.75 (-2.1%)

- or -

Jul $36 call (FRX1221G36) Entry $1.25* exit $0.70 (-44.0%)

06/11/12 stopped out at $34.75, CELG issues earnings warning
06/09/12 new stop loss @ 34.75
06/07/12 triggered at $35.50
*option price is an estimate. option did not trade at the time our play was opened.

chart:

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


Molycoorp, Inc. - MCP - close: 20.22 change: -0.78

Stop Loss: 20.49
Target(s): 24.95
Current Gain/Loss: - 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/12 update: The pullback in MCP accelerated lower with a -3.7% decline. Shares hit our stop loss at $20.49. The failed rally last week, which triggered our trade, now looks like a bull trap pattern.

closed Position: Long MCP stock @ $22.10 exit $20.49 (-7.3%)

- or -

Jul $23 call (MCP1221G23) Entry $1.45 exit $0.60 (-58.6%)

06/11/12 stopped out at $20.49
06/06/12 triggered @ 22.10

chart:

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