Editor's Note:
The U.S. market's rebounded off their morning lows and erased most of yesterday's losses. Unfortunately that did not stop IDIX from hitting our stop loss this morning.

Current Portfolio:


BULLISH Play Updates

JetBlue Airways - JBLU - close: 5.07 change: -0.15

Stop Loss: 4.99
Target(s): 6.00
Current Gain/Loss: - 4.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/12/12 update: Something doesn't make sense with JBLU's performance today. The XAL airline index didn't see any big moves. The price of oil didn't see any big moves. The market was moving higher this afternoon. Yet JBLU started sinking. It appears the culprit might be JBLU's afternoon announcement that its May 2012 traffic numbers rose +7.4%. That should be good news not bad news!

The stock dipped to support near $5.00. If there is any follow through on this sell-off tomorrow then JBLU will hit our stop loss at $4.99.

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: 31.36 change: +0.29

Stop Loss: 33.85
Target(s): 30.50
Current Gain/Loss: + 7.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: ANF tagged a new two-year low at $30.64 intraday and then bounced to a +0.9% gain.

Readers may want to go ahead and take profits now. 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


Allegheny Technologies - ATI - close: 28.91 change: +0.34

Stop Loss: 31.01
Target(s): 25.25
Current Gain/Loss: - 0.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: The stock market did not see much follow through on yesterday's declines. The same goes for the steel and metal industry. ATI did slip to a new relative low at $28.23 but reversed to close up +1.1%, which is in-line with the market's rebound today.

The larger pattern for ATI remains bearish. Readers may want to wait for a bounce or a failed rally near $30.00 before initiating positions.

* Small Positions *

current Position: short ATI stock @ $28.74

- or -

Long Jul $27.50 put (ATI1221S27.5) Entry $1.35

Entry on June 12 at $28.74
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 1.98 million
Listed on June 11, 2011


Baker Hughes Inc. - BHI - close: 39.27 change: +0.65

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: - 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/12/12 update: After four down days in a row BHI finally produced a bounce. Shares added +1.6%. We can look for overhead resistance at the $40.00 level. A failed rally there can be used as a new bearish entry point.

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: 17.50 change: +0.09

Stop Loss: 18.25
Target(s): 14.50
Current Gain/Loss: - 1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/12/12 update: HCCI spent the session in a very narrow range. I am still expecting this bounce to fail under $18 or its simple 10-dma (currently 17.82). Wait for the reversal lower before initiating 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: 23.13 change: +0.08

Stop Loss: 24.75
Target(s): 21.50
Current Gain/Loss: + 4.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: IDCC's lack of participation in the market's rally today is a small victory for the bears. Shares are hovering near the $23.00 level. I am not suggesting new positions at this time. Please note our new stop loss at $24.75.

current Position: short IDCC stock @ 424.15

- or -

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

06/12/12 new stop loss @ 24.75
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: 36.02 change: +1.06

Stop Loss: 36.85
Target(s): 30.25
Current Gain/Loss: - 4.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: PPO is not cooperating with a +3.0% gain today. Although it's worth noting that the rally did reverse under resistance at its 50-dma today. Technically this churning between $37 and $34 is just noise. More aggressive traders may want to put their stop above the 50-dma, currently at $36.93 (maybe 37.05?). I am not suggesting new positions at this time.

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: 24.03 change: +0.93

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 5.6%
Time Frame: exit prior to earnings on June 28th,
New Positions: see below

Comments:
06/12/12 update: After underperforming the market yesterday some of the steel stocks saw a strong bounce today. SCHN gained +4.0%. The $24.50-25.00 should be resistance. More conservative traders may want to start ratcheting down their stop loss now. 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

Idenix Pharmaceuticals - IDIX - close: 8.80 change: +0.16

Stop Loss: 8.49
Target(s): 11.50
Current Gain/Loss: - 8.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/12/12 update: IDIX managed to outperform the market with a +1.85% gain today. Unfortunately that doesn't tell the whole story. This morning IDIX violated support at its exponential 200-dma, its simple 200-dma and the $8.50 level. Our stop loss was hit at $8.49.

closed Position: Long IDIX stock @ $9.25 exit $8.49 (-8.2%)

- or -

Jul $10 call (IDIX1221G10) Entry $1.10, exit $0.55 (-50.0%)

06/12/12 stopped out at $8.49
06/07/12 triggered at $9.25

chart:

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