Editor's Note:
The market's theme today seemed to be no follow through on yesterday's bounce.

We did see JBLU get stopped out.

Current Portfolio:


BULLISH Play Updates

Allot Communications - ALLT - close: 26.04 change: -0.97

Stop Loss: 25.99
Target(s): 29.90
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
06/13/12 update: Ouch! There was no follow through on yesterday's rally in ALLT. The stock reversed sharply and closed down -3.5%. Fortunately our trade has not been triggered yet.

Currently the plan is to use a trigger at $27.25 to launch small bullish positions with a stop loss at $25.99. Our upside target is $29.90.

Trigger @ 27.25 *Small Positions*

Suggested Position: buy ALLT stock @ (trigger)

- or -

buy the Jul 30 call (ALLT1221G30)

Entry on June xx at $ xx.xx
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 584 thousand
Listed on June 12, 2011


Home Depot, Inc. - HD - close: 50.97 change: -1.27

Stop Loss: 51.35
Target(s): 58.50
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
06/13/12 update: HD also reversed lower today. The combination of Monday's failed rally, yesterday's inside day, and today's breakdown doesn't bode well for HD. Short-term I am expecting a dip to the simple 50-dma near $50.40. At the moment we are still on the sidelines.

I am suggesting a trigger to open bullish positions at $53.05 with a stop loss at $51.35 (just under today's low). Our multi-week target is $58.50.
FYI: The Point & Figure chart for HD is bullish with a long-term $95 target.

Trigger @ 53.05

Suggested Position: buy HD stock @ (trigger)

- or -

buy the Aug $55 call (HD1218H55)

Entry on June xx at $ xx.xx
Earnings Date 08/14/12 (unconfirmed)
Average Daily Volume = 14.3 million
Listed on June 12, 2011


BEARISH Play Updates

Abercrombie & Fitch - ANF - close: 30.91 change: -0.45

Stop Loss: 33.85
Target(s): 30.50
Current Gain/Loss: + 8.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/12 update: ANF tried to rally twice midday but failed both times and ended the session down -1.4%. The stock looks poised to hit our exit target at $30.50 soon.

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: 28.22 change: -0.69

Stop Loss: 31.01
Target(s): 25.25
Current Gain/Loss: + 1.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/12 update: Good news! There was no follow through on yesterday's oversold bounce. ATI gave up another -2.3% to close at new relative lows. More conservative traders might want to adjust stops closer to $30.00.

* 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: 38.69 change: -0.58

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13/12 update: The same holds true here with BHI. There was no follow through on yesterday's bounce. The stock erased almost all of yesterday's gains. Readers can use this move as 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: 17.53 change: +0.03

Stop Loss: 18.25
Target(s): 14.50
Current Gain/Loss: - 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13/12 update: The market's indecision is easily seen in shares of HCCI. The stock has been trading sideways in a very narrow range the last two days. I am still expecting this bounce to roll over. Cautious readers could inch down their stop loss. 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


InterDigital, Inc. - IDCC - close: 22.80 change: -0.33

Stop Loss: 24.75
Target(s): 21.50
Current Gain/Loss: + 5.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/12 update: After churning sideways most of the session IDCC slipped to new relative lows. I am not suggesting new positions at this time.

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: 34.94 change: -1.08

Stop Loss: 36.85
Target(s): 30.25
Current Gain/Loss: - 0.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/12 update: PPO continues to churn sideways under its 50-dma. Today's drop erased all of yesterday's bounce. 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: 23.19 change: -0.84

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 8.9%
Time Frame: exit prior to earnings on June 28th,
New Positions: see below

Comments:
06/13/12 update: It looks like the market theme today was no follow through on yesterday's bounce. SCHN certainly didn't see any follow through. The stock rolled over and lost -3.49%. 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

JetBlue Airways - JBLU - close: 5.08 change: +0.01

Stop Loss: 4.99
Target(s): 6.00
Current Gain/Loss: - 5.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13/12 update: JBLU managed to close positive, barely, for the session. Unfortunately the stock traded beneath several layers of support this morning including the 30-dma, the 200-ema, the 150-dma, and the $5.00 mark. Our stop loss was hit 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.

closed Position: buy JBLU stock @ $5.30 exit 4.99 (-5.8%)

- or -

Jul $5.00 call (JBLU1221G5) Entry $0.55 exit $0.30*(-45.4%)

*option exit price is an estimate. option didn't trade at the time of our exit.
06/13/12 stopped out at $4.99
06/11/12 triggered @ 5.30

chart:

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