Editor's Note:
Traders seemed to have no fear of the weekend with stocks surging higher on Friday.

PCYC was triggered. BHI was stopped out. Our HCCI was closed as planned.

Current Portfolio:


BULLISH Play Updates

Allot Communications - ALLT - close: 26.77 change: +0.35

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

Comments:
06/16/12 update: ALLT managed a +1.3% gain on Friday. While the stock looks like it's ready to breakout past resistance it hasn't yet. The market has seen a pretty decent two-day bounce and yet ALLT can't breakout. That makes us a bit more cautious here. We'll keep ALLT on the newsletter for now but we definitely want to keep our position size small.

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)

chart:

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: 51.87 change: -0.29

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

Comments:
06/16/12 update: We have similar concerns with HD. The stock market is up two days in a row and yet HD can't breakout past resistance. The stock actually underperformed on Friday. Now you could argue that HD is forming a bull-flag consolidation pattern. We will keep this stock on the newsletter but we want to keep our position size small to limit our risk.

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 *Small Positions*

Suggested Position: buy HD stock @ (trigger)

- or -

buy the Aug $55 call (HD1218H55)

06/16/12 we want to keep our position size small!

chart:

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


Pharmacyclics Inc. - PCYC - close: 41.23 change: +0.71

Stop Loss: 39.30
Target(s): 44.50
Current Gain/Loss: + 0.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/16/12 update: As we expected shares of PCYC have broken out from its recent sideways consolidation. The stock hit our trigger to open bullish positions at $41.10. I would still consider new positions now assuming the market opens positive on Monday and doesn't crash on a disastrous Greek vote headline.

Our plan was to keep our position size small. This is a higher-risk, more aggressive trade.

*small positions*

Suggested Position: Long PCYC stock @ $41.10

- or -

Long Jul $42 call (PCYC1221G42) Entry $2.35

06/15/12 triggered @ 41.10

chart:

Entry on June 15 at $41.10
Earnings Date 09/12/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on June 14, 2011


Spreadtrum Comm. - SPRD - close: 19.24 change: -0.27

Stop Loss: 18.80
Target(s): 24.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
06/16/12 update: The recent action in SPRD is a little bit worrisome. There was no follow through higher on Thursday's bounce. The market rallied on Friday and SPRD failed to participate. Overall the pattern hasn't changed. We are waiting for a breakout past resistance.

I am suggesting a trigger to launch positions at $20.10. We'll use a stop loss at $18.80, just under the simple 200-dma. Our multi-week target is $24.00.

Trigger @ 20.10

Suggested Position: buy SPRD stock @ (trigger)

- or -

buy the Jul $22 call (SPRD1221G22) current ask $0.60

chart:

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on June 14, 2011


BEARISH Play Updates

Allegheny Technologies - ATI - close: 29.49 change: +0.46

Stop Loss: 31.01
Target(s): 25.25
Current Gain/Loss: - 2.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/16/12 update: ATI is still trying to produce an oversold bounce and managed a +1.5% gain on Friday. Shares should find short-term resistance at the 10-dma and the $30.00 mark. Wait for this bounce to reverse before considering new positions.

* Small Positions *

current Position: short ATI stock @ $28.74

- or -

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

chart:

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


InterDigital, Inc. - IDCC - close: 22.88 change: +0.34

Stop Loss: 24.75
Target(s): 21.50
Current Gain/Loss: + 5.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/16/12 update: The stock market's strength on Friday helped fuel a +1.5% gain in IDCC. The trend is down but shares were due for an oversold bounce. Readers may want to go ahead and take profits now. I am not suggesting new positions at this time.

current Position: short IDCC stock @ $24.15

- 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

chart:

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


The Children's Place - PLCE - close: 43.98 change: -0.10

Stop Loss: 45.15
Target(s): 40.15
Current Gain/Loss: - 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/16/12 update: PLCE failed to participate in the market's rally on Friday, which is good news if you're bearish. The low on Friday was $43.60. Readers may want to wait for a new drop under $43.50 before initiating positions.

Earlier Comments:
Let me caution you that this is probably a higher-risk trade merely because being short PLCE is a popular bet. The most recent data listed short interest at 22% of the very small 19.7 million-share float. Thus, if the stock were to suddenly move higher, it could spark some short covering. FYI: The Point & Figure chart for PLCE is bearish with a $36.00 target.

*Small Positions*

current Position: short PLCE stock @ $43.42

- or -

Long Jul $42.50 PUT (PLCE1221S42.5) Entry $1.80

chart:

Entry on June 14 at $43.42
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 529 thousand
Listed on June 13, 2011


Polypore Intl. - PPO - close: 36.61 change: +0.74

Stop Loss: 36.85
Target(s): 30.25
Current Gain/Loss: - 5.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/16/12 update: PPO has been going nowhere fast! Shares have spent the last two weeks bouncing around the $34-37 range. Now it's back to the top of the range near resistance at $37.00 and its 50-dma (36.90).

I am suggesting we go ahead and exit early now. We will close positions at the open on Monday morning.

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

06/16/12 prepare to exit at the open on Monday morning

chart:

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: 24.41 change: +0.63

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 4.1%
Time Frame: exit prior to earnings on June 28th,
New Positions: see below

Comments:
06/16/12 update: It has been a volatile week for steel stocks. SCHN has seen a sharp two-day bounce. The rally seemed to stall at resistance near its new trend line of lower highs. I am concerned that the newest candle on the weekly chart might be considered a bullish reversal.

I am not suggesting new positions at this time and more conservative traders may want to take profits early.

The plan was 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.

chart:

Entry on June 01 at $25.45
Earnings Date 06/28/12 (unconfirmed)
Average Daily Volume = 474 thousand
Listed on May 31, 2011


CLOSED BEARISH PLAYS

Baker Hughes Inc. - BHI - close: 40.38 change: +0.84

Stop Loss: 40.15
Target(s): 35.25
Current Gain/Loss: - 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/16/12 update: Oil service stocks were big performers on Friday with the OSX oil services index gaining +1.8%. BHI outperformed its peers with a +2.1% gain. More importantly the stock rallied back above resistance at the $40.00 level and hit our stop loss at $40.15.

closed Position: short BHI stock @ $38.85 exit $40.15 (-3.3%)

- or -

Jul $37 PUT (BHI1221S37) Entry $1.50 exit $0.87 (-42.0%)

06/15/12 stopped out at $40.15
06/11/12 triggered @ 38.85

chart:

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: 18.49 change: +0.73

Stop Loss: 18.25
Target(s): 14.50
Current Gain/Loss: - 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/16/12 update: We have been worried about HCCI's lack of weakness recently. That's why on Thursday night we decided it was time to exit. The plan was to close positions at the open on Friday morning. HCCI opened at $17.75 before surging to a +4.1% gain.

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)

closed Position: short HCCI stock @ $17.20 exit $17.75 (-3.2%)

06/15/12 planned exit at the open
06/14/12 prepare to exit at the open tomorrow

chart:

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