Editor's Note:
Shares of IDCC were some of the best performers today after a midday announcement of a $375 million patent sale to Intel. Our IDCC trade was stopped out on the stock's intraday gap higher.

Elsewhere ALLT was triggered, PPO was closed as planned. VTR is not open yet.

Current Portfolio:


BULLISH Play Updates

Allot Communications - ALLT - close: 27.53 change: +0.76

Stop Loss: 25.99
Target(s): 29.90
Current Gain/Loss: + 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/18/12 update: ALLT finally decided to start participating in the market's rise. Shares rallied to $28.08 intraday. Our trigger to open bullish positions was hit at $27.25. Nimble traders may want to look for another dip into the $27.20-27.00 zone as a new entry point.

Earlier Comments:
We want to keep our position size small.

*Small Positions*

current Position: Long ALLT stock @ $27.25

- or -

Long Jul 30 call (ALLT1221G30) Entry $0.70

06/18/12 triggered @ 27.25

Entry on June 18 at $27.25
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:
06/18/12 update: The sideways consolidation in shares of HD is narrowing. This would suggest the stock is getting closer to a breakout higher. 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!

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: 41.29 change: +0.06

Stop Loss: 39.30
Target(s): 44.50
Current Gain/Loss: + 0.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/18/12 update: PCYC's performance on Monday was a bit underwhelming with shares consolidating sideways. I would still consider new positions tomorrow but only if both PCYC and the S&P 500 index open positive.

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

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: 19.10 change: -0.14

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

Comments:
06/18/12 update: The action on SPRD is disappointing. The stock's rally attempt failed at resistance near $20.00. If SPRD doesn't make it past the $20.00 level soon we'll probably drop it as a candidate.

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)

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


Ventas, Inc. - VTR - close: 61.04 change: +0.92

Stop Loss: 57.90
Target(s): 64.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
06/18/12 update: VTR displayed relative strength again with a +1.5% gain and another new high. Unfortunately our entry point was not met this morning. Both the S&P 500 and VTR opened lower this morning before turning positive. We don't want to chase VTR now. We'll adjust our entry point strategy to buy a dip at $60.00.

Buy a dip at $60.00

Suggested Position: buy VTR stock @ (trigger)

06/18/12 Entry point conditions were not met this morning.
Adjust strategy to buy a dip at $60.00.

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 16, 2011


BEARISH Play Updates

Allegheny Technologies - ATI - close: 28.89 change: -0.60

Stop Loss: 31.01
Target(s): 25.25
Current Gain/Loss: - 0.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/18/12 update: ATI did not see any follow through on Friday's bounce. The stock underperformed today with a -2.0% decline. Readers might want to wait for a close under $28.50 before initiating new 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


Gardner Denver Inc. - GDI - close: 51.01 change: +0.75

Stop Loss: 52.05
Target(s): 45.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/18/12 update: GDI tagged a new low this morning but it wasn't low enough. Shares dipped to $49.85 before bouncing. Today's rebound has created a bullish engulfing candlestick reversal pattern. We might drop GDI as a candidate if shares see any follow through higher.

Currently I am suggesting small bearish positions if GDI can trade at $49.75 or lower. If triggered we'll aim for $45.50.
FYI: The Point & Figure chart for GDI is bearish with a $42.00 target.

Trigger @ 49.75

Suggested Position: short GDI stock @ (trigger)

Entry on June xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 635 thousand
Listed on June 16, 2011


The Children's Place - PLCE - close: 44.11 change: +0.13

Stop Loss: 45.15
Target(s): 40.15
Current Gain/Loss: - 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/18/12 update: It was another quite session for PLCE with the stock moving sideways. I am not suggesting new positions at this time given the market's upward momentum.

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

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


Schnitzer Steel - SCHN - close: 24.39 change: -0.02

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 4.2%
Time Frame: exit prior to earnings on June 28th,
New Positions: see below

Comments:
06/18/12 update: Good news! SCHN did not participate in the market's rally today. Shares remain under short-term resistance at the 10-dma.

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.

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

InterDigital, Inc. - IDCC - close: 29.08 change: +6.20

Stop Loss: 24.75
Target(s): 21.50
Current Gain/Loss: - 7.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/18/12 update: Ouch! Our IDCC trade went from +5.3% to -7.9% pretty quickly this morning. IDCC was meandering sideways this morning. Then the stock was halted for news pending. IDCC announced a huge patent deal with Intel (INTC). IDCC is selling about 1,700 patents related to mobile phone technology to INTC for $375 million. This sent the stock exploding higher. Shares opened at $26.05, dipped to $25.00, and then surged to $29 for a +27% gain on the day.

Our stop loss was $24.75 so when IDCC reopened for trading at $25.00 it stopped us out.

closed Position: short IDCC stock @ $24.15 exit $26.05 (-7.9%)

- or -

Jul $22.50 PUT (IDCC1221S22.5) Entry $1.15 , exit $0.40*(-65.2%)

*option exit price is an estimate.
06/18/12 IDCC was halted for pending news and then reopened midday with a gap higher at $26.05. This was above our stop loss (24.75) and closed our trade.
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


Polypore Intl. - PPO - close: 37.29 change: +0.68

Stop Loss: 36.85
Target(s): 30.25
Current Gain/Loss: - 4.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/18/12 update: Over the weekend we decided it was time to exit our PPO play. The plan was to exit at the open. PPO opened at $36.49.

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)

closed Position: short PPO stock @ $34.82 exit $36.49 (-4.8%)

- or -

Jul $32.50 PUT (PPO1221S32.5) Entry $1.95 exit $0.75 (-61.5%)

06/18/12 planned exit at the open
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