Editor's Note:
Shares of PCYC continue to outperform the market and the stock hit our bullish target.

Elsewhere we closed ATI at the open as planned.

Current Portfolio:


BULLISH Play Updates

Allot Communications - ALLT - close: 28.03 change: +0.78

Stop Loss: 25.99
Target(s): 29.90
Current Gain/Loss: + 2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/20/12 update: Traders bought the dip at $27.00 this morning and ALLT displayed relative strength with a +2.8% gain. Today's move helps reaffirm the up trend. Yet I am not suggesting new positions at this time.

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: 52.83 change: -0.14

Stop Loss: 51.35
Target(s): 58.50
Current Gain/Loss: - 0.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/20/12 update: It was a relatively quiet day for HD with traders buying the midday dip. Readers may want to wait for a new relative high (above 53.28) before initiating new positions.

Our multi-week target is $58.50. FYI: The Point & Figure chart for HD is bullish with a long-term $95 target.

*Small Positions*

current Position: Long HD stock @ $53.05

- or -

Long Aug $55 call (HD1218H55) Entry $0.97

06/19/12 triggered @ 53.05
06/16/12 we want to keep our position size small!

Entry on June 19 at $53.05
Earnings Date 08/14/12 (unconfirmed)
Average Daily Volume = 14.3 million
Listed on June 12, 2011


McMoRan Exploration - MMR - close: 10.40 change: +0.01

Stop Loss: 9.49
Target(s): 13.50
Current Gain/Loss: + 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/20/12 update: Broken resistance near $10.00 continues to act as new support. Traders bought the dip near $10 twice today. I would still consider new positions now at current levels.

I do see potential resistance at $11.50 and the simple 200-dma but we're setting our multi-week target at $13.50.

current Position: Long MMR stock @ $10.35

- or -

Long Aug $10 call (MMR1218H10) Entry $1.45

06/19/12 triggered @ 10.35

Entry on June 19 at $10.35
Earnings Date 07/17/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on June 18, 2011


Sprint-Nextel Corp. - S - close: 3.13 change: -0.02

Stop Loss: 2.89
Target(s): 3.70
Current Gain/Loss: + 0.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/20/12 update: It was also a quiet day for shares of Sprint. The stock opened and closed at $3.13. I would still consider new positions now or readers could wait for a dip back towards the $3.00 level, which should offer some support.

current position: Long S stock @ $3.13

Entry on June 20 at $ 3.13
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 53 million
Listed on June 19, 2011


The TJX Companies - TJX - close: 43.11 change: -0.37

Stop Loss: 41.15
Target(s): 47.00
Current Gain/Loss: - 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/20/12 update: Technically today's drop has produced a bearish engulfing candlestick reversal pattern (following yesterday's bullish breakout). Yet bigger picture TJX saw a dip back toward prior resistance near $42.75 and bounced. I see this as a new bullish entry point to buy the dip.

current Position: Long TJX stock @ $43.24

- or -

Long Jul $45 call (TJX1221G45) Entry $0.40

Entry on June 19 at $43.24
Earnings Date 08/14/12 (unconfirmed)
Average Daily Volume = 5.7 million
Listed on June 18, 2011


Ventas, Inc. - VTR - close: 61.26 change: +0.10

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

Comments:
06/20/12 update: I am surprised by the relative strength in VTR today. The relatively widespread market decline would have been the perfect excuse to sell some VTR. Overall our plan has not changed. We want to launch positions on 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

Schnitzer Steel - SCHN - close: 24.73 change: -0.64

Stop Loss: 26.75
Target(s): 21.50
Current Gain/Loss: + 2.8%
Time Frame: exit prior to earnings on June 28th,
New Positions: see below

Comments:
06/20/12 update: Good news! There was no follow through on yesterday's breakout above $25.00. SCHN underperformed the market with a -2.5% decline. We're not out of the woods yet. A close back under its 10-dma would help reaffirm the down trend.

I am not suggesting new positions at this time.

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 BULLISH PLAYS

Pharmacyclics Inc. - PCYC - close: 45.00 change: +2.32

Stop Loss: 39.30
Target(s): 44.50
Current Gain/Loss: + 8.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/20/12 update: Target achieved.

PCYC continues to show relative strength and outperform the market. Today the stock rallied another +5.4% and closed right at potential round-number resistance at the $45.00 mark. Our target was hit at $44.50.

*small positions*

closed Position: Long PCYC stock @ $41.10 exit $44.50 (+8.3%)

- or -

Jul $42 call (PCYC1221G42) Entry $2.35 exit $3.55 (+51.0%)

06/20/12 target hit at $44.50
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


CLOSED BEARISH PLAYS

Allegheny Technologies - ATI - close: 30.98 change: +0.79

Stop Loss: 31.01
Target(s): 25.25
Current Gain/Loss: - 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/20/12 update: The market's decline today had no affect on ATI. The oversold bounce continued and ATI would have hit our stop loss at $31.01 this afternoon. Except that we decided last night to exit positions at the open this morning.

* Small Positions *

closed Position: short ATI stock @ $28.74 exit $30.19 (-5.0%)

- or -

Jul $27.50 put (ATI1221S27.5) Entry $1.35 exit $0.48 (-64.4%)

06/20/12 planned exit at the open
06/19/12 prepare to exit positions at the open tomorrow.

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