Editor's Note:
Acme Packet issued an earnings warning on Friday morning and the stock's plunge hit our bearish target. Meanwhile ZUMZ hit our stop loss and we're dropping SVN as a candidate.

Current Portfolio:


BULLISH Play Updates

ACI Worldwide, Inc. - ACIW - close: 45.51 change: -0.79

Stop Loss: 43.75
Target(s): 49.00
Current Gain/Loss: + 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/07/12 update: After hitting new ten-year highs on Thursday I am not surprised to see ACIW pull back a little bit on Friday, especially with the bearish jobs data. Traders were buying the dip near the $45 level and ACIW pared its losses by the closing bell.

Readers may want to consider taking profits early. I am not suggesting new positions at this time.

current Position: Long ACIW stock @ $44.05

07/03/12 new stop loss @ 43.75
06/29/12 triggered @ 44.05

chart:

Entry on June 29 at $44.05
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 318 thousand
Listed on June 27, 2011


Sprint-Nextel Corp. - S - close: 3.29 change: -0.02

Stop Loss: 3.18
Target(s): 3.70
Current Gain/Loss: + 5.1%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
07/07/12 update: The big telecom stocks plunged on Friday morning but most of the group managed a nice recovery off their intraday lows. S dipped toward the $3.20 level before bouncing back and closing with a -0.6% decline. More conservative traders may want to go ahead and take profits now. I am not suggesting new positions at this time.

current position: Long S stock @ $3.13

07/03/12 new stop loss @ 3.18

chart:

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


Six Flags Entertainment - SIX - close: 53.92 change: -0.37

Stop Loss: 53.25
Target(s): 56.50
Current Gain/Loss: + 4.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/07/12 update: SIX held up reasonably well on Friday with a -0.6% decline but I am worried the pullback will continue and SIX will hit our stop loss at $53.25 soon. Readers may want to take profits early now. I am not suggesting new positions at this time.

current Position: Long SIX stock @ $52.05

07/03/12 new stop loss @ 53.25
06/30/12 new stop loss @ 51.75
06/26/12 triggered @ 52.05

chart:

Entry on June 26 at $52.05
Earnings Date 07/24/12 (before the opening bell)
Average Daily Volume = 512 thousand
Listed on June 25, 2011


VeriSign, Inc. - VRSN - close: 43.81 change: -1.18

Stop Loss: 43.40
Target(s): 49.00
Current Gain/Loss: unopened
Time Frame: exit prior to the late July earnings report
New Positions: see below

Comments:
07/07/12 update: Tech stocks underperformed on Friday and VRSN dipped to its 10-dma and settled with a -2.6% decline. Yet the larger pattern is still bullish. We are adjusting our entry point strategy. I'm suggesting a trigger to buy calls at $44.35 and we'll use a stop under today's low.

Trigger to open bullish positions @ $44.35 (stop 43.40)

Suggested Position: buy VRSN stock @ (trigger)

- or -

buy the Aug $45 call (VRSN1218H45)

07/07/12 new entry point strategy: trigger @ 44.35, stop 43.40
07/05/12 trade did not open. No new trades until Monday. Look for a new entry strategy this weekend.

chart:

Entry on July xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on July 03, 2011


Ventas, Inc. - VTR - close: 63.43 change: +0.24

Stop Loss: 62.45
Target(s): 64.50
Current Gain/Loss: + 6.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/07/12 update: VTR saw an initial spike lower on Friday morning but managed to recover and actually close in positive territory. The relative strength is encouraging but I am not suggesting new positions at this time. The intraday low on Friday almost hit our stop loss at $62.45.

current Position: Long VTR stock @ $59.71

07/03/12 new stop loss @ 62.45
06/30/12 new stop loss @ 60.20
06/23/12 triggered on the gap down at $59.71
06/18/12 Entry point conditions were not met this morning.
Adjust strategy to buy a dip at $60.00.

chart:

Entry on June 25 at $59.71
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 16, 2011


BEARISH Play Updates

Aetna Inc. - AET - close: 37.63 change: -0.23

Stop Loss: 39.55
Target(s): 35.10
Current Gain/Loss: + 2.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/07/12 update: AET posted another loss on Friday for its sixth decline in a row. While the trend is down it might be time to expect a little oversold bounce. The $39.00 level, near the May low, should offer some overhead resistance. I am not suggesting new positions at this time.

FYI: The Point & Figure chart for AET is bearish with a $29 target.

current Position: short AET stock @ $38.45

- or -

Long Aug $38 PUT (AET1218T38) Entry $1.65

07/03/12 new stop loss @ 39.55
07/03/12 triggered @ 38.45

chart:

Entry on July 03 at $38.45
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on June 30, 2011


First Solar Inc. - FSLR - close: 15.01 change: -0.42

Stop Loss: 15.51
Target(s): 12.00, 10.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
07/07/12 update: Has the oversold bounce in FSLR finally run out of steam? Shares lost -2.7% on Friday, underperforming the major indices. This past week also created a lower high versus the mid June spike. We will keep FSLR on the play list for now.

Currently we are suggesting a trigger to launch bearish positions at $14.40. We'll set two targets. Our first target is $12.00. Our longer-term, more aggressive target is $10.50.

Trigger @ 14.40

Suggested Position: short FSLR stock @ (trigger)

- or -

buy the Aug $14 PUT (FSLR1218T14)

chart:

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 7.3 million
Listed on June 30, 2011


CLOSED BULLISH PLAYS

Zumiez, Inc. - ZUMZ - close: 38.05 change: -0.92

Stop Loss: 38.40
Target(s): 44.00
Current Gain/Loss: - 4.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/07/12 update: ZUMZ was not very cooperative during this attempt to trade it. It took a while for ZUMZ to breakout past resistance at $40.00. Then shares fell back below the $40 level on the same-store sales earnings miss. The Friday jobs report was just another reason to hit the sell button. Shares gapped open lower at $38.65 and quickly spiked lower, hitting our stop loss at $38.40 along the way.

closed Position: Long ZUMZ stock @ $40.30 exit $38.40 (-4.7%)

- or -

Aug $45 call (ZUMZ1218H45) Entry $0.70 exit $0.35 (-50.0%)

07/06/12 stopped out at $38.40
07/03/12 triggered @ 40.30
06/30/12 adjusted entry trigger to $40.30

chart:

Entry on June xx at $ xx.xx
Earnings Date 08/23/12 (unconfirmed)
Average Daily Volume = 531 thousand
Listed on June 26, 2011


CLOSED BEARISH PLAYS

Acme Packet, Inc. - APKT - close: 15.74 change: -2.66

Stop Loss: 19.25
Target(s): 17.00
Current Gain/Loss: +17.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/07/12 update: Target exceeded!

APKT issued an earnings warning on Friday morning. Naturally traders sold the news and APKT gapped open lower and eventually settled with a -14.4% decline on Friday. Our exit target was $17.00 but APKT opened at $16.44, immediately closing our play.

*Small Positions*

closed Position: short APKT stock @ $19.90 exit $16.44 (+17.4%)

- or -

Jul $20 PUT (APKT1221S20) entry $1.50 exit $3.20 (+113.3%)

07/07/12 target exceeded on gap down at $16.44
APKT issued an earnings warning before the bell
07/03/12 new stop loss @ 19.25
06/28/12 readers may want to take profits now
06/25/12 triggered @ 19.90

chart:

Entry on June 25 at $19.90
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on June 21, 2011


7 Days Group Holdings Ltd. - SVN - close: 10.40 change: -0.03

Stop Loss: 10.65
Target(s): 8.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/07/12 update: SVN is not cooperating. The larger trend is still very bearish. If you have any patience you may want to keep SVN as a trade with a trigger to launch positions near $9.95. However, SVN only lost three cents on Friday in spite of the market-wide drop. We are removing SVN from the newsletter. Our trade did not open.

Trade did not open.

07/07/12 removed SVN as a candidate. trade did not open.

chart:

Entry on June xx at $ xx.xx
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 88.7 thousand
Listed on June 27, 2011