Editor's Note:
The market's Monday morning rally faded but the major indices still posted gains. The transportation sector did not participate.

Our ADUS and RNF trades were triggered.


Current Portfolio:


BULLISH Play Updates

ACADIA Pharmaceuticals - ACAD - close: 18.92 change: -0.39

Stop Loss: 18.20
Target(s): 24.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Comments:
06/17/13: ACAD underperformed the market today with a -2.0% decline. Shares are retreating from round-number resistance at $20.00. I don't see any changes from my weekend comments.

Earlier Comments:
A rally past resistance at $20 could fuel another bout of short covering. The most recent data listed short interest at 14% of the small 49.3 million share float.

I do consider this an aggressive, higher-risk trade because ACAD can be a volatile stock. Therefore we do want to keep our position size small. The June 10th high was $20.09. I am suggesting a trigger at $20.20 to buy the stock. If triggered our target is $24.50.

Trigger @ 20.20 *Small Positions*

Suggested Position: buy ACAD stock @ (trigger)



Acadia Healthcare - ACHC - close: 34.21 change: +0.16

Stop Loss: 33.35
Target(s): 38.50
Current Gain/Loss: - 2.7%

Entry on June 11 at $35.15
Listed on June 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 273 thousand
New Positions: see below

Comments:
06/17/13: ACHC spiked higher this morning but the rally didn't last long. By lunchtime ACHC was back to trading near the $34.00 level. The pullback from its intraday highs is a potential warning sign. Traders may want to hesitate on launching new positions. Keep an eye on the 30-dma for support.

current Position: Long ACHC stock @ $35.15

06/13/13 new stop loss @ 33.35



Addus HomeCare - ADUS - close: 19.63 change: -0.04

Stop Loss: 18.35
Target(s): 24.00
Current Gain/Loss: -2.6%

Entry on June 17 at $20.15
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 178 thousand
New Positions: Yes, see below

Comments:
06/17/13: I have to urge caution on our new ADUS trade. Shares gapped open higher at $20.00 and spiked up to $20.69. This was a bullish breakout past round-number resistance at the $20.00 level. Unfortunately, ADUS pared its gains and pulled back to hover above the $20.00 level most of the day. That would have been okay but then the market turned south this afternoon ADUS gave back all of its gains and more. The last minute bounce brought ADUS back to virtually breakeven on the session.

Our trade opened at $20.15 this morning. I am suggesting readers wait for a new rally past $20.15 before initiating new positions. More nimble traders could buy a dip or a bounce off the rising 10-dma near $18.60 instead.

*small positions*

current Position: Long ADUS stock @ $20.15



Delphi Automotive - DLPH - close: 51.21 change: -0.01

Stop Loss: 49.25
Target(s): 54.50
Current Gain/Loss: + 1.9%

Entry on June 07 at $50.25
Listed on June 06, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.3 million
New Positions: see below

Comments:
06/17/13: DLPH gapped open higher this morning. Shares almost hit $52.00. Traders sold the rally and DLPH closed almost unchanged on the session.

The simple 20-dma has risen to $49.50. I am raising our stop loss to $49.25.

current Position: Long DLPH stock @ $50.25

- (or for more adventurous traders, try this option) -

Long Aug $50 call (DLPH1317H50) entry $2.40

06/17/13 new stop loss @ 49.25



Ryanair Holdings - RYAAY - close: 49.66 change: -0.41

Stop Loss: 48.75
Target(s): 55.00
Current Gain/Loss: - 1.7%

Entry on June 14 at $50.50
Listed on June 08, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 319 thousand
New Positions: see below

Comments:
06/17/13: RYAAY underperformed the market today with a -0.8% decline. The close under its 10-dma does not inspire any confidence. Readers may want to wait for RYAAY to trade above $50.66 before launching new bullish positions.

The plan was to keep our position size small.

*Small Positions*

current Position: Long RYAAY stock @ $50.50



Spirit Airlines - SAVE - close: 32.57 change: +0.45

Stop Loss: 29.75
Target(s): 34.00
Current Gain/Loss: + 7.7%

Entry on May 28 at $30.25
Listed on May 25, 2013
Time Frame: 8 to 9 weeks
Average Daily Volume = 686 thousand
New Positions: see below

Comments:
06/17/13: SAVE spent the session consolidating sideways near its highs and managed to close up +1.4% on the session. I don't see any changes from my weekend comments.

More conservative traders may want to consider taking profits now or raising your stop loss closer to $31.00.

current Position: Long SAVE stock @ $30.25

- (or for more adventurous traders, try this option) -

Long Jul $30 call (SAVE1320G30) entry $1.50

06/10/13 new stop loss @ 29.75
06/08/13 new stop loss @ 29.49
06/01/13 new stop loss @ 29.20



BEARISH Play Updates

Freeport-McMoRan - FCX - close: 29.66 change: +0.09

Stop Loss: 30.35
Target(s): 25.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 20 million
New Positions: Yes, see below

Comments:
06/17/13: It was a relatively quiet session for FCX. It's worth noting that the rally this morning did not pierce the $30.00 level. I don't see any changes from my weekend comments (new play section).

Thursday's low was $29.24. I am suggesting a trigger to open bearish positions at $29.00. If triggered our target is $25.50 but I will point out that the April low near $27.25 could be short-term support and FCX might bounce on its initial test of this level.

FYI: FCX has a special $1.00 dividend payable on July 1st, 2013 to shareholders of record on June 14th.

Trigger @ 29.00

Suggested Position: short FCX stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the Aug $27 PUT (FCX1317T27)



Universal Display Corp. - PANL - close: 27.17 change: -0.67

Stop Loss: 28.35
Target(s): 22.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 12, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 727 thousand
New Positions: Yes, see below

Comments:
06/17/13: The Monday morning bounce in PANL failed and shares reversed into a -2.4% decline. Today's drop has created a new bearish engulfing candlestick pattern. I would be tempted to use today's move as a new bearish entry point. However, we will stick to the plan and wait for a new relative low. I am suggesting a trigger to open bearish positions at $26.70.

FYI: PANL will host its annual shareholders meeting this Thursday, June 20th, after the closing bell.

Earlier Comments:
I do consider this a higher-risk, more aggressive trade. First of all shares of PANL can be very volatile. The last few months have been very choppy. Second, the most recent data listed short interest at 34.8% of the small 35.7 million share float. That does raise the risk of a short squeeze (and helps explain some of the volatility). You may want to try and limit your risk by buying put options instead of shorting the stock.

If triggered our target is $22.50. FYI: The Point & Figure chart for PANL is bearish with a $22.00 target.

Trigger @ 26.70

Suggested Position: short PANL stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the Jul $25 PUT (PANL1320s25)



Rackspace Holdings - RAX - close: 35.60 change: +0.98

Stop Loss: 37.25
Target(s): 31.00
Current Gain/Loss: +6.4%

Entry on May 22 at $38.02
Listed on May 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.0 million
New Positions: see below

Comments:
06/17/13: RAX continues to bounce with a +2.8% gain following Friday's rebound from support near $34.00. The intermediate down trend might be in jeopardy with today's close above the simple 10-dma. It's surprising to see so much strength after Cramer bad mouthed the stock so much late last week.

Keep in mind that we only have the June puts that will expire in four trading days.

current Position: short RAX stock @ $38.02

- (or for more adventurous traders, try this option) -

Long Jun $37.50 PUT (RAX1322r37.5) entry $1.60

06/06/13 new stop loss @ 37.25
06/05/13 new stop loss @ 37.75
05/25/13 new stop loss at $40.10, more conservative traders may want to exit early now.
05/24/13 RAX confirms the bullish reversal pattern.
05/23/13 RAX produced a bullish reversal candlestick.



Rentech Nitrogen Partners - RNF - close: 28.40 change: -1.01

Stop Loss: 31.05
Target(s): 25.15
Current Gain/Loss: + 1.8%

Entry on June 17 at $29.00
Listed on June 13, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 159 thousand
New Positions: see below

Comments:
06/17/13: As expected the weakness in RNF continued after the bounce failed at the $30.00 level on Friday. Shares underperformed the market today with a -3.4% decline. Our trigger to open bearish positions was hit at $29.00.

Earlier Comments:
We want to keep our position size small because RNF is arguably already oversold. Of course it can remain oversold for months but we still want to limit our risk.

*small positions*

current Position: short RNF stock @ $29.00

- (or for more adventurous traders, try this option) -

Long Jul $27.50 PUT (RNF1320s27.5) entry $0.65



Trimble Navigation - TRMB - close: 26.45 change: +0.20

Stop Loss: 27.01
Target(s): 23.00
Current Gain/Loss: - 2.1%

Entry on June 13 at $25.90
Listed on June 11, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
06/17/13: TRMB is now up two days in a row. It's worth noting that the rally today pulled back enough so that TRMB closed below its 10-dma and its 300-dma. A new decline under $26.25 could be news as a bearish entry point. More conservative traders may want to tighten their stops closer to today's high (26.71).

current Position: short TRMB stock @ $25.90

- (or for more adventurous traders, try this option) -

Long AUG $25 PUT (TRMB1317T25) entry $1.10