Editor's Note:
The U.S. market's oversold bounce continues and the S&P 500 managed to close back above the 1600 level, which is a small victory for the bulls. Broken support at its 50-dma remains overhead resistance. The S&P 500 could reverse in the 1620 area.

Our new CYH trade was triggered today.


Current Portfolio:


BULLISH Play Updates

Acadia Healthcare - ACHC - close: 34.01 change: -0.82

Stop Loss: 33.60
Target(s): 38.50
Current Gain/Loss: - 3.2%

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:
06/26/13: Uh-oh! Shares of ACHC underperformed both the broader market and its peers in the healthcare sector. I couldn't find any headlines to explain today's relative weakness (-2.3%). The stock dipped to $33.80 at its low today and closed just above technical support at its 30-dma. Our stop is at $33.60.

current Position: Long ACHC stock @ $35.15

06/18/13 new stop loss @ 33.60
06/13/13 new stop loss @ 33.35



American Realty Capital Prop. - ARCP - close: 14.92 change: +0.20

Stop Loss: 13.85
Target(s): 16.00
Current Gain/Loss: + 2.2%

Entry on June 24 at $14.60
Listed on June 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.8 million
New Positions: see below

Comments:
06/26/13: ARCP spent most of the day churning sideways but did close with a +1.3% gain. Shares are churning just below their 20-dma and what is probably round-number resistance at the $15.00 mark.

*small positions*

current Position: Long ARCP stock @ $14.60



Community Health Systems - CYH - close: 46.34 change: -0.27

Stop Loss: 44.85
Target(s): 51.00
Current Gain/Loss: - 1.5%

Entry on June 26 at $47.05
Listed on June 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
06/26/13: Our plan was to launch bullish positions at $47.05. Shares of CYH managed to rally past its 30-dma and past the $47.00 level but they reversed at $47.21 and closed negative on the session. Our trigger at $47.05 was hit but I would hesitate to launch positions tonight. Nimble traders could look for a bounce off the $46.00 level or wait for a new relative high above $47.21 as an alternative entry point.

current Position: Long CYH stock @ $47.05



Engility Holdings - EGL - close: 28.05 change: +0.14

Stop Loss: 26.99
Target(s): 32.50
Current Gain/Loss: - 0.7%

Entry on June 25 at $28.25
Listed on June 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 96 thousand
New Positions: see below

Comments:
06/26/13: EGL shot higher this morning but gains faded and the stock settled with a +0.5% gain. I am reiterating my comments from Tuesday. Readers may want to wait for a new high (above 28.38) before initiating positions.

Earlier Comments:
There appears to be some short-term resistance near $28.20 and a breakout past this level could spark some short covering. The most recent data listed short interest a 10% of the small 12.7 million share float.

current Position: Long EGL stock @ $28.25



Shutterstock, Inc. - SSTK - close: 49.81 change: +0.00

Stop Loss: 47.45
Target(s): 54.85
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 106 thousand
New Positions: Yes, see below

Comments:
06/26/13: SSTK delivered a very quiet session with shares drifting sideways below resistance at the $50.00 level. There is no change from my prior comments.

If shares can push higher SSTK might see some short covering. The most recent data listed short interest at 8% of the very, very small float of just 6.28 million shares.

I am suggesting a trigger to open bullish positions at $50.50. If triggered our target is $54.85.
FYI: The Point & Figure chart for SSTK is bullish with a $63 target.

Trigger @ 50.50 *small positions*

Suggested Position: buy SSTK stock @ (trigger)



BEARISH Play Updates

Energy XXI Ltd. - EXXI - close: 23.98 change: +0.07

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: Yes, see below

Comments:
06/26/13: EXXI did not participate in the stock market's rally on Wednesday. Shares eked out a seven-cent gain as it drifted sideways near the $24.00 level. I don't see any changes from my prior comments.

I am suggesting a trigger to launch bearish positions at $23.40, which is just below Monday's low. If triggered our target is $20.25. However, I do want to point out that it is possible that the April lows near $21.50 could be support so more conservative traders may want to exit near $21.50 instead.

Trigger @ 23.40

Suggested Position: short EXXI stock @ (trigger)

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

Buy the Jul $24 PUT (EXXI1320S24)



Freeport-McMoRan - FCX - close: 26.85 change: -0.41

Stop Loss: 28.75
Target(s): 25.50
Current Gain/Loss: + 5.9%

Entry on June 20 at $28.54
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 20 million
New Positions: see below

Comments:
06/26/13: There was no follow through on yesterday's oversold bounce in FCX. Shares did not participate in today's market rally. Instead FCX slipped -1.5%. The simple 10-dma has fallen to 28.45. I am adjusting our stop loss down to $28.75.

NOTE: Our August $27 puts have almost doubled in value (+89%). More conservative traders may want to take profits now.

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

current Position: short FCX stock @ $28.54

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

Long Aug $27 PUT (FCX1317T27) entry $0.85

06/26/13 new stop loss @ 28.75
06/24/13 new stop loss @ 29.05
06/22/13 new stop loss @ 29.51
06/20/13 trade opened on gap down at $28.54. Trigger was $29.00