Editor's Note:

Good evening traders. MRX hit our target today for a +3% gain. We are still waiting to be triggered on our short MCO position. ENZ and FSYS are bouncing back from Tuesday's shellacking. The market whipsaws continue in both directions. I have been saying for the last couple of weeks that often times this indicates that a market top may be being formed right in front of our eyes. But these times are extraordinary circumstances which make it difficult to navigate the market. Stay on your toes and good trading to you all.

Current Portfolio:


BULLISH Play Updates

Corning, Inc - GLW - close 19.94 change -0.13 stop 18.80

GLW opened higher and drifted lower most of the day, closing down -13 cents, or -0.65%. It appears the post earnings sell-off is waning and I expect buyers to step back into GLW soon. My comments from last night remain the same. GLW reported earnings on Wednesday that beat expectations by 10-cents and once again raised its forecast for LCD glass demand. The stock has been punished over the last couple of days and I suggest readers take advantage of the dip. I suggest readers enter the stock at current levels and I expect a move to $21.70 in short order, which is near the bottom of a congestion area in 2007. The stock has been in an upward channel since November 2008 and I don't foresee this being compromised. The stock has support on its daily chart all the way down to its 50-day SMA and 20-week SMA near $19.00, but I don't expect much more selling. If the trade works we will be looking at a gain of +8.5%. Our stop will be $18.80 and our time frame is several weeks. Readers who have not entered positions can do so at these levels.

Current Position: Long GLW stock at $20.10

Option Traders:
Suggested Position: Buy JUNE $20.00 CALL, current ask $0.96

Entry on April 29 at $20.10
Earnings Date Over two months
Average Daily Volume: 14 million
Listed on April 26, 2010


Enzo Biochem, Inc. - ENZ - close 6.30 change +0.12 stop 5.74 *NEW*

ENZ continued its bounce today by closing +1.94% higher. ENZ re-took its 20-day SMA which is a positive sign. The stock rallied right into its prior resistance level at $6.36. This is the level the stock broke out of on 4/22 and then curled back to re-test it which we thought would hold as support and was our basis for taking the trade. But Tuesday's sell-off proved us wrong when the stock blew right through $6.36. So we find ourselves battling a key pivot level for the stock at $6.36 which is below our entry point. If the market can continue higher I expect ENZ to do well so I would like to give this time to play out. For now I am keeping our stop at $5.74 to prevent from getting shaken out of the trade if there is more volatility in the coming days. I am optimistic ENZ can continue higher from here and like the story behind the stock (see new play release). Our target remains $7.20 and our time frame is a couple of weeks. Readers who haven't initiated positions can do so using the above stop.

*NOTE: Please use small position size to limit risk as I consider this to be an aggressive trade. The stock's average daily volume is 160,000 shares which can add to volatility.*

Current Position: Long ENZ stock @ $6.52

Entry on April 26 at $6.52
Earnings Date 6/15/10 (unconfirmed)
Average Daily Volume: 160,000
Listed on April 24, 2010


Fuel Systems, Inc. – FSYS – close 32.33 change +0.83 stop 29.39

FSYS wasn't doing much most of the day today until the hour of trading when the stock surged higher, gaining +2.63% on the day. The good news is that FSYS closed above its 20-day SMA today and has bounced nicely off of its upward trend line from March 4th. I expect FSYS to continue rallying into its earnings report on May 6th, especially if the bounce in the market continues. Our target is $34.65 with a second target of $37.00, but there is probably not enough time to reach this level prior to the earnings report. If FSYS reaches our target we will earn +5.8% on the trade. Our stop is $29.39 which is below its 50-day SMA and a recent swing low. Traders can initiate new positions now but please be prepared for a quick exit as FSYS tends to be volatile. Our time frame is about one to two weeks.

Current Position: Long FSYS stock @ $32.75

Entry on April 26 at $32.75
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 720,000
Listed on April 22, 2010


Gold Fields Ltd - GFI - close 13.26 change -0.02 stop 12.25

GFI consolidated today and closed relatively flat, down -2 cents. No harm done. GFI briefly broke out over its $13.36 resistance level today before pulling back. I expect Gold Miners and Gold to make another leg higher and I suggest readers take advantage of the momentum that is building. Readers who haven't initiated positions can at these levels. GFI has been trading in an upward channel since late February and appears ready to break out of resistance at $13.36. I believe the stock will quickly trade to the $13.95 over the next week. GFI reports earnings on May 6th so I plan to be out of this trade on that date. Our stop is below the 50-day SMA at $12.25 and our target is $13.95 which is just below the YTD highs. Our time frame is about one week or shorter. *NOTE: Please use small position size to limit risk as gold stocks tend to be volatile.*

Current Position: Long GFI stock at $13.21

Option Traders:
Suggested Position: Buy MAY $13.00 CALL, current ask $0.60

Entry on April 29 at $25.21
Earnings Date May 6, 2010 (unconfirmed)
Average Daily Volume: 5.3 million
Listed on April 28, 2010


BEARISH Play Updates

Moody's Corp. - MCO - close 25.22 change -0.39 stop 28.60

MCO can't get out of its own way even when the overall market ripped higher today. The stock closed down -1.52%. I would like to move our trigger to enter short positions down to at $25.65 from $25.90. This is a resistance level on the intraday charts. There also is strong resistance in the $26.00 to $26.50 area which I expect to hold if MCO makes it back up there. My comments from the past few nights remain the same. MCO's chart is broken and a lot of damage has been done. The stock is forming bear flags on its daily chart and I believe conditions are ripe for the decline to continue. The stock was hanging on to a recent support level and its 200-day SMA (both in the $26.00 area) which was broken on Monday. I am bearish on MCO and if the market starts to pullback MCO could be a nice winner for us. I would like to place an initial wide stop at $28.60 just in case there is a spike in the stock from short covering or a news event. If that happens I am confident MCO will be sold by many who may still be holding long shares creating additional pressure. There is plenty of resistance and congestion just overhead as well. Our target is $23.25 and our time frame is a couple of weeks.

Suggested Position: Short MCO at $25.65

Option Traders:
Suggested Position: Buy JUNE $25.00 PUT, current ask $1.58

Entry on April xx at $xx.xx
Earnings Date Over two months
Average Daily Volume: 3.5 million
Listed on April 26, 2010