Editor's Note:

Good evening. We closed 4 long positions today on strength in the market. The net gain on those closed positions was +16.75%. Our big winner was PCS which gave us a +9.75% gain. As a result, our model portfolio has narrowed significantly. In this volatile environment we are releasing trades for quick profits and picking precise entry and exit points. Cash is also a position and protecting capital is not a bad idea. I've released a new long and short candidate that I think have potential, again for quick trades.

Current Portfolio:


BULLISH Play Updates

Console Energy - CNX - close 35.06 change +0.25 stop 32.95

Target(s): 37.50, 38.80
Key Support Areas: 33.90
Key Resistance Areas: 35.75, 37.55
Time Frame: 1 to 2 weeks

Comments:
CNX gapped open higher but then sold off with the market in the afternoon. We are waiting patiently for our entry near $34.05. My comments remain the same from the play release. I believe the sell off in coal stocks was overdone and they appear to be building momentum for a move higher. CNX double bottomed with lows on Friday and Monday and has responded nicely. The stock also has longer term support dating back to resistance in late 2008 (see weekly chart below). I would like to see some retracement in the recent gains and use $34.05 as a trigger to enter long positions. Our initial stop will be $32.50 which is just below 5/20 and 5/24 lows (pull up a daily chart). Our targets of $37.50 and $38.80 are both below the stock's 20 and 50-day SMA's and also below the recent downtrend line. This is a countertrend trade that has potential but I also view it as aggressive and quick so please use small position size to manage risk.

Suggested Position: Long CNX stock if it trades down near $34.05

Option Traders:
Suggested Position: Buy July $35.00 CALL, current ask $3.20, estimated ask at entry $2.80

Entry on May xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 7.0 million
Listed on 5/25/10, 2010


BEARISH Play Updates

Royal Caribbean - RCL - close 27.96 change +0.22 stop 31.50

Target(s): 27.80
Key Support Areas: 27.38, 25.00
Key Resistance Areas: 28.00, 28.85, 29.80
Current Gain/Loss: +3.68%
Time Frame: 1 or 2 days
New Positions: No

Comments:
RCL traded down to its 200-day SMA today and bounced nicely today. Although the stock closed only -0.61% on the day, it closed +6.2% off of its lows. I'm sure short covering had something to do with this but how things can change so drastically in a matter of hours is beyond me, so we must deal with the circumstances. I suggest readers be cautious and prevent this trade from turning into a loser. My fear at this point is that RCL may rally all the way up to fill the gap down between 5/19 and 5/20. I suggest we place a tight stop at $28.45 and just get out of the way for a small profit if this is hit. I also want to list a lower target at $27.80 which is just above today's close.

Current Position: Short RCL stock at $28.80

Option Traders:
Suggested Position: Buy JUNE $28.00 PUT

Entry on May 24
Earnings More than 2 months (unconfirmed)
Average Daily Volume: 4.5 million
Listed on May 22, 2010


CLOSED BULLISH PLAYS

Dr. Pepper Snapple Group - DPS - close 37.29 change +0.18 stop 35.95

Target(s): 36.80 (hit), 37.00 (hit), 37.50 (hit), 37.95
Key Support Areas: 37.15, 36.90, 36.50, 35.75, 34.40, 32.70
Key Resistance Areas: 37.70
Final Gain/Loss: +5.63%
Time Frame: 1 to 2 weeks
New Positions: Closed

Comments:
DPS has hit our first 3 targets and I do not want to push our luck any further. The stock almost traded up to our final target today but reversed 11 cents shy of it. But we still have a nice +5.63% gain and are flat at $37.50. DPS traded above this level most of the day giving ample opportunity to exit. For readers who still have positions please protect profits and do not let this reverse on you. I have listed multiple support levels above that can be used to place tight stops.

Closed Position: Long DPS stock at $37.50, entry was at $35.50

Annotated Chart:

Entry on: May 21
Earnings Date: More than 2 months (unconfirmed)
Average Daily Volume: 1.9 million
Listed on: May 8, 2010


General Electric - GE - close 16.01 change +0.06 stop 15.94

Target(s): 16.25 (hit), 17.00, 17.45, 18.25
Key Support Areas: 16.00, 15.65
Key Resistance Areas: 16.25, 16.80, 17.20, 17.80, 18.00
Final Gain/Loss: -3.82% Time Frame: Closed
New Positions: No

Comments:
GE gapped open at $16.35 which was above our lowered target so we are now flat on the position for a loss of -3.82%. The trade simply didn't work and I consider it good riddance. We'll move on to better opportunities. Our winners today more than compensated for this loss. I do not see much support immediately below here so I urge readers who may still have positions to be careful. $16.00 and $15.65 are two levels to keep an eye on.

Closed Position: Long GE Stock at $17.00.

Annotated Chart:

Entry on May 19, 2010
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 88 million
Listed on 5/18/10, 2010


Kinross Gold Corp - KGC - close 16.90 change +0.06 stop 16.06

Target(s): 17.25 (hit), 17.75
Key Support Areas: 16.90, 16.45, 16.25
Key Resistance Areas: 17.25, 17.95
Final Gain/Loss: +5.18% Time Frame: 1 to 2 weeks
New Positions: Closed

Comments:
KGC gapped higher today and hit our first target of $17.25 so we are flat the position for a nice +5.18% gain. The stock traded up to $17.35 and spent the first 2 hours of trading oscillating above and below $17.25. When the stock could not close bars above previous bars it was a clue to get out. Also, the gold miners ETF GDX started to unravel so we honored the target and booked our profit. This may be setting up for another long entry if KGC trades back down near our original entry price. For readers who still have positions the above support levels can be used as tighter stops to protect profits.

Closed Position: Long KGC stock at $17.25, entry was at $16.40

Option Traders:
Suggested Position: Buy JUNE $16.00 CALL

Annotated Chart:

Entry on May 25, 2010
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 7.2 million
Listed on 5/22/10, 2010


MetroPCS Communications - PCS - close 8.77 change +0.33 stop 7.80

Target(s): 9.00 (hit), 9.25
Key Support Areas: 8.65, 8.45, 8.18, 8.05, 7.85
Key Resistance Areas: 8.62, 8.90
Final Gain/Loss: +9.76% Time Frame: 1 to 2 weeks
New Positions: No

Comments:
Wow, what a day for PCS! Yesterday the stock traded in a tight range for 3 hours at our entry price of $8.20 before breaking out in the afternoon. Today, the stock gapped higher and catapulted up to hit our target of $9.00, not once but twice. After the double top was made the stock sold off but still closed +3.91% on the day. I mentioned last night that taking profits when you have a chance is a must. And making almost 10% on this play provided the perfect opportunity for us to take profits. For readers who still have positions PCS has intraday support at $8.65 and $8.45. I suggest tightening stops to protect profits.

Closed Position: Long PCS stock at $9.00, entry was at $8.20

Annotated Chart:

Entry on May 25
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 9.6 million
Listed on 5/22/10, 2010