Current Portfolio:


BULLISH Play Updates

Diana Shipping, Inc - DSX - close 13.56 change -0.43 stop 12.90

Target(s): 14.35, 14.75
Key Support/Resistance Areas: 15.00, 14.40, 14.15, 13.50, 13.30, 13.00
Current Gain/Loss: +0.44%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
DSX traded down to our entry at $13.50 so we are now long $12.50 CALLS at $1.55. My comments from the play release remain the same. DSX found long term support near the $12.35 area and has bounced nicely. The stock broke through its recent downtrend line and I am looking for it to retrace some of the recent gains prior to entering long positions. DSX has good fundamentals trading at a PE below 10 and has beaten earnings estimates in recent quarters. The stock has surged higher with the market this week but I don't suggest chasing it at these levels. I am looking for a pullback near $13.50 which I suggest readers use as a trigger to enter long positions. This would also be a logical area for the stock to make a higher low and then proceed higher, although a pullback to $13.25 is possible as well. We are looking to make about a dollar in this trade. I have listed two targets at $14.35 and $14.75. We'll place a stop at $12.90.

Current Position: Long DSX stock at $13.50

Option Traders:
Suggested Position: Buy July $12.50 CALL

Annotated Chart:

Entry on 5/28/10
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 1.4 million
Listed on 5/27/10, 2010


Console Energy - CNX - close 36.48 change -0.62 stop 34.50

Target(s): 37.50, 38.25, 38.80, 40.75
Key Support/Resistance Areas: 41.00, 39.50, 37.55, 35.80, 34.90
Current Gain/Loss: +0.63%
Time Frame: 1 to 2 weeks
New Positions: Waiting to be triggered

Comments:
CNX hit our new trigger to enter long positions at $36.25. The stock did not take yesterday's lows and is above its secondary downtrend line which are encouraging signs considering the weak market. CNX is approaching its 20-day SMA so I have also listed this as possible exit target or a place to tighten stops. If we can get some market strength CNX could trade all the way up to our final target of $40.75 which below a prior support level and still below its 50-day SMA. But I suggest traders be prudent with this stock and sector so please monitor the position and tighten stops if CNX continues higher. I've listed several targets and support/resistance levels to use as a guide. Even if the stock only trades to its 20-day SMA this would represent almost a +6% gain. That's not too bad in this volatile market. We have a tight stop at $34.50 to limit downside risk in case CNX reverses down. I believe the sell off in coal stocks was overdone and they are building momentum for a move higher. CNX double bottomed with lows on last Friday and Monday and has responded nicely. The stock also has longer term support dating back to resistance in late 2008 (see weekly chart). All of our targets are below the stock's 50-day SMA and also below the recent primary 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.

Current Position: Long CNX stock at $36.25

Option Traders:
Suggested Position: Buy July $35.00 CALL

Annotated Chart:

Entry on 5/28/10
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 7.0 million
Listed on 5/25/10, 2010


Rino International - RINO - close 12.91 change -0.40 stop 11.70

Target(s): 14.00, 14.50, 15.95, 16.90
Key Support/Resistance Areas: 15.00, 14.50, 13.75, 12.75, 11.75
Current Gain/Loss: +1.61%
Time Frame: Several weeks
New Positions: Yes, if there is a pullback to support

Comments:
RINO pulled back to our key support level at $12.75 and bounced nicely, although the stock sold off at the end of the day along with the rest of the market. We currently have a +1.65% gain on the position but I am looking for more upside this week, possibly to our new first target of $14.00 which is near the 20-day SMA. If RINO can rally to $14.00 this week we will have a +10% gain. I would at least tighten stops at this level but I'm thinking we can get more out of the trade as long as the overall market is not too weak. The above targets and support/resistance areas can be used as a guide for exiting positions. Traders can enter positions on pullbacks. Traders who have positions may want tighten stops at this level to protect profits. I'll leave my comments from the play release as they have not changed. RINO has been taken out to the woodshed recently and I believe it is due for a turnaround. The stock appears to have found support in the $10.75 area which dates back to prior support in August 2009 and prior resistance in June of 2008. The stock bounced nicely off of this level and has followed through. In addition, the stock trades at a ridiculously low PE ratio of about 5. I think there is a lot of room to for this stock to run and I suggest readers take advantage of the building momentum. I think we can make $2 in this trade but there could be some volatility so please use proper position to manage risk. Our stop is $11.70 which below the close of the last two weeks.

Current Position: Long RINO stock at $12.70

Option Traders:
Suggested Position: July $12.50 CALL

Annotated Chart:

Entry on May 27, 2010
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 926,000
Listed on 5/25/10, 2010


BEARISH Play Updates

Perrigo Company - PRGO - close 59.41 change -0.83 stop 61.75

Target(s): 59.05, 58.25, 57.25, 56.00, 54.30
Key Support Areas: 59.00, 58.00, 57.00, 56.00
Key Resistance Areas: 60.50, 61.50
Current Gain/Loss: +0.41% Time Frame: 1 week
Comments:
PRGO traded in a fairly tight range today and we currently have a slight gain. My comments from Thursday's update remain mostly the same. Its amazing what the day to day changes in market sentiment can do to your confidence in a trade. As a result I am not as confident in this short position as I was on Wednesday, but more confident than I was on Thursday. So the prudent thing to do is look for a quick exit, for either a small profit or small loss. In trading we must remain nimble and I believe it is prudent to make this trade a quick one. I would like to tighten the stop to $61.75 and I have listed several targets above which are great areas to tighten stops. Ironically, the support areas are near round numbers. If the market reverses lower from here which is a possibility I think PRGO could trade down to our original target at $54.30. However, I'm anticipating a higher low to be made in the market and I suggest buying short PRGO positions back an any weakness in the stock. I've also tightened the stop to preserve capital if PRGO doesn't turn down from here. Technically, PRGO is testing its 20-day SMA from below and it appears it wants to put in a lower high. If this in fact happens we will have a winner, but if it doesn't we need to step aside at our stop price of $61.75. The stock is now stuck in the middle of its 20-day and 50-day SMA. There is also resistance at $60.50 and $61.50.

Current Position: Short PRGO stock at $59.60

Annotated Chart:

Entry on May 27, 2010
Earnings More than 2 months (unconfirmed)
Average Daily Volume: 1.3 million
Listed on May 22, 2010