Current Portfolio:


BULLISH Play Updates

Direct TV - DTV - close 37.71 change -0.19 stop 35.70

Target(s): 38.50, 39.50, 41.50
Key Support/Resistance Areas: 38.60, 37.00, 36.30
Current Gain/Loss: N/A
Time Frame: Several weeks
New Positions: Waiting to be triggered

Comments:
DTV remains strong in a weak tape. The stock is approaching our $37.00 entry trigger which is where I suggest entering long positions. The stock is holding an upward trend line from February which is right on its rising 50-day SMA, currently at $36.32. This should offer solid support and gives us a good reference point to place a protective stop at $35.70. I've listed 3 targets as possible exit areas. These are good areas to at least tighten stops.

Suggested Position: Long DTV stock if it trades down near $37.00

Option Traders:
Suggested Position: Buy July $37.00 CALL, current ask $2.26, estimated ask at entry $1.80

Annotated Chart:

Entry on June xx
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 12.3 million
Listed on 6/5/10


Pioneer Natural Resources - PXD - close 62.30 change -0.94 stop 60.90 *NEW*

Target(s): 64.50, 66.00, 66.80
Key Support/Resistance Areas: 61.50, 60.00, 59.00
Current Gain/Loss: N/A
Time Frame: 1 to 2 weeks
New Positions: Waiting to be triggered

Comments:
PXD is getting very close to our entry trigger at the rising 50-day SMA which is currently $61.67. The stock has been a strong relative performer as the overall market has been weak. It is also in the natural gas industry and institutional money seems to be rotating into the sector. PXD is above its 20-day and 50-day SMA's, which are $62.11 and $61.67 as of today's close, respectively. I expect PXD to trade down near its 50-day SMA which I would like to use as a trigger to enter long positions. I want to keep a tight stop on this trade at $60.90 to protect capital if PXD doesn't bounce from the 50-day SMA which is also near a key support area of $61.50. This will limit our losses to about 80 cents if we are wrong.

Suggested Position: Long PXD if it trades down near its 50-day SMA, currently $61.67

Annotated Chart:

Entry on June xx
Earnings Date 7/28/2010 (unconfirmed)
Average Daily Volume: 6.4 million
Listed on 6/5/10


Quest Software - QSFT - close 19.00 change -1.01 stop 18.10

Target(s): 19.60, 20.00, 20.50, 21.00
Key Support/Resistance Areas: 18.60, 19.36, 20-day SMA, 50-day SMA
Current Gain/Loss: -0.63%
Time Frame: Several weeks
New Positions: Yes

Comments:
The profit takers showed up in QSFT today which triggered our long entry at $19.00. The stock remains above the recent breakout of resistance at $18.70 which are highs from April, January, and October and should now act as support. QSFT closed almost to the penny of its 12/2007 high at $18.87. The market is oversold and any bounces should bode well for QSFT as investors may flock to relative strength names like QSFT. I am expecting a quick bounce and suggest not hesitating to take a quick profit if QSFT spikes higher from here.

Current Position: Long QSFT stock at $19.00

Option Traders:
Suggested Position: Buy July $20.00 CALL

Annotated chart:

Entry on June xx
Earnings Date 8/10/10 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on 6/2/10