Current Portfolio:


BULLISH Play Updates

Direct TV - DTV - close 37.61 change -0.10 stop 35.70

Target(s): 38.20, 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:
I am going to shift gears on this trade and lower our trigger to enter long positions to the rising 50-day SMA near $36.50. It feels like DTV wants to trade down there so lets limit our risk in the trade and pounce on the stock if it gets there. The 50-day SMA is currently $36.40 but is rising.

Suggested Position: Long DTV stock if it trades down near its 50-day SMA, currently near $36.50

Option Traders:
Suggested Position: Buy July $37.00 CALL, current ask $1.91, estimated ask at entry $1.40

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 63.95 change +1.65 stop 61.48 *NEW*

Target(s): 64.50, 64.90, 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: No

Comments:
Our patience paid off with PXD as the stock traded right down to its 50-day SMA today so we are long the stock per yesterday's update. Our entry was $61.80. PXD proceeded to bounce immediately and closed the day over +3% off of its lows. I'm expecting PXD to follow through with the bounce tomorrow but I urge readers to protect profits as the bounce may be short lived if the broader market begins to roll over. I would keep a keen eye on the first 15 minute trading range and trail stops up if PXD trades higher. If the stock trades lower I would be quick to book a profit. The above targets are still valid as exit areas and I have also listed $64.90 which is just below today's high. For readers who will not be able to monitor the position I suggest placing a stop at $61.48 which will protect against a hard reversal if things go lower tomorrow. This will limit your losses to about 32 cents if our targets our not hit tomorrow.

Current Position: Long PXD stock, entry was at $61.80

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 18.78 change -0.10 stop 18.10

Target(s): 19.60, 20.00, 20.50, 21.00
Key Support/Resistance Areas: 18.40, 18.60, 19.36, 20-day SMA, 50-day SMA
Current Gain/Loss: -1.16%
Time Frame: Several weeks
New Positions: Yes

Comments:
QSFT traded down to its 20-day SMA today and bounced nicely. If the market gets some legs here I expect QSFT to make a run at its recent highs. But I also urge readers to protect capital and tighten stops if QSFT gains strength. The stock closed above the recent breakout of resistance at $18.70 which are highs from April, January, and October that should continue to act as support. I am expecting a quick bounce and suggest not hesitating to take a quick profit if QSFT spikes higher from here. Our stop remains at $18.10 which is just below its 50-day SMA. This may be a little to close to the 50-day SMA so the overall market strength or weakness should be considered if QSFT is trading down at this level. If there is a bar that closes below $18.10 I would suggest placing the stop below the low of that bar to see if the stock can reverse.

Current Position: Long QSFT stock at $19.00

Option Traders:
Suggested Position: Buy July $20.00 CALL

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


BEARISH Play Updates

Aeropostale, Inc. - ARO - close 27.94 change +0.22 stop 29.55

Target(s): 27.00, 26.35, 25.25
Key Support/Resistance Areas: 29.35, 28.50, 27.50, 27.00, 26.30, 25,00
Current Gain/Loss: +0.92%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
ARO traded up to our entry trigger at $28.20 so we are now short the stock. Our entry point is a key pivot area for the dating back to March when it acted as support for the stock prior to its big run into April. ARO's 20-day SMA is also near $28.20 and I expect this are to hold as resistance before ARO takes a bigger fall. The stock has been mostly below this area for the past 3 to 4 weeks. Our stop is $29.55 which is above the congestion area and above the 50-day SMA. If the market bounces from here we may need to exercise some patience prior to the stock declining. The retail sector has some catching up to do with the broader market declines as the sector is still several percentage points away from its February lows. I believe ARO is vulnerable and is ready to make a trip down to its 200-day SMA which is near our second target of $26.35. But I also urge readers to protect profits as ARO approaches $27.00.

Current Position: Short ARO stock, entry was at $28.20.

Option Traders:
Suggested Position: Buy July $27.00 PUT

Entry on June 8, 2010
Earnings 8/19/2010 (unconfirmed)
Average Daily Volume: 3.3 million
Listed on June 7, 2010