Editor's Note:
A lot of stocks gapped open lower this morning as investors reacted to negative headlines in Europe and news that Standard & Poor's had put U.S. debt on creditwatch negative.

ACIW and AON both hit our stop losses today. We had already planned to exit PCAR tonight. I adjusted our stop loss on the OSG trade.

-James

Current Portfolio:


BULLISH Play Updates

Discover Financial Services - DFS - close: 23.85 change: -0.43

Stop Loss: 21.75
Target(s): 24.90
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
04/18 update: Financial stocks continue to sink. We are still waiting for DFS to dip toward support. At the moment our buy-the-dip entry point is at $22.55.

Buy-the-Dip Trigger @ $22.55

Suggested Position: buy DFS stock @ $22.55

- or -

Buy the May $24 calls (DFS1121E24)

Entry on April x at $xx.xx
Earnings Date 06/23/11 (unconfirmed)
Average Daily Volume: 5.9 million
Listed on April 12th, 2011


Danaher Corp. - DHR - close: 52.01 change: -0.70

Stop Loss: 50.75
Target(s): 55.90
Current Gain/Loss: - 1.0%
Time Frame: about 3 weeks
New Positions: see below

Comments:
04/18 update: DHR slipped toward recent support near $51.00 and rallied off its 40 and 50-dma. The intraday bounce almost looks like a new bullish entry point. Yet we're running out of time. DHR reports earnings on April 21st before the opening bell. That means we need to exit this trade on Wednesday, April 20th, at the closing bell to avoid holding over the earnings announcement.

Current Position: long DHR stock @ $52.57

- or -

Long the May $55 call (DHR1121E55) entry @ $0.70

04/18 Prepare to exit on April 20th at the close
04/16 New stop loss @ 50.75

Entry on April 4 at $52.57
Earnings Date 04/21/11 (confirmed)
Average Daily Volume: 2.9 million
Listed on April 2nd, 2011


Dick's Sporting Goods Inc. - DKS - close: 40.08 change: -1.12

Stop Loss: 38.95
Target(s): 42.75, 44.75
Current Gain/Loss: +1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/18 update: Uh-oh! DKS underperformed the rest of the market on Monday with a -2.7% decline. The breakdown under $40.00 is worrisome. I am not suggesting new positions at this time. Our first target is $42.75.

FYI: The Point & Figure chart for DKS is bullish with a $65 target.

- Small Positions -

Current Position: Long DKS stock @ $39.39

- or -

Long the June $40 calls (DKS1118F40) Entry @ $2.35

04/16 New stop loss @ 38.95
04/09 New stop loss @ 38.45, New targets @ 42.75 and $44.75
04/02 New stop loss @ 37.45

Entry on March 21 at $39.39
Earnings Date 05/18/11 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on March 19th, 2010


Ford Motor Co. - F - close: 14.62 change: -0.09

Stop Loss: 14.45
Target(s): 16.45, 17.45
Current Gain/Loss: - 2.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/18 update: Ford flirted with a breakdown under support near $14.50 and its 200-dma but this level held up, which is encouraging. Unfortunately Ford still has a short-term bearish trend of lower highs.

Ford's inability to break the short-term trend of lower highs makes me wary. I would prefer to see a rally past $15.15 before considering new bullish positions.

Our targets are $16.45 and $17.45.

Our April $15.00 calls have expired worthless (-100%).

Current Position: Long F stock @ $15.05

- or -

April $15 calls (F1116D15) Entry @ $0.33, Expired -100%

04/16 April $15 calls have expired (-100%)

Entry on March 24 at $15.05
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume: 82 million
Listed on March 15th, 2010


FLIR Systems - FLIR - close: 33.09 change: -0.44

Stop Loss: 32.40
Target(s): 37.25
Current Gain/Loss: - 0.0%
Time Frame: less than two weeks.
New Positions: see below

Comments:
04/18 update: FLIR is a new trade from this weekend's letter. The stock gapped open lower at $33.12 (our new entry) and dipped to a new relative low at $32.83 before trimming its losses. Shares seemed to find support near their 40 and 50-dma this morning. We can use this dip as a new bullish entry point or readers can wait for a rally past $33.75.

Remember, we want to use small positions to limit our risk. We don't have a lot of time. We plan to exit ahead of its earnings report on April 29th. Our first target is $37.25.

- Small Bullish Positions -

Current Position: Long FLIR stock @ $33.12

- or -

Long the May $34 calls (FLIR1121E34) Entry @ $0.60

Entry on April 18 at $33.12
Earnings Date 04/29/11 (confirmed)
Average Daily Volume: 926 thousand
Listed on April 16th, 2011


iShares Gold Trust - IAU - close: 14.62 change: +0.09

Stop Loss: 13.75
Target(s): 15.75
Current Gain/Loss: + 1.8%
Time Frame: 9 to 12 weeks
New Positions: see below

Comments:
04/18 update: Gold continues to rally. Gold futures traded over $1,498 an ounce intraday. The IAU hit $14.63. There is no change from my prior comments. I wouldn't chase it here. We'll wait for a dip before considering new entries.

We do want to keep our position size small. Our first upside target is $15.75.

FYI: If the IAU moves too slowly for you then check out the double-long (2x) gold ETF (symbol: DGP).

- Small Positions Only -

Current Position: Long the IAU @ $14.36

- or -

Long the July $14.00 call (IAU1116G14) Entry @ $0.60

Entry on April 11 at $14.36
Earnings Date --/--/--
Average Daily Volume: 3.8 million
Listed on April 9th, 2011


Keynote Systems Inc. - KEYN - close: 21.16 change: -0.68

Stop Loss: 19.45
Target(s): 22.25, 24.75
Current Gain/Loss: +4.4%
Time Frame: less than two weeks
New Positions: see below

Comments:
04/18 update: After hitting new relative highs on Friday KEYN suffered some profit taking today with a -3.1% drop. The $20.00 level should be new support. Over the weekend I suggested waiting for a dip into the $21.00-20.50 zone as a new entry point and KEYN hit $20.55 this morning.

This remains an aggressive, higher-risk trade. Our upside targets are $22.25 and $24.75 but this is a very speculative play and we will not hold over the earnings announcement on April 26th.

FYI: The Point & Figure chart for KEYN is bullish with a $41 target.

- Small Bullish Positions -

Current Position: Long KEYN stock @ $20.25

- or -

Long the May $20 calls (KEYN1121E20) entry @ $1.65

04/16 New stop loss @ 19.45
04/15 1st Target Hit @ 22.25 (+9.8%), Option @ +18.1%

Entry on April 14 at $20.25
Earnings Date 04/26/11 (confirmed)
Average Daily Volume: 193 thousand
Listed on April 13th, 2011


Ryder Systems Inc. - R - close: 49.59 change: -1.37

Stop Loss: 48.75
Target(s): 53.00
Current Gain/Loss: - 1.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/18 update: Ryder is nearing support near $49.00. Readers can buy a dip near te $49.00 level or wait for a bounce. Just remember our plan to exit ahead of the April 26th earnings report. Our target is the $53.00 level.

Current Position: Long R stock @ $50.25

- or -

Long the May $50 call (R1121E50) Entry @ $2.55

04/16 New stop loss @ 48.75
04/09 New stop loss @ 47.95

Entry on March 30 at $50.25
Earnings Date 04/26/11 (confirmed)
Average Daily Volume: 388 thousand
Listed on March 26th, 2011


SAIC, Inc. - SAI - close: 16.98 change: -0.02

Stop Loss: 16.75
Target(s): 18.40
Current Gain/Loss: - 2.0%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
04/18 update: SAI did not see a lot of movement today. I am starting to get concerned about what the budget battle in Washington might mean for SAI. The U.S. defense budget is huge and could get trimmed. That might have a negative impact on SAI or at least raise investors worries that SAI might be impacted. I would hesitate to launch new positions at this time.

Our first bullish target is $18.40. Keep in mind that SAI does not move very fast. While the stock does have options I prefer the stock to avoid the time decay on the options. I will list the August $18 calls for more aggressive traders.

Current Position: long SAI stock @ $17.33

- or -

Long the August $18.00 call (SAI1120H18) entry @ $0.55

Entry on April 6 at $17.33
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume: 2.4 million
Listed on April 5th, 2011


Sunoco, Inc. - SUN - close: 41.93 change: -0.97

Stop Loss: 41.40
Target(s): 46.50
Current Gain/Loss: - 0.8%
Time Frame: about 3 weeks
New Positions: see below

Comments:
04/18 update: Warning! The action in SUN today looks like a breakdown under its long-term trendline of support. Technically it is a breakdown under its 100-dma. The stock gapped open lower at $42.27 (our entry point) but I am not suggesting new positions at this time. We have a stop loss at $41.40 and if there is any follow through lower tomorrow we'll likely get stopped out.

Current Position: Long SUN stock @ $42.27

- or -

Long the May $45 calls (SUN1121E45) Entry @ $0.62

Entry on April 18 at $42.27
Earnings Date 05/05/11 (confirmed)
Average Daily Volume: 2.0 million
Listed on April 16th, 2011


Waste Connections Inc. - WCN - close: 29.36 change: -0.45

Stop Loss: 28.80
Target(s): 32.00
Current Gain/Loss: - 0.6%
Time Frame: five trading days
New Positions: see below

Comments:
04/18 update: Our new play on WCN is off to a rough start. Shares gapped open lower at $29.54 due to the market's weakness this morning. Shares hit a new multi-day low before paring its losses. I would hesitate to launch new positions here. We only have a few days for this trade to play out. If we don't see a bounce tomorrow we may want to abandon ship and close this trade early. Keep our position size small to limit our risk.

We'll plan to exit on April 25th at the closing bell to avoid earnings.

NOTE: WCN does not have a lot of option volume and the option spreads are very wide. Only aggressive traders willing to take the extra risk should consider these.

- Small Positions -

Current Position: Long WCN stock @ $29.54

- or -

Long the May $30 calls (WCN1121E30) Entry @ $0.40

Entry on April 18 at $29.54
Earnings Date 04/25/11 (confirmed)
Average Daily Volume: 687 thousand
Listed on April 16th, 2011


BEARISH Play Updates

Overseas Shipholding Group - OSG - close: 27.26 change: -0.78

Stop Loss: 30.35
Target(s): 27.75, 26.25
Current Gain/Loss: +15.3%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
04/18 update: The stock market's decline this morning helped OSG to gap open lower. Shares spent most of the day flirting with the $27.00 level. I am adjusting our stop loss down to $30.35. I am not suggesting new positions at current levels. Our second and final target is the $26.25 level.

Our plan was to use small positions to limit our risk.

- Small Bearish Positions -

Current Position: Short OSG stock @ $32.20

04/18 New stop loss @ 30.35
04/12 Exit April Puts now ($1.45bid, +93.3%)
04/12 Take Profits (sell half) of our OSG position (+11.5%)
04/11 New stop loss @ 32.25
04/05 New stop loss @ 33.10
03/16 New stop loss @ 33.55

Entry on March 11 at $32.20
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume: 705 thousand
Listed on March 10th, 2010


CLOSED BULLISH PLAYS

ACI Worldwide Inc. - ACIW - close: 31.28 change: -0.69

Stop Loss: 30.90
Target(s): --.--, 34.75
Current Gain/Loss: + 4.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/18 update: The market's widespread sell-off pushed ACIW toward its 50-dma. Unfortunately the intraday low was $30.85. Our stop loss was hit at $30.90.

SMALL bullish positions

Closed Position: Long ACIW stock @ $29.63, Exit @ 30.90 (+4.2%)

04/18 Stopped @ $30.90 (+4.2%)
04/02 New stop loss @ 30.90
03/24 first exit was at $32.25 (+8.8%)
03/23 Sell half now! exit price at the open on 3/24
03/22 New stop loss @ 29.75, 1st Target adjusted to $32.85
03/19 New stop loss @ 29.35

chart:

Entry on February 25 at $29.63
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 122 thousand
Listed on February 24th, 2010


Aon Corp. - AON - close: 51.49 change: -0.98

Stop Loss: 51.70
Target(s): 59.00
Current Gain/Loss: -3.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/18 update: AON was already testing support near $52 and its 50-dma last week. The market weakness today pushed the stock lower and hit our stop loss at $51.70.

Closed Position: Long AON stock @ $53.76, Exit @ 51.70 (-3.8%)

- or -

May $55.00 call (AON1121E55) Entry @ $0.95, Exit @ 0.25 (-73.6%)

04/18 Stopped out @ 51.70 (-3.8%), Option @ -73.6%
04/12 New stop loss @ 51.70

chart:

Entry on April 4 at $53.76
Earnings Date 05/02/11 (unconfirmed)
Average Daily Volume: 2.2 million
Listed on April 2nd, 2011


PACCAR Inc. - PCAR - close: 50.31 change: -1.12

Stop Loss: 48.95
Target(s): 54.75, 57.00
Current Gain/Loss: - 1.3%
Time Frame: two or three weeks
New Positions: see below

Comments:
04/18 update: PCAR slipped toward last week's lows before paring its losses. It was our plan to exit this trade today, at the closing bell, to avoid holding over PCAR's earnings report tomorrow.

closed Position: Long PCAR stock @ 51.00, exit $50.31 (-1.3%)

- or -

May $49.70 call (PCAR1121E49.70) Entry @ $3.00, Exit @ 2.15 (-28.3%)

04/18 Exit @ $50.31 (-1.3%), Option @ -28.3%
04/18 Planned exit.
04/16 Plan to exit on Monday, April 18th, at the close.

chart:

Entry on April 11 at $51.00
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on April 6th, 2011