Editor's Note:
Trader reaction to the first week of earnings was kind of sour. It looks like their mood is improving as investor reaction to the most recent round of earnings results has been much more bullish. This coming week is a very busy one for earnings announcements. Let's see if the momentum continues.

-James

Current Portfolio:


BULLISH Play Updates

Sothebys Holding - BID - close: 49.28 change: +0.46

Stop Loss: 47.45
Target(s): 54.90
Current Gain/Loss: + 0.4%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/23 update: Our new play on BID has already been triggered. Shares rallied to $50.92 on Thursday. Our trigger to open bullish positions was hit at $50.35. I would still consider new positions now at current levels. Our target is $54.90. We do not want to hold positions over the early May earnings report. FYI: The Point & Figure chart for BID is bullish with an $80 target.

Current Position: long BID stock @ $50.35

- or -

Long the May $50 calls (BID1121E50) entry @ $2.60

chart:

Entry on April 21 at $50.35
Earnings Date 05/05/11 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on April 20th, 2011


Corn Products Intl. - CPO - close: 54.07 change: +0.43

Stop Loss: 50.75
Target(s): 57.50
Current Gain/Loss: + 1.4%
Time Frame: just over 2 weeks
New Positions: see below

Comments:
04/23 update: CPO rallied to a new two-year high. Readers may want to wait for another dip near $53.00 before initiating new positions. Our target is $57.50. However, we will plan on exiting ahead of the early May earnings report.

Let's keep our position size small since CPO has a trendline of higher highs it has yet to break through. FYI: The Point & Figure chart for CPO is bullish with a $67 target.

(Small Positions)

Current Position: long CPO stock @ $53.32

- or -

Long the May $55.00 call (CPO1121E55) Entry @ $1.05

chart:

Entry on April 20 at $53.32
Earnings Date 05/02/11 (confirmed)
Average Daily Volume: 771 thousand
Listed on April 19th, 2011


Discover Financial Services - DFS - close: 24.76 change: -0.16

Stop Loss: 22.45
Target(s): 24.90
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
04/23 update: DFS briefly traded to a new three-year high on Friday but eventually the stock turned south. At the moment we have a trigger to open bullish positions on a dip at $23.00. However, I'm considering an alternative entry on a dip or a bounce near its rising 30-dma or even higher near $24.40ish. Another alternative would be a close over $25.15.

Buy-the-Dip Trigger @ $23.00

Suggested Position: buy DFS stock @ $22.55

- or -

Buy the May $24 calls (DFS1121E24)

chart:

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


Dick's Sporting Goods Inc. - DKS - close: 41.54 change: +0.56

Stop Loss: 38.95
Target(s): 42.75, 44.75
Current Gain/Loss: +5.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/23 update: DKS is inching higher toward its all-time highs set in early April. I am not suggesting new positions at this time. However, a close over $42.00 might change might mind (if you're aiming higher). We have two targets. Our first target is $42.75. Our second target is $44.75. You could certainly raise your target but we do not want to hold over the mid May earnings report.

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

chart:

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: 15.43 change: +0.34

Stop Loss: 14.85
Target(s): 16.45, 17.45
Current Gain/Loss: + 2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/23 update: Shares of Ford were showing relative strength on Thursday with a +2.2% gain. The rally appears to be gaining momentum. Unfortunately we're almost out of time. Our plan is to exit on Monday, April 25th at the closing bell to avoid holding over the earnings report on Tuesday morning. I am raising our stop loss to $14.85.

Current Position: Long F stock @ $15.05

04/23 New stop loss @ 14.85
04/20 Prepare to exit on Monday, April 25th at the close
04/16 April $15 calls have expired (-100%)

chart:

Entry on March 24 at $15.05
Earnings Date 04/26/11 (confirmed)
Average Daily Volume: 82 million
Listed on March 15th, 2010


FLIR Systems - FLIR - close: 34.19 change: +0.04

Stop Loss: 32.40
Target(s): 37.25
Current Gain/Loss: + 3.2%
Time Frame: less than two weeks.
New Positions: see below

Comments:
04/23 update: After Wednesday's pop higher shares of FLIR didn't move much on Thursday. Technically I would look for a dip near $33.50 before considering new positions. However, you need to consider our time frame. Earnings are coming up on April 29th and we do not want to hold over the report.

Remember, we want to use small positions to limit our risk. 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

chart:

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: 14.70 change: +0.03

Stop Loss: 13.75
Target(s): 15.75
Current Gain/Loss: + 2.3%
Time Frame: 9 to 12 weeks
New Positions: see below

Comments:
04/23 update: It was a big week for gold. A drop to new multi-year lows for the U.S. dollar pushed gold past $1,500 an ounce for the first time in history. Gold does look a little short-term overbought but the trend is up. I would wait for a dip before considering new bullish positions.

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

chart:

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: 21.08 change: -0.17

Stop Loss: 19.85
Target(s): 22.25, 24.75
Current Gain/Loss: +4.1%
Time Frame: less than two weeks
New Positions: see below

Comments:
04/23 update: KEYN is losing momentum and we only have two trading days left. I am not suggesting new positions at this time. The plan is to exit on April 26th at the closing bell to avoid holding over earnings.

This remains an aggressive, higher-risk trade. Our upside targets are $22.25 and $24.75. 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

04/20 New stop loss @ 19.85
04/16 New stop loss @ 19.45
04/15 1st Target Hit @ 22.25 (+9.8%), Option @ +18.1%

chart:

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


MGM Resorts - MGM - close: 13.39 change: -0.01

Stop Loss: 12.99
Target(s): 13.95
Current Gain/Loss: - 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/23 update: Nothing has changed from my Wednesday night comments on MGM. The stock's performance last week was very disappointing. More conservative traders may want to abandon ship right now and exit early. I am not suggesting new positions and we're ready to exit if MGM can bounce back toward $14.00 (our new exit target is $13.95). I'm only going to give MGM another day, maybe two. If we don't see a bounce soon we'll drop it.

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

(Small Positions)

Current Position: long MGM stock @ $13.80

- or -

Long the May $14.00 call (MGM1121E14) entry @ $0.65

04/20 Start looking for an early exit. New exit target at $13.95

chart:

Entry on April 19 at $13.80
Earnings Date 05/05/11 (unconfirmed)
Average Daily Volume: 19 million
Listed on April 18th, 2011


Ryder Systems Inc. - R - close: 51.13 change: +0.54

Stop Loss: 49.25
Target(s): 53.00
Current Gain/Loss: + 1.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/23 update: Prepare to exit our R trade. The plan is to close this trade on Monday at the closing bell to avoid holding over earnings on Tuesday morning.

Current Position: Long R stock @ $50.25

- or -

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

04/20 New stop loss @ 49.25
04/16 New stop loss @ 48.75
04/09 New stop loss @ 47.95

chart:

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: 17.25 change: +0.02

Stop Loss: 16.75
Target(s): 18.40
Current Gain/Loss: - 0.4%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
04/23 update: Thursday was a quiet session for SAI. Shares remain above short-term support/resistance near $17.20 but under its April highs. I remain wary of this stock due to potential challenges for defense contractors as the U.S. seeks to trim its budget. I am not suggesting new positions at this time.

Our first bullish target is $18.40.

Current Position: long SAI stock @ $17.33

- or -

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

chart:

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


BEARISH Play Updates

Overseas Shipholding Group - OSG - close: 28.12 change: -0.20

Stop Loss: 30.35
Target(s): 27.75, 26.25
Current Gain/Loss: +12.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
04/23 update: It looks like the oversold bounce in OSG might be struggling with its 10-dma. However, I'm not suggesting new bearish positions at this time. More conservative traders may still want to consider an early exit now to lock in a gain. 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

chart:

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