Editor's Note:
The major indices rallied to new multi-year highs on the back of strong earnings results.

Looking at our candidates below I have adjusted our entry strategy on DFS. KEYN has been closed and MGM was stopped out.

-James

Current Portfolio:


BULLISH Play Updates

Autodesk Inc. - ADSK - close: 44.99 change: -0.56

Stop Loss: 41.90
Target(s): 48.50
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
04/26 update: After three days of gains ADSK hit some profit taking in spite of the market's new highs. We are still waiting for a dip. The plan is to launch positions at $44.25. More conservative traders could wait for a dip closer to the $43.50 area instead. Our target is $48.50 but we'll plan on exiting ahead of the mid May earnings report.

Trigger @ $44.25

Suggested Position: buy ADSK stock @ $43.75

- or -

Buy the May $45 calls (ADSK1121E45) current ask $1.60

Entry on April x at $xx.xx
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume: 2.1 million
Listed on April 23rd, 2011


Sothebys Holding - BID - close: 50.14 change: +0.58

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

Comments:
04/26 update: BID delivered a +1.1% gain on Tuesday but shares are still stuck hovering sideways near the $50 area. I remain bullish here but readers might want to wait for a rise past the $50.56 level before initiating positions. 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

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: 54.21 change: +0.41

Stop Loss: 50.75
Target(s): 57.50
Current Gain/Loss: + 1.6%
Time Frame: just over 2 weeks
New Positions: see below

Comments:
04/26 update: CPO spiked to a new 52-week high but shares failed at round-number resistance near $55.00. I suspect CPO could see another dip back toward the $53.00 area. Wait for this dip before considering new bullish 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

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: 24.74 change: +0.24

Stop Loss: 23.40
Target(s): 27.25
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
04/26 update: I am adjusting our entry point strategy on DFS. We will raise our buy-the-dip entry point to $24.10 and we'll raise our stop loss to $23.40. An alternative entry would be a close over $25.15.

Buy-the-Dip Trigger @ $24.10

Suggested Position: buy DFS stock @ $24.10

- or -

Buy the May $24 calls (DFS1121E24)

04/26 New trigger @ 24.10, New stop loss @ 23.40

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: 42.04 change: +0.41

Stop Loss: 39.40
Target(s): 42.75, 44.75
Current Gain/Loss: +6.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/26 update: DKS has rallied to a new all-time high. I am raising our stop loss to $39.40. We have two targets. Our first target is $42.75. Our second target is $44.75.

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

04/26 New stop loss @ 39.40
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


FLIR Systems - FLIR - close: 34.85 change: +0.66

Stop Loss: 32.40
Target(s): 37.25
Current Gain/Loss: + 5.2%
Time Frame: less than two weeks.
New Positions: see below

Comments:
04/26 update: FLIR is accelerating higher with a +1.9% gain today. I want to point out that the early April high near $35.30 could be short-term resistance. I am not suggesting new positions at this time. 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

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: 14.67 change: -0.05

Stop Loss: 13.75
Target(s): 15.75
Current Gain/Loss: + 2.1%
Time Frame: 9 to 12 weeks
New Positions: see below

Comments:
04/26 update: The U.S. dollar slipped to another new relative low but that failed to help commodities today. Gold and silver saw some profit taking. It's worth noting that gold did bounce off its intraday lows. I would wait for a dip near $14.40 or $14.20 before considering new 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

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


Oracle Corp. - ORCL - close: 34.97 change: +0.14

Stop Loss: 32.95
Target(s): 38.00
Current Gain/Loss: + 0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/26 update: ORCL rallied to a new multi-year high in spite of headlines about the company's CFO stepping down. Wall Street is obviously not concerned with the story. I would prefer to launch positions on a dip in the $34.50-34.00 zone.

Current Position: Long ORCL stock @ $34.70

- or -

Long the June $35 call (ORCL1118F35) Entry @ $0.98

Entry on April 25 at $34.70
Earnings Date 06/23/11 (unconfirmed)
Average Daily Volume: 25.1 million
Listed on April 23rd, 2011


SAIC, Inc. - SAI - close: 17.42 change: +0.20

Stop Loss: 16.75
Target(s): 18.40
Current Gain/Loss: + 0.5%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
04/26 update: SAI was showing some relative strength with a +1.1% gain. The stock is nearing likely resistance at the $17.50 level. 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

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


Steven Madden, Ltd. - SHOO - close: 51.58 change: +0.56

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 0.2%
Time Frame: less than 2 weeks
New Positions: see below

Comments:
04/26 update: SHOO continues to rally. I don't see any changes from my Monday night comments. There are less than two weeks until the earnings report (although the May 4th date is unconfirmed) and I suspect SHOO could see an old fashioned pre-earnings rally. The last couple of quarter the company raised guidance so investors could be expecting strong numbers here!

I would launch new positions now or wait for a dip near $50.00. I would not buy the options because the spreads are very wide and put us at a disadvantage. We want to keep our position size small to limit our risk. We do not want to hold over the earnings report.

(open Small Bullish Positions now)

Current Position: long SHOO stock @ $51.45

Entry on April 26 at $51.45
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume: 235 thousand
Listed on April 25th, 2011


BEARISH Play Updates

Overseas Shipholding Group - OSG - close: 28.67 change: +0.38

Stop Loss: 30.35
Target(s): 27.75, 26.25
Current Gain/Loss: +10.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
04/26 update: OSG is still trying to bounce but it's struggling with resistance near $29.00. The $30.00 level should also offer overhead resistance. 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

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

Keynote Systems Inc. - KEYN - close: 21.24 change: +0.05

Stop Loss: 20.45
Target(s): 22.25, 24.75
Current Gain/Loss: +4.8%
Time Frame: less than two weeks
New Positions: see below

Comments:
04/26 update: Our time has run out. We planned to exit today at the closing bell to avoid earnings.

- Small Bullish Positions -

Position: Long KEYN stock @ $20.25, exit 21.24 (+4.8%)

- or -

May $20 calls (KEYN1121E20) entry @ $1.65, exit 2.05 (+24.2%)

04/26 Exit early @ 21.24 (+4.8%), Option @ +24.2%
04/25 New stop loss @ 20.45
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: 13.02 change: -0.32

Stop Loss: 12.99
Target(s): 13.95
Current Gain/Loss: - 5.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/26 update: MGM continues to underperform. Shares hit our stop loss at $12.99 this morning. Our plan was to use small positions to limit our risk.

(Small Positions)

Position: long MGM stock @ $13.80, exit $12.99 (-5.8%)

- or -

May $14.00 call (MGM1121E14) entry @ $0.65, exit 0.20 (-69.2%)

04/26 Stopped out @ 12.99 (-5.8%), Option @ -69.2%
04/25 Plan on exiting tomorrow at the close
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