Editor's Note:
After strong gains in April the stock market has succumbed to profit taking. This is normal and traders were buying the dip as the S&P 500 and NASDAQ indices neared support intraday.

Our SHOO play was closed at breakeven. DFS hit our trigger to open positions.

-James

Current Portfolio:


BULLISH Play Updates

Autodesk Inc. - ADSK - close: 43.75 change: -0.47

Stop Loss: 41.90
Target(s): 48.50
Current Gain/Loss: - 1.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/04 update: ADSK continued to correct lower for the third day in a row. The stock hit $43.21 intraday. If the weakness continues tomorrow I would look for a dip to $43.00 or the 40-dma. Readers may want to wait for a bounce before considering new positions.

Readers may also want to consider a much tighter stop loss closer to the $43.00 level. Our target is $48.50 but we'll plan on exiting ahead of the mid May earnings report.

Current Position: Long ADSK stock @ $44.25

- or -

Long the May $45 calls (ADSK1121E45) Entry @ $1.19

Entry on May 3 at $44.25
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume: 2.1 million
Listed on April 23rd, 2011


Complete Production Services - CPX - close: 30.80 change: -1.34

Stop Loss: 29.90
Target(s): 34.75, 37.25
Current Gain/Loss: - 3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/04 update: It looks like we were early in buying the dip for CPX. The oil stocks were hammered lower again on Wednesday and for the second day in a row CPX underperformed. Today saw a -4.1% decline. The stock is testing support near $30 and several moving averages. We can use this dip as an entry point or better yet wait for a bounce.

Current Position: Long CPX stock @ $32.00

- or -

Long the June $35 call (CPX1118F35) Entry @ $1.00

Entry on May 3 at $32.00
Earnings Date 04/21/11
Average Daily Volume: 2.2 million
Listed on April 28th, 2011


E.I. du Pont de Nemours & Co. - DD - close: 54.51 change: -0.96

Stop Loss: 53.95
Target(s): 59.95, 62.50
Current Gain/Loss: - 3.3%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
05/04 update: DD fell straight to support near $54.00. If there is any follow through lower in the markets tomorrow then odds are good that DD will hit our stop loss. I'd wait for a bounce before considering new bullish positions.

Small Positions

Current Position: long DD stock @ $56.42

- or -

Long the June $57.50 call (DD1118F57.5) Entry @ 1.08

Entry on May 2 at $56.42
Earnings Date 04/21/11
Average Daily Volume: 4.8 million
Listed on April 30th, 2011


Discover Financial Services - DFS - close: 24.05 change: -0.70

Stop Loss: 23.40
Target(s): 27.25
Current Gain/Loss: - 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/04 update: Our buy-the-dip trigger was hit at $24.10. The plan was to use small positions to limit our risk. We have a stop loss at $23.40. If you're not comfortable buying this dip then wait for a bounce. DFS should have short-term support at $24.00 and at the $23.50 level.

(Small Positions)

Current Position: long DFS stock @ $24.10

- or -

Long the May $24 calls (DFS1121E24) Entry @

05/04 Triggered at $24.10.
04/30 Added an alternative entry point @ $25.25
04/26 New trigger @ 24.10, New stop loss @ 23.40

chart:

Entry on May 4 at $24.10
Earnings Date 06/23/11 (unconfirmed)
Average Daily Volume: 5.9 million
Listed on April 12th, 2011


Dick's Sporting Goods Inc. - DKS - close: 40.42 change: +0.17

Stop Loss: 39.40
Target(s): 42.75, 44.75
Current Gain/Loss: +2.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/04 update: DSK managed to eke out a gain on Wednesday, which was enough to outperform the majority of the market. If the market continues to sink tomorrow then DKS is in danger of breaking support near $40.00 and hitting our stop loss. Readers may want to wait for a new close over $41 before considering new bullish positions.

I do want to point out that DKS appears to be forming a possible bearish wedge pattern. That's a bit worrisome. Keep your positions small to limit our risk.

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


EMC Corp. - EMC - close: 27.37 change: -0.62

Stop Loss: 26.45
Target(s): 29.95, 32.25
Current Gain/Loss: - 0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/04 update: Hmm... profit taking in EMC has pulled the stock under what should have been support near $27.50. The next level of likely support is the $27.00 level. I'd wait for a dip or a bounce near $27.00 before considering new positions.

Current Position: Long EMC stock @ $27.55

- or -

Long the June $27.00 calls (EMC1118F27) Entry @ $1.35

Entry on May 3 at $27.55
Earnings Date 04/20/11
Average Daily Volume: 21.4 million
Listed on April 27th, 2011


iShares Gold Trust - IAU - close: 14.81 change: -0.20

Stop Loss: 14.38
Target(s): 15.75
Current Gain/Loss: + 3.1%
Time Frame: 9 to 12 weeks
New Positions: see below

Comments:
05/04 update: There is no change from my prior comments on IAU. Gold is still correcting lower. The IAU has broken down under its 10-dma. I would expect a dip toward $14.60 or $14.40. I am not suggesting new positions at this time.

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

04/30 New stop loss @ 14.38, consider taking profits now.
04/27 New stop loss @ 14.15

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


NVIDIA Corp. - NVDA - close: 18.65 change: -0.14

Stop Loss: 18.19
Target(s): 21.85
Current Gain/Loss: - 2.1%
Time Frame: less than two weeks
New Positions: see below

Comments:
05/04 update: NVDA slipped to $18.30 intraday before trimming its losses. The stock seemed to find some support near its 40-dma, which was resistance a couple of weeks ago. I would still consider new positions now at current levels. However, if the NASDAQ continues to sell-off tomorrow then odds are very good that NVDA will hit our stop loss at $18.19. More aggressive traders willing to take more risk might want to use a stop under the $18.00 mark instead.

Our target is $21.85 but we might have to exit early to avoid holding over earnings. NVDA is due to report earnings on May 12th after the closing bell. We do not want to hold over this report so our plan is to exit on May 12th at the close.

Current Position: Long NVDA stock @ 19.05

- or -

Long the May $20 call (NVDA1121E20) Entry @

Entry on May 3 at $19.05
Earnings Date 05/12/11 (confirmed)
Average Daily Volume: 19.0 million
Listed on May 2nd, 2011


Oracle Corp. - ORCL - close: 35.25 change: -0.89

Stop Loss: 32.95
Target(s): 38.00
Current Gain/Loss: + 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/04 update: ORCL just erased a good chunk of our gains with today's -2.4% decline. The stock found support near $35.00 intraday. Yet if the market continues to fall tomorrow ORCL could be testing $34.50 soon. I would consider buying dips in the $34.50 area.

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: 17.43 change: -0.02

Stop Loss: 16.95
Target(s): 18.40
Current Gain/Loss: + 0.5%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/04 update: SAI held up pretty well today. Yet I don't want to launch new positions here. Our target is $18.40.

Current Position: long SAI stock @ $17.33

- or -

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

04/30 Warning, SAI has produced a reversal. consider an early exit
04/27 New stop loss @ 16.95

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

Raytheon Co. - RTN - close: 48.89 change: -0.48

Stop Loss: 50.15
Target(s): 45.25
Current Gain/Loss: - 0.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/04 update: RTN appears to be failing at its trend of lower highs. Readers could use today's action as a new entry point. We do want to keep our positions very small since the market's trend is still up. Readers may want to use put options to limit your maximum risk.

Small Positions

Current Position: Short RTN stock @ $48.68

- or -

Long the May $47.00 PUTs (RTN1121Q47) Entry @ $0.28

Entry on May 2 at $48.68
Earnings Date 04/28/11
Average Daily Volume: 2.6 million
Listed on April 30th, 2011


Tidewater Inc. - TDW - close: 56.44 change: -0.56

Stop Loss: 60.10
Target(s): 52.00
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
05/04 update: TDW continued to slip lower and dropped toward its mid April lows today. Our plan is to open bearish positions on a bounce. I am suggesting a trigger to launch positions at $57.75. If triggered we'll use a stop at $60.10 and our target is $52.00. I would keep positions small since the overall market's trend is still higher and that could make bearish trades challenging.

Trigger @ $57.75 (Small Positions)

Suggested Position: Short TDW stock @ 57.75

- or -

Buy the June $55 PUT (TDW1118R55)

Entry on May x at $xx.xx
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume: 502 thousand
Listed on May 3rd, 2011


CLOSED BULLISH PLAYS

Steven Madden, Ltd. - SHOO - close: 51.70 change: -0.40

Stop Loss: 49.95
Target(s): 54.75
Current Gain/Loss: + 0.0%
Time Frame: less than 2 weeks
New Positions: see below

Comments:
05/04 update: Our plan was to close SHOO positions today at the closing bell to avoid holding over earnings. Except that SHOO hit our new stop loss at $51.45 this morning.

(Small Positions)

Closed Position: long SHOO stock @ $51.45, Exit $51.45 (+0.00%)

05/04 stopped out @ 51.45 (+0.0%)
05/03 New stop @ 51.45, Prepare to exit tomorrow at the close.
04/30 New stop @ 49.95, consider an early exit now.

chart:

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