Editor's Note:
Stock market bulls are back in control as investors buy the dip. Tuesday produced a widespread rally for the U.S. markets.

-James

Current Portfolio:


BULLISH Play Updates

Autodesk Inc. - ADSK - close: 45.15 change: +0.86

Stop Loss: 42.75
Target(s): 48.50
Current Gain/Loss: + 2.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/10 update: We've got about six trading days left for this ADSK trade. The stock was showing some relative strength today but needs to breakout past its late April highs. I am raising our stop loss up to $42.75. 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

05/10 New stop loss @ 42.75

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


Capital One Financial - COF - close: 53.95 change: +0.58

Stop Loss: 50.85
Target(s): 57.00, 59.50
Current Gain/Loss: + 1.6%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/10 update: Moody's issued an interesting article last night. The ratings agency believes that credit card defaults will drop to a 20-year low in 2012. That's definitely good news for the industry. Yet today's +1% rally in COF is hardly enthusiastic. Volume was pretty low today too. Overall I remain bullish on COF and would still consider new positions now but readers might want to wait for a strong bounce to buy. Our upside targets are $57.00 and $59.50.

Current Position: Long COF stock @ $53.07

- or -

Long the June $55 calls (COF1118F55) Entry @ $0.96

Entry on May 5 at $53.07
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 3.7 million
Listed on May 4th, 2011


Discover Financial Services - DFS - close: 24.58 change: -0.03

Stop Loss: 23.40
Target(s): 27.25
Current Gain/Loss: + 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/10 update: The prospect of lower credit card defaults over the next couple of years failed to move shares of DFS today. I don't see any changes from my prior comments. I'm not suggesting new positions at current levels. The next level of resistance is the $25.00 mark.

(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

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


EMC Corp. - EMC - close: 27.44 change: +0.29

Stop Loss: 26.45
Target(s): 29.95, 32.25
Current Gain/Loss: - 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/10 update: EMC seems to be lagging behind the rest of the technology sector. Shares managed a +1% gain but are still struggling with the $27.50 area as resistance. More conservative traders might want to wait for a new rise past $27.75 (or a close over $27.50) before initiating 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


Ingersoll-Rand - IR - close: 52.08 change: +1.21

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 3.9%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
05/10 update: IR rallied to a new two-year high this afternoon. The stock closed up +2.3%, outperforming the major indices. Our target is $54.75. FYI: The Point & Figure chart for IR is bullish with a $79 target.

Current Position: long IR stock @ $50.12

- or -

Long the June $50 call (IR1118F50) Entry @ $1.80

Entry on May 9 at $50.12
Earnings Date 07/22/11 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on May 7th, 2011


KLA-Tencor - KLAC - close: 45.01 change: +0.00

Stop Loss: 43.95
Target(s): 49.85
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/10 update: I am surprised by the lack of action in KLAC today. Shares are hovering under technical resistance at their 50-dma and closed unchanged on the session. There is no change from my prior comments. The high last week was $46.18. I am suggesting we use a trigger to launch bullish positions at $46.25. We'll use a stop loss at $43.95.

Trigger @ 46.25

Suggested Position: buy KLAC stock @ 46.25

- or -

buy the June $47.00 calls (KLAC1118F47) current ask $1.65

Entry on May x at $xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 653 thousand
Listed on May 9th, 2011


NVIDIA Corp. - NVDA - close: 19.78 change: +0.03

Stop Loss: 18.19
Target(s): 21.85
Current Gain/Loss: + 3.8%
Time Frame: less than two weeks
New Positions: see below

Comments:
05/10 update: NVDA is due to report earnings on May 12th after the closing bell. We will plan to exit on May 12th at the close to avoid holding over the announcement. I'm not suggesting new positions with only a couple of days to go.

Current Position: Long NVDA stock @ 19.05

- or -

Long the May $20 call (NVDA1121E20) Entry @ $0.56

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: 35.62 change: +0.42

Stop Loss: 33.95
Target(s): 38.00
Current Gain/Loss: + 2.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/10 update: ORCL is starting to drift higher again. Shares look poised to rally toward their recent highs set in early May. If you're tempted to launch new positions now you'll want to consider a tighter stop loss. We are raising our stop to $33.95.

Current Position: Long ORCL stock @ $34.70

- or -

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

05/10 New stop loss @ 33.95

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: 17.46 change: +0.03

Stop Loss: 16.95
Target(s): 18.40
Current Gain/Loss: + 0.7%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/10 update: The rally attempt in SAI failed at resistance near $17.60 again. I am not suggesting new positions at this time. There is a good chance SAI could dip back toward $17.20 again.

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


DENTSPLY Intl. - XRAY - close: 38.76 change: +0.15

Stop Loss: 37.30
Target(s): 42.00, 44.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/10 update: XRAY managed to hit new two-year highs this afternoon but we are still on the sidelines. Our plan is to buy the stock (or calls) at $39.00. If triggered our profit targets are $42.00 and $44.50. FYI: The Point & Figure chart for XRAY is bullish with a $59 target.

NOTE: Readers may want to avoid the options. XRAY doesn't have a lot of option volume and the spreads are wide, which puts traders at a disadvantage.

Trigger @ $39.00

Suggested Position: buy XRAY stock @ 39.00

- or -

buy the June $40 call (XRAY1118F40)

Entry on May x at $xx.xx
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 904 thousand
Listed on May 7th, 2011


BEARISH Play Updates

Raytheon Co. - RTN - close: 49.32 change: -0.19

Stop Loss: 50.15
Target(s): 45.25
Current Gain/Loss: - 1.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/10 update: RTN has produced a new failed rally at resistance near $50.00. Today's action might be considered a new bearish entry point but I'm concerned that gains in the broader market will make bearish plays hard to succeed.

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: 56.25 change: +0.44

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

Comments:
05/10 update: TDW continues to bounce. We don't have a lot of time. Earnings are due out on May 19th. That's only six trading days for RTN to bounce high enough to hit our trigger than then decline enough to be a successful bearish trade. If TDW doesn't show more improvement soon I'll drop it as a trading candidate. We do not want to hold over the mid May earnings report.

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 (confirmed)
Average Daily Volume: 502 thousand
Listed on May 3rd, 2011