Editor's Note:
New margin requirements and rising inventories for oil sparked a sell-off across the market. Energy stocks were hammered lower. I am dropping TDW as a candidate.

-James

Current Portfolio:


BULLISH Play Updates

Autodesk Inc. - ADSK - close: 45.20 change: +0.05

Stop Loss: 42.75
Target(s): 48.50
Current Gain/Loss: + 2.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/11 update: Investors were buying the dip in ADSK near $44.50 midday. The stock actually rallied higher into the closing bell to close up on the session. Shares certainly look poised to breakout past resistance soon but that may depend on if the rest of the market reverses lower or not. 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


Arrow Electronics, Inc. - ARW - close: 45.88 change: -0.38

Stop Loss: 43.90
Target(s): 49.90
Current Gain/Loss: - 0.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: ARW gave up -0.8% on Wednesday. I don't see any changes from my Tuesday night comments. I would still consider new positions here or you can wait for a dip near the $45.00 level instead. Our target is $49.90. FYI: The Point & Figure chart for ARW is bullish with an $81 target.

Current Position: long ARW stock @ $46.30

- or -

long the June $47.50 call (ARW1118F47.5) Entry @ $1.20

Entry on May 11 at $46.30
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on May 10th, 2011


Capital One Financial - COF - close: 53.03 change: -0.92

Stop Loss: 50.85
Target(s): 57.00, 59.50
Current Gain/Loss: - 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/11 update: I am urging caution on our COF trade. The consolidation has taken on a much more bearish tone and shares look poised to drop toward the $52-51 area soon. I am not suggesting new positions at this time.

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: 24.18 change: -0.40

Stop Loss: 23.40
Target(s): 27.25
Current Gain/Loss: + 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: I am growing concerned with our DFS play as well. Both DFS and COF look poised to retreat lower. I am not suggesting new positions at this time.

(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


The Dow Chemical Co. - DOW - close: 39.00 change: -1.74

Stop Loss: 38.75
Target(s): 43.00, 44.85
Current Gain/Loss: - 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: The sell-off in DOW today seems way overdone. Oil is used as a base for a lot of chemicals. The drop in oil today should have been bullish for DOW. You could argue the worries over a global slowdown is the culprit behind DOW's -4.2% drop today. Not only did DOW fall to support near $39.00, there was a late day spike lower to $38.81. If there is any follow through lower tomorrow we will most likely get stopped out at $38.75. I am not suggesting new positions at this time.

Current Position: Long DOW stock @ 40.46

- or -

Long the June $42 call (DOW1118F42) Entry @ $0.79

Entry on May 11 at $40.46
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 8.5 million
Listed on May 10th, 2011


EMC Corp. - EMC - close: 27.30 change: -0.14

Stop Loss: 26.45
Target(s): 29.95, 32.25
Current Gain/Loss: - 0.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: EMC managed an intraday bounce off the $27 level and its 40-dma. There is no change from my prior comments. 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: 50.36 change: -1.72

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: IR completely erased yesterday's gains with a plunged back toward $50.00. I would be tempted to use this dip near round-number support at $50.00 as a new entry point. However, the sharp reversal lower, after yesterday's new two-year high, makes this move look like a possible bull trap pattern. Readers may want to wait for a bounce from $50.00 before considering new positions. Our target is $54.75.

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: 44.30 change: -0.71

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

Comments:
05/11 update: KLAC is slowly drifting lower. We're still waiting for a breakout past last week's high. 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


Kansas City Southern - KSU - close: 55.57 change: -1.71

Stop Loss: 54.75
Target(s): 64.00
Current Gain/Loss: - 2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: KSU is not off to a very good start here. Shares fell -2.9% with a dip toward last week's lows. The sell-off in oil today should have been bullish for the transports. We have to blame the weakness on worries over a global economic slowdown. I would wait for a bounce in the $55-56 area before considering new bullish positions.

Current Position: Long KSU stock @ 56.99

- or -

Long the June $60 call (KSU1118F60) Entry @ $0.90

Entry on May 11 at $56.99
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on May 10th, 2011


NVIDIA Corp. - NVDA - close: 19.87 change: +0.09

Stop Loss: 18.90
Target(s): 21.85
Current Gain/Loss: + 4.3%
Time Frame: less than two weeks
New Positions: see below

Comments:
05/11 update: NVDA held up pretty well. It would seem that investors are not interested in selling the stock until they see the company's earnings report. Our plan is to exit this trade tomorrow (May 12th) at the closing bell to avoid holding over earnings out tomorrow night. I am raising our stop loss to $18.90.

Current Position: Long NVDA stock @ 19.05

- or -

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

05/11 New stop loss @ 18.90, Prepare to exit tomorrow at the close.

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: 34.98 change: -0.64

Stop Loss: 33.95
Target(s): 38.00
Current Gain/Loss: + 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/11 update: ORCL slipped back toward short-term technical support at its rising 20-dma. I would still consider new positions here at current levels.

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: 17.28 change: -0.18

Stop Loss: 16.95
Target(s): 18.40
Current Gain/Loss: - 0.2%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/11 update: Just as we expected, SAI has retested support near $17.20. I am still not suggesting new positions at this time.

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: 38.61 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:
05/11 update: XRAY erased yesterday's gains but the stock managed an intraday bounce off its rising 10-dma. Aggressive traders may want to launch bullish positions now. The newsletter is suggesting an entry point 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: 49.36 change: +0.04

Stop Loss: 50.15
Target(s): 45.25
Current Gain/Loss: - 1.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/11 update: Almost the entire market was sliding lower today and yet RTN ekes out a rise. If RTN does not show some weakness tomorrow I will close this play early.

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


CLOSED BEARISH PLAYS

Tidewater Inc. - TDW - close: 55.27 change: -0.98

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

Comments:
05/11 update: I am giving up on TDW. The trend is probably lower but we are not seeing a very good set up to enter positions. I am dropping TDW as a candidate.

Our play never opened.

chart:

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