Editor's Note:
Technology stock NVDA rallied into the closing bell just ahead of its earnings report. We were able to close this play a winner. Less fortunate was our DOW trade, which has been stopped out. Meanwhile RVBD and XRAY have been triggered.

-James

Current Portfolio:


BULLISH Play Updates

Autodesk Inc. - ADSK - close: 45.99 change: +0.79

Stop Loss: 42.75
Target(s): 48.50
Current Gain/Loss: + 3.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/12 update: It looks like our patience might finally be rewarded. ADSK rallied +1.7% and closed at new 52-week highs on decent volume. This is a nice improvement with only four trading days left for this play. 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: 46.53 change: +0.65

Stop Loss: 43.90
Target(s): 49.90
Current Gain/Loss: + 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: ARW rebounded off its morning lows to eventually hit new two-week highs this afternoon. The stock looks poised to challenge its April highs soon. 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: 52.95 change: -0.08

Stop Loss: 50.85
Target(s): 57.00, 59.50
Current Gain/Loss: - 0.2%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/12 update: COF slipped to new three-week lows this morning. Yet traders bought the dip near $52 and the stock pared its losses and came close to breakeven on the session. I remain cautious here. I'd like to see COF break the short-term trend of lower highs before we consider new positions. 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: 24.20 change: +0.02

Stop Loss: 23.40
Target(s): 27.25
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: DFS also bounced off its morning lows and managed to close in positive territory, albeit by a very small margin. DFS is also suffering a short-term trend of lower highs. 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


EMC Corp. - EMC - close: 27.73 change: +0.43

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:
05/12 update: EMC is finally showing some life again. I would use today's bounce as a new entry point for bullish positions. I'm listing a secondary option position below. EMC has resistance at $28.75 but we're listing our targets at $29.95 and $32.25.

Current Position: Long EMC stock @ $27.55

- or -

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

Second Option Position (listed 05/12/11)

Buy the June $29.00 calls (EMC1118F29) current ask $0.46

05/12 New entry point. Added second option position.

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: 50.79 change: +0.43

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: Good news! Traders bought the dip this morning and IR's close higher should negate the potential bearish reversal from yesterday. I would use this bounce as a new entry point. More conservative traders can wait for a close over the $51.00 level before initiating 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: 44.89 change: +0.84

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

Comments:
05/12 update: More aggressive traders might want to consider bullish positions in KLAC right now. The action in the SOX semiconductor index and the SMH are improving. Plus, KLAC has produced a bullish engulfing candlestick pattern today. There is still technical resistance at the 50-dma so the newsletter will stick to our current plan and wait. Our trigger to launch bullish positions is at $46.25.

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: 55.69 change: +0.12

Stop Loss: 54.75
Target(s): 64.00
Current Gain/Loss: - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: The spike lower this morning came close to hitting our stop loss at $54.75 but thankfully our trade is still open. I would use this bounce as a new entry point or you can wait for a new rise past $56.50 as an entry point.

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


Oracle Corp. - ORCL - close: 35.73 change: +0.75

Stop Loss: 33.95
Target(s): 38.00
Current Gain/Loss: + 2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: Once again traders bought the dip near ORCL's rising 20-dma. The stock outperformed the major averages with a +2.1% gain.

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


Riverbed Technology, Inc. - RVBD - close: 37.55 change: +1.50

Stop Loss: 34.95
Target(s): 39.90, 43.00
Current Gain/Loss: + 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: Wow! I have to confess that I was not expecting RVBD to rally this strongly today. Shares have hit our trigger to launch bullish positions at $37.25. The breakout past its 50-dma and 100-dma is certainly a bullish development but I was expecting it to take a few days to actually happen. RVBD spiked down toward $35 this morning and then rocketed to new five-week highs. The trade is open. I would still consider new positions now or you can look for a minor dip (maybe the $37.00-36.50 zone). Today's move has produced a new triple-top breakout buy signal on the P&F chart with a $46 target (this could grow).

Current Position: Long RVBD stock @ $37.25

- or -

Long the June $40 call (RVBD1118F40) Entry @ $1.15

chart:

Entry on May 12 at $37.25
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 5.1 million
Listed on May 11th, 2011


SAIC, Inc. - SAI - close: 17.50 change: +0.22

Stop Loss: 16.95
Target(s): 18.40
Current Gain/Loss: + 0.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/12 update: As expected SAI is bouncing from the bottom of its recent trading range. The stock is once again nearing resistance at $17.60. 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: 38.95 change: +0.34

Stop Loss: 37.30
Target(s): 42.00, 44.50
Current Gain/Loss: - 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: XRAY is bouncing off its 10-dma. Shares managed to hit $39.00, which happens to be our trigger to launch bullish positions. I would still consider new positions now at current levels. 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.

Current Position: Long XRAY stock @ 39.00

- or -

Long the June $40 call (XRAY1118F40) Entry @ 0.60

chart:

Entry on May 12 at $39.00
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 904 thousand
Listed on May 7th, 2011


BEARISH Play Updates

Raytheon Co. - RTN - close: 49.20 change: -0.16

Stop Loss: 50.15
Target(s): 45.25
Current Gain/Loss: - 1.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/12 update: The morning bounce in RTN failed and shares underperformed the major averages. Our bearish play will live to see another day. Bear in mind that I'm ready to drop this trade if shares show almost any relative strength. I am not suggesting new positions at this time.

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 BULLISH PLAYS

The Dow Chemical Co. - DOW - close: 38.93 change: -0.07

Stop Loss: 38.75
Target(s): 43.00, 44.85
Current Gain/Loss: - 4.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12 update: DOW has been a big disappointing. Yesterday's overreaction sent the stock plunging lower. The weakness continued this morning. DOW hit our stop loss at $38.75 before bouncing from its 40-dma.

closed Position: Long DOW stock @ 40.46, exit 38.75 (-4.2%)

- or -

June $42 call (DOW1118F42) Entry @ $0.79, exit @ 0.33 (-58.2%)

05/12 Stopped out @ 38.75 (-4.2%), Option @ -58.2%

chart:

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


NVIDIA Corp. - NVDA - close: 20.50 change: +0.63

Stop Loss: 18.90
Target(s): 21.85
Current Gain/Loss: + 7.6%
Time Frame: less than two weeks
New Positions: see below

Comments:
05/12 update: NVDA delivered a strong session just prior to its earnings report out tonight. A very late day rally pushed shares to new two-month highs. It was our plan to exit this position at the closing bell tonight to avoid holding over earnings. FYI: NVDA beat Wall Street's estimates by 8 cents and beat on revenues. Plus, management has issued positive guidance for the second quarter. Yet the stock is trading lower after hours under $20. That could change by morning.

Closed Position: Long NVDA stock @ 19.05, Exit $20.50 (+7.6%)

- or -

May $20 call (NVDA1121E20) Entry @ $0.56, exit $1.16 (+107.1%)

05/12 Planned exit. NVDA @ $20.50 (+7.6%), Option @ +107.1%
05/11 New stop loss @ 18.90, Prepare to exit tomorrow at the close.

chart:

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