Editor's Note:
The stock market failed to see any follow through on Thursday's bounce. For many stocks upward momentum has stalled but for some momentum seems to be reversing. Financials really underperformed this past week. Railroads did poorly on Friday. Our KSU play has been stopped out.

May options expire after the 20th. That leaves us five trading days if you're holding options. If you're holding bullish positions you may want to exit your May options immediately since stocks look vulnerable to more selling.

-James

Current Portfolio:


BULLISH Play Updates

Autodesk Inc. - ADSK - close: 45.57 change: -0.42

Stop Loss: 42.75
Target(s): 48.50
Current Gain/Loss: + 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/14 update: ADSK lost -0.9% on Friday after a week's worth of gains. The trend is up but we're almost out of time. We have three days left before it's time to exit ahead of the earnings report. I am not suggesting new positions at this time.

Current Position: Long ADSK stock @ $44.25

- or -

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

05/10 New stop loss @ 42.75

chart:

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: 45.86 change: -0.67

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

Comments:
05/14 update: Profit taking on Friday erased Thursday's gains in ARW. Readers may want to wait for a dip near $45.00 before considering new bullish positions. 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

chart:

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: 52.34 change: -0.61

Stop Loss: 50.85
Target(s): 57.00, 59.50
Current Gain/Loss: - 1.3%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/14 update: The financial sector is struggling, which is weighing down shares of COF. Currently the stock is testing short-term support near $52 and it looks poised to test its 50-dma soon. More conservative traders might want to consider an early exit here. 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

chart:

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: 24.24 change: +0.04

Stop Loss: 23.40
Target(s): 27.25
Current Gain/Loss: + 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: DFS managed to eke out a minor gain, which is a sign of relative strength. Unfortunately, shares seem stuck in its sideways trading range. The short-term trend of lower highs is worrisome. If financials continue to sink they could drag DFS 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

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


EMC Corp. - EMC - close: 27.60 change: -0.13

Stop Loss: 26.45
Target(s): 29.95, 32.25
Current Gain/Loss: + 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: EMC's bounce stalled at the $28 level on Friday. I would expect another dip toward $27.00 and its 50-dma soon. Depending on your tolerance for risk we can use a dip near $27 or a bounce from $27 as a new entry point. 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)

Long the June $29.00 calls (EMC1118F29) Entry @ $0.45

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

chart:

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


Gilead Sciences Inc. - GILD - close: 41.20 change: -0.09

Stop Loss: 39.75
Target(s): 44.75
Current Gain/Loss: - 0.4%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/14 update: GILD tried to rally Friday morning but shares didn't make it very far. The stock reversed under short-term resistance near $42.00. The stock market's weakness on Friday changes the tone of trading. I would wait for GILD to dip into the $40.50-40.00 zone before considering new positions at this time. FYI: The Point & Figure chart for GILD is bullish with a $57 target.

Current Position: Long GILD stock @ $41.38

- or -

Long the June $41 calls (GILD1118F41) Entry @ $1.44

chart:

Entry on May 13 at $41.38
Earnings Date 07/19/11 (unconfirmed)
Average Daily Volume: 10.9 million
Listed on May 12th, 2011


Ingersoll-Rand - IR - close: 50.12 change: -0.67

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: We're back to breakeven on IR. There was no follow through on Thursday's intraday bounce. Shares ended the week resting near the $50.00 level. The failed rally near $52 earlier in the week is still worrisome. At this point I'd rather see a close over the $51 level before considering new positions. More nimble traders could try and jump in on another dip or bounce near $49.00 instead. Our target is $54.75.

Current Position: long IR stock @ $50.12

- or -

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

chart:

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: 44.43 change: -0.46

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

Comments:
05/14 update: There was no follow through on Thursday's bullish engulfing candlestick pattern. KLAC couldn't push past technical resistance at the 50-dma with the stock market in decline on Friday. We're still in a wait-and-see mode. 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

chart:

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


Oracle Corp. - ORCL - close: 35.19 change: -0.54

Stop Loss: 33.95
Target(s): 38.00
Current Gain/Loss: + 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: ORCL couldn't build on Thursday's gains with the NASDAQ underperforming. Shares reversed to post a -1.5% loss. Look for short-term support near $34.75-34.50 or even lower near $34.00. I'm not suggesting new positions at this time.

Current Position: Long ORCL stock @ $34.70

- or -

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

05/10 New stop loss @ 33.95

chart:

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: 37.42 change: -0.14

Stop Loss: 34.95
Target(s): 39.90, 43.00
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: Hmm... RVBD spiked to $38.74 and then reversed on Friday. Chart readers could argue this is a short-term top for the stock. I remain bullish on RVBD but given the market's recent weakness I'd wait for RVBD to test the $36.00 area again before launching new bullish positions.

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: 17.40 change: -0.10

Stop Loss: 16.95
Target(s): 18.40
Current Gain/Loss: + 0.4%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/14 update: There are no surprises here. SAI's bounce failed at the top of its trading range near $17.60. I am 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

chart:

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


Semiconductor HOLDRs - SMH - close: 36.48 change: -0.27

Stop Loss: 35.49
Target(s): 39.95
Current Gain/Loss: unopened
Time Frame: 8 to 12 weeks
New Positions: Yes, see trigger

Comments:
05/14 update: Semiconductor stocks failed to build on Thursday's rally. The SMH reversed under resistance at the $37.00 level. We're still in a wait-and-see mode. The plan is to launch bullish positions on the SMH at $37.05. More conservative traders might want to move that higher to lessen the risk of getting triggered on an intraday spike above resistance. If the market sells off from here we might consider an entry point on a dip near $35 and its 50-dma instead.

The SMH doesn't move very fast so it could take several weeks for this play to work out. Our first target is $39.95. The Point & Figure chart for SMH is bullish with a $61 target.

FYI: The top ten components in the SMH are: TXN, INTC, AMAT, ALTR, ADI, LLTC, XLNX, KLAC, BRCM, and ATML.

Trigger @ 37.05

Suggested Position: buy the SMH @ $37.05

- or -

Buy the August $40 calls (SMH1120H40) current ask $0.61

chart:

Entry on May x at $xx.xx
Earnings Date --/--/--
Average Daily Volume: 9.8 million
Listed on May 12th, 2011


DENTSPLY Intl. - XRAY - close: 38.68 change: -0.27

Stop Loss: 37.30
Target(s): 42.00, 44.50
Current Gain/Loss: - 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: XRAY spiked to a new two-year high this morning above resistance at $39.00 and then just as quickly reversed lower. The trend is still up but readers may want to wait for a dip closer to $38.00 before considering new bullish positions. 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: 49.19 change: -0.01

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

Comments:
05/14 update: RTN is going nowhere fast. The stock has failed multiple times at resistance near $50.00 but there has been no follow through lower. I am not suggesting new bearish positions due to lack of movement.

Small Positions

Current Position: Short RTN stock @ $48.68

- or -

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

chart:

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

Kansas City Southern - KSU - close: 54.66 change: -1.03

Stop Loss: 54.75
Target(s): 64.00
Current Gain/Loss: - 3.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14 update: Railroad stocks were under performers on Wednesday and again on Friday. KSU broke down under support near the $55 level and hit our stop loss at $54.75 closing this trade. I'd keep an eye on KSU to see if shares bounce from their 100-dma again.

Closed Position: Long KSU stock @ 56.99, Exit $54.75 (-3.9%)

- or -

June $60 call (KSU1118F60) Entry @ $0.90, Exit @ 0.35 (-61.1%)

05/14 Stopped out $54.75 (-3.9%), Option @ -61.1%

chart:

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