Editor's Note:
The stock market's major indices pared their losses on the session but the declines were enough to hit some stops. ARW, IR, and ORCL were stopped out. I am suggesting an early exit on ADSK and I've removed KLAC as a candidate.

-James

Current Portfolio:


BULLISH Play Updates

Capital One Financial - COF - close: 54.87 change: +1.39

Stop Loss: 51.75
Target(s): 57.00, 59.50
Current Gain/Loss: + 3.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/17 update: The bounce in COF seems to be gaining momentum. Shares added +2.5% and the stock has convincingly broke the two-week trend of lower highs. If you don't feel like chasing it here look to buy a dip. We are raising our stop loss to $51.75.

Current Position: Long COF stock @ $53.07

- or -

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

05/17 New stop loss @ 51.75

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: 25.26 change: +0.19

Stop Loss: 23.90
Target(s): 27.25
Current Gain/Loss: + 4.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: DFS started to see some profit taking this morning but traders were buying the dip near $24.75. I see today's afternoon bounce as a new entry point to open bullish positions. We are raising our stop loss to $23.90.

NOTE: Our May $24 calls will expire soon. We need to exit these calls tomorrow or Thursday. They currently have a bid of $1.10 (+120%).

(Small Positions)

Current Position: long DFS stock @ $24.10

- or -

Long the May $24 calls (DFS1121E24) Entry @ 0.50

05/17 New stop loss @ 23.90
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


Dr. Pepper Snapple Group - DPS - close: 42.22 change: +0.36

Stop Loss: 37.90
Target(s): 44.90
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
05/17 update: DPS is still drifting higher. There is no change from my prior comments. I am suggesting a buy-the-dip trigger to open bullish positions at $40.25. If triggered we'll use a stop loss at $37.90. Our target is $44.90.

buy-the-dip Trigger @ $40.25

Suggested Position: buy DPS stock @ $40.25

- or -

Buy the August $45 call (DPS1120H45) current ask $0.80

Entry on May x at $xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 2.1 million
Listed on May 14th, 2011


EMC Corp. - EMC - close: 27.42 change: +0.00

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:
05/17 update: It was a quiet day for EMC with shares churning sideways. The stock eventually closed unchanged on the session. I'm very cautiously bullish here. If you launch positions now consider a tighter stop loss. The bears will argue that EMC produced a double top in April and the current consolidation is a bear-flag pattern.

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.

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: 40.47 change: -0.09

Stop Loss: 39.95
Target(s): 44.75
Current Gain/Loss: - 1.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/17 update: GILD has provided an intraday bounce at the $40.00 level. Readers can use this move as a new entry point. I am inching our stop loss higher to $39.95. 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

05/17 new stop loss @ 39.95

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


Riverbed Technology, Inc. - RVBD - close: 36.56 change: -0.31

Stop Loss: 34.95
Target(s): 39.90, 43.00
Current Gain/Loss: - 1.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: RVBD dipped toward $35 like we expected. The afternoon bounce could be used as a new bullish entry point. More conservative traders may want to wait for a close over the 100-dma before considering new positions.

Current Position: Long RVBD stock @ $37.25

- or -

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

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: 17.31 change: -0.01

Stop Loss: 16.95
Target(s): 18.40
Current Gain/Loss: - 0.0%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
05/17 update: RVBD is testing support at the bottom of its trading range near $17.20. 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

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: 35.66 change: -0.47

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

Comments:
05/17 update: Semiconductor stocks are still correcting. I don't see any changes from my prior comments.

Currently we're waiting for a breakout past resistance at $37.00. Our trigger to open positions is at $37.05. If the market's sell-off continues I might reconsider buying a dip near the 50-dma.

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

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


DENTSPLY Intl. - XRAY - close: 39.19 change: +0.03

Stop Loss: 37.30
Target(s): 42.00, 44.50
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: XRAY spent the day in a very narrow range atop the $39.00 level. I do not see any changes from my prior comments. I am not suggesting new positions at this time. 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

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: 48.85 change: -0.22

Stop Loss: 50.15
Target(s): 45.25
Current Gain/Loss: - 0.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/17 update: RTN broke down under short-term support at $49.00. This is encouraging but I am still not suggesting new positions. Do not forget that May options expire soon. We need to exit our May puts tomorrow or Thursday.

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


St. Jude Medical - STJ - close: 51.70 change: +0.02

Stop Loss: 54.20
Target(s): 47.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/17 update: STJ dipped to a new two-week low this morning and then bounced. The stock closed almost unchanged on the session. We're still waiting for a breakdown. Our trigger to open small bearish positions is at the $51.00 level. Our first target is $47.00.

I would keep our position size small (about half or less than a normal trade) to limit our risk.

Trigger @ 51.00 (Small Positions)

Suggested Position: Short STJ stock @ 51.00

- or -

buy the June $50 PUT (SJT1118R50) current ask $0.95

Entry on May x at $xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on May 16th, 2011


Valero Energy - VLO - close: 25.90 change: -0.33

Stop Loss: 27.05
Target(s): 23.00
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
05/17 update: VLO is inching closer and closer to another breakdown. The low today was $25.59. I am suggesting a trigger to open bearish positions at $25.49. If triggered we'll use a stop at $27.05 and target a drop to $23.00 near the 200-dma. However, while we wait for VLO to hit our trigger at $25.49 I am watching for another failed rally type of move. If we see VLO bounce and reverse near $28 and its 50-dma then we'll probably switch our entry point, short the failure at resistance and adjust our stop.

Trigger @ $25.49

Suggested Position: Short VLO stock @ $25.49

- or -

buy the June $25 PUT (VLO1118R25) current ask $0.70

Entry on May x at $xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 11 million
Listed on May 14th, 2011


CLOSED BULLISH PLAYS

Autodesk Inc. - ADSK - close: 44.39 change: -1.18

Stop Loss: 42.75
Target(s): 48.50
Current Gain/Loss: - 1.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/17 update: ADSK is not cooperating. The stock is down three days in a row after failing at the $46.00 level. The sell-off seems to be picking up speed. Shares lost gave up -2%. We were planning on exiting tomorrow night at the closing bell. I am suggesting an early exit now.

closed Position: Long ADSK stock @ $44.25, exit $43.49 (-1.7%)

- or -

May $45 calls (ADSK1121E45) Entry @ $1.19, exit 0.55 (-53.7%)

05/17 exit early. ADSK @ 43.49 (-1.7%), Option @ -53.7%
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: 43.97 change: -0.90

Stop Loss: 43.90
Target(s): 49.90
Current Gain/Loss: - 5.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: It was an ugly day for ARW. The stock gapped open lower and then plunged to $43.00 before trimming its losses. Our stop loss was hit at $43.90. I couldn't find any news to explain the relative weakness in ARW today.

closed Position: long ARW stock @ $46.30, exit 43.90 (-5.1%)

- or -

June $47.50 call (ARW1118F47.5) Entry @ $1.20, Exit 0.25 (-79.1%)

05/17 Stopped out. ARW @ 43.90 (-5.1%), Option @ -79.1%

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


Ingersoll-Rand - IR - close: 48.45 change: -1.28

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: - 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: We've been cautious on IR ever since the drop on May 11th. Shares have broken down under the $49.00 level and hit our stop loss at $48.75. There was no news to explain the relative weakness in IR (-2.5%) and shares did not see the same late day rebound seen across most of the market.

closed Position: long IR stock @ $50.12, Exit @ 48.75 (-2.7%)

- or -

June $50 call (IR1118F50) Entry @ $1.80, Exit 0.80 (-55.5%)

05/17 stopped out @ 48.75 (-2.7%), option @ -55.5%

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: 42.59 change: -0.89

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

Comments:
05/17 update: KLAC has continued to roll over. I am dropping this stock as a bullish candidate. Our trigger to open positions was never hit.

Our trade never opened.

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: 33.94 change: -0.24

Stop Loss: 33.95
Target(s): 38.00
Current Gain/Loss: - 2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17 update: Profit taking in ORCL continued after yesterday's breakdown. The stock hit our stop loss at $33.95.

closed Position: Long ORCL stock @ $34.70, exit 33.95 (-2.1%)

- or -

June $35 call (ORCL1118F35) Entry @ $0.98, exit 0.55 (-43.8%)

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