Editor's Note:
The stock market erased Monday's gains and most of Friday's with a widespread sell-off on Tuesday. Stocks were weak around the globe with declines in Asia and Europe as well.

NUE has been removed.

We want to exit our CDW and CSIQ trades tomorrow at the closing bell.


Current Portfolio:


BULLISH Play Updates

Citigroup Inc. - C - close: 53.35 change: -0.82

Stop Loss: 52.20
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on May -- at $---.--
Listed on May 04, 2015
Time Frame: 8 to 12 weeks
Average Daily Volume = 19.2 million
New Positions: Yes, see below

Comments:
05/05/14: Yesterday's rally in the financial sector was erased with today's widespread market decline. Shares of C erased all of Monday and most of Friday's gains as well. If shares continue to sink tomorrow we may have to re-evaluate our entry strategy or just remove C as a candidate. Currently our suggested entry point is $54.65.

Trade Description: May 5, 2015:
When it comes to blue chips you don't get much bluer than Citigroup. This company is massive. The bank has almost $2 trillion in assets. Citigroup generated $45 billion in free cash flow in the last 12 months. That's about $15 per share in free cash flow.

Yet the banks have been underperformers in recent years. The Lehman Brothers bankruptcy that helped fueled the financial crisis was almost seven years ago. Shares of Citigroup are still down 90% from their 2007 levels.

Bulls can argue that shares of C are inexpensive. Current book value for the company is about $67 a share. Tangible book value is around $57 per share. Unfortunately the stock has been languishing in the $46-56 range for almost two years.

Just in case you're not familiar with Citigroup, here's a company description. According to their website, "Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Citi currently operates, for management reporting purposes, via two primary business segments: Citicorp, representing Citi's core growth franchises and Citi Holdings which contains businesses and assets that are not core to Citi's future. Citicorp includes the Global Consumer Banking (GCB) business and the Institutional Clients Group (ICG) and is focused on providing best-in-class products and services to customers and leveraging Citi's unparalleled global network, including many of the world's emerging economies."

The last couple of years have been considered transition years for the company. 2015 could be its breakout year. C just reported its Q1 2015 results on April 16th and it was their best quarterly profit in eight years. Their profit soared +21%. Wall Street was expecting earnings of $1.40 per share on revenues of $19.8 billion. Citigroup delivered $1.52 per share with revenues down -2.3% to $19.74 billion.

A lot of its improvement was thanks to a focus on cost cutting. They managed to reduce expenses by 10% from the prior year. At the same time the M&A market is improving. 2014 was a good year for mergers and acquisitions. 2015 is shaping up even stronger. C reported a +70% surge in M&A fees.

Citigroup's CEO Michael Corbat commented on his company's quarterly performance, "While some businesses faced revenue headwinds, we had a strong quarter overall, particularly in executing against our top strategic priorities. We grew loans and deposits in our core businesses and gained wallet share among our target clients. We tightly managed our expenses, helping to achieve positive operating leverage in Citicorp and we are on track to hit our financial targets for the year."

Technically the stock looks bullish as it builds on a positive trend of higher lows. Shares are in the process of breaking through resistance in the $54.00 area. Tonight we are suggesting a trigger to launch bullish positions at $54.65.

Trigger @ $54.65

- Suggested Positions -

Buy C stock @ $54.65

- (or for more adventurous traders, try this option) -

Buy the JUL $55 CALL (C150717C55)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike


CDW Corp. - CDW - close: 38.87 change: +0.05

Stop Loss: 38.25
Target(s): To Be Determined
Current Gain/Loss: +0.6%
Entry on April 13 at $38.65
Listed on April 09, 2015
Time Frame: Exit PRIOR to earnings on May 7th
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
05/05/14: CDW was accelerating higher this afternoon and shares ended the session in positive territory. Unfortunately we have run out of time. The plan is to exit tomorrow (Wednesday) at the closing bell to avoid holding over CDW's earnings report on Thursday, May 7th.

Tonight we'll boost the stop loss up to $38.25.

Trade Description: April 9, 2015:
Traders have been consistently buying the dips in information technology stock CDW. Now the stock is poised to breakout to new highs.

The company offers a broad range of hardware, software and integrated IT solutions to its clients. These include mobility, security, cloud computing, virtualization, data center optimization, and more.

Their website describes the company as "CDW is a leading provider of integrated information technology solutions in the U.S. and Canada. We help our 250,000 small, medium and large business, government, education and healthcare customers by delivering critical solutions to their increasingly complex IT needs. A Fortune 500 company, CDW was founded in 1984 and employs more than 7,200 coworkers. In 2014, the company generated net sales of more than $12.0 billion."

Earnings last year were healthy. CDW has consistently beaten Wall Street's earnings and revenue estimates for the last four quarters in a row. Revenues have been showing double-digit growth for the last year. Their most recent report was February 10th when CDW delivered its Q4 results. Analysts were expecting a profit of $0.53 a share on revenues of $2.95 billion. CDW reported $0.59 a share with revenues up +12.4% to $3.05 billion.

Analysts seem optimistic on CDW. Barclays has listed CDW as one of its top picks and noted that the company has very little exposure to Europe or Asia so the strong dollar shouldn't hurt it that bad. Another analyst, with RBC Capital Markets, believes that any softness in the consumer market will be overshadowed by strength in the enterprise market.

Technically the bullish trend of higher lows in CDW has been coiling more tightly. Now, with the stock up four days in a row, CDW is on the verge of breaking through resistance in the $38.00-38.50 area. Tonight we are suggesting a trigger to launch bullish positions at $38.65.

- Suggested Positions -

Long CDW stock @ $38.65

- (or for more adventurous traders, try this option) -

Long MAY $40 CALL (CDW150515C40) entry $0.90

05/05/15 new stop @ 38.25, prepare to exit tomorrow at the close
05/04/15 new stop @ 37.85
05/02/15 plan on exiting prior to earnings on May 7th
04/29/15 new stop @ 37.40
04/13/15 triggered @ 38.65
Option Format: symbol-year-month-day-call-strike


Canadian Solar Inc. - CSIQ - close: 35.92 change: -0.52

Stop Loss: 35.40
Target(s): To Be Determined
Current Gain/Loss: -3.0%
Entry on April 28 at $37.05
Listed on April 23, 2015
Time Frame: Exit prior to earnings on May 7th
Average Daily Volume = 2.7 million
New Positions: see below

Comments:
05/05/14: CSIQ followed the NASDAQ lower and posted a -1.4% decline. Traders were buying the dips. The stock found support in the $35.65-35.70 zone three times today. If the market continues to sink tomorrow I would expect CSIQ to hit our stop loss at $35.40.

Our plan is to exit this trade tomorrow at the closing bell to avoid holding over CSIQ's earnings report on Thursday morning, May 7th.

No new positions at this time.

Trade Description: April 23, 2015:
The boom and bust trends in the solar energy industry have been severe. A few years ago there was a supply glut and prices on solar panels plunged by 2/3rds. Investors were fleeing the solar stocks and shares of CSIQ sank toward $2.00 a share. It's a different story today.

China has a HUGE air pollution problem. The country wants to move away from coal-fired energy. That's why China plans to build out 100 gigawatts of solar energy by 2020. India is in a similar bind. They also plan to build out 100 gigawatts of solar energy by 2022. These two countries alone will account for more solar energy production in the next several years than all previous years combined.

China recently announced they had completed 5.04GW of solar capacity in the first quarter of 2015. That puts the country on schedule to meet their 2015 goal of 17.8GW in new solar production.

One company that should benefit from this global build out of solar energy is CSIQ. They are in the technology sector and considered part of the semiconductor industry. According to the company, "Founded in 2001 in Ontario, Canada, Canadian Solar is one of the world's largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions, Canadian Solar has an industry leading and geographically diversified pipeline of utility-scale solar power projects as well as a track record of successful solar deployment boasting over 9 GW of premium quality modules installed in over 70 countries during the past decade. Canadian Solar is committed to providing high-quality solar products and solar energy solutions to customers around the world."

Their most recent earnings report was March 5th. CSIQ reported Q4 results of $1.28 per share. That missed analysts' estimates. However, revenues soared +84% to $956.2 million, which was above expectations. CSIQ full-year 2014 results saw a record $239 million in earnings with revenues hitting $2.96 billion. They shipped 3.1 gigawatts worth of solar panels. This year CSIQ expects to ship 4.3GW of panels, a +39% improvement.

CSIQ raised their 2015 Q1 guidance above Wall Street estimates, which helps explain the spike in the stock price. Currently the company's full-year guidance is still below street estimates. In spite of this divergence between forecast and analysts' estimates Wall Street is still bullish. All ten of the analysts who cover the stock have a buy rating on CSIQ. The average 12-month price target is near $46.00. The point & figure chart is more optimistic and currently forecasting a long-term target of $66.50.

Technically shares of CSIQ have been building on a bullish trend of higher lows. They're also appear to be breaking out past resistance in the $36.00 area. Further gains could spark some short covering. The most recent data listed short interest at almost 10% of the 41.2 million share float. Tonight I am suggesting a trigger to open bullish positions at $37.05. This will likely be a two or three week trade. CSIQ will report earnings in mid May and we'll plan on exiting prior to the announcement.

- Suggested Positions -

Long CSIQ stock @ $37.05

- (or for more adventurous traders, try this option) -

Long MAY $37 CALL (CSIQ150515C37) entry $2.05

05/05/15 prepare to exit tomorrow at the close
05/04/15 new stop @ 35.40
05/02/15 plan on exiting prior to earnings on May 7th
04/28/15 triggered @ 37.05
Option Format: symbol-year-month-day-call-strike


IMAX Corp. - IMAX - close: 37.40 change: -0.55

Stop Loss: 36.35
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on May -- at $---.--
Listed on May 02, 2015
Time Frame: 8 to 12 weeks
Average Daily Volume = 617 thousand
New Positions: Yes, see below

Comments:
05/05/14: IMAX managed to hit a new all-time high on an intraday basis at $38.09 this morning. The rally didn't last as the market produced a broad-based decline. IMAX followed the major indices lower.

We are on the sidelines waiting for a new high. Our suggested entry point is $38.25.

Trade Description: May 2, 2015:
It's only May 2nd but the summer movie blockbuster party has already started with the "Avengers: Age of Ultron" hitting theaters this weekend. Ultron just delivered the second biggest opening day with $84.4 million in U.S. sales. That's just below the last Harry Potter movie, which brought in $91 million on its first day.

This Avengers 2 movie has already raked in $425 million overseas and is poised to do more than $200 million this weekend. Estimates suggest it could hit $600 million in the U.S. This movie is produced by Marvel Studios, a division of Disney (DIS), but it also means big business for IMAX. The Ultron movie delivered the biggest opening night sales for any IMAX film ever.

IMAX is part of the services sector. They're considered part of the entertainment industry. According to the company, "IMAX, an innovator in entertainment technology, combines proprietary software, architecture and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and, as such, IMAX's network is among the most important and successful theatrical distribution platforms for major event films around the globe. IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing. As of March 31, 2015, there were 943 IMAX theatres (820 commercial multiplexes, 18 commercial destinations and 105 institutions) in 63 countries."

Today there is a battle for consumer's viewing habits. People consume their content on all sorts of devices from their smartphones, tablets, laptops, desktops, and their big screen TVs at home. Netflix and other streaming services have changed viewer habits and expectations. When consumers choose to go to the movies they want something different. According to IMAX's CEO that's why IMAX tickets are doing so well. It's an experience that can't be replicated at home.

The company had a lot of momentum going into 2015 thanks to huge hits like "American Sniper". IMAX has managed to beat Wall Street's earnings and revenue estimates for the last four quarters in a row. Their most recent earnings report was April 30th. Income surged +50% from a year ago. Analysts were expecting $0.05 a share. IMAX delivered $0.07. Revenues rose +29% to $62.2 million, significantly above estimates for $55.4 million.

IMAX CEO Richard Gelfond commented on their results, "This is a very exciting time for IMAX. Our continued progress in expanding our theatre network globally, along with our strong film performance during the first quarter, resulted in robust financial results with almost 30% revenue growth and over 50% adjusted earnings growth compared to the same period last year. With record results from Furious 7 in April and a great start to the Avenger's sequel internationally, the momentum has continued into the second quarter."

2015 is expected to be a huge year. The "Fast & Furious 7" film kept the momentum going. IMAX will also benefit from high-profile movies like "Avengers: Age of Ultron", the new James Bond movie, another Mission Impossible film, and the next episode of Star War (#7) this December.

IMAX is rolling out new laser systems and they've signed long-term film deals with Disney and Warner Brothers. IMAX is currently growing at about 120 theaters a year. They're doing well in China. The Chinese movie box office is expected to eclipse the U.S. market by 2020.

Shares of IMAX look bullish with the stock trading at all-time highs. Currently the stock us hovering just below short-term resistance at $38.00. A breakout here could fuel some short covering. The most recent data listed short interest at 20% of the 58.6 million share float. We are suggesting a trigger to launch bullish positions at $38.25.

Trigger @ $38.25

- Suggested Positions -

Buy IMAX stock @ $38.25

- (or for more adventurous traders, try this option) -

Buy the SEP $40 CALL (IMAX150918C40)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike




BEARISH Play Updates

OvaScience, Inc. - OVAS - close: 24.47 change: -0.93

Stop Loss: 29.45
Target(s): To Be Determined
Current Gain/Loss: +11.5%
Entry on April 28 at $27.65
Listed on April 27, 2015
Time Frame: 8 to 12 weeks
Average Daily Volume = 725 thousand
New Positions: see below

Comments:
05/05/14: Biotech stocks continued to sink on Tuesday. OVAS fell to new five-month lows before paring its losses. Shares still underperformed the market with a -3.6% decline for the session.

I am not suggesting new positions. More conservative traders may want to lower their stop loss.

Trade Description: April 27, 2015:
A report published by Allied Market Research suggested the global in-vitro fertilization (IVF) market was about $9 billion in 2012. Demand is expected to grow the market to more than $21 billion by 2020. OVAS believes their AUGMENT treatment is a huge step in boosting a woman's ability to get pregnant.

Here's a brief description of the company, "OvaScience (OVAS) is a global fertility company dedicated to improving treatment options for women around the world. OvaScience is discovering, developing and commercializing new fertility treatments because we believe women deserve more options. Each OvaScience treatment is based on the Company’s proprietary technology platform that leverages the breakthrough discovery of egg precursor (EggPCSM) cells – immature egg cells found inside the protective ovarian lining. The AUGMENTSM treatment, a fertility option specifically designed to improve egg health, is available in certain IVF clinics in select international regions outside of the United States. OvaScience is developing the OvaPrimeSM treatment, which could increase a woman's egg reserve, and the OvaTureSM treatment, a potential next-generation IVF treatment that could help a woman produce healthy, young, fertilizable eggs without hormone injections."

Excitement over the company's prospects helped drive the stock from less than $10 in August 2014 to an all-time high of $55 in late March 2015. Unfortunately, the stock has reversed lower as the market tries to decipher the data on OVAS' progress. The FDA has prevented OVAS' treatment in the U.S. Critics complain that OVAS has not published any animal studies. There is concern that the procedure might endanger the child. Thus far the handful of tests done outside the U.S. look more like experiments than clinical trials.

Investors have decided to shoot first and ask questions later. That explains the sudden and sharp reversal lower in OVAS' stock. It's not just traders who have turned cautious. Zacks noted that multiple analysts have reduced their estimates on the company.

Technically OVAS is in a bear market with a -47% drop from its closing high. The point & figure chart is bearish with a long-term target at $7.00. The oversold bounce in early April failed and now OVAS is about to breakdown below technical support at its 200-dma. The next stop could be $20.00 if OVAS does close below support near $28.00.

Tonight we are suggesting a trigger to launch small bearish positions at $27.65. We want to limit our position size because this is a high-risk, more aggressive trade. Biotech stocks are normally risky since we never know when the next headline might send the stock soaring or crashing. Traders may want to use options to limit their risk.

- Suggested Positions -

Short OVAS stock @ $27.65

- (or for more adventurous traders, try this option) -

Long JUN $25 PUT (OVAS150619P25) entry $2.95

04/29/15 new stop @ 29.45
04/28/15 triggered @ 27.65
Option Format: symbol-year-month-day-call-strike



CLOSED BULLISH PLAYS

Nucor Corp. - NUE - close: 48.90 change: -0.32

Stop Loss: 47.85
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on April -- at $---.--
Listed on April 28, 2015
Time Frame: 8 to 12 weeks
Average Daily Volume = 2.5 million
New Positions: , see below

Comments:
05/05/14: We are removing NUE for lack of movement. Shares appear stuck in the $48-50 zone. The plan was to launch bullish positions at $50.50 but NUE is just not cooperating.

Trade did not open.

05/05/15 removed from the newsletter, suggested entry was $50.50

chart: