Current Portfolio:

BULLISH Play Updates

Console Energy - CNX - close 37.10 change +2.04 stop 34.50 *NEW*

Target(s): 37.50, 38.80, 40.75
Key Support Areas: 36.00, 34.90
Key Resistance Areas: 37.55
Current Gain/Loss: N/A
Time Frame: 1 to 2 weeks
New Positions: Waiting to be triggered

CNX gapped open higher again today and has almost reached our first target of $37.50. I don't think it is prudent to chase the stock but I would like to adjust our entry up a bit to take advantage of a pullback. Let's use a trigger to enter if CNX trades down near $36.25 which is just above today's lows. I'm also going to tighten the stop to $34.50 to limit risk and I've listed a third target at $40.75. If CNX does not trade down to our trigger in the next couple of days I will most likely drop it from the portfolio. My comments remain the same from the play release. I believe the sell off in coal stocks was overdone and they appear to be building momentum for a move higher. CNX double bottomed with lows on Friday and Monday and has responded nicely. The stock also has longer term support dating back to resistance in late 2008 (see weekly chart). All of our targets are below the stock's 50-day SMA and also below the recent primary downtrend line. This is a countertrend trade that has potential but I also view it as aggressive and quick so please use small position size to manage risk.

Suggested Position: Long CNX stock if it trades down near $36.25

Option Traders:
Suggested Position: Buy July $35.00 CALL, current ask $4.10, estimated ask at entry $3.50

Entry on May xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 7.0 million
Listed on 5/25/10, 2010

Rino International - RINO - close 13.31 change +0.93 stop 11.70 *NEW*

Target(s): 14.50, 15.95, 16.90
Key Support/Resistance Areas: 14.50, 13.75, 13.30, 13.00, 12.75, 11.75
Current Gain/Loss: +4.80%
Time Frame: Several weeks
New Positions: Yes, if there is a pullback to support

RINO gapped higher this morning but quickly pulled back to $12.68 which was very close to a key support/resistance area of $12.75 listed in the play release. This was enough for us to get long the stock. Traders can enter positions on pullbacks but I do not suggest chasing the stock, rather be patient and use the support areas above as a guide. I'll leave my comments from last night's play release. RINO has been taken out to the woodshed recently and I believe it is due for a turnaround. The stock appears to have found support in the $10.75 area which dates back to prior support in August 2009 and prior resistance in June of 2008. The stock bounced nicely off of this level and followed through nicely. In addition, the stock trades at a ridiculously low PE ratio of about 5. I think there is a lot of room to for this stock to run and I suggest readers take advantage of the building momentum. I think we can make $2 in this trade but there could be some volatility so please use proper position to manage risk.

Current Position: Long RINO stock at $12.70

Option Traders:
Suggested Position: July $12.50 CALL

Entry on May 27, 2010
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 926,000
Listed on 5/25/10, 2010

BEARISH Play Updates

Perrigo Company - PRGO - close 60.24 change +2.14 stop 61.75 *NEW*

Target(s): 59.00, 58.25, 57.25, 56.00, 54.30
Key Support Areas: 59.00, 58.00, 57.00, 56.00
Key Resistance Areas: 60.50, 61.50
Current Gain/Loss: -1.07% Time Frame: 1 to 2 weeks
PRGO traded up to our trigger to enter short positions at $59.50. We currently have a small loss of -1.07%. Its amazing what a day can do to change sentiment in the market. As a result I am not as confident in this short position as I was yesterday so I am looking for quick exit, for either a small profit or small loss. In trading we must remain nimble and I believe it is prudent to make this trade a quick one. I would like to tighten the stop to $61.75 and I have listed several targets above which are great areas to tighten stops. Ironically, the support areas are near round numbers. If the market reverses lower from here which is a possibility I think PRGO could trade down to our original target at $54.30. However, I'm anticipating a higher low to be made in the market and I suggest buying short PRGO positions back an any weakness. I've also tightened the stop to preserve capital if PRGO doesn't turn down from here. Technically, PRGO is testing its 20-day SMA from below and it appears it wants to put in a lower high. If this in fact happens we will have a winner, but if it doesn't we need to step aside at our stop price of $61.75. There is also resistance at $60.50 and $61.50.

Current Position: Short PRGO stock at $59.60

Entry on May 27, 2010
Earnings More than 2 months (unconfirmed)
Average Daily Volume: 1.3 million
Listed on May 22, 2010


Royal Caribbean - RCL - close 27.96 change +0.22 stop 28.45

Target(s): 27.80
Key Support Areas: 27.38, 25.00
Key Resistance Areas: 28.00, 28.85, 29.80
Final Gain/Loss: +1.22%
Time Frame: 1 or 2 days
New Positions: Closed

RCL was actually closed on 4/26 as our stop at $18.45 was hit. I apologize for the error in not closing the play in yesterday's updates. I'll leave my comments from Tuesday: RCL traded down to its 200-day SMA and bounced nicely. Although the stock closed only -0.61% on the day, it closed +6.2% off of its lows. I'm sure short covering had something to do with this but how things can change so drastically in a matter of hours is beyond me, so we must deal with the circumstances. I suggest readers be cautious and prevent this trade from turning into a loser. My fear at this point is that RCL may rally all the way up to fill the gap down between 5/19 and 5/20. I suggest we place a tight stop at $28.45 and just get out of the way for a small profit if this is hit. I also want to list a lower target at $27.80 which is just above today's close.

Closed Position: Short RCL stock at $28.45, entry was at $28.80

Option Traders:
Suggested Position: Buy JUNE $28.00 PUT

Annotated Chart:

Entry on May 24
Earnings More than 2 months (unconfirmed)
Average Daily Volume: 4.5 million
Listed on May 22, 2010