Editor's Note: Good Evening. We are still getting whipped around and managing swing trades remains difficult without being able to trade intraday. As instructed in yesterday's updates we closed ARO early due to the market strength. We remain short in BNS and IWM is still a new short play. I like most of indexes short at these levels as they coming into resistance and SMA's from below. The risk/reward is also attractive as you can place tighter stops be right out if you are wrong. Keep staying nimble and email me with any questions.

Current Portfolio:

BULLISH Play Updates

Direct TV - DTV - close 38.55 change +0.85 stop 35.70

Target(s): 38.20, 38.50, 39.50, 41.50
Key Support/Resistance Areas: 38.60, 37.00, 36.30
Current Gain/Loss: N/A
Time Frame: Several weeks
New Positions: Waiting to be triggered

I am keeping the set-up on this trade the same and waiting for the stock to reach its 50-day SMA prior to entering. It has to trade down there and we will be ready to pounce on the stock when it does. The 50-day SMA is currently $36.60 but is rising.

Suggested Position: Long DTV stock if it trades down near its 50-day SMA, currently near $36.50

Option Traders:
Suggested Position: Buy July $37.00 CALL, current ask $1.91, estimated ask at entry $1.40

Entry on June xx
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 12.3 million
Listed on 6/5/10

Petroleo Brasileiro SA - PBR - close 38.57 change +1.01 stop 37.65 *NEW*

Target(s): 38.50 (HIT), 39.25, 39.95
Key Support/Resistance Areas: 37.45, 36.25
Current Gain/Loss: +2.44%
Time Frame: 1 week
New Positions:

PBR had a nice day and hit our first target of $38.50. If readers still have positions I suggest tightening stops to protect profits. The market was strong today but I would not hesitate to sell the position and book a profit if things start to rollover tomorrow. I would also suggest selling into any further strength tomorrow. We are also moving our stop to breakeven at $37.65.

Current Position: Long PBR stock at $37.65

Option Traders:
Suggested Position: Buy July $37.00 CALL

Entry on June xx
Earnings Date 8/13/10 (unconfirmed)
Average Daily Volume: 19.6 million
Listed on 6/8/10

Quest Software - QSFT - close 19.07 change +0.59 stop 18.58 *NEW*

Target(s): 19.60, 20.00, 20.50, 21.00
Key Support/Resistance Areas: 18.40, 18.70, 19.36, 20-day SMA, 50-day SMA
Current Gain/Loss: +0.37%
Time Frame: Several weeks
New Positions: Yes

After underperforming yesterday technology stocks shifted gears again. QSFT gapped up higher and pierced the entire wick of yesterday's candlestick. This is a bullish signal so I am hoping for follow through tomorrow. The stock is now back above the recent breakout of resistance at $18.70 that it pierced through yesterday. And it has also made a series of higher lows on the intraday charts. We are going to tighten the stop to $18.58 which is below today's opening low and below the 20-day SMA and aforementioned support/resistance level. I would also urge readers to consider selling into strength as the week comes to an end by trailing stops or closing positions. If the market rolls over we need to protect profits/capital.

Current Position: Long QSFT stock at $19.00

Option Traders:
Suggested Position: Buy July $20.00 CALL

Entry on June 7, 2010
Earnings Date 8/10/10 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on 6/2/10

BEARISH Play Updates

Bank of Nova Scotia Halifax - BNS - close 48.17 change +1.40 stop 49.15

Target(s): 46.30, 45.15, 44.05, 42.50
Key Support/Resistance Areas: 49.00, 48.30, 48.00, 47.50, 46.30, 45.00
Current Gain/Loss: -1.20%
Time Frame: 1 to 2 weeks
New Positions: Yes, with a tight stop

BNS rallied with the remainder of the market but is approaching a downtrend line that I think will hold. I am looking for BNS to at least trade back down to its 200-day SMA which is near our first target of $46.30. We got a good entry yesterday and I am comfortable sticking with the set-up of this trade.

Current Position: Short BNS stock at $47.60

Option Traders:
Suggested Position: Buy July $45.00 PUT

Entry on June 9, 2010
Earnings 8/26/2010 (unconfirmed)
Average Daily Volume: 685,000
Listed on June 8, 2010


Aeropostale, Inc. - ARO - close 28.92 change +1.17 stop 29.55

Target(s): 27.30, 27.00, 26.35, 25.25
Key Support/Resistance Areas: 29.35, 28.50, 27.50, 27.00, 26.30, 25,00
Current Gain/Loss: -3.9%
Time Frame: 1 to 2 weeks
New Positions: Closed

It wasn't meant to be with ARO. Retailers have had my number lately so I don't anticipate trading them anytime soon. In any event, per yesterday's updates we were quick to close this position today and get out of the way of the market strength. We trailed our stop as illustrated in the intraday chart below and are out of the position for -3.9% loss.

Closed Position: Short ARO stock at $29.30, entry was at $28.20.

Annotated chart:

Entry on June 8, 2010
Earnings 8/19/2010 (unconfirmed)
Average Daily Volume: 3.3 million
Listed on June 7, 2010