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New Plays
Long Plays
Short Plays
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New Long Plays

None today.
 

New Short Plays

None today.
 

In Play Updates and Reviews

Long Play Updates

LM Ericsson - ERICY - close: 34.38 chg: -0.49 stop: 33.93

ERICY has fallen back toward support at its rising, simple 200-dma. Wait for another move over $35.25 before considering new bullish positions. Our target is the $36.75-37.00 range.

Picked on February 14 at $34.61
Change since picked: - 0.23
Earnings Date 01/31/06 (confirmed)
Average Daily Volume: 2.2 million

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Hewlett Packard - HPQ - cls: 32.96 chg: +0.10 stop: 31.75

HPQ tried to rebound today but the stock struggled to get any upward momentum. Shares traded mostly sideways throughout the session. We are not suggesting new bullish positions and considering the market weakness more conservative traders may just want to exit early right here.

Picked on February 22 at $32.94
Change since picked: + 0.02
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 13.5 million

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IAC/InterActive - IACI - close: 30.05 chg: -0.14 stop: 28.75

IACI could not escape the wide-spread selling in technology stocks today. Yet it's worth noting that IACI is weathering the storm better than most. We are not suggesting new bullish positions at this time.

Picked on March 03 at $30.31
Change since picked: - 0.26
Earnings Date 02/08/06 (confirmed)
Average Daily Volume: 2.1 million

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Microchip - MCHP - close: 35.78 chg: -0.31 stop: 34.99

This is a decision point for traders. Do you stay and see if MCHP bounces from its simple 50-dma or do you go now and cut your losses. If you look at the SOX and its breakdown below the 50-dma then you might decide to cut out now. The SOX looks poised to continue lower and if the sector index is sinking then MCHP will have a hard time trying to rally. Then again one analyst firm reiterated their bullish rating on MCHP and raised their price target on the stock today. We're going to suggest that conservative traders exit early. We'll wait and see if MCHP will rebound or not. We are not suggesting new bullish positions at this time.

Picked on March 02 at $36.52
Change since picked: - 0.75
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 1.6 million

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Network Appl. - NTAP - close: 33.31 chg: -0.36 stop: 31.90

Weakness in technology stocks is dragging on NTAP. We're looking for $33.00 and $32.00 to offer short-term support. We are not suggesting new bullish positions at this time.

Picked on February 27 at $33.50
Change since picked: - 0.19
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 4.5 million

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SCS Transportation - SCST - cls: 27.76 chg: +0.27 stop: 25.99

SCST displayed some relative strength today and added close to one percent on above average volume. Our target is the $29.90-30.00 range. SCST's P&F chart points to a $36.50 target.

Picked on March 01 at $27.55
Change since picked: + 0.21
Earnings Date 04/25/06 (unconfirmed)
Average Daily Volume: 139 thousand

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Synopsys - SNPS - close: 22.03 change: -0.15 stop: 21.58 *new*

SNPS traded in a narrow 29-cent range all session. We are not suggesting new bullish positions at this time. We are raising our stop loss to $21.58, just under the 50-dma.

Picked on March 02 at $22.49
Change since picked: - 0.46
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 1.4 million

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Unisys - UIS - close: 6.72 change: -0.07 stop: 6.58 *new*

UIS is still trading sideways between $6.60 and $7.00. We are not suggesting new bullish positions. Please note that we're raising the stop loss to $6.58.

Picked on February 16 at $ 6.81
Change since picked: - 0.02
Earnings Date 01/26/06 (confirmed)
Average Daily Volume: 2.1 million

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UST Inc. - UST - close: 40.90 change: +0.10 stop: 39.95 *new*

UST is still showing relative strength and managed another gain today. We are inching up our stop loss to $39.95. Our target is the $41.75-42.00 range (200-dma).

Picked on March 05 at $40.55
Change since picked: + 0.35
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 1.5 million
 

Short Play Updates

Bed Bath & Beyond - BBBY - cls: 36.17 chg: +0.37 stop: 37.01

We cannot find any news to explain BBBY's relative strength today. We are still waiting for a breakdown to a new relative low. We're suggesting that readers use a trigger at $34.80 to open bearish positions. If triggered our target is the $30.50-30.00 range.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/29/06 (unconfirmed)
Average Daily Volume: 3.5 million

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Hilton Hotels - HLT - close: 23.69 chg: +0.10 stop: 24.27 *new*

HLT tried to produce another oversold bounce again today but struggled near the $23.75 level. We are not suggesting new bearish positions at this time. Please note that we're adjusting our stop loss to $24.27. We're aiming for a decline into the $22.25-22.00 range.

Picked on March 02 at $23.98
Change since picked: - 0.37
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume: 2.9 million

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Hovnanian - HOV - close: 43.21 change: -1.07 stop: 48.01

The markets are still worried about rising interest rates and that's putting selling pressure on the homebuilders. The DJUSHB home construction index lost 2.4% while HOV followed suit losing 2.41%. Don't be surprised if HOV produces an oversold bounce from the $42.50 level (near its October 2005 low). We'll watch the $45.00 region for a failed rally. Our target is the $40.50-40.00 range.

Picked on March 05 at $44.85
Change since picked: - 1.64
Earnings Date 03/01/06 (confirmed)
Average Daily Volume: 972 thousand
 

Closed Long Plays

Amer.Phys.Cap. - ACAP - close: 47.08 change: -2.27 stop: 46.75

Another day of market weakness was too much for shares of ACAP. The stock broke down under support in the $48.50-48.00 level and its simple 50-dma. Shares lost 4.5% on big volume by the closing bell. We had been waiting for a breakout higher and thus were still sitting on the sidelines so we drop ACAP as an unopened candidate.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/16/06 (unconfirmed)
Average Daily Volume: 53 thousand

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Arrow Elect. - ARW - close: 33.32 change: -1.05 stop: 33.90

Investors reacted negatively to Texas Instruments (TXN)'s mid-quarter update today and that sank the SOX index, the latter of which broke down under its simple 50-dma. A sell-off in semis and technology helped push ARW through support at $34.00 and its own 50-dma. We've been stopped out at $33.90.

Picked on February 26 at $35.89
Change since picked: - 2.57
Earnings Date 02/22/06 (confirmed)
Average Daily Volume: 587 thousand

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Cameco - CCJ - close: 35.74 change: -2.17 stop: 35.29

Tuesday produced a wide-spread and sharp sell-off in mining stocks. CCJ was hit pretty hard with a 5.7% decline. The stock tried to find support at its rising 50-dma but fell through it on an intraday basis to hit our stop loss at $35.29. We remain very long-term bullish on the company.

Picked on March 06 at $ 38.51
Change since picked: - 2.77
Earnings Date 02/01/06 (confirmed)
Average Daily Volume = 2.7 million

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OptionsXpress - OXPS - close: 30.13 change: -1.61 stop: 29.95

Profit taking in the broker-dealer index today hit shares of OXPS pretty hard. The XBD index only lost 1.5% but OXPS closed with a 5% decline. We don't see any news or catalyst to explain the under performance today. The stock broke down under the $30.00 level on an intraday basis and hit our stop loss at $29.95.

Picked on February 26 at $31.95
Change since picked: - 1.82
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 1.0 million
 

Closed Short Plays

None
 

Today's Newsletter Notes: Market Wrap by Keene H. Little and all other plays and content by the Option Investor staff.

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Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

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