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Long Play Updates

Kerzner Intl - KZL - close: 61.00 chg: +1.00 stop: 57.99

Good news! KZL rebounded from its simple 100-dma to rally back to the $61.00 level on very strong volume. This may be a new bullish entry point although more conservative traders may want to wait for some follow through over $61.30. Yet keep in mind we are still concerned that we can't find an earnings report date. That alone should turn some traders away. We suspect that KZL will report earnings around August 3rd but some sources place their next report between Aug. 1st through Aug. 8th. We do not suggest holding over KZL's earnings report but until we can find a date we'll leave the play open. Just keep in mind that the risks here of a surprise earnings release just got a lot higher. If you're afraid of a gap down or "sell the news" reaction then we suggest you consider exiting tomorrow (Friday) at the closing bell.

Picked on July 22 at $61.01
Change since picked: - 0.01
Earnings Date 08/01/05 (unconfirmed)
Average Daily Volume: 154 thousand


Steel Dynamics - STLD - cls: 32.47 chg: +0.67 stop: 28.99

We continue to sit on the sidelines waiting for a pull back in STLD. However, we won't wait forever. If we don't see some action in the next couple of days we'll probably close this play and look elsewhere. Currently our strategy is to buy a dip into the $30.50-30.00 range.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/05 (confirmed)
Average Daily Volume: 1.4 million


Vital Images - VTAL - close: 19.50 change: -0.18 stop: 17.99

Uh-oh. This is unexpected weakness. With the NASDAQ and the software sector trading higher we would expect VTAL to follow suit. Don't forget that we plan to exit on Friday afternoon at the closing bell to avoid VTAL's earnings report next week.

Picked on July 19 at $18.93
Change since picked: + 0.57
Earnings Date 08/02/05 (confirmed)
Average Daily Volume: 107 thousand

Short Play Updates

ATI Tech. - ATYT - close: 12.56 change: -0.19 stop: 13.41

We continue to be encouraged by ATYT's relative weakness. Today's 1.5% decline during a broad market rally is a good sign for shorts. Our target for ATYT is the $11.50-11.20 range.

Picked on July 17 at $12.83
Change since picked: - 0.27
Earnings Date 09/22/05 (unconfirmed)
Average Daily Volume: 5.9 million


Intl Game Tech. - IGT - cls: 27.79 chg: -0.19 stop: 29.01

Lack of participation in today's market rally is a good sign for our bearish play in IGT. More aggressive players may want to initiate positions here. We are still suggesting new entries wait for a decline under $27.50. Our target is the $24.50-24.00 range.

Picked on July 21 at $27.21
Change since picked: + 0.58
Earnings Date 07/21/05 (confirmed)
Average Daily Volume: 2.3 million


Juniper Networks - JNPR - cls: 23.97 chg: -0.16 stop: 25.61

Today was good news for JNPR bears. The stock's failure to participate in the market's rally is a good sign. It looks like resistance at the exponential 200-dma is holding. This looks like a new bearish entry point. The next two biggest risks we see in this play are as follows. First and foremost we could see bears panic and cover their shorts if the NASDAQ seriously breaks out over the 2200 level of resistance. Second would be larger rival CSCO's earnings report on August 9th.

Picked on July 21 at $23.90
Change since picked: + 0.07
Earnings Date 07/19/05 (confirmed)
Average Daily Volume: 7.5 million


NS Group - NSS - close: 42.00 change: +1.79 stop: 40.01

Wow! Thank goodness for triggers. There was no confirmation of Tuesday's bearish reversal so we are still on the sidelines here. We still suspect that there will be a period of consolidation in NSS relatively soon but if the stock climbs much higher we may drop NSS as a candidate and move on.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/05 (confirmed)
Average Daily Volume: 353 thousand


Royal Caribbean - RCL - cls: 45.40 chg: -0.10 stop: 48.01

So far so good. The initial oversold bounce this morning failed and RCL broke down under its 100-dma on above average volume. The lack of participation in the market's rally is a good sign for shorts. Our target is the $41.25-41.00 range. Please see yesterday's play description for more details.

Picked on July 27 at $45.50
Change since picked: - 0.10
Earnings Date 07/27/05 (confirmed)
Average Daily Volume: 1.3 million


Sina.com - SINA - close: 27.75 change: +0.45 stop: 28.51

We are quickly running out of time in SINA. The company is due to report earnings on August 3rd and we do not plan on holding over the report. That means we have to exit the play on next Tuesday after the closing bell. More conservative players may want to exit early instead. SINA displayed some volatility today and traders didn't seem to know which way the stock was going. First SINA traded lower after fellow Chinese Internet company SOHU (-13% today) reported inline earnings and guided lower for Q3. Yet shares of SINA rallied sharply from its lows with some sources reporting yet another takeover rumor for SINA. The rally stalled near resistance in the $28.25-28.50 region. We are not suggesting new plays. Our target is the April lows.

Picked on June 30 at $27.90
Change since picked: - 0.15
Earnings Date 08/03/05 (confirmed)
Average Daily Volume: 1.4 million


Triad Hosp. - TRI - close: 49.48 chg: -0.22 stop: 52.01*new*

It proved to be a volatile day for TRI as well. The stock gapped lower and traded to $47.67 before quickly rebounding. We believe the rebound was fueled by impressive strength in the healthcare sector and the overall market rally. Fortunately, the rally stalled at round-number resistance at the $50.00 level. Shares were losing momentum this afternoon and this looks like a potential entry point for new shorts. We are lowering our stop loss to $52.01.

Picked on July 25 at $49.20
Change since picked: + 0.28
Earnings Date 07/25/05 (confirmed)
Average Daily Volume: 967 thousand

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