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Long Play Updates

Dow Chemical - DOW - close: 44.97 change: +0.09 stop: 42.79

You may have heard on CNBC today that both DuPont (DD) and Dow Chemical (DOW) are planning to raise prices on their products due to rising energy and commodity costs. This actually prompted one downgrade for the two stocks but shares of DOW still closed in the green today. We remain bullish as long as shares of DOW continue to trade over the $44.00 level. A dip and bounce from the $44 level could be used as a new bullish entry point.

Picked on September 07 at $44.60
Change since picked: + 0.37
Earnings Date 10/27/05 (unconfirmed)
Average Daily Volume: 4.1 million


Encore Capital - ECPG - cls: 19.56 chg: +1.11 stop: 18.49*new*

It was a big day for shares of ECPG. The stock surged to $20.16 just after the opening bell following Friday's bullish breakout from its trading range and 200-dma. The initial strength faded but ECPG still closed with a six-percent gain on volume well above its norm. We are raising our stop loss to $18.49. Readers might want to wait for a dip back toward $19.00 before considering new bullish positions. Our trigger to go long was $18.76.

Picked on September 12 at $18.76
Change since picked: + 0.80
Earnings Date 10/24/05 (unconfirmed)
Average Daily Volume: 112 thousand


Forest Labs - FRX - close: 44.49 chg: -0.31 stop: 41.99

There is no change from our weekend update on FRX. Our suggested entry is a trigger at $45.11. If triggered on a breakout our target is the $49-50 range.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/17/05 (unconfirmed)
Average Daily Volume: 1.7 million


Idex Corp - IEX - close: 45.20 change: +0.77 stop: 41.99

Monday proved to be another strong day for IEX following Friday's breakout from its trading range. Volume on today's gain came in above average. Our target is the $47.50-48.00 range.

Picked on September 11 at $44.43
Change since picked: + 0.77
Earnings Date 10/20/05 (unconfirmed)
Average Daily Volume: 232 thousand


Ryerson Tull - RT - close: 21.47 change: +0.05 stop: 19.49

There is no change from our weekend update on RT.

Picked on August 31 at $20.54
Change since picked: + 0.93
Earnings Date 07/28/05 (confirmed)
Average Daily Volume: 486 thousand


Radian Group - RDN - close: 52.06 chg: +0.39 stop: 49.99

RDN just marked its fourth day in the current rebound from support near $50.00 and its simple 50-dma. Monday's gain also pushed RDN above potential resistance at the $52 level. It might be time to look for a bit of a dip before RDN continues higher. Our early October target is the $54.00-54.25 range.

Picked on September 07 at $51.10
Change since picked: + 0.96
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume: 518 thousand

Short Play Updates

Anheuser Busch - BUD - cls: 45.27 chg: -0.13 stop: 46.25

There is no change from our weekend update on BUD.

Picked on July 28 at $44.77
Change since picked: + 0.50
Earnings Date 07/27/05 (confirmed)
Average Daily Volume: 2.3 million


Intl Game Tech. - IGT - cls: 27.10 chg: +0.11 stop: 28.01

There is no change from our weekend update on IGT.

Picked on July 21 at $27.21
Change since picked: - 0.11
Earnings Date 07/21/05 (confirmed)
Average Daily Volume: 2.3 million


Wal-Mart - WMT - close: 45.89 change: +0.00 stop: 46.55

WMT is struggling to produce any sort of follow through on the recent oversold bounce despite reaffirming its September same-store sales guidance today. We're still keeping a watch on the simple 21-dma as overhead resistance. The stock is definitely producing some mixed signals. We're not suggesting new bearish entries at this time.

Picked on August 24 at $45.95
Change since picked: - 0.06
Earnings Date 08/16/05 (confirmed)
Average Daily Volume: 10.2 million


Yahoo! Inc. - YHOO - close: 33.91 change: +0.45 stop: 34.81

The tug-of-war continues in shares of YHOO. The stock continued with Friday's intraday bounce and rallied higher. Shares challenged technical resistance at its simple 50-dma before paring its gains late this afternoon. The action over the last three weeks sort of looks like a bear flag pattern but we're feeling cautious. Traders can probably wait for YHOO to breakdown under support at the $33.00 level before initiating new positions. We're suggesting that readers wait for a decline under support at the $32.65 mark before shorting the stock.

Picked on August 30 at $33.18
Change since picked: + 0.73
Earnings Date 10/18/05 (unconfirmed)
Average Daily Volume: 17.1 million

Closed Long Plays


Closed Short Plays

Royal Caribbean - RCL - cls: 43.32 chg: +1.44 stop: 44.11

A Barron's article over the weekend suggested that cruise ship stocks were unnecessarily oversold and that the group was poised to turn higher over the next 18 months. That pushed shares of CCL and RCL higher on Monday. Volume for RCL's gain today was almost four times the normal. The stock has broken its short-term three-week bearish trend but remains within its six-week bearish trend. Even so we're choosing to exit early. More aggressive traders may want to see if RCL fails to produce any sort of follow through on today's pop.

Picked on July 27 at $45.50
Change since picked: - 2.18
Earnings Date 07/27/05 (confirmed)
Average Daily Volume: 1.3 million

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