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Long Play Updates

Vertex Pharma - VRTX - close: 22.70 change: +0.57 stop: 20.29

Shares of VRTX confirmed its Thursday rebound with a 2.5% gain on Friday. We see no changes from our Thursday night play description so we're reposting it here:

If you're looking for a little excitement from your bullish candidates then VRTX might fit the bill. The stock has been very volatile over the last couple of weeks but the bullish trend remains intact. The company has garnered a lot of positive analysts comments over the last few weeks after releasing some positive press for some of its drugs in their pipeline. We see the bounce from the $20.00 level as a new bullish but aggressive entry point. Volume on today's rebound came in way above normal. We'll suggest new plays here above the $22 mark. However, if VRTX fails to produce any follow through on today's bullish rebound we may choose to quickly exit the play. Don't get married to your position. Our target is the $25.50-26.00 range. We plan to exit ahead of the company's October 26th earnings report.

Picked on October 13 at $22.13
Change since picked: + 0.57
Earnings Date 10/26/05 (unconfirmed)
Average Daily Volume: 1.4 million

Short Play Updates

Career Educ. - CECO - close: 33.95 chg: +0.11 stop: 36.01*new*

The larger trends in CECO continue to look bearish but short-term we're beginning to worry. The stock has traded sideways between $33.00 and $34.50 for the last seven days straight. If we don't see a breakdown soon it might be wise to exit early. What makes this challenging is that the broader market indices have begun to bounce from deep oversold conditions and will probably put positive pressure on CECO. More conservative traders may want to give some thought to exiting early if CECO breaks out over the 10-dma (34.27) or the $35.00 level. We are lowering our stop loss to $36.01. Our target is the $31.00 level.

Picked on October 04 at $34.99
Change since picked: - 1.04
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume: 1.6 million


Cree Inc. - CREE - close: 22.00 chg: -0.15 stop: 23.01 *new*

We're running low on time for CREE. The company is due to report earnings on October 20th. That is this Thursday. We're going to plan on exiting Wednesday at the closing bell. Given our time frame we are not suggesting new plays. We're also going to tighten our stop loss to $23.01 to reduce our risk. Our target remains the $21.00 level.

Picked on October 11 at $22.99
Change since picked: - 0.99
Earnings Date 10/20/05 (confirmed)
Average Daily Volume: 1.3 million


Corning Inc. - GLW - close: 18.17 chg: +0.47 stop: 20.01

A bullish market on Friday helped push GLW above its 10-dma, 100-dma and the $18.00 level but the stock pared its gains by the close. This may prove to be a new bearish entry point but we would certainly look for more weakness to confirm that. A drop back under the $18 mark might suffice. If shares continue to rise we would watch for the 50-dma near $19.30 to act as resistance (although we would turn very cautious if the stock traded above $19.00). We do plan to exit ahead of the October 26th earnings report. Our target is the $16.50 level.

Picked on October 09 at $18.54
Change since picked: - 0.37
Earnings Date 10/26/05 (confirmed)
Average Daily Volume: 11.9 million


99c Only Stores - NDN - close: 9.36 chg: -0.04 stop: 9.61

The action in NDN on Friday was interesting. The market and the retail sector produced a strong oversold bounce. Yet shares of NDN failed to participate in the rally. We are not going to suggest new plays at this time. We do plan on exiting this Wednesday, October 19th to avoid holding NDN's Thursday earnings report.

Picked on September 27 at $ 9.40
Change since picked: - 0.04
Earnings Date 10/20/05 (unconfirmed)
Average Daily Volume: 581 thousand


Trinity Ind. - TRN - close: 36.52 chg: +1.00 stop: 39.26

Shares of TRN performed as we expected on Friday. The stock bounced and we don't think the bounce is over yet. Watch for the 50-dma near $37.75 to act as overhead resistance. A failed rally under the 50-dma could be used as a new bearish entry point. Our target is the $32.50-32.00 level near the simple 200-dma. If the Dow Jones Transportation index breaks out over the 3700 level we might suggest exiting early.

Picked on October 11 at $36.88
Change since picked: - 0.29
Earnings Date 10/31/05 (unconfirmed)
Average Daily Volume: 385 thousand

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