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Long Play Updates

Network Appl. - NTAP - close: 26.25 change: +0.46 stop: 22.99

Traders were there to buy the dip toward $25.00 this morning, which proved to be a strong entry point for new longs. The afternoon rally pushed NTAP above the $26.00 mark and technical resistance at its 100-dma and exponential 200-dma. Our target is the $29.00-30.00 range.

Picked on October 16 at $25.12
Change since picked: + 1.13
Earnings Date 11/16/05 (unconfirmed)
Average Daily Volume: 5.9 million

Short Play Updates

Abercrombie & Fitch - ANF - cls: 48.30 chg: +1.12 stop: 50.01

Wednesday's widespread market rally was a surprise as was the 2.8% rally in the RLX retail index. Today's gain in ANF certainly does change our enthusiasm for the play but the bearish pattern remains intact. However, we would hesitate to consider new shorts in the stock at this time. Another failed rally under the $50.00 level might work as a new entry point. We would keep a close eye on the RLX retail index, which is trading just underneath resistance at the 440 level and its 200-dma's. A breakout there for the RLX and it may be prudent to exit early in ANF.

Picked on October 18 at $47.18
Change since picked: + 1.12
Earnings Date 11/15/05 (unconfirmed)
Average Daily Volume: 2.5 million


Corning Inc. - GLW - close: 18.38 chg: +0.28 stop: 20.01

Uh-oh! It may be time to start looking for the exits! GLW produced a bullish engulfing candlestick pattern today and its MACD indicator is nearing a new buy signal. We will seriously consider exiting early if GLW trades over minor resistance at $18.60 and its 21-dma. We're not suggesting new short positions at this time.

Picked on October 09 at $18.54
Change since picked: - 0.16
Earnings Date 10/26/05 (confirmed)
Average Daily Volume: 11.9 million


Trinity Ind. - TRN - close: 36.50 chg: +0.75 stop: 38.26*new*

Today's bounce in TRN and the Dow Transportation index might be a clue that conservative traders should consider exiting early right here! The weekly pattern on TRN remains bearish but short-term we would expect the stock to rally towards the $37.50-38.00 region. If you don't want to take that kind of heat consider exiting and then re-entering if the stock turns lower again. We're going to just lower our stop loss to $38.26, above resistance at $38 and its 50-dma. We are not suggesting new plays at this time.

Picked on October 11 at $36.88
Change since picked: - 0.38
Earnings Date 10/31/05 (unconfirmed)
Average Daily Volume: 385 thousand

Closed Long Plays

Sun Microsystems - SUNW - close: 3.97 chg: +0.05 stop: 3.90

The early morning weakness today was enough to send SUNW lower toward the stock's simple 50-dma. It was also enough to stop us out at $3.90.

Picked on October 17 at $ 4.05
Change since picked: - 0.08
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume: 40.4 million


Vertex Pharma - VRTX - close: 22.76 chg: +0.21 stop: 21.90

In hindsight we may have been too cautious with our stop loss at $21.90 but yesterday the major averages looked pretty vulnerable to more selling pressure. The morning dip under the $22.00 level in VRTX was enough to stop us out at $21.90. Traders might want to keep an eye on VRTX for another bullish entry point if the stock can breakout over the $23.00 or $23.25 levels.

Picked on October 13 at $22.13
Change since picked: + 0.63
Earnings Date 10/26/05 (unconfirmed)
Average Daily Volume: 1.4 million

Closed Short Plays

BEA Systems - BEAS - close: 8.55 chg: -0.30 stop: 8.51

BEAS started off on the right foot with an early morning dip but almost immediately turned bullish on us. Oddly enough we don't see any catalyst to account for BEAS' sudden show of strength so much earlier than the rest of the market. The bad news is that we've been stopped out at $8.51 after the stock broke through technical resistance at its 10-dma and 200-dma.

Picked on October 18 at $ 8.25
Change since picked: + 0.30
Earnings Date 11/11/05 (unconfirmed)
Average Daily Volume: 5.0 million


99c Only Stores - NDN - close: 9.73 chg: +0.50 stop: 9.56

There are no surprises here. The late afternoon rally in the markets and the big relative strength in the retail sector helped push NDN above resistance at the $9.50 mark. We had planned to exit today anyway to avoid the company's earnings report. We've been stopped out at $9.56.

Picked on September 27 at $ 9.40
Change since picked: + 0.33
Earnings Date 10/20/05 (unconfirmed)
Average Daily Volume: 581 thousand

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