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Long Play Updates

Builders FirstSource - BLDR - close: 21.93 chg: +0.01 stop: 20.25

BLDR tried to rally higher today but its strength failed early in the session near $22.60. The weakness was probably due to the downgrade to LOW from J.P.Morgan. This looks like a short-term top so it may be wise to look for a dip probably in the $21.00-21.50 region. A bounce from there could be used as a new bullish entry point. We do not see any changes from our weekend play description. Our target is the $23.50-24.00 range. We do not want to hold over the earnings report even if we think it will be positive.

Picked on January 03 at $21.75
Change since picked: + 0.18
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume: 205 thousand

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Duke Energy - DUK - close: 27.81 change: -0.03 stop: 26.89

DUK came within five cents of our target today. The intraday rebound during Wednesday's session suggest the stock might make a run at the 200-dma near $28 tomorrow. Our target is the $27.95-28.00 range.

Picked on December 13 at $26.89
Change since picked: + 0.92
Earnings Date 02/01/06 (unconfirmed)
Average Daily Volume: 3.9 million

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LifeCell Corp. - LIFC - close: 18.95 change: -0.30 stop: 19.24

We do not see any change from our weekend update on LIFC. Our trigger to go long the stock is at $20.65. If triggered we'll target a rally into the $24-25 range. The P&F chart is still bullish with a $29 target. We do not want to hold over the late January earnings report. FYI if LIFC doesn't trade over $19.40 in the next day or two we're dropping it as a bullish candidate.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume: 598 thousand

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Norfolk So. Corp. - NSC - close: 43.55 chg: +0.10 stop: 42.49

We remain on yellow alert here with NSC. Traders should have their stops in place and have an eye on the exit door. We see no change from yesterday's update. We are not suggesting new long positions here. Our target is the $48.50-49.00 range. The Point & Figure chart for NSC currently points to a $64 target. We do not want to hold over the late January earnings report.

Picked on December 22 at $44.35
Change since picked: - 0.80
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Outback Steakhouse - OSI - close: 41.99 chg: +0.21 stop: 40.49

OSI is still struggling to breakout over its 200-dma near $42.00. We see no change from our previous update. More conservative traders may want to wait for a move over the 200-dma before considering new long positions. Our target is the $44.00-44.50 range.

Picked on December 23 at $41.55
Change since picked: + 0.44
Earnings Date 02/09/06 (unconfirmed)
Average Daily Volume: 789 thousand

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VCA Antech - WOOF - close: 28.92 chg: +0.64 stop: 27.45

WOOF is showing some relative strength today. The stock added 2.2% on above average volume. Today's gain puts the stock above its multi-week trading range and at a new all-time high. Its MACD has produced a new buy signal. We will plan to exit ahead of the late January earnings report. Our target is the $29.90-30.00 range.

Picked on November 09 at $26.74
Change since picked: + 2.18
Earnings Date 01/24/06 (unconfirmed)
Average Daily Volume: 436 thousand
 

Short Play Updates

GMX Resources - GMXR - close: 37.88 chg: +0.44 stop: 38.51

Energy stocks continued to rally today and GMXR along with them. The stock rallied twice but failed both times near $38.40. While this is good news for us we remain in danger of being stopped out. Reaction to tomorrow's oil inventory report will probably determine direction. The biggest risk to bears in GMXR is a short squeeze. The latest data put short interest at 12.8% of its 9.95 million shares outstanding. While a failed rally under $38 could be used as a bullish entry point we are not going to suggest new positions here. We are going to keep the play open for now since there is no way to know if Tuesday was a one-day fluke rally in the energy industries. More conservative traders may want to wait for a new decline under $35.00 before initiating positions. Our target will be the $30.50-30.00 range. We do not want to hold over the late January earnings report.

Picked on January 01 at $36.00
Change since picked: + 1.88
Earnings Date 01/29/06 (unconfirmed)
Average Daily Volume: 256 thousand

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Network Appliance - NTAP - cls: 28.06 chg: +0.15 stop: 28.55

Technology stocks were strong today and the NWX networking index added 1.8%. Shares of NTAP under performed its peers with a 0.5% gain and a failed rally near the 50-dma. A drop back under $27.50 might be considered a new bearish entry point but we would be very careful about opening new short positions at this time. Our target is the $25.25-25.00 range since NTAP appears to have long-term support near the $25 region.

Picked on December 28 at $27.70
Change since picked: + 0.36
Earnings Date 02/15/06 (unconfirmed)
Average Daily Volume: 4.3 million

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NeuroMetrix - NURO - close: 30.10 chg: +2.10 stop: 31.05

An enthusiastic buy rating from an analyst firm this morning sent shares of NURO soaring higher. The stock gapped open at $29.10 and rallied to $30.65 under its 100-dma. Volume came in well above the average. More conservative traders may want to just exit right here and cut their losses. We're going to hold on to the stock to see if shares fill the gap from this morning. We are not suggesting new positions.

Picked on December 06 at $29.59
Change since picked: + 0.51
Earnings Date 01/27/06 (unconfirmed)
Average Daily Volume: 210 thousand

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Somanetics - SMTS - close: 29.93 change: +0.73 stop: 33.05

SMTS almost made it. The low today was $27.58. Our target is $27.50-27.00. More conservative traders may want to exit right here. The oversold bounce may not be over. We are not suggesting new positions at this time.

Picked on December 29 at $32.45
Change since picked: - 2.52
Earnings Date 01/11/06 (unconfirmed)
Average Daily Volume: 158 thousand

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Waters Corp. - WAT - close: 37.83 chg: -0.27 stop: 39.25

We do not see any change from our previous update on WAT. Our target is the $35.25-35.00 range. WAT's P&F chart points to a $25 target. We do not want to hold over the late January earnings report.

Picked on December 18 at $38.60
Change since picked: - 0.77
Earnings Date 01/24/06 (unconfirmed)
Average Daily Volume: 901 thousand
 

Closed Long Plays

None
 

Closed Short Plays

Starbucks - SBUX - close: 31.67 change: +0.80 stop: 31.01

There is no surprise here. Yesterday we stated that SBUX would likely stop us out today. Volume came in above the average on today's 2.5% gain. We were stopped out at $31.01.

Picked on January 03 at $29.90
Change since picked: + 1.77
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume: 5.6 million
 

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