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Long Play Updates

Amer.Eagle Outfitters - AEOS - cls: 35.33 chg: -0.32 stop: 32.99

AEOS experienced a little bit of profit taking on Monday but traders bought the initial dip at the $35.00 level this afternoon. If the markets continue lower tomorrow we would not be surprised by an drop toward $34.50 or $34.00 (somewhere around the 10-dma). Watch for the dip and bounce as a new entry point. Our target is the $38.25-38.50 range. The P&F chart is more optimistic with a $63.00 target. We do not want to hold over the August earnings report.

Picked on July 06 at $34.77
Change since picked: + 0.56
Earnings Date 08/15/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Celgene Corp. - CELG - close: 47.85 chg: -0.40 stop: 44.95

The biotech sector felt some profit taking today with the BTK index losing just over 1%. Shares of CELG followed suit with a 0.8% decline but for the most part CELG consolidated sideways. Our market bias is still flat to down so we're not suggesting new long positions at this time but a bounce from the $46.00 level might be a tempting entry point. We do expect some resistance at $50.00 but our target is the $52.40-52.60 range. The Point & Figure chart shows a triple-top breakout buy signal with a $57 target. We do not want to hold over the late July earnings report.

Picked on June 29 at $47.24
Change since picked: + 0.61
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 3.9 million

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Energy Transfer - ETP - close: 45.00 chg: +0.11 stop: 43.45

We no longer have to wonder about when ETP will report earnings. The company reported after the closing bell today, which would explain why the stock has been consolidating sideways in such a narrow range the past several days. We warned readers that we did not have a confirmed date but suspected it might be anywhere between July 10th and the end of the month. Fortunately, the company reported earnings significantly above the analysts' estimates but we have no way to know how the markets will react to the news. We did not see any after hours movement in the stock price. At this time we're not suggesting new plays. Our target is the $47.50-48.00 range.

Picked on June 18 at $44.25
Change since picked: + 0.75
Earnings Date 07/10/06 (confirmed)
Average Daily Volume: 149 thousand

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Norfolk Southern - NSC - close: 51.90 chg: +0.35 stop: 49.99

NSC managed a minor bounce today and out performed its peers in the transportation sector but we're not out of the woods yet. The technicals are still looking weak and NSC remains under its 50-dma and 100-dma. We would either wait for a move over $52.50 or the 100-dma at $52.70 before considering new bullish positions. More conservative traders may want to hold off altogether on new bullish plays since our market bias is still flat to down.

Picked on June 29 at $52.57
Change since picked: - 0.67
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 2.2 million
 

Short Play Updates

Broadcom - BRCM - close: 27.40 change: -0.35 stop: 30.25

The semiconductor stocks continue to lead the tech sectors lower. BRCM lost another 1.26% on decent volume. The MACD's new sell signal is easier to see now. We don't see any changes from our new play description from the weekend. We are using a wide, aggressive stop above $30.00 for now. In reality, broken support near $29.00 should be new resistance. We are suggesting two targets - a conservative target at $25.05 and a more aggressive target at $22.75. Please note that BRCM is due to report earnings on Thursday, July 20th and we do not want to hold over the report.

Picked on July 09 at $27.75
Change since picked: - 0.35
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 15.5 million

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IAC/Interactive Corp. - IACI - cls: 25.22 chg: -0.27 stop: 26.55

An upgrade for Yahoo (YHOO) failed to inspire any strength in the Internet sector. Shares of IACI lost another 1%. At this time we don't see any changes from our new play description from the weekend. We'd consider shorts anywhere under $26.00. Our target is the $24.00-23.75 range. We do not want to hold over the early August earnings report. Readers should note that IACI has relatively high short interest at 4.8% of its 195 million-share float.

Picked on July 09 at $25.49
Change since picked: - 0.27
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume: 2.3 thousand

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Juniper Networks - JNPR - cls: 15.42 chg: -0.30 stop: 16.26

Networking stocks saw a lot of weakness today. The NWX index lost 2.4%. Shares of JNPR dropped 1.9% but again volume was pretty low, which makes us cautious. Another warning flag readers should be aware of is that the NWX index closed just above its 200-week moving average so it could see a bounce soon. Everything else continues to look pretty bearish for JNPR. Our target is unchanged in the $14.10-14.00 range. The P&F chart points to an $8.50 target.

Picked on June 19 at $15.89
Change since picked: - 0.47
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume: 13.8 million

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Medtronic - MDT - close: 47.70 change: +0.11 stop: 48.75

MDT was downgraded today and that provided the fuel for the stock's initial spike lower. Counteracting the analyst downgrade was news that the FDA had approved a new spinal treatment study by MDT. At the end of the day MDT tested and failed to breakout over resistance at the $48.00 level. We are not suggesting new plays at this time. More conservative traders might want to do some profit taking. Our target is the $45.50-45.00 range. We do not want to hold over the August earnings report.

Picked on June 21 at $49.49
Change since picked: - 1.79
Earnings Date 08/22/06 (unconfirmed)
Average Daily Volume: 10.8 million

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Maxim Integrated - MXIM - close: 29.05 chg: -0.70 stop: 31.25

MXIM lost another 2.3% to close at a new three-year low. The semiconductor stocks continue to drag on the market. We don't see any changes from our new play description from this weekend. We are suggesting shorts with MXIM under $30.00. Our target is the $27.00-26.75 range. The Point & Figure chart points to a $17 target. We do not want to hold over the early August earnings report. FYI: more aggressive traders may want to play with a wider stop (above the 50-dma) and aim for the $25.00 region.

Picked on July 09 at $29.75
Change since picked: - 0.70
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 5.5 million

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NitroMed - NTMD - close: 4.25 change: -0.17 stop: 5.01

NTMD is now down more than 16% from our picked price and shares are nearing their late June lows (4.22). Traders might want to seriously consider doing some profit taking here. We're not suggesting new plays at this time. Our target is the $4.10-4.00 range.

Picked on June 18 at $ 5.07
Change since picked: - 0.82
Earnings Date 07/31/06 (unconfirmed)
Average Daily Volume: 710 thousand
 

Closed Long Plays

A.S.V.Inc. - ASVI - close: 22.09 change: -0.01 stop: 21.85

Some early morning weakness pushed ASVI to our stop and beyond. Shares of ASVI dipped to $21.62, just under its 50-dma, before bouncing. We did not see any specific news to account for the spike lower. Our stop loss was $21.85 so the play is now closed.

Picked on June 18 at $21.20
Change since picked: + 0.89
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 463 thousand

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Starbucks - SBUX - close: 35.63 chg: -0.41 stop: 34.98

We are suggesting an early exit in SBUX. There should have been more of a bounce today and there wasn't. Thus it's time to abandon ship. SBUX looks poised to retest the $35.00 level soon.

Picked on June 29 at $37.05
Change since picked: - 1.42
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 6.0 million

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USA Truck - USAK - close: 18.95 chg: -0.15 stop: 18.99

USAK displayed some relative weakness today with a 0.7% decline. Plus, the stock produced a new short-term lower high with the failed rally this morning. Our plan was to suggest longs at $20.05 but the stock never broke out over the $20.00 level. The play is dropped unopened. We are going to keep an eye on the stock for a future breakout over $20.00.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume: 140 thousand
 

Closed Short Plays

None
 

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