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Long Play Updates

Amer.Eagle Outfitters - AEOS - cls: 35.42 chg: +0.09 stop: 32.99

We do not see any changes from our previous updates. AEOS continues to show relative strength and traders seemed quick to buy the dip today. A dip in the $34.00-34.50 region would be an attractive entry point but the stock may not provide one. 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: + 0.65
Earnings Date 08/15/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Celgene Corp. - CELG - close: 48.07 chg: +0.22 stop: 44.95

Tomorrow we could see some action in CELG. Genentech (DNA) reported earnings after the bell today. DNA is one of the biggest biotechs out there so reaction to its report could influence CELG. The good news is that DNA reported earnings above analyst estimates and raised guidance. The bad news is that the stock was trading strongly lower after hours anyway. If shares of CELG see any profit taking tomorrow watch for a bounce near the $46.00 region as a potential entry point to go long. 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: + 0.83
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 3.9 million

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Energy Transfer - ETP - close: 45.00 chg: +0.00 stop: 43.59*new*

Wow! How that's for anticlimactic? ETP reported earnings after the bell last night. The company beat estimates. Shares experienced some volatility this morning with both a move higher and a move lower only to close unchanged on the session. We are not suggesting new bullish positions. Instead we're inching our stop loss to $43.59, just under the rising 50-dma. 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: 51.83 chg: -0.07 stop: 49.99

The trading in NSC was disappointing today. Some of the railroad stocks like BNI and CSX enjoyed a strong afternoon rally and closed in the green. Shares of NSC merely traded sideways in a narrow range and closed in the red. We would either wait for a move over $52.50 or the 100-dma at $52.70 before considering new bullish positions.

Picked on June 29 at $52.57
Change since picked: - 0.74
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 2.2 million
 

Short Play Updates

Broadcom - BRCM - close: 28.39 change: +0.99 stop: 30.25

Uh-oh! BRCM may have just reversed on us. Semiconductor stocks turned around and turned higher after KLAC came out with positive earnings news. KLAC stated that sales orders for the June quarter came in above its target. Semiconductors have been one of the worst performing sectors and buyers sensing a potential bottom combined with some short covering produced a big bounce in the sector. Shares of BRCM have produced a bullish engulfing candlestick pattern, which is commonly seen as a bullish reversal. At this time we would expect a rebound to the $30.00 level. If you don't want to endure that kind of move then consider exiting right now. We have been 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: + 0.64
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 15.5 million

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IAC/Interactive Corp. - IACI - cls: 25.20 chg: -0.02 stop: 26.55

IACI hit another new two-week low this morning before bouncing with the widespread market rally this afternoon. We remain bearish but would not be surprised by an oversold bounce to its 10-dma near $26.00. Chart readers will note that the MACD on the daily chart has produced a new sell signal. 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: - 0.29
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume: 2.3 thousand

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Juniper Networks - JNPR - cls: 15.12 chg: -0.30 stop: 16.26

JNPR hit another one-month low with today's 1.9% decline. Unfortunately, the decline was fueled by below average volume. Tomorrow the stock could see even more weakness. Shares of SCUR, a software and network security firm, issued an earnings warning and SCUR lost 38% in after hours. That might influence trading in JNPR tomorrow then again it might not since JNPR is more networking hardware. Please note that both CSCO and the NWX networking index produced relatively strong rebounds this afternoon and if there is any follow through higher tomorrow then they could influence JNPR. Our JNPR 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: - 0.77
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume: 13.8 million

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Medtronic - MDT - close: 47.98 change: +0.28 stop: 48.75

MDT is still trying to breakout past resistance at the $48.00 level and it's getting close to succeeding. The bounce has finally produced (or is getting close) a MACD buy signal. We are not suggesting new shorts and more conservative traders might want to exit early here. 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: - 1.51
Earnings Date 08/22/06 (unconfirmed)
Average Daily Volume: 10.8 million

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Maxim Integrated - MXIM - close: 29.99 chg: +0.94 stop: 31.25

MXIM is another challenging stock for us. Semiconductors have been one of the worst performing sectors this year and MXIM recently broke down under support at the $30.00 level after producing some new technical sell signals. Unfortunately, the stock is rebounding with a big 3.2% gain today. The move was fueled by positive earnings comments from semiconductor company KLAC. KLAC stated that sales orders for the June quarter came in above its target. A lot of this might just be short covering but it's dangerous nonetheless. Traders should be diligent about monitoring their stops here! We're not suggesting new plays at this time. 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: + 0.24
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 5.5 million
 

Closed Long Plays

None
 

Closed Short Plays

NitroMed - NTMD - close: 4.03 change: -0.22 stop: 5.01

Target achieved. NTMD continued to sink and shares closed with a 5.17% loss today. The low for the session was $3.97. It is interesting to note that volume came in at about half the daily average. Our target was the $4.10-4.00 range.

Picked on June 18 at $ 5.07
Change since picked: - 1.04
Earnings Date 07/31/06 (unconfirmed)
Average Daily Volume: 710 thousand
 

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