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Long Play Updates

eBay Inc. - EBAY - close: 26.74 chg: -0.51 stop: 24.49

There are no changes from our weekend new play description on EBAY. We're still looking for a pull back into the $26.25-25.25 range. We're suggesting a trigger to buy the stock at $26.25. If triggered our short-term target is the $29.85-30.00 range. More aggressive traders may want to aim higher.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 19.6 million

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JDS Uniphase - JDSU - close: 2.47 change: -0.04 stop: 2.24

JDSU is still churning sideways near the $2.50 level. If the broader market indices continue to pull back we might look for a dip in JDSU toward its rising 10-dma, currently around 2.30. A bounce from the 10 or 50-dma could be used as a new entry point to go long the stock. Our target is the $2.85-2.90 range. We do consider this an aggressive, higher-risk play due to JDSU's volatility. Please note that we do not want to hold over the August 30th earnings report.

Picked on August 16 at $ 2.50
Change since picked: - 0.03
Earnings Date 08/30/06 (confirmed)
Average Daily Volume: 42.3 million

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Lucent Tech. - LU - close: 2.26 change: -0.05 stop: 2.14

Over the weekend we suggested that traders look for a dip into the $2.25-2.20 region and LU delivered one today. The intraday low was $2.24. If you're still concerned that the markets, and LU, might have further to fall then look for a dip closer to $2.20 before entering long positions. Don't forget that Alcatel (ALA) members are set to vote on the LU-ALA merger on September 7th. Traders should definitely keep an eye on shares of ALA since weakness in ALA will affect LU. Our target for LU is the $2.50-2.60 range.

Picked on August 20 at $ 2.31
Change since picked: - 0.05
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 42 million

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Maxim Integrated - MXIM - close: 28.61 chg: -0.78 stop: 27.95

The semiconductor sector, which saw such big gains last week, was a leader to the downside today as traders did some profit taking. MXIM did not escape the pull back and shares lost 2.6%. This looks like a failed rally at resistance and a potential entry point for shorts however we suspect that last week produced a trend change for the semis. Thus we're looking for a breakout in MXIM's bearish pattern. Our plan is to use a trigger at $30.15 to go long the stock. If triggered our target is the $33.00-34.00 range, which is under the falling 200-dma.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume: 6.0 million

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Novellus - NVLS - close: 26.99 change: -0.61 stop: 24.99

NVLS is another semiconductor stock that gave into some profit taking on Monday after last week's big gains. We would wait for a bounce from the $26.00 region before considering new bullish plays. Our target is the $29.50-30.00 range. Our time frame is four to six weeks. Please note that NVLS has announced its mid-quarter update for August 30th, 2006. FYI: The P&F chart points to a $49 target.

Picked on August 16 at $26.65
Change since picked: + 0.34
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.8 million

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St. Mary Land Expl. - SM - close: 41.48 chg: +0.51 stop: 39.95

More fiery rhetoric out of Iran contributed to market weakness and oil strength. Crude oil was already bouncing from round-number support near $70 a barrel. Monday saw crude rebound higher as Iran stated it would refuse the U.N.'s demands that Iran stop enriching uranium. Naturally the rise in crude oil helped the oil stocks trend higher. Shares of SM added 1.2% and the stock is now challenging its simple 10-dma. Our target is the $43.85-44.00 range.

Picked on August 20 at $40.97
Change since picked: + 0.51
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 642 thousand

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Stereotaxis - STXS - cls: 10.51 change: +0.40 stop: 9.24

Our new bullish play in STXS has been opened. The stock bucked the market's trend today and continued to move higher. STXS broke through resistance at its simple 200-dma and traded at our trigger to go long the stock at $10.31. Volume came in above average in spite of today marking the lowest market volume day for the year. Readers can choose to go long here with the breakout over its 200-dma or look for a potential dip back towards what should be round-number, psychological support at the $10.00 mark. Our target is the $11.85-12.00 range.

Picked on August 21 at $10.31
Change since picked: + 0.20
Earnings Date 08/09/06 (unconfirmed)
Average Daily Volume: 272 thousand

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Teradyne - TER - close: 13.58 change: -0.23 stop: 12.69

Semiconductor stocks experienced some profit taking on Monday following last week's big rally. TER was no exception and shares lost 1.6% but volume came in pretty low suggesting a lack of conviction on the move. Readers can choose to buy a bounce from the $13.50 level (here) or the 50-dma (near 13.35) or even a dip near $13.00. Our target is the $14.75-15.00 range, which is under the simple 200-dma.

Picked on August 16 at $13.53
Change since picked: + 0.05
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.4 million
 

Short Play Updates

Brookefield Homes- BHS - close: 24.00 chg: -0.86 stop: 24.55

Homebuilders were also hit with plenty of profit taking on Monday. The DJUSHB home construction index lost 2.9%. Shares of BHS under performed its peers with a 3.4% decline. The stock continues to look vulnerable to more selling and we are waiting for a breakdown under support near $23.00. We're suggesting a trigger at $22.99 to short the stock. Our target is the $20.10-20.00 range. Please note that the latest (July) data puts short interest at 20% of BHS' 26.2 million-share float. That is a high degree of short interest and increases the risk of a short-squeeze!

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 497 thousand

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Portfol.Recov.Assoc. - PRAA - cls: 40.52 chg: -0.97 stop: 42.05

The oversold bounce in PRAA is fading and the stock is quickly nearing round-number, psychological support near the $40.00 level. We want to capture the next leg lower on a breakdown under support. Therefore we're suggesting a trigger at $39.49 to short the stock. If triggered our target is the $36.00-35.00 range.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/02/06 (confirmed)
Average Daily Volume: 166 thousand

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Steel Dynamics - STLD - close: 52.76 chg: -0.86 stop: 54.66

Wow! It doesn't get much closer than today's narrow escape in STLD. The stock spiked higher this morning to $54.65 before deflating and eventually closing with a 1.6% loss. Over the weekend we had adjusted our stop loss to $54.66. The overall bearish trend of lower highs is still in place but the stock does look oversold. We're not suggesting new positions and due to the rising 200-dma we're going to adjust our target to $50.25-50.00.

Picked on August 09 at $53.95
Change since picked: - 0.33
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume: 1.6 million
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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