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Long Play Updates

eBay Inc. - EBAY - close: 27.42 chg: +0.68 stop: 24.49

EBAY helped lead a rally in Internet stocks today after announcing that the company would raise certain fees on merchants selling items through their ebay "stores". Shares of EBAY rose 2.5% but pulled back from its highs near $27.90. We are still on the sidelines. It is our plan to catch a dip into the $26.25-25.25 range and so we're using a trigger to open positions at $26.25, which has not yet been hit. If triggered our short-term target is the $29.85-30.00 range. More aggressive traders may want to aim higher. FYI: More aggressive traders may want to give some serious thought to opening bullish positions now.

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: 2.51 change: +0.04 stop: 2.24

JDSU is still showing some strength by resisting any major consolidation after last week's rally. We remain bullish and are starting to doubt that JDSU will pull back much further. 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: + 0.01
Earnings Date 08/30/06 (confirmed)
Average Daily Volume: 42.3 million

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Lucent Tech. - LU - close: 2.25 change: -0.01 stop: 2.14

Entry point alert! Shares of LU dipped to $2.22 near its 50-dma late this afternoon before buyers stepped in to buy the dip. We see the late afternoon bounce as a new entry point to go long the stock. More conservative traders might want to use a tighter stop loss. 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: - 0.06
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 42 million

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Maxim Integrated - MXIM - close: 28.44 chg: -0.17 stop: 27.95

There is no change from our previous updates on MXIM. The stock is still consolidating under resistance at the top of its descending (bearish) channel. The failed rally under $30 looks like a new short entry point but we're keeping MXIM as a long candidate with a strategy to go long the stock on a breakout. 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: 26.29 change: -0.70 stop: 24.99

NVLS displayed relative weakness with a 2.59% loss on strong volume today. We did not see any specific news to account for the sell-off. There was some speculation that traders are taking bearish put positions ahead of NVLS' upcoming mid-quarter update on August 30th. The stock did bounce from broken resistance and what should be support at the $26.00 level but the initial bounce this morning began to fade lower into the afternoon. More conservative traders might want to tighten their stops. We'd look for a new move above $26.70 as a new entry point to go long NVLS. Our target is the $29.50-30.00 range. Our time frame is four to six weeks.

Picked on August 16 at $26.65
Change since picked: - 0.36
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.8 million

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St. Mary Land Expl. - SM - close: 41.08 chg: -0.40 stop: 39.95

Uh-oh! SM displayed some relative weakness today. The stock's oversold bounce from its trendline of rising support has already begun to stall. Shares lost almost 1% while most oil stocks were trading higher on Tuesday. We remain bullish with SM above $40.00 but traders might want to take a defensive approach. Our target is the $43.85-44.00 range.

Picked on August 20 at $40.97
Change since picked: + 0.11
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 642 thousand

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Stereotaxis - STXS - cls: 11.50 change: +0.99 stop: 9.89*new*

STXS appears to be suffering a short-squeeze, which is what we predicted might happen if the stock broke out over its simple 200-dma. The stock soared to a 9.4% gain on strong volume today. Shares are quickly approaching our target in the $11.85-12.00 range. We're raising our stop loss to $9.89.

Picked on August 21 at $10.31
Change since picked: + 1.19
Earnings Date 08/09/06 (unconfirmed)
Average Daily Volume: 272 thousand

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Teradyne - TER - close: 13.69 change: +0.11 stop: 12.89*new*

The markets churned sideways on Tuesday and TER followed suit with more trading in the $13.50-13.90 region. We remain bullish with TER above $13.50 and we're going to adjust our stop loss to $12.89. 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: + 0.16
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.4 million
 

Short Play Updates

Brookefield Homes- BHS - close: 24.49 chg: +0.49 stop: 24.55

The big news in the homebuilders today was earnings from Toll Brothers (TOL). TOL managed to beat analysts' lowered expectations but the company did not have anything positive to say about guidance going forward. The bounce in the homebuilders was somewhat anemic but shares of BHS out performed its peers. We remain skeptical since BHS has not yet broken its bearish trend. 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: 40.17 chg: -0.35 stop: 42.05

PRAA continues to show relative weakness but we remain on the sidelines. The stock dropped toward the mid-August low but failed to breakdown any further. The low today was $39.82 and our suggested trigger to short the stock is at $39.49. 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: 52.80 chg: +0.04 stop: 54.15*new*

There is no change from our previous updates on STLD. The markets closed flat and shares of STLD also traded in a tight range. We're not suggesting new positions. Our target is the $50.25-50.00 range. Please note that we're lowering our stop loss to $54.15.

Picked on August 09 at $53.95
Change since picked: - 0.29
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume: 1.6 million
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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