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Long Play Updates

Brookfield Asset Mgt. - BAM - cls: 44.10 chg: +0.06 stop: 41.95

It was a relatively quiet day for shares of BAM. The important thing to note is that shares held on to yesterday's gains. We are suggesting a move over $44.25 or Tuesday's highs near $44.34 as a new entry point to go long the stock. Our target is the $49.00-50.00 range. Our time frame is four to six weeks.

Picked on August 22 at $44.82
Change since picked: - 0.72
Earnings Date 08/03/06 (confirmed)
Average Daily Volume: 393 thousand

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eBay Inc. - EBAY - close: 27.17 chg: +1.38 stop: 24.49

Tuesday brought out the bulls in EBAY. The stock produced a very strong afternoon rally and shares added 5.3% on decent, above-average volume. On a technical basis EBAY broke out higher above its 10-dma and its 50-dma, which was a new entry point to go long. Our target is the $29.85-30.00 range.

Picked on August 24 at $26.25
Change since picked: + 0.92
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 19.6 million

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Elk Corp. - ELK - close: 27.39 change: +0.36 stop: 25.80

ELK followed the markets lower midday and higher in the afternoon. Bulls can be encouraged by the strong volume behind today's rally and what appears to be a new seven-week closing high. The next obstacle for ELK is potential resistance at $28.00 and its 100-dma. Our target is the $29.75-30.00 range but we are somewhat concerned about potential resistance at its descending 100-dma, currently nearing the $28 level.

Picked on August 22 at $27.10
Change since picked: + 0.29
Earnings Date 08/17/06 (confirmed)
Average Daily Volume: 245 thousand

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Goodyear Tire - GT - close: 13.22 chg: +0.62 stop: 11.99*new*

This has been a good week for GT. The stock is already up 7% and volume is improving. Today's 4.9% gain was fueled by very strong volume that came in more than twice the daily average. This strong volume on the gain is a bullish sign. Shares of GT also cleared what could have been resistance at $13.00 and its exponential 200-dma. We're not suggesting new plays at this time. Please note that we're raising the stop loss to $11.99. Our target is the $13.75-14.00 range.

Picked on August 28 at $12.35
Change since picked: + 0.87
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume: 2.9 million

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JDS Uniphase - JDSU - close: 2.64 change: -0.01 stop: 2.53*new*

Tomorrow is our last day. JDSU is due to report earnings after the closing bell tomorrow. Wall Street is looking for the company to breakeven for the quarter. We plan to exit Wednesday afternoon at the closing bell to avoid the announcement. Please note we're raising the stop loss to $2.53, which is just under today's low.

Picked on August 16 at $ 2.50
Change since picked: + 0.14
Earnings Date 08/30/06 (confirmed)
Average Daily Volume: 42.3 million

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Lucent Tech. - LU - close: 2.30 change: +0.04 stop: 2.17

LU is finally seeing some improvement. Last Friday the stock produced a bullish engulfing candlestick pattern (a.k.a. bullish reversal) and now LU is seeing some follow through higher. Readers can go long right here or wait for LU to clear the August high (2.31) before opening plays. More conservative traders may 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: - 0.01
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 42 million

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Maxim Integrated - MXIM - close: 29.51 chg: +0.73 stop: 27.95

The bulls look ready to stampede higher in MXIM. The SOX semiconductor index turned in a strong session and MXIM out performed its peers with a 2.5% gain. More importantly today's strength in MXIM finally saw some decent, almost-average volume and the stock broke out above technical resistance at the 50-dma and the top of its seven-month descending channel. More aggressive traders may want to seriously consider using this as an entry point to go long. We're going to stick to our plan and use a trigger at $30.15 as our entry point. If triggered our target is the $33.00-34.00 range.

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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Knight Cap. Grp - NITE - cls: 16.87 chg: -0.29 stop: 15.95 *new*

Uh-oh! The bounce in NITE may already be in trouble. Shares failed to follow the market higher today. Furthermore shares lost 1.6% and produced a bearish engulfing candlestick pattern. We are not suggesting new plays at this time. Please note that we're raising our stop loss to $15.95 to reduce our risk. Our target is the $19.85-20.00 range.

Picked on August 22 at $17.36
Change since picked: - 0.49
Earnings Date 07/18/06 (confirmed)
Average Daily Volume: 1.5 million

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Novellus - NVLS - close: 27.51 change: +0.22 stop: 25.95 *new*

NVLS rebounded again from an intraday test at rising support along its 10-dma. Volume came in pretty strong as traders took positions ahead of the company's mid-quarter update. The update is expected tomorrow, August 30th, after the closing bell. The conference call does pose a risk. We're going to raise our stop loss to $25.95. More conservative traders might want to use an even tighter stop loss. We're not suggesting new positions. 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: + 0.86
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.8 million

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Stereotaxis - STXS - cls: 10.99 change: +0.29 stop: 9.99

STXS bounced from its rising 10-dma, adding 2.7%, and ending a three-day losing streak. We're not suggesting new plays at this time although more aggressive traders might want to use today's bounce as a new entry point. Our target in the $11.85-12.00 range. FYI: The short interest is around 14% of the float but that reading was taken before the big squeeze in August.

Picked on August 21 at $10.31
Change since picked: + 0.68
Earnings Date 08/09/06 (unconfirmed)
Average Daily Volume: 272 thousand

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Teradyne - TER - close: 13.90 change: +0.28 stop: 13.24 *new*

TER was strong right from the start this morning and shares failed to give into the market's midday swoon. TER now looks poised to breakout over resistance at the $14.00 level. Our target is the $14.75-15.00 range. Please note our new stop loss at $13.24, which is under TER's 50-dma.

Picked on August 16 at $13.53
Change since picked: + 0.37
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.4 million

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XTO Energy - XTO - close: 46.60 chg: -0.51 stop: 45.90 *new*

Crude oil and gas futures both turned lower again today. That sent the oil and energy stocks sliding. Shares of XTO fell just over 1% but managed to bounce from short-term support near $46.00. We're adjusting our stop loss to $45.90. We're not suggesting new plays at this time.

Picked on August 22 at $46.70
Change since picked: - 0.10
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume: 3.7 million
 

Short Play Updates

Black Box - BBOX - close: 38.94 change: +0.64 stop: 40.26

A strong rally in tech stocks including a 1.8% rebound in the NWX networking index helped fuel a 1.6% bounce in shares of BBOX. We suspect this is just an oversold bounce/relief rally in the stock. However, shares could easily rebound toward the $40 level before encountering any significant resistance. We're not suggesting new plays at this time.

Picked on August 27 at $38.25
Change since picked: + 0.69
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 243 thousand

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Brookefield Homes- BHS - close: 23.74 chg: -0.12 stop: 24.55

The major homebuilding indices turned in a flat session. That left shares of BHS to bounce around its $23.00-24.00 trading range. We are not suggesting new plays at this time. Wait for a new decline under $23.00. 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 25 at $22.99
Change since picked: + 0.75
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 497 thousand

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Portfol.Recov.Assoc. - PRAA - cls: 39.79 chg: +0.25 stop: 41.65

The oversold bounce in PRAA continued for a second day but shares failed to breakout over round-number resistance at $40.00. Watch for a failed rally near $40 or its simple 10-dma (near $40.18) as a potential entry point for new shorts. Our target is the $36.00-35.00 range.

Picked on August 24 at $39.49
Change since picked: + 0.30
Earnings Date 08/02/06 (confirmed)
Average Daily Volume: 166 thousand
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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