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Long Play Updates

Brookfield Asset Mgt. - BAM - cls: 44.64 chg: +0.54 stop: 41.95

Entry point alert! BAM continues to rise following its bullish reversal on Monday. Today saw BAM dip back toward the $44 level but traders bought the dip. We see the bounce from $44 as a new entry point to go long. 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: - 0.18
Earnings Date 08/03/06 (confirmed)
Average Daily Volume: 393 thousand

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eBay Inc. - EBAY - close: 28.45 chg: +1.28 stop: 25.45*new*

The rally in EBAY continues. Shares added another 4.7% on Wednesday with strong volume powering the move. Today's session was also a bullish breakout past the mid-August highs. We are raising our stop loss to $25.45. Please note that we're also adjusting our target to $29.50-30.00 due to the descending 100-dma.

Picked on August 24 at $26.25
Change since picked: + 2.20
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 19.6 million

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Elk Corp. - ELK - close: 27.96 change: +0.57 stop: 25.80

ELK is showing more relative strength. The stock added over 2% and managed to close over technical resistance at its descending 100-dma. Our target is the $29.75-30.00 range.

Picked on August 22 at $27.10
Change since picked: + 0.86
Earnings Date 08/17/06 (confirmed)
Average Daily Volume: 245 thousand

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Lucent Tech. - LU - close: 2.38 change: +0.08 stop: 2.19 *new*

LU turned in a strong day. The stock gapped open higher and closed with a 3.4% gain. Believe it or not but the move in LU appeared to be fueled by news that a French advisory firm Proxinvest "urged Alcatel SA shareholders to vote against" the merger with LU. Shares of ALA rose just over 4% on the news (which would have lifted shares of LU). We are not suggesting new plays in LU at the moment. ALA looks short-term overbought. We are going to raise our stop loss to $2.19. 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: + 0.07
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 42 million

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Maxim Integrated - MXIM - close: 29.68 chg: +0.17 stop: 27.95

We're still waiting on MXIM. Yesterday the stock produced a very bullish breakout through the top of its bearish channel and technical resistance at its 50-dma. We were really expecting to see some follow through higher today. Instead MXIM dipped back to $28.91 before traders bought the dip and pushed shares back into the green. 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: 17.22 chg: +0.35 stop: 15.95

NITE produced a relatively strong 2% gain on Wednesday but shares struggled to breakout past the $17.30 level all day long. The next move could be another dip lower. 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: - 0.14
Earnings Date 07/18/06 (confirmed)
Average Daily Volume: 1.5 million

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Novellus - NVLS - close: 27.75 change: +0.24 stop: 25.95

Volume continued to rise on Wednesday as investors placed their bets ahead of NVLS' mid-quarter update that occurred after the closing bell today. The company reaffirmed its sales and profit outlook and it was enough to spark some new buying in after hours markets. NVLS was trading above $28.00 so shares could see a gap higher tomorrow. 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: + 1.10
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.8 million


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Stereotaxis - STXS - cls: 11.18 change: +0.19 stop: 9.99

STXS' bounce from technical support yesterday continued into Wednesday's session but the rally stalled around $11.50. We are not suggesting new positions at this time. 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: + 0.87
Earnings Date 08/09/06 (unconfirmed)
Average Daily Volume: 272 thousand

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Teradyne - TER - close: 14.20 change: +0.30 stop: 13.24

Good news! Another strong day for semiconductor stocks helped propel shares of TER through resistance at the $14.00 level. The stock looks poised to move higher. Our only concern is potential resistance at its 100-dma and exponential 200-dma near $14.50. More conservative traders might want to lock in profits as TER nears $14.50. Currently our target is the $14.75-15.00 range.

Picked on August 16 at $13.53
Change since picked: + 0.67
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.4 million
 

Short Play Updates

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

We may be in trouble here with BBOX. The NWX networking index posted its fourth gain in a row and hit new relative highs. Most of the tech sectors were also higher today. This is inspiring new buying or short covering in BBOX and the stock produced a bullish engulfing candlestick pattern. Normally these patterns, when found at the bottom of a trend, tend to be seen as a bullish reversal pattern. More conservative traders may want to tighten their stops (maybe near $39.50) to reduce their risk. We are not suggesting new plays. Our stop is at $40.26.

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: 23.31 chg: -0.43 stop: 24.55

The housing sector continues to trade sideways waiting for the next clue that might suggest the Fed truly is done raising rates or not. Currently BHS is still trading in a bearish trend of lower highs but unable to see any follow through below support near $23.00. 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: + 0.32
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 497 thousand

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Portfol.Recov.Assoc. - PRAA - cls: 40.48 chg: +0.69 stop: 41.65

The oversold bounce in PRAA hit its third gain in a row on Wednesday. The close over $40.00 and its 10-dma could be bad news for the bears. More conservative traders might want to tighten positions toward $41. We are not moving our stop loss at this time. Wait for a new decline under $39.90 before considering new shorts. Our target is the $36.00-35.00 range.

Picked on August 24 at $39.49
Change since picked: + 0.99
Earnings Date 08/02/06 (confirmed)
Average Daily Volume: 166 thousand
 

Closed Long Plays

Goodyear Tire - GT - close: 13.45 chg: +0.23 stop: 11.99

Target achieved. Shares of GT continued to soar on Wednesday. The stock gapped open higher (at 13.45) and traded to an intraday high of $13.87 before paring its gains. Our target was the $13.75-14.00 range. If you failed to exit with us be careful. The stock's move today looks somewhat like a failed rally under potential resistance at $14.00 and its 200-dma.

Picked on August 28 at $12.35
Change since picked: + 1.10
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume: 2.9 million

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JDS Uniphase - JDSU - close: 2.63 change: -0.01 stop: 2.53

Time is up. It was our plan to exit today at the closing bell to avoid holding over the company's earnings report. It's a good thing we did. JDSU reported earnings that were inline but then management warned for the next quarter. Shares were trading in the $2.15-2.25 region in after hours.

Picked on August 16 at $ 2.50
Change since picked: + 0.13
Earnings Date 08/30/06 (confirmed)
Average Daily Volume: 42.3 million

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XTO Energy - XTO - close: 46.14 chg: -0.46 stop: 45.90

We have been stopped out of XTO at $45.90. Another day of profit taking in the oil sector pulled XTO under the $46.00 level. The intraday dip was a break below its three-month trendline of support.

Picked on August 22 at $46.70
Change since picked: - 0.56
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume: 3.7 million
 

Closed Short Plays

None
 

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