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Long Play Updates

Brookfield Asset Mgt. - BAM - cls: 46.19 chg: +0.23 stop: 42.95*new*

BAM is still pushing higher but the rally seemed to struggle today. The next move might be a dip back toward the rising 10-dma. We're going to raise our stop loss to $42.95. Our target is the $49.00-50.00 range. Our time frame is three to five weeks.

Picked on August 22 at $44.82
Change since picked: + 1.37
Earnings Date 08/03/06 (confirmed)
Average Daily Volume: 393 thousand

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eBay Inc. - EBAY - close: 28.68 chg: +0.53 stop: 25.95

EBAY came relatively close of hitting our target today. The intraday high was $28.98 and our target is the $29.25-29.50 range. Volume fell back to normal levels on today's rally. Speaking of the rally EBAY (+1.88%) out performed its peers in the INX Internet index (-0.15%). We are not suggesting new plays at this time.

Picked on August 24 at $26.25
Change since picked: + 2.43
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 19.6 million

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Elk Corp. - ELK - close: 28.60 change: +0.19 stop: 25.80

ELK continues to march higher. The stock added another 0.66%. Volume has dropped off the last two sessions and we suspect that ELK is due for a pull back. Our target is the $29.75-30.00 range. More conservative traders may want to raise their stops. We are not suggesting new positions at this time.

Picked on August 22 at $27.10
Change since picked: + 1.50
Earnings Date 08/17/06 (confirmed)
Average Daily Volume: 245 thousand

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Lucent Tech. - LU - close: 2.35 change: +0.01 stop: 2.19

Both ALA and LU gapped lower this morning but traders bought the dip in both stocks. The rebound in LU appears to have produced a bullish engulfing candlestick pattern. You'll also notice that LU managed to bounce from its rising 10-dma. We're not suggesting new positions at this time and more conservative traders may want to tighten their stops. This coming week will see ALA shareholders vote on the LU merger on September 7th. Our target for LU is $2.50.

Picked on August 20 at $ 2.31
Change since picked: + 0.04
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 42 million

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Mittal Steel - MT - close: 34.75 chg: +0.27 stop: 32.49

The metal and steel-related stocks continued to see a sector-wide rally on Monday. Unfortunately, MT seemed to under perform most of its peers. The stock broke out over resistance at $35.00 on an intraday basis but failed to hold its gains. The high today was $35.09 so we're still on the sidelines with a trigger to go long at $35.26. If triggered our target is the $39.50-40.00 range. We do not want to hold over the early November earnings report. FYI: The Point & Figure chart is bullish with a $47 target.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume: 3.2 million

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Maxim Integrated - MXIM - close: 30.07 chg: +1.18 stop: 27.95

Investors came back from the long, holiday weekend and decided to buy some semiconductor stocks. The SOX added 1.6% yet shares of MXIM out performed its peers with a 4% gain. The rally today looks like a rebound from a test of the top edge of its broken bearish channel. We see today's move over $30.00 as a new bullish entry point to go long the stock. However, we're going to stick to our plan with a trigger at $30.15. 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: 18.01 chg: +0.39 stop: 15.95

NITE displayed some relative strength with a 2.2% gain on Tuesday. The most encouraging part of today's gain was the improvement in volume. Traders can choose to open positions here or look for a dip back towards $17.00. Our target is the $19.85-20.00 range. Currently the P&F chart points to a $25 target.

Picked on August 22 at $17.36
Change since picked: + 0.65
Earnings Date 07/18/06 (confirmed)
Average Daily Volume: 1.5 million

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Novellus - NVLS - close: 27.73 change: +0.18 stop: 25.95

This morning before the opening bell NVLS was downgraded by an analyst firm. The downgraded prompted shares of NVLS to gap open lower. Fortunately, traders bought the dip near $27.00 and pushed shares back into the green with the help of a rally in the semiconductor sector. We're not suggesting new plays at this time although the rebound could be used as a new entry point. Our target remains the $29.50-30.00 range.

Picked on August 16 at $26.65
Change since picked: + 1.08
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.8 million

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Steel Dynamics - STLD - close: 56.12 change: +1.64 stop: 49.99

The sector-wide rally in steel stocks continued on Tuesday. Shares of STLD added another 3% on average volume. The stock did stall under its 50-dma so the next move might be a dip back toward $54.00-54.50 that traders can use as another entry point. Our target is the $59.00-60.00 range. We do not want to hold over the October earnings report.

Picked on September 03 at $54.48
Change since picked: + 1.64
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume: 1.5 million

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Stereotaxis - STXS - cls: 10.78 change: -0.08 stop: 9.99

We are not suggesting new positions in STXS and we don't see any changes from our weekend update. We would expect STXS to dip toward the 200-dma near $10.50 and potentially back to the $10.00 level. 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: + 0.47
Earnings Date 08/09/06 (unconfirmed)
Average Daily Volume: 272 thousand

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Teradyne - TER - close: 13.82 change: +0.10 stop: 13.24

TER under performed its peers in the semiconductor sector on Tuesday. However, traders did step in to buy the dip near support around $13.50. Today's afternoon rebound could be used as a new bullish entry point to go long the stock. Currently our target is the $14.75-15.00 range.

Picked on August 16 at $13.53
Change since picked: + 0.29
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume: 2.4 million
 

Short Play Updates

Black Box - BBOX - close: 38.88 change: +0.49 stop: 40.06

Tuesday's rally in technology stocks helped BBOX bounce to the tune of +1.2%. Yet we don't really see any changes from our weekend update. We are suggesting new shorts with BBOX under $39.00 but more conservative traders may want to wait for a new relative low under $37.80 before opening positions. Our target is the $35.25-35.00 range.

Picked on August 27 at $38.25
Change since picked: + 0.63
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 243 thousand

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BCE Inc. - BCE - close: 24.74 change: +0.01 stop: 25.26

Our new trading range play in BCE still looks good. The stock dipped toward $24.50 before bouncing but the bounce began to fail this afternoon after testing its (broken) 10-dma. We see this as a new entry point to short the stock. Our target is not the far edge of its range but what looks like intermediate support at $23.25. We'll actually use a target range of $23.35-23.25.

Picked on September 03 at $24.73
Change since picked: + 0.01
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume: 225 thousand

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Brookefield Homes- BHS - close: 23.70 chg: -0.10 stop: 24.45

There is no change from our weekend update on BHS. The homebuilders are still churning sideways and BHS is still trading inside its $24-23 trading range. We are not suggesting new plays at this time although traders might want to reconsider if BHS drops to a new low. We are seriously considering an early exit to cut our losses. 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: + 0.71
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 497 thousand

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Hormel Foods - HRL - close: 36.40 chg: -0.49 stop: 37.25

HRL under performed the market on Tuesday. The stock produced a dramatic failed rally at the $37.00 level this morning and shares closed with a 1.3% decline on average volume. The move looks like another entry point to short the stock. We're only looking for a short-term decline toward technical support near its 200-dma. We'll put a stop loss above the recent bearish reversal and target the $35.00-34.50 range.

Picked on August 31 at $36.65
Change since picked: - 0.25
Earnings Date 11/23/06 (unconfirmed)
Average Daily Volume: 331 thousand

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Portfol.Recov.Assoc. - PRAA - cls: 40.06 chg: -0.06 stop: 41.65

It was not very impressive but PRAA another failed rally in its consistent pattern of lower highs. We would wait for another decline under $39.50 before considering new plays. More conservative traders might want to tighten their stops toward $41.00. Currently our target is the $36.00 level.

Picked on August 24 at $39.49
Change since picked: + 0.57
Earnings Date 08/02/06 (confirmed)
Average Daily Volume: 166 thousand
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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