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Long Play Updates

ACADIA - ACAD - close: 8.97 chg: +0.32 stop: 7.99

We have been triggered in ACAD at $8.85. Biotech stocks continued to make headway and shares of ACAD turned in a strong session adding 3.69%. Today's move was a bullish breakout over resistance at the $8.80 level and was also a breakout from its five-week consolidation pattern. Now that the play is open our target is the $9.95-10.00 range.

Picked on October 05 at $ 8.85
Change since picked: + 0.12
Earnings Date 11/10/06 (unconfirmed)
Average Daily Volume: 225 thousand

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TD Ameritrade - AMTD - close: 19.61 change: +0.08 stop: 18.23

AMTD is still making headway. The stock out performed the banking indices but trailed the XBD broker-dealer index's 0.5% gain. We're encouraged by the intraday bounce from the $19.30 level. Our target is the $21.00 mark. We do expect some resistance near $20.00, at least on the initial test. We don't want to hold over the October 24th earnings report.

Picked on October 04 at $19.26
Change since picked: + 0.34
Earnings Date 10/24/06 (confirmed)
Average Daily Volume: 5.3 million

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Anheuser-Busch - BUD - close: 47.23 change: -0.60 stop: 46.85

BUD failed to see any follow through on yesterday's bullish bounce higher. The stock remains inside its five-week trading range. We're waiting on a breakout over resistance near the 50-dma overhead. Our trigger to go long is at $48.21. If triggered our target is the $49.90-51.00 range. The $50.00 mark is round-number psychological resistance and historical resistance but the top of BUD's channel is a lot higher.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 2.6 million

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IAC/InterActive - IACI - close: 29.67 change: -0.06 stop: 28.69

A little bit of profit taking is not a surprise after yesterday's strong performance in IACI. We are more encouraged by today's intraday double-bottom at the $29.40 level. This looks like another entry point. Readers can choose to open positions here or wait for a dip back toward the $29.00 region. Normally we would expect resistance at the $30.00 level but if you look at the stock's weekly chart you can see that the line of resistance is about $31.50. We're setting a target in the $31.40-31.50 range. We do not want to hold over the late October earnings report.

Picked on October 04 at $29.73
Change since picked: - 0.06
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Intl. Game Tech. - IGT - close: 42.47 chg: +0.63 stop: 39.49

IGT is showing relative strength with a 1.5% gain and a new two-year high today. The intraday high at $43.00 looks like an error/bad tick. If you look at the intraday chart we don't see IGT trading over $42.55. The trend remains bullish. Our target is the $44.00-45.00 range. We do not want to hold over the early November earnings report.

Picked on September 17 at $40.26
Change since picked: + 2.21
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 2.2 million

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McAfee - MFE - close: 25.72 chg: +0.82 stop: 23.99

Our new play in MFE is now open. The stock rallied strongly today adding almost 3.3% on strong volume to breakout over resistance at the $25.00 level. We had a suggested trigger to go long at $25.20. Now that the play is open our target is the $27.25-27.50 range. We do not want to hold over the late October earnings report.

Picked on October 05 at $25.20
Change since picked: + 0.52
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 1.9 million

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PDL BioPharma - PDLI - close: 20.10 chg: +0.35 stop: 18.69

Our new play in PDLI is now open. Biotech stocks continued to rally and PDLI broke out over significant resistance at the $20.00 level. Our trigger to go long was at $20.11. Now that the play is open our target is the $22.25-22.50 range. We do not want to hold over the early November earnings report.

Picked on October 05 at $20.11
Change since picked: - 0.01
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 1.3 million

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Swift Transport. - SWFT - cls: 25.14 chg: +0.08 stop: 22.95*new*

After yesterday's big gain the rally in SWFT stalled a bit. It didn't help that crude oil futures were bouncing. So far SWFT is holding on to the $25.00 level, which should offer round-number support. However, if there is any profit taking in the transportation sector we'd expect SWFT to dip back towards the $24.50 or $24.00 level. We're going to raise our stop loss to $22.95. Our target is the $26.75-27.00 range. FYI: The company's recent earnings guidance was not that positive yet the stock failed to decline on the bad news. That suggests that any bad news may already be in the stock price.

Picked on October 03 at $23.88
Change since picked: + 1.26
Earnings Date 10/25/06 (confirmed)
Average Daily Volume: 1.4 million

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Short Play Updates

Cerner - CERN - close: 46.01 change: +0.53 stop: 46.05

CERN continues to bounce thanks in part to some positive analyst comments today. Another gain in the networking index didn't hurt the stock either. So far we're still waiting for a breakdown under support at the $44.00 level. If CERN doesn't show some weakness soon we'll abandon our strategy for a later date. Our trigger to short CERN is at $43.90. FYI: Traders should also note that the latest (September) data puts short interest at 14% of the stock's 64.2 million-share float. That is a relatively high-degree of short interest and increases the risk of a short squeeze.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume: thousand

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Closed Long Plays

None Today.

Closed Short Plays

Commercial Metals - CMC - close: 21.30 chg: +1.15 stop: 20.76

We have been stopped out of CMC at $20.76. Commodities were strong today. Oil, gold, copper posted gains and it looked like this inspired some buying in the steel sector too. The stock posted a sharp 5.7% gain on above average volume.

Picked on September 21 at $19.90
Change since picked: + 1.40
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume: 1.5 million

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Linear Tech. - LLTC - close: 32.09 chg: +0.09 stop: 32.41

The semiconductor sector under performed the market today but shares of LLTC were still inching higher. Today's close over $32.00 in LLTC looks like another warning sign and we're suggesting an early exit to cut our losses!

Picked on September 25 at $31.79
Change since picked: + 0.27
Earnings Date 10/17/06 (unconfirmed)
Average Daily Volume: 4.0 million

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