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Long Play Updates

Arch Coal - ACI - close: 32.86 change: +1.80 stop: 29.99

ACI produced a strong rally today adding 5.7% and breaking out past its 50-dma. Shares also cleared minor resistance at the $32.00 level. Our target is the $34.00-35.00 range. We would not consider new positions at this time. ACI is due to report earnings on Friday morning. Thus we plan to exit on Thursday at the closing bell to avoid holding over the report.

Picked on October 10 at $30.32
Change since picked: + 2.54
Earnings Date 10/20/06 (confirmed)
Average Daily Volume: 3.5 million

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BJ Servies - BJS - close: 30.34 change: +0.83 stop: 28.99

News that OPEC has called an emergency meeting to discuss how they can stop the decline in oil helped prop up oil prices today. A big jump (+14%) in natural gas also spurred more strength in energy stocks. Shares of BJS spiked lower at the open but quickly reversed and closed with a 2.8% gain. More aggressive traders might want to open positions now with the close over $30.00. We're suggesting traders use a trigger at $30.55 to open positions. If triggered our target is the $33.50-34.00 range. We do not want to hold over the October 31st earnings report. FYI: The P&F chart is still bearish. Be advised that BJS is an oil services company and the oil services sector tends to be more volatile than the rest of the oil sector.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/06 (confirmed)
Average Daily Volume: 5.5 million

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Anheuser-Busch - BUD - close: 48.59 change: +0.58 stop: 46.85

There was renewed talk of a leveraged buyout for BUD on Monday and the stock rose 1.2% on the session with volume coming in above average. The move over $48.00 (and our old trigger at $48.21) could be used as a new entry point to go long but we'd suggest a tighter stop loss. Our target is the $49.90-51.00 range.

Picked on October 10 at $48.21
Change since picked: + 0.38
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 2.6 million

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D.R.Horton - DHI - close: 24.02 change: +0.13 stop: 22.99

Homebuilding stocks just sort of flopped around on Monday in spite of positive talk that the sector may have bottomed and a couple of upgrades in the industry. We don't see any changes from our previous update. Our strategy will still work so we're suggesting a trigger to buy the stock at $25.51. If triggered at $25.51 our target is the $29.00-30.00 range although more conservative traders may want to exit at the 200-dma currently near 28.38.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/14/06 (confirmed)
Average Daily Volume: 4.1 million

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Denbury Resources - DNR - cls: 30.32 chg: +1.05 stop: 27.99

DNR turned in a very positive session on Monday with a 3.5% gain. DNR is another oil company and the stock rose thanks to the jump in crude oil, natural gas and the OPEC news. We wanted to see a breakout over resistance at $30.00 and its 50-dma and 200-dma and we got it. Our suggested trigger to go long was at $30.26 so the play is now open. Our target is the $33.00-34.00 range. We do not want to hold over the early November earnings report.

Picked on October 16 at $30.26
Change since picked: + 0.06
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume: 826 thousand

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IAC/InterActive - IACI - close: 29.60 change: +0.10 stop: 28.69

IACI is still creeping higher but we remain skeptical. We're not suggesting new positions at this time. Our target is 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: - 0.13
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Intl. Game Tech. - IGT - cls: 41.79 chg: -0.21 stop: 40.95

Caution! Over the weekend we warned readers that IGT look poised to turn lower. The stock did under perform on Monday and shares lost about 0.5%. The move produced a new MACD sell signal on the daily chart. We're expecting a dip toward $41.00. If you don't want to endure the pull back then consider exiting early right now. 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: + 1.53
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Ingersoll-Rand - IR - close: 41.21 chg: +0.94 stop: 38.75

IR turned in a strong session. The stock spiked higher to breakout over technical resistance at its 200-dma early this morning. After the initial surge shares just consolidated sideways. IR closed with a 2.3% gain. The move over the 200-dma looks like a new entry point. Bear in mind that we do not want to hold over the October 27th earnings report. Our short-term target is the $43.00-43.50 range. Please note that we're adjusting our stop loss to $38.75.

Picked on October 08 at $40.20
Change since picked: + 1.01
Earnings Date 10/27/06 (confirmed)
Average Daily Volume: 2.8 million

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Kinetic Concepts - KCI - cls: 33.00 chg: +0.42 stop: 31.49

KCI continued to bounce on Monday adding 1.28% but volume came in pretty low. Tomorrow the stock looks poised to move higher. After the closing bell today KCI announced that the FDA had issued a favorable report on KCI's V.A.C. technology. The stock was trading higher after hours. We can probably expect a gap higher tomorrow morning. Our target is the $37.50-38.00 range. We do not want to hold over the late October earnings report.

Picked on October 08 at $33.35
Change since picked: - 0.35
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume: 1.4 million

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Newfield Expl. - NFX - close: 40.87 chg: +1.57 stop: 37.99

Our new play in NFX is now open. NFX is another oil stocks that benefited from the rise in oil and natural gas and the OPEC news. The stock shot higher past resistance at $40.00 and its 50-dma. We were suggesting a trigger to go long at $40.26. Our target is the $44.00-45.00 range. We do not want to hold over the October 26th earnings report.

Picked on October 16 at $40.26
Change since picked: + 0.61
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 1.6 million

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Palm Inc. - PALM - close: 16.39 chg: +0.13 stop: 14.99

We are still suggesting caution with PALM. The stock's bullish breakout last week is struggling to produce any follow through higher. A bounce near $16 could be used as a new entry point to go long. Our target is the $17.90-18.00 range near its 200-dma. More conservative traders might also want to use a stop loss closer to Thursday's low (15.51). We would consider this a higher-risk play. FYI: The P&F chart points to a $20 target.

Picked on October 12 at $16.22
Change since picked: + 0.17
Earnings Date 12/20/06 (unconfirmed)
Average Daily Volume: 4.0 million

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PDL BioPharma - PDLI - close: 20.45 chg: +0.07 stop: 18.69

There is no change from our previous updates on PDLI. The stock is still consolidating sideways but looks like it wants to breakout higher. We remain bullish and could continue to suggest new positions with the stock above $20.00. More conservative traders may want to consider tightening their stops toward last weeks low (19.95). 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: + 0.34
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 1.3 million

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Titanium Metals - TIE - close: 29.08 chg: +0.91 stop: 25.99

The rally in metal stocks continued on Monday. TIE added another 3.2%. Shares are very quickly nearing our target in the $29.90-30.00 range. More conservative traders may want to consider locking in a gain right now. We're not suggesting new positions. We don't want to hold over the October 23rd earnings report (still an unconfirmed date).

Picked on October 11 at $27.01
Change since picked: + 2.07
Earnings Date 10/23/06 (unconfirmed)
Average Daily Volume: 4.3 million

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W&T Offshore - WTI - close: 32.24 chg: +1.25 stop: 29.75 *new*

WTI is another oil stock that surged higher on Monday. The stock added another 4% on top of last week's gains. Shares are quickly approaching potential resistance near its 100-dma and exponential 200-dma around the $33.00 level. More conservative traders may want to exit early as WTI near $33.00 to lock in a gain. We're raising the stop loss to $29.75. Our target is the $34.00-35.00 range.

Picked on October 13 at $30.21
Change since picked: + 2.03
Earnings Date 11/09/06 (unconfirmed)
Average Daily Volume: 534 thousand

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Olympic Steel - ZEUS - close: 27.92 change: +0.58 stop: 25.95

We do not see any changes from our weekend play description on ZEUS. The rally in metal stocks continued on Monday and ZEUS added 2.12%. The stock is quickly approaching its exponential 200-dma at 28.19. We're suggesting long positions with ZEUS above $27.00. Our target is the $29.90-30.00 range, which is where we expect the stock to encounter resistance with its 200-dma and 100-dma. We do not want to hold over the October 26th (unconfirmed) earnings report.

Picked on October 15 at $27.34
Change since picked: + 0.58
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 205 thousand
 

Short Play Updates

None
 

Closed Long Plays

Acc. Home Lenders - LEND - cls: 33.70 chg: -1.38 stop: 34.95

A downgrade for LEND this morning sparked a spike lower and LEND broke down from its trading range. We're dropping the stock as a bullish candidate. Shares never hit our trigger to open positions.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 759 thousand
 

Closed Short Plays

None
 

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