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Long Play Updates

Arch Coal - ACI - close: 32.13 change: -0.73 stop: 29.99

Most of the market suffered some profit taking on Tuesday. Coal stocks were not exception. Actually the coal industry was probably a big target for profit taking after the recent run up. ACI pulled back to the $32.00 level and then spent the rest of the session consolidation sideways in a narrow 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: + 1.81
Earnings Date 10/20/06 (confirmed)
Average Daily Volume: 3.5 million

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BJ Services - BJS - close: 30.13 change: -0.21 stop: 28.99

A pull back in crude oil futures on Tuesday prompted some profit taking in the energy stocks after yesterday's surge higher. Traders bought the dip in BJS near $29.50. Aggressive traders might want to use today's bounce as a new entry point to go long. We're still waiting for a breakout over with a trigger to open positions at $30.55. 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: 48.60 change: +0.01 stop: 46.85

Shares of BUD showed some resilience on Tuesday. The stock dipped toward $48 midday but managed to bounce back into the green. We're going to raise our stop loss to $47.45 after today's show of strength. We're not suggesting new positions at this time. Our target is the $49.90-51.00 range. Remember we don't want to hold over the late October earnings report.

Picked on October 10 at $48.21
Change since picked: + 0.39
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 2.6 million

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D.R.Horton - DHI - close: 23.54 change: -0.48 stop: 22.99

If we don't see some sign of strength in DHI soon we're going to drop it as a bullish candidate. We're a little surprised the group was so weak today. The latest homebuilders confidence index actually ticked higher after eight months of losses. Currently we're suggesting a trigger to go long 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: 29.86 chg: -0.46 stop: 27.99

DNR is another oil stock that suffered some profit taking after Monday's rally. Traders can choose to buy the dip or watch for a bounce in the $29.00-29.50 region. More conservative traders may want to wait for a new relative high above $30.46. 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: - 0.40
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume: 826 thousand

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IAC/InterActive - IACI - close: 29.51 change: -0.09 stop: 28.69

Shares of IACI are oscillating sideways. The lack of strength and volume after the recent bounce makes us cautious. We're not suggesting new positions. More conservative traders may want to tighten their stops toward $29.00. 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: - 0.22
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 2.2 million

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Intl. Game Tech. - IGT - cls: 41.57 chg: -0.22 stop: 40.95

We came really close to being stopped out today. Traders bought the dip near $41.00 but the intraday low was $40.96. Unfortunately, the afternoon rebound seemed to stall under the $42 level. We're not suggesting new positions and more conservative traders may want to think again about exiting early right here! 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: + 1.31
Earnings Date 11/07/06 (confirmed)
Average Daily Volume: 2.2 million

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Ingersoll-Rand - IR - close: 40.90 chg: -0.31 stop: 38.75

Traders bought the dip at the $40.00 level on Tuesday and the bounce looks like a new bullish entry point to go long. More conservative traders may want to raise their stops toward the $40 level. Don't forget that we do not want to hold over the October 27th earnings report. Our short-term target is the $43.00-43.50 range.

Picked on October 08 at $40.20
Change since picked: + 0.70
Earnings Date 10/27/06 (confirmed)
Average Daily Volume: 2.8 million

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Kinetic Concepts - KCI - cls: 32.68 chg: -0.32 stop: 31.49

Last week traders bought the dip in KCI near $31.95. Today the low was $31.91. The bounce from its lows today looks like a new entry point to go long but more conservative traders may want to tighten their stops even further. There was no follow through in the stock price on the positive FDA news for KCI's V.A.C. technology. 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: - 0.67
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume: 1.4 million

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Newfield Expl. - NFX - close: 39.68 chg: -1.19 stop: 37.99

Most of the energy sector suffered some profit taking today but the selling in NFX was stronger than its peers. The stock lost 2.9% on below average volume. The dip back toward $39 (the low was 39.27) looked like a potential entry point. However, we are not suggesting new plays at this time. Right after the closing bell tonight the company lowered its fiscal year 2006 production outlook. The stock was trading lower near $38.50 in after hours on the news. We can probably expect a gap down tomorrow morning. Double-check your stop loss placement. We do not want to hold over the October 26th earnings report.

Picked on October 16 at $40.26
Change since picked: - 0.58
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 1.6 million

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Palm Inc. - PALM - close: 16.53 chg: +0.14 stop: 15.49 *new*

PALM showed some relative strength today. Traders bought the dip near $16.00 on Tuesday morning and the stock rallied into the green this afternoon. The move looks like a new entry point to go long but we're still feeling a little cautious since the market's profit taking may not be over yet. Please note we're going to raise our stop loss to $15.49 and more conservative traders may want to adjust their stop toward the $15.90 region. Our target is the $17.90-18.00 range. 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: + 0.31
Earnings Date 12/20/06 (unconfirmed)
Average Daily Volume: 4.0 million

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PDL BioPharma - PDLI - close: 20.26 chg: -0.19 stop: 18.69

Initially we were disappointed that PDLI didn't follow the BTK biotech index higher on Tuesday. The BTK sector index rose 2.4% making it the best performing sector today. Unfortunately, the BTK's strength was due to one of its components - ICOS. Shares of ICOS rose over 16% after news was announced that Eli Lilly was going to buy ICOS for $2.1 billion. We would still consider PDLI a bullish candidate with the stock over $20.00 but traders can choose to try and time an entry near $20.00 or wait for a new relative high over $20.60. 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: + 0.15
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 1.3 million

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Titanium Metals - TIE - close: 29.21 chg: +0.13 stop: 27.99 *new*

TIE displayed some relative strength on Tuesday. The stock gapped lower but traders bought the dip near $28.00 and shares rebounded back into the green. We're not suggesting new positions at this time. Our target is the $29.90-30.00 range. More conservative traders may want to consider locking in a gain right now. We don't want to hold over the October 23rd earnings report (still an unconfirmed date). FYI: We are raising our stop loss to $27.99.

Picked on October 11 at $27.01
Change since picked: + 2.20
Earnings Date 10/23/06 (unconfirmed)
Average Daily Volume: 4.3 million

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W&T Offshore - WTI - close: 31.88 chg: -0.36 stop: 29.75

Oil stocks suffered some profit taking on Tuesday thanks to a pull back in crude oil futures. WTI lost 1.1% but that's really not that bad after the stock's big gains over the last few days. More conservative traders may want to exit early as WTI nears $33.00 to lock in a gain. Our target is the $34.00-35.00 range.

Picked on October 13 at $30.21
Change since picked: + 1.67
Earnings Date 11/09/06 (unconfirmed)
Average Daily Volume: 534 thousand

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Olympic Steel - ZEUS - close: 27.33 change: -0.59 stop: 25.95

ZEUS was no exception to the profit taking in metal stocks on Tuesday. However, if you're the optimistic type then today's bounce near its 50-dma looks like a new entry point to go long the stock. 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: - 0.01
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 205 thousand
 

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