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Long Play Updates

BJ Services - BJS - close: 31.55 change: +1.41 stop: 28.99

A rebound in crude oil futures fueled a nice bounce in the energy stocks. Oil services did well and shares of BJS rose 4.6% on above average volume, which is bullish - as is the close over resistance near $30.50. The rally this afternoon did stall at its 50-dma so we might see a dip tomorrow. A pull back into the $30.50-31.00 region could be used as a new entry point. Our target is the $33.50-34.00 range. We do not want to hold over the October 31st earnings report.

Picked on October 19 at $30.55
Change since picked: + 1.00
Earnings Date 10/31/06 (confirmed)
Average Daily Volume: 5.5 million


Chipotle Mex.Grill - CMG - close: 57.70 chg: +1.30 stop: 53.74

Our new bullish play in CMG is off to a decent start. The stock added 2.3% and is challenging the October highs. Our only concern was the lack of volume. Our short-term target is the $59.90-60.00 range. More aggressive traders may want to aim higher but we plan to exit ahead of the October 31st earnings report. We're placing the stop just under Friday's low.

Picked on October 23 at $56.40
Change since picked: + 1.30
Earnings Date 10/31/06 (confirmed)
Average Daily Volume: 900 thousand


D.R.Horton - DHI - close: 23.58 change: +0.56 stop: 22.99

Homebuilders managed a bounce on Tuesday and shares of DHI rebounded from support near $23.00. Aggressive traders might want to consider long positions here with a stop under Monday's low but we're waiting for a breakout over resistance near $25.50. We're suggesting a trigger to go long at $25.51.

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


Denbury Resources - DNR - cls: 29.33 chg: +0.32 stop: 27.99

DNR is another oil stock that bounced with today's strength in crude oil futures. Unfortunately, the stock seemed to lag behind some of its peers. Readers can use today's bounce as a new entry point or wait for a breakout over $30.00 and its 200-dma (again) before going long. 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: - 0.93
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume: 826 thousand


Kinetic Concepts - KCI - cls: 33.57 chg: -1.05 stop: 32.65

Ouch! KCI erased all of yesterday's gains with a 3% sell-off on very low volume today. We were a little concerned that the $35 level might offer resistance, which is why we suggested that more conservative traders lock in a gain. More conservative traders may want to tighten their stops even higher. We're planning to exit on Thursday afternoon at the closing bell to avoid the earnings announcement. Our target is the $36.00-37.00 range.

Picked on October 08 at $33.35
Change since picked: + 0.22
Earnings Date 10/27/06 (confirmed)
Average Daily Volume: 1.4 million


PDL BioPharma - PDLI - close: 20.45 chg: -0.05 stop: 19.94

Our bullish play in PDLI is not panning out yet. The stock has been stuck consolidating sideways above the $20.00 level. Today's intraday bounce from $20.16 looks like another entry point to go long but we hesitate to suggest new positions consider PDLI's lack of upward momentum. We have less than two full weeks before we plan to exit to avoid holding over PDLI's earnings report. Our target is the $22.25-22.50 range.

Picked on October 05 at $20.11
Change since picked: + 0.37
Earnings Date 11/02/06 (confirmed)
Average Daily Volume: 1.3 million


W&T Offshore - WTI - close: 33.36 chg: +1.24 stop: 30.21

WTI is another oil stocks that produced a strong session thanks to a rebound in oil futures. Shares of WTI rose more than 3.8% and broke out over resistance near $33.00, its 100-dma and its exponential 200-dma. Today's move definitely looks bullish and the stock appears poised for more gains but more conservative traders may want to take some money off the table. Our target is the $34.00-35.00 range.

Picked on October 13 at $30.21
Change since picked: + 3.15
Earnings Date 11/09/06 (unconfirmed)
Average Daily Volume: 534 thousand


Zale Corp. - ZLC - close: 27.97 chg: -0.10 stop: 27.49

We want to reiterate yesterday's caution on ZLC. The stock has produced two failed rallies in two days at the simple 10-dma. That's not a sign of strength. If you did enter on the initial rise over $28.25 or today's rally attempt you may just want to exit early and keep your losses to a minimum. ZLC did manage a bounce from its rising 50-dma but the technical picture is growing more bearish. We're keeping the play open because the bullish trend is still intact for now but if it breaks down we'll be stopped out quickly at $27.49. We do expect some resistance at $29.00 so be prepared for a pull back. FYI: The Point and Figure chart for ZLC forecasts a $37 target.

Picked on October 23 at $28.26
Change since picked: - 0.29
Earnings Date 11/30/06 (unconfirmed)
Average Daily Volume: 376 thousand

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