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Long Play Updates

Chipotle Mex.Grill - CMG - cls: 59.05 chg: +0.63 stop: 56.40

CMG set a new closing three-month high with today's 1% gain thanks to traders buying the dip this morning at $57.30. The stock is nearing our target and more conservative traders may want to exit early. Our target is the $59.90-60.00 range. We're planning to exit tomorrow at the closing bell anyway to avoid holding over the company's earnings report, which is expected after the closing bell on Tuesday. Wall Street is expecting CMG to turn in profits of 27 cents a share.

Picked on October 23 at $56.40
Change since picked: + 2.65
Earnings Date 10/31/06 (confirmed)
Average Daily Volume: 900 thousand

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D.R.Horton - DHI - close: 23.57 change: -0.18 stop: 22.99

There is no change from our previous updates on DHI. We're still waiting for a breakout over resistance at $25.50. Our suggested entry point to go long is at $25.51. Unfortunately, we're running low on time as we need to exit ahead of DHI's mid November earnings report. We would consider this an aggressive play even if DHI hits our trigger at $25.51 because our time frame is short and DHI will probably find technical resistance at the 200-dma nearing $27.50. Our target is the $29.00-30.00 range.

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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Randgold Res. - GOLD - close: 21.93 chg: +0.30 stop: 21.45*new*

Gold stocks were generally higher on Monday thanks to strength in gold futures. The XAU index rose 0.6%. Shares of GOLD added 1.3% but the stock closed off its best levels of the session. The move today actually looks a little bearish with a failed rally under $22.50. More conservative traders may want to exit early right here! We're raising our stop loss to $21.45. We're not suggesting new positions and plan to exit ahead of GOLD's earnings report on Nov. 2nd. (We're exiting on Wednesday at the closing bell).

Picked on October 25 at $22.35
Change since picked: - 0.44
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 369 thousand

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PDL BioPharma - PDLI - close: 20.81 chg: -0.07 stop: 20.39*new*

We only have a couple of more days on our PDLI play. The company is due to report earnings on November 2nd after the market's close. We're planning to exit that day at the closing bell. Due to our time frame we're not suggesting new positions. Please note that we're raising our stop loss to $20.39. Our target is the $22.25-22.50 range.

Picked on October 05 at $20.11
Change since picked: + 0.70
Earnings Date 11/02/06 (confirmed)
Average Daily Volume: 1.3 million

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Simpson Mfg. - SSD - close: 29.00 chg: +0.00 stop: 27.99

There was no change in shares of SSD on Monday and we do not see any changes from our weekend new play description. If SSD can trade over $30.00 it could spark more short covering. We're suggesting a trigger to go long the stock at $30.15. If triggered our target is the $34.00-35.00 range, under the 200-dma. Expect some resistance near $32.50.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (confirmed)
Average Daily Volume: 494 thousand

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W&T Offshore - WTI - close: 33.17 chg: +0.37 stop: 31.19

WTI displayed some relative strength on Monday. Most of the oil stocks were down thanks to a decline in crude oil futures. Yet shares of WTI added 1.1%. We're not suggesting new positions at this time. More conservative traders might want to lock in a profit right now with shares up nearly 10%. Our target is the $34.00-35.00 range.

Picked on October 13 at $30.21
Change since picked: + 2.96
Earnings Date 11/09/06 (confirmed)
Average Daily Volume: 534 thousand
 

Short Play Updates

INVACARE - IVC - close: 21.79 change: -0.46 stop: 23.11

Our play in IVC is now open. The stock continued to sell-off and shares lost 2% on strong volume. The big volume is bearish as is the breakdown under support near $22.00. We have been suggesting a trigger to short IVC at $21.94. Now that the play is open our target is the $20.05-20.00 range. More aggressive traders may want to aim lower.

Picked on October 30 at $21.94
Change since picked: - 0.15
Earnings Date 10/26/06 (confirmed)
Average Daily Volume: 209 thousand

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Rambus Inc. - RMBS - close: 16.63 change: +0.24 stop: 17.25

We do not see any change from our weekend new play description on RMBS. The stock managed a bounce on Monday, which was a reaction to strength in the semiconductor sector via an upgrade for KLAC. The overall pattern in RMBS is unchanged. We want to short a breakdown under support at $16.00. We'll suggest a trigger to open positions at $15.90. If triggered our target is the $12.50 level. More aggressive traders may want to aim for the August lows closer to $10.00. Be advised that RMBS is very active in various legal battles over patents and intellectual property and bears (and bulls) are constantly at risk for an unexpected headline sending the stock surging one way or the other. More conservative traders may want to avoid this play.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (confirmed)
Average Daily Volume: 9.7 million

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Texas Instruments - TXN - close: 30.16 change: +0.26 stop: 32.05

Semiconductor stocks rebounded on Monday after KLAC received an analyst upgrade. The SOX added 1.1% and shares of TXN closed with a 0.8% gain. TXN did close off its best levels of the session. We remain bearish and would use a new decline under $29.90 as another entry point to short the stock. Our target is the $27.50 mark. More conservative traders may want to adjust their stops toward the $31 level, which as broken support should act as new resistance.

Picked on October 27 at $29.90
Change since picked: + 0.26
Earnings Date 10/23/06 (confirmed)
Average Daily Volume: 14.8 million
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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