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Long Play Updates

PDL BioPharma - PDLI - close: 21.20 chg: +0.07 stop: 20.65*new*

PDLI is still inching higher. Unfortunately, we're out of time. Tomorrow is our last day and we plan to exit at the closing bell to avoid holding over PDLI's earnings report due out Thursday night. More conservative traders may want exit immediately since the stock tagged potential technical resistance at its exponential 200-dma this morning and then turned lower. We are inching up our stop loss to $20.65.

Picked on October 05 at $20.11
Change since picked: + 1.09
Earnings Date 11/02/06 (confirmed)
Average Daily Volume: 1.3 million

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Simpson Mfg. - SSD - close: 27.70 chg: -0.69 stop: 27.99

We still see no changes from our previous updates on SSD. At this moment we're waiting for a breakout over resistance at the $30.00 level (and its 100-dma). If triggered at $30.15 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
 

Short Play Updates

Allstate - ALL - close: 61.04 chg: -0.32 stop: 62.11

Our new short play in ALL is now open. It looks like we may have put the trigger to high. The stock bounced twice from the $60.95 level today, which happened to be our suggested entry point to open short positions. The move today still looks bearish with the failed rally near its 10-dma but more conservative traders may want to wait for a decline under $60.85 (under its 50-dma) before opening positions. Our target is the $58.15-58.00 range.

Picked on November 01 at $60.95
Change since picked: + 0.09
Earnings Date 10/18/06 (confirmed)
Average Daily Volume: 2.4 million

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INVACARE - IVC - close: 21.39 change: -0.44 stop: 23.11

So far so good. IVC lost another 2% setting another new relative low. Our only concern would be the lack of volume behind the move. More conservative traders may want to think about tightening their stops a bit. 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: - 0.59
Earnings Date 10/26/06 (confirmed)
Average Daily Volume: 209 thousand

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Rambus Inc. - RMBS - close: 16.14 change: -0.42 stop: 17.25

RMBS continues to look vulnerable. The stock lost 2.5% and traded near support at the $16.00 level today. We want to short a breakdown under $16.00 so we're suggesting 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: 29.97 change: -0.21 stop: 32.05

Entry point alert. TXN produced another failed rally today and closed under round-number support at the $30.00 mark. Traders can use this as a new entry point for shorts or wait for our previous suggested entry for a decline under $29.90 to open plays. 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: + 0.07
Earnings Date 10/23/06 (confirmed)
Average Daily Volume: 14.8 million
 

Closed Long Plays

Randgold Res. - GOLD - close: 22.89 chg: +0.22 stop: 21.65

Shares of GOLD continued to out perform on Wednesday but the stock closed off its best levels of the session. It was our plan to exit on Wednesday at the closing bell to avoid the company's earnings report due out tomorrow.

Picked on October 25 at $22.35
Change since picked: + 0.54
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 369 thousand
 

Closed Short Plays

None
 

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