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Long Play Updates

A.G.Edwards - AGE - close: 57.95 change: +0.08 stop: 55.95

The broker-dealer stocks managed a bounce today but the rebound appeared timid compared to yesterday's painful losses. AGE managed a dip toward the $57.50 region before traders stepped in a bought the dip. This can be seen as a new bullish entry point to go long the stock but we're a little bit gun shy and would suggest waiting for a new rise over $58.30 before initiating new positions. Our target is the $62.50 level. The P&F chart has a quadruple-top breakout buy signal with a $70 target.

Picked on November 15 at $58.15
Change since picked: - 0.20
Earnings Date 12/21/06 (unconfirmed)
Average Daily Volume: 386 thousand

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ALON USA Ener. - ALJ - close: 29.55 chg: +0.48 stop: 27.75

ALJ did bounce from broken resistance at what should be new support at the $29.00 level. The stock closed with a 1.6% gain. The rise in the oil sectors is another positive here driven by gains in crude oil futures. Traders can choose to buy this bounce from $29 or wait for another breakout over $30.00 or a new relative high (above $30.40) before opening new long positions. Our target is the $33.50-34.00 range. Be aware that the 100-dma near $32 might offer some resistance. FYI: The P&F chart is still bearish after the August-September sell-off.

Picked on November 21 at $30.15
Change since picked: - 0.60
Earnings Date 11/07/06 (confirmed)
Average Daily Volume: 504 thousand

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Heinz - HNZ - close: 43.55 change: -0.11 stop: 42.99*new*

We are almost out of time with HNZ. Our plan is to exit tomorrow (Wednesday) at the closing bell to avoid the company's earnings report on Thursday. Given our time frame we're raising the stop loss to $42.99.

Picked on November 08 at $43.20
Change since picked: + 0.35
Earnings Date 11/30/06 (confirmed)
Average Daily Volume: 1.6 million

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Ladish Co - LDSH - close: 33.05 change: -0.06 stop: 32.99

There is no change from our previous update on LDSH. We are still sitting on the sidelines. It has been our plan to catch a breakout over $35.00 with a trigger to go long at $35.55. Unfortunately, the stock has struggled the last few days. If we don't see a bounce from $33 soon we'll drop LDSH as a bullish candidate.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/20/06 (confirmed)
Average Daily Volume: 241 thousand

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Pride Intl. - PDE - close: 31.16 change: +1.06 stop: 28.45

The rise in oil stocks and crude oil futures helped propel PDE to a 3.5% gain today. Traders used the dip toward $30 as a new entry point. Volume on today's rally was strong, which is definitely a bullish sign. Our target has been the $33.00-34.00 range. The P&F chart has reversed into a new buy signal that has seen its target grow from $41 to $44.

Picked on November 21 at $30.10
Change since picked: + 1.06
Earnings Date 10/26/06 (confirmed)
Average Daily Volume: 2.4 million

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Raytheon - RTN - close: 50.80 change: +0.44 stop: 49.85

RTN bounced from round-number support at the $50.00 level and on above average volume, which is a good sign. We're waiting for a breakout over the $51.00 mark with a suggested trigger to go long at $51.05. If triggered our target is the $54.50-55.00 range.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/25/07 (unconfirmed)
Average Daily Volume: 1.5 million

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VeriSign - VRSN - close: 23.15 change: +0.12 stop: 21.90

VRSN's rebound today looks anemic and volume began to climb late in the day as shares turned lower again. We are concerned with the bearish turnaround in the technicals. More conservative traders may want to exit early. Right now we're expecting a dip back toward $22.50 and potentially the $22 level.

Picked on November 13 at $22.51
Change since picked: + 0.64
Earnings Date 10/19/06 (confirmed)
Average Daily Volume: 2.9 million

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Worthington Ind. - WOR - close: 18.18 chg: +0.19 stop: 17.39

WOR's bounce today was definitely welcome. Today's 1% gain helps alleviate some of the bearishness of yesterday's reversal. Studying the intraday chart it looks like today's bounce could be used as a new bullish entry point to go long. Be aware that we do expect some resistance near the 100-dma (around 18.70) and near its 200-dma (around $19). Our target is the 19.85-20.00 range. This will not be a very quick play and we may end up holding it up to its late December earnings report.

Picked on November 19 at $17.96
Change since picked: + 0.22
Earnings Date 12/26/06 (unconfirmed)
Average Daily Volume: 868 thousand
 

Short Play Updates

Fannie Mae - FNM - close: 56.40 chg: +0.47 stop: 58.55

FNM produced a bit of an oversold bounce today but nothing too alarming. We remain bearish although this is probably not the best entry point for new positions. Our short-term target is the $54.00 level.

Picked on November 26 at $57.39
Change since picked: - 0.99
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume: 3.2 million
 

Closed Long Plays

None
 

Closed Short Plays

McKesson - MCK - close: 48.50 change: +0.18 stop: 50.01

We are pulling the plug early on the MCK short play. There has been no follow through on Friday's bearish reversal. Furthermore the bounce this week has been on rising volume. Today's volume was about double the average. We're exiting now to limit our losses.

Picked on November 26 at $48.18
Change since picked: + 0.32
Earnings Date 01/30/07 (unconfirmed)
Average Daily Volume: 1.7 million
 

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