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Long Play Updates

Aracruz Celulose - ARA - close: 55.74 chg: -0.52 stop: 53.95

ARA experienced some profit taking this morning but traders bought the dip near $55.20, just above technical support at its simple 200-dma. The afternoon bounce looks like a new entry point to buy the stock. More conservative traders may even want to consider tightening their stops toward $55.00. The stock does have resistance in the $58.50-59.00 zone but ARA appears to be building an inverse head-and-shoulders pattern so our target is the $62.00-62.50 range.

Picked on May 06 at $56.29
Change since picked: - 0.55
Earnings Date 04/09/07 (confirmed)
Average Daily Volume: 383 thousand

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British Amer. Tob. - BTI - cls: 63.36 chg: -0.53 stop: 61.45

This looks like another entry point in BTI. On Monday we suggested that readers watch for a dip near $63.00 as a new entry point and that's what BTI provided today. The stock gapped open lower at $63.01, dipped to $62.94, and then bounced back. More conservative traders may want to wait for a new relative high before opening positions. Our target is the $67.50-70.00 range. BTI doesn't move very fast so this could take several weeks.

Picked on May 07 at $64.05
Change since picked: - 0.69
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume: 105 thousand

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Anheuser Busch - BUD - cls: 50.40 chg: -0.01 stop: 48.95

BUD didn't move much on Tuesday, which really isn't a surprise with the major averages closing almost unchanged. We don't expect to write a lot of updates on BUD as it trudges along inside its wide, rising channel (see our weekend comments and chart). The stock doesn't move very fast so it could take several weeks before shares hit our target in the $53.85-54.00 range.

Picked on May 06 at $50.50
Change since picked: - 0.10
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume: 3.1 million

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Dell Inc. - DELL - cls: 26.02 change: +0.12 stop: 24.69

DELL experienced some volatility this morning but eventually bulls took control and steadily bought the intraday dips. DELL ended the session up 0.4%. Positive earnings guidance from rival HPQ didn't hurt the hardware sector. Our target for DELL is the $27.25-27.50 range. We do not want to hold over the late May earnings report.

Picked on April 29 at $25.23
Change since picked: + 0.79
Earnings Date 05/31/07 (confirmed)
Average Daily Volume: 21.9 million

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ENSCO - ESV - close: 57.55 change: -0.62 stop: 54.75

Oil stocks were trading lower on Tuesday even though crude oil futures ended their recent losing streak today. ESV spiked lower at the open but traders bought the dip at $56.43. The bounce back looks like a new entry point to buy the stock. More conservative traders may want to tighten their stops. Our target is the $59.85-62.50 range.

Picked on April 29 at $56.84
Change since picked: + 0.71
Earnings Date 04/24/07 (confirmed)
Average Daily Volume: 2.9 million

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Georgia Gulf - GGC - close: 17.29 chg: -0.38 stop: 15.99

Correction: We had a typo on Monday evening with GGC's closing price. The stock closed at $17.67 on Monday. GGC experienced some profit taking today with a 2.1% decline but bulls bought the dip near $17 and its 50-dma. This looks like a new entry point to buy the stock although more conservative traders may want to wait for a rally past $17.50 again. This should be considered a more aggressive play since GGC does have plenty of overhead resistance to chew through. Watch for resistance near $18.00 and its 100-dma currently near $18.50. Our target is the $19.90-20.00 range.

Picked on May 07 at $17.35
Change since picked: - 0.06
Earnings Date 04/04/07 (confirmed)
Average Daily Volume: 1.2 million

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McGrath RentCorp - MGRC - cls: 31.42 chg: -0.08 stop: 29.89

There is still no change from our weekend play description. We're watching for a breakout over very significant resistance at the $32.00 level. Our suggested trigger to buy the stock is at $32.35. More conservative traders may want to use a trigger above $32.50. If we are triggered our target is the $35.75-36.00 range. The P&F chart is bullish with a $50 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/03/07 (confirmed)
Average Daily Volume: 94 thousand
 

Short Play Updates

Apt Inv. & Mgmt - AIV - cls: 54.51 chg: -0.54 stop: 56.05

AIV continues to show relative weakness. The stock lost almost 1% and closed near its lows for the session. We were very tempted to declare this a new entry point for shorts but we're going to stick to our plan. We're waiting for a breakdown under $54.00. We're suggesting a trigger to short it at $53.99. If triggered our target is the $50.25-50.00 range. If AIV traded under $54.00 it would produce a new Point & Figure chart sell signal.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/04/07 (confirmed)
Average Daily Volume: 960 thousand

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Camden Property - CPT - cls: 68.22 chg: +0.02 stop: 70.05

There is no change from our weekend play description on CPT. We suspect the next move is down. Nimble traders may want to watch for a bounce and failed rally under $70 as a new entry point for shorts. We're suggesting a trigger to short it at $66.99. If triggered our target is the $60.50-60.00 range. We do expect some support near $65.00. The P&F chart looks very bearish with a $58 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/07 (confirmed)
Average Daily Volume: 526 thousand
 

Closed Long Plays

None
 

Closed Short Plays

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