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ITT None None
MAC    
SLAB    
SUN    

New Calls

ITT Industries - ITT - close: 53.84 change: +0.34 stop: 51.69

Company Description:
ITT Industries, Inc. supplies advanced technology products and services in key markets including: fluid and water management including water treatment; defense communication, opto-electronics, information technology and services; electronic interconnects and switches; and other specialty products. Headquartered in White Plains, NY, the company generated $7.4 billion in 2005 sales. (source: company press release or website)

Why We Like It:
We like ITT as a technical breakout play. The stock has been consolidating sideways for the last six months in a neutral pattern of lower highs and higher lows. Shares finally broke out from this pennant-shaped pattern yesterday on a surge in volume. Today also saw another strong session for volume. We're going to suggest buying calls here above $53.00. More conservative traders may want to wait for a little more follow through and look for a move over $54.00 before initiating positions. Our target will be the $57.00-58.00 range. We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting the April calls but some readers may want to consider buying Julys if you plan to hold the position right up to ITT's earnings report in late April.

BUY CALL APR 50.00 ITT-DJ open interest= 590 current ask $4.40
BUY CALL APR 52.50 ITT-DX open interest=1185 current ask $2.30
BUY CALL APR 55.00 ITT-DK open interest=1459 current ask $1.00

Picked on March 15 at $ 53.84
Change since picked: + 0.00
Earnings Date 04/28/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Macerich Co. - MAC - close: 73.11 change: +1.60 stop: 69.95

Company Description:
The Macerich Company is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 84% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 80 million square feet of gross leaseable area consisting primarily of interests in 76 regional malls. (source: company press release or website)

Why We Like It:
REITs, or real estate investment trusts, as a group, are doing very well. Many of them are breaking out to new highs. We like MAC as a bullish candidate because the stock looks ready to breakout to new highs soon but doesn't yet look overbought. The stock has a bullish trend of higher lows and today's gain was fueled by volume well above its daily average, which is bullish. A glance at the daily chart and it looks like MAC may have an inverse or bullish head-and-shoulders pattern that has formed over the last three months. More aggressive traders may want to go long calls right here. We are going to suggest a trigger to buy calls at $74.05. If triggered we will target a rally into the $79.00-80.00 range.

Suggested Options:
We would suggest the April or June calls.

BUY CALL APR 70 MAC-DN open interest= 7 current ask $4.30
BUY CALL APR 75 MAC-DO open interest= 0 current ask $1.35

BUY CALL JUN 70 MAC-FN open interest=27 current ask $5.30
BUY CALL JUN 75 MAC-FO open interest= 5 current ask $2.40

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/16/06 (unconfirmed)
Average Daily Volume = 371 thousand

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Silicon Labs - SLAB - close: 50.19 change: +0.18 stop: 45.95

Company Description:
Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive, mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories' diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with decades of cumulative expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia. (source: company press release or website)

Why We Like It:
The SOX semiconductor index has broken its bullish up trend but the index is bouncing from support at its 100-dma and psychological support at the 500 level. Should the sector really start to rebound we want to take advantage of it. SLAB has been resistance to selling over the last few weeks and looks poised to breakout to new highs. The daily MACD is near a new buy signal. A move over $51.00 would produce another new bullish P&F chart buy signal. We're going to suggest a trigger to buy calls at $51.05. If triggered we will target a rally into the $54.90-55.00 range. More aggressive traders may want to target the $58.00-60.00 range.

Suggested Options:
We are suggesting the April calls.

BUY CALL APR 50 QFJ-DJ open interest=1822 current ask $2.65
BUY CALL APR 55 QFJ-DK open interest=1073 current ask $0.85

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Sunoco Inc. - SUN - close: 79.51 change: +0.10 stop: 74.99

Company Description:
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and marketer of petroleum and petrochemical products. With 900,000 barrels per day of refining capacity, approximately 4,800 retail sites selling gasoline and convenience items, approximately 4,500 miles of crude oil and refined product owned and operated pipelines and 38 product terminals, Sunoco is one of the largest independent refiner-marketers in the United States. Sunoco is a significant manufacturer of petrochemicals with annual sales of approximately five billion pounds, largely chemical intermediates used to make fibers, plastics, film and resins. Utilizing a unique, patented technology, Sunoco also has the capacity to manufacture over 2.5 million tons annually of high-quality metallurgical-grade coke for use in the steel industry. (source: company press release or website)

Why We Like It:
It looks like SUN's four-week consolidation under resistance at the $80.00 level and its simple 100-dma is about to end. We are going to suggest a trigger to buy calls at $80.26. If we are triggered at $80.26 we're going to target a rally into the $87.50-90.00 range. Currently the P&F chart is bullish and points to a $90 target. More conservative traders may want to plan an exit near $85.00, which could act as round-number resistance. We'll also need to keep an eye on the 50-dma near $82, which could also act as overhead resistance.

Suggested Options:
We are suggesting the April or May calls.

BUY CALL APR 75 SUN-DO open interest=159 current ask $6.70
BUY CALL APR 80 SUN-DP open interest=850 current ask $3.50
BUY CALL APR 85 SUN-DQ open interest=618 current ask $1.65

BUY CALL MAY 80 SUN-EP open interest=1286 current ask $5.00
BUY CALL MAY 85 SUN-EQ open interest=1329 current ask $3.00

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 2.4 million
 

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