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AH None None
MSTR    

New Calls

Armor Holdings - AH - close: 54.83 chg: +1.10 stop: 51.99

Company Description:
Armor Holdings, Inc. is a diversified manufacturer of branded products for the military, law enforcement, and personnel safety markets. (source: company press release or website)

Why We Like It:
AH looks like a bullish call candidate now that its breaking out higher above its two-month bearish trend and from its recent sideways consolidation. The bounce has not yet reversed the bearish signal on its P&F chart but the move over $54.00 looks like a new entry point to buy calls. We are suggesting positions here. Readers can choose to wait for a move past $55.00, which might be short-term resistance or wait for a dip back toward $54.00 again. Our biggest concern is going to be technical resistance at its 50-dma and 100-dma still overhead. Our target is the $59.50-60.00 range. We do not want to hold over the July earnings report.

Suggested Options:
July options expire after Friday, July 21st. Aggressive traders could play the Julys. We're going to suggest the August strikes.

BUY CALL AUG 50.00 AH-HJ open interest=1483 current ask $6.10
BUY CALL AUG 55.00 AH-HK open interest= 528 current ask $2.80
BUY CALL AUG 60.00 AH-HL open interest=1299 current ask $1.00

Picked on July 02 at $ 54.83
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 656 thousand

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MicroStrategy - MSTR - cls: 97.52 change: +2.64 stop: 91.74

Company Description:
Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its advanced technical capabilities, sophisticated analytics, and superior data and user scalability. (source: company press release or website)

Why We Like It:
MSTR looks ready to run toward the March-April-May highs. Shares displayed relative strength on Friday with a 2.78% gain. The rally on Friday was also a breakout over resistance near $95.00 and its 50-dma near $97. Volume was very strong on the move, which is bullish. Friday's rally also produced a quadruple-top breakout buy signal on its P&F chart, that now points to a $112 target. We are suggesting call positions here near $97.50 but traders have a choice. If you think the market (or MSTR) is going to pull back then look for a dip or bounce near $95.00, which as broken resistance should be new support. If you're worried about potential resistance at its 100-dma (98.75) or the $100 mark then wait for a move past $100 before buying calls. Our target is the $108.50-110.00 range. We do not want to hold over the late July earnings report. The stock can be volatile sow we're using a wide (aggressive) stop loss.

Suggested Options:
Aggressive traders might want to consider the July calls. We are suggesting the August strikes.

BUY CALL AUG 95.00 EOU-HS open interest= 591 current ask $8.40
BUY CALL AUG100.00 EOU-HT open interest= 428 current ask $5.80
BUY CALL AUG105.00 EOU-HA open interest= 356 current ask $3.80

Picked on July 02 at $ 97.52
Change since picked: + 0.00
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 333 thousand
 

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