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Call Updates

Cooper Industries - CBE - cls: 68.54 chg: -0.61 stop: 67.95*new*

This is it! CBE has pulled back to support in the $68.00-68.50 range. If shares don't bounce here it could fall back toward the 100-dma or worse. Technicals have turned sour so we're certainly not looking for new bullish entry point unless CBE surprises with a bounce back over the $70 level. Right now, given the fading technical indicators in the major market averages we would suggest that bullish traders consider exiting to minimize losses. We're raising our stop loss to $67.95.


 

Picked on February 03 at $ 70.01
Change since picked: - 1.45
Earnings Date 01/25/05 (confirmed)
Average Daily Volume = 436 thousand

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Hartford Financial - HIG - cls: 71.27 chg: -0.43 stop: 69.95*new*

Heads up! On Sunday we suggested that readers consider exiting for a profit and that may have been the prudent move. Shares of HIG have pulled back toward support in the $70-71 region. Traders bought the dip to $70.50 this morning but the bounce was fading this afternoon. At this point we would expect HIG to retest the $70 level again before bouncing higher. Conservative traders may want to exit now to minimize losses. We are raising our stop loss to $69.95.


 

Picked on February 06 at $ 71.17
Change since picked: + 0.10
Earnings Date 01/26/05 (confirmed)
Average Daily Volume = 1.2 million

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Kmart Holding - KMRT - close: 100.52 chg: -1.19 stop: 98.50

Readers need to turn defensive here too. KMRT continues to churn near the $100 level and remains above that broken trendline of support we outlined last Sunday. The bad news is that the technical picture is deteriorating rapidly. Conservative traders may want to exit now to conserve capital. You can always re-enter again later if KMRT surprises us with a new relative high. We're going to stick to our guns with the stop at $98.50. You may want to alter your own stop loss.


 

Picked on February 13 at $103.02
Change since picked: - 2.50
Earnings Date 03/16/05 (unconfirmed)
Average Daily Volume = 2.5 million

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RD Donnelley - RHD - close: 59.37 change: -0.41 stop: 58.95*new*

Readers need to be on the alert here. This is a pivotal test for RHD's bullish, rising channel. The stock has broken down under the $60.00 level but remains near the bottom of its channel and above minor price support at $59.00 and technical support at the 50-dma. We would not consider new bullish positions unless we saw a significant bounce, especially now that the technical picture looks bearish. If RHD breaks the 50-dma it could lead toward a serious correction. We're raising the stop loss to $58.95.


 

Picked on February 03 at $ 60.76
Change since picked: - 1.39
Earnings Date 02/25/05 (confirmed)
Average Daily Volume = 186 thousand

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Texas Industries - TXI - cls: 64.54 chg: +0.12 stop: 61.95 *new*

Once again we're offering the suggestion that readers who were able to enter near the $60 level may want to strongly consider exiting here for a profit. Yes, it's true that TXI has thus far maintained support at the rising, simple 50-dma. That's good news. It's also true that the consolidation is narrowing and we can expect a breakout (one way or the other) pretty soon. The prevailing trend would suggest the breakout will be bullish but there is no guarantee. We are going to raise our stop loss to 61.95 while keeping it below the 50-dma. Given the major market averages appear to be weakening we would not consider new bullish positions but a move over $65.50 would be the next attractive entry point.


 

Picked on January 09 at $ 60.18
Change since picked: + 4.36
Earnings Date 12/16/04 (confirmed)
Average Daily Volume = 238 thousand

Drop Calls

Caterpillar - CAT - close: 91.82 change: -0.72 stop: 90.50

We do not like how both CAT, a Dow component, and the Industrial average are both showing a MACD indicator that is rolling over. Technicals on both are beginning to look bearish so we're going to close CAT before it even opens. Aggressive traders can still watch for a move over resistance at $94.00 but we suspect that CAT will trade lower before it moves higher again.


 

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/27/05 (confirmed)
Average Daily Volume = 2.4 million

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eBay Inc - EBAY - close: 42.72 chg: -0.32 stop: 40.75

We're calling in an early checkout. The NASDAQ appears to be rolling over under the 2100 level and the Dow could be making a double-top. Technical oscillators for both the major indices look weak. Now consider EBAY that is up several days in a row. Our target was $43.75 (split adjusted) but EBAY may pull back first before continuing higher and we'd rather exit now as a "winner". We suggest that readers consider doing the same. We'll watch for a dip back towards $40.00 and then look for a bounce.


 

Picked on February 10 at $ 40.61
Change since picked: + 2.11
Earnings Date 01/19/05 (confirmed)
Average Daily Volume = 13.8 millionNone today.

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