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Call Updates

Cooper Industries - CBE - cls: 68.80 chg: -0.69 stop: 67.95

CBE held up better than many of its peers but the stock looks vulnerable to more weakness just like the major indices. We would not suggest new bullish plays at this time. Readers can watch the $68 level for support. Conservative traders may want to exit early to avoid further losses.


 

Picked on February 03 at $ 70.01
Change since picked: - 1.21
Earnings Date 01/25/05 (confirmed)
Average Daily Volume = 436 thousand

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Hartford Financial - HIG - cls: 70.50 chg: -0.73 stop: 69.95

We are still urging caution here. HIG is holding up relatively well compared to the IUX insurance index, which just broke down through what should have been support in the 325 level. We are not suggesting new bullish plays, especially with technicals turning bearish. If the IUX continues to sink HIG is likely to follow!


 

Picked on February 06 at $ 71.17
Change since picked: - 0.67
Earnings Date 01/26/05 (confirmed)
Average Daily Volume = 1.2 million

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Loews Corp - LTR - close: 70.61 chg: -1.42 stop: 69.95

We need to be careful here. The IUX insurance index has broken down through what looked like potential support in the 325 level. Meanwhile LTR was not immune from the selling on Monday and the technical picture continues to worsen. There is a chance that LTR will bounce from round-number, psychological support at the $70.00 mark but conservative traders may want to consider an early exit.


 

Picked on February 15 at $ 74.15
Change since picked: - 3.54
Earnings Date 02/10/05 (confirmed)
Average Daily Volume = 452 thousand

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Nova Chemicals - NCX - close: 47.96 chg: +0.44 stop: 44.95

Here is some good news! NCX showed relative strength and closed higher when the rest of the market traded down. The stock actually traded above the $48 level and produced a new quadruple top breakout buy signal on its P&F chart with a $57 target. We have been TRIGGERED at $48.01 so the play is open although given the market environment we would probably look for some confirmation of the breakout before initiating new positions.


 

Picked on February 22 at $ 48.01
Change since picked: - 0.05
Earnings Date 01/26/05 (confirmed)
Average Daily Volume = 383 thousand

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Spectrasite Inc - SSI - close: 59.97 chg: -1.22 stop: 58.00

SSI was also caught in today's sell-off. Shares remain above its rising trendline of support and technical support at the 50-dma. Yet we suggest caution since SSI has closed under the $60.00 level.


 

Picked on February 16 at $ 61.80
Change since picked: - 1.83
Earnings Date 03/14/05 (confirmed)
Average Daily Volume = 391 thousand

Put Updates

Career Education - CECO - close: 33.92 chg: -1.99 stop: 37.51

Education stocks helped lead the slide on Monday and CECO fell 5.5 percent on above average volume. The breakdown under round-number support at the $35.00 level and its 100-dma is good news for the bears. Our entry point was at $34.90. CECO got a boost lower after a Sunday article in The Oregonian newspaper ran a negative story on the company and its marketing practices (source: Reuters).


 

Picked on February 22 at $ 34.90
Change since picked: - 0.98
Earnings Date 02/15/05 (confirmed)
Average Daily Volume = 2.1 million

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Nike Inc - NKE - close: 83.90 chg: -1.61 stop: 87.01

NKE is rolling over under its three-month trendline of lower highs and today's drop looks like a new bearish entry point.


 

Picked on February 08 at $ 84.55
Change since picked: - 0.65
Earnings Date 12/16/04 (confirmed)
Average Daily Volume = 1.1 million

Dropped Calls

Eagle Materials Inc - EXP - close: 78.16 chg: -2.64 stop: 78.50

Watch out below! EXP has broken round-number support at the $80.00 level and technical support at its 38.2 percent Fibonacci retracement of the October-December gain. Technicals, like most stocks today, have turned south. We're closing EXP because shares have traded at or below our stop loss at $78.50. If shares trade under $78.00 it will produce a new P&F sell signal.


 

Picked on February 16 at $ 82.90
Change since picked: - 4.74
Earnings Date 01/26/05 (confirmed)
Average Daily Volume = 107 thousand

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Kmart Holding - KMRT - close: 96.24 chg: -3.97 stop: 97.50

Bad news in the retail sector from Kohl's (KSS) and Winn Dixie (WIN) helped push the RLX index to a 2.4 percent decline. KMRT, being a high-flyer and still seen as a winner from its 2004 rise, was hit with profit taking today. The stock has broken down under its 50-dma, the descending trendline of support and resistance we outlined over the weekend, and its MACD has produced a new sell signal. It wouldn't surprise us to see the stock retest its 200-dma. We've been stopped out at $97.50.


 

Picked on February 13 at $103.02
Change since picked: - 6.78
Earnings Date 03/16/05 (unconfirmed)
Average Daily Volume = 2.5 million

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RD Donnelley - RHD - close: 58.86 change: -0.72 stop: 58.95

The selling pressure was too much for RHD and the stock broke support at the $59.00 level and its 50-dma at least on an intraday basis. Traders tried to buy the dip but we would be very wary of new bullish positions here with the market sell-off and RHD's earnings coming up soon. We are stopped out at $58.95.


 

Picked on February 03 at $ 60.76
Change since picked: - 1.90
Earnings Date 02/25/05 (confirmed)
Average Daily Volume = 186 thousand

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