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Call Updates

Eaton Corp - ETN - close: 59.09 chg: -0.01 stop: 56.99

ETN is holding up pretty well considering the triple-digit loss in the Dow Jones Industrials. Shares encountered some resistance at the $60.00 mark today. Don't be surprised to see a pull back toward the $58 level. No other change from previous update on 04/18/05.

Picked on April 18 at $ 58.51
Change since picked: + 0.58
Earnings Date 04/14/05 (confirmed)
Average Daily Volume = 1.1 million


Ishares Dow Jones Energy - IYE - cls: 70.77 chg: -1.52 stop: 68.84

We are a little surprised by today's decline. Crude oil prices were higher today and the inventory numbers showed a surprise decline in oil and gasoline supplies. This should have sent the IYE higher. Look for a retest of support near $70.00. We would wait for signs of a bounce before considering new positions.

Picked on April 18 at $ 70.78
Change since picked: - 0.01
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 170 thousand


Patterson Cos. - PDCO - close: 50.06 chg: -0.31 stop: 49.45

We remain cautious. PDCO held up pretty well compared to the broader markets. Shares of PDCO are still trading above support at $50.00 and its 50-dma - BUT there has been a significant lack of buying near this support and conservative traders may want to step to the sidelines here. We are not suggesting new positions until PDCO trades over $51.00 or $51.50.

Picked on April 18 at $ 50.75
Change since picked: - 0.69
Earnings Date 05/19/05 (unconfirmed)
Average Daily Volume = 789 million

Put Updates

Expeditors Intl Was. - EXPD - cls: 48.42 chg: -0.70 stop: 52.51

No change from previous update on 04/17/05. Our target is the $46-45 range. Watch the Dow Transports. The TRAN index just rolled over under the simple 200-dma.

Picked on April 14 at $ 49.31
Change since picked: - 0.89
Earnings Date 05/04/05 (unconfirmed)
Average Daily Volume = 748 thousand


Ishares Russ 2000 Val - IWN - cls: 176.00 chg: -2.80 stop: 183.51

The IWN has produced a bearish reversal today. The ishares traded to its exponential 200-dma and then reversed course. The move also produced a bearish engulfing candlestick pattern. We would use today's move as a new bearish entry point. Our target is the $170.00 level.

Picked on April 14 at $178.04
Change since picked: - 2.04
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 324 thousand

Dropped Calls

Red Robin Burger - RRGB - cls: 51.15 chg: -0.87 stop: 49.49

Over the last several days we've been suggesting that more conservative traders consider exiting with RRGB up four or more points from our entry point. Now that the market's oversold bounce is already failing we're choosing to exit RRGB early. Shares of RRGB managed to bounce from round-number support at the $50.00 level today but we don't want to see the stock erase any more gains.

Picked on March 10 at $ 48.00
Change since picked: + 3.15
Earnings Date 02/14/05 (confirmed)
Average Daily Volume = 199 thousand

Dropped Puts

Starbucks - SBUX - close: 45.67 chg: -0.55 stop: 51.75

Target achieved. Another tough day for the markets was just one of many for SBUX. Shares of the coffee purveyor declined sharply at the opening bell and traded to $44.58. This was inside our profit/target range of $45.00-44.00. We are closing the play at the $45.00 mark. More aggressive traders may want to consider merely tightening their stop and letting SBUX continue to sink. Yes, the stock is oversold but with the market showing more weakness there's no telling how low SBUX can sink. However, it's worth noting that we'll be watching for more support in the 42.50 region and worse case the $40.00 level, which should be very strong support. We may suggest SBUX as a bullish candidate if shares dip that low.

Picked on April 10 at $ 48.62
Change since picked: - 2.95
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 4.3 million

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