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Call Updates

Eaton Corp - ETN - close: 60.66 chg: +1.57 stop: 56.99

A big rebound in the markets helped ETN add 2.65 percent on Thursday. The stock broke through round-number, psychological resistance at the $60.00 mark. Shares are nearing our profit/exit target in the $62.00-63.00 range.

Picked on April 18 at $ 58.51
Change since picked: + 2.15
Earnings Date 04/14/05 (confirmed)
Average Daily Volume = 1.1 million

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Ishares Dow Jones Energy - IYE - cls: 72.89 chg: +2.12 stop: 68.84

Oil-related stocks were not left out of today's market rally. The OIX added 2.2 percent and the OSX climbed more than 3 percent. The IYE ishares were strong throughout the session and closed with a 2.99 percent gain. Our target is the $74.00-75.00 range.

Picked on April 18 at $ 70.78
Change since picked: + 2.11
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 170 thousand

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Patterson Cos. - PDCO - close: 50.80 chg: +0.74 stop: 49.45

PDCO continues to cause us concern. The lack of participation in today's market rally is discouraging. Let us rephrase that. PDCO added 1.47 percent today but given the bounce from support near $50.00 and its 50-dma we would have expected a bigger move. Technically this is still a bullish entry point but we would enter cautiously.

Picked on April 18 at $ 50.75
Change since picked: + 0.05
Earnings Date 05/19/05 (unconfirmed)
Average Daily Volume = 789 million
 

Put Updates

KB Home - KBH - close: 111.25 change: +2.27 stop: 115.01

Traders should be very careful here. The 200-point rally in the Dow Industrials was unexpected and caught many shorts off guard. We're encouraged to see that KBH didn't rebound too sharply but bears are still in danger here. We would not suggest new bearish plays at this time. We'll wait for another drop below the $109 level. Anybody with current open bearish positions should carefully monitor their stops. A more conservative trader may want to exit early if KBH trades over $112.50.

Picked on April 20 at $108.98
Change since picked: + 2.27
Earnings Date 06/16/05 (unconfirmed)
Average Daily Volume = 1.5 million

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MGM Mirage - MGG - close: 68.69 change: +1.59 stop: 72.51

The market bounce on Thursday was a surprise but we can use it to our advantage in MGG. Shares rallied toward the $70.00 level and failed (as we suggested it might). This sort of failed rally could be used as a new bearish entry point. However, we would not initiate new bearish positions if the broader indices continue to rally tomorrow. We would be patient. There is no rush to open plays here.

Picked on April 20 at $ 67.10
Change since picked: + 1.59
Earnings Date 04/19/05 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

None
 

Dropped Puts

Expeditors Intl Was. - EXPD - cls: 51.00 chg: +2.58 stop: 52.51

The big rally in the markets was lead by a huge rebound of 3.46 percent in the Dow Transports. The Transportation index rallied back above technical resistance at its simple and exponential 200-dma's. EXPD followed suit by rallying back above the $50.00 level. We are going to exit early to avoid further losses.

Picked on April 14 at $ 49.31
Change since picked: + 1.69
Earnings Date 05/04/05 (unconfirmed)
Average Daily Volume = 748 thousand

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Ishares Russ 2000 Val - IWN - cls: 180.00 chg: +4.00 stop: 183.51

The IWN ishares are still under what should be resistance in the 180-182 region but we don't want to risk it. The rebound today was too strong and likely to spook the bears into covering positions again tomorrow. We will close this play early to avoid further losses.

Picked on April 14 at $178.04
Change since picked: + 1.96
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 324 thousand
 

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