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Call Updates

Avalonbay - AVB - close: 74.63 change: +0.85 stop: 72.95 

No change from our previous update on 05/15/05. AVB is very close to our target in the $75.00-76.00 range. We are preparing to exit. More conservative traders can still exit early right here.

Picked on April 24 at $ 70.05
Change since picked: + 4.58
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 345 thousand 

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Caterpillar - CAT - close: 90.38 chg: +1.38 stop: 89.00

No change from our previous update on 05/15/05. We are waiting for CAT to breakout over resistance and hit our trigger to buy calls at $92.35. 

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million 

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Hovnanian - HOV - close: 53.65 chg: +1.75 stop: 49.99

Good news! The housing sector was the single best performing group today with a 3.4 percent gain in the DJUSHB index. HOV paced the rally with a 3.37 percent bounce. More aggressive players may want to consider new bullish positions here. We might suggest less aggressive traders wait for a move back over the $54.50 level before considering new longs. 

Picked on May 06 at $ 54.26
Change since picked: - 0.61
Earnings Date 03/02/05 (confirmed)
Average Daily Volume = 1.2 million 

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Invitrogen - IVGN - close: 77.84 change: +0.98 stop: 71.49

Thus far it's hard to see if investors have any reaction to this year's ASCO conference that began this past weekend and is still going on through tomorrow. The BTK biotech index added a little more than one percent, which paced the rally in the DJIA and the S&P 500. Shares of IVGN added 1.27 percent and look poised to breakout over the $78.00 level. In the news IVGN announced it will buy Caltag Laboratories for $20 million in cash. Our target for IVGN is the $80.00 level. IVGN is due to present at the Banc of American conference tomorrow. We see no changes from our previous update on 05/15/05.

Picked on May 03 at $ 75.51
Change since picked: + 2.33
Earnings Date 04/28/05 (confirmed)
Average Daily Volume = 888 thousand 

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Eli Lilly - LLY - close: 59.40 change: +0.64 stop: 57.49

In the news LLY reported that its trial results for its Gemzar treatment for breast cancer looks positive. A Reuters article reported that chemotherapy drug Gemzar, "in combination with docetaxel, was as effective but safer than a regimen of Roche AG's Xeloda and docetaxel in the treatment of metastatic breast cancer. LLY also put out a notice warning shareholders saying it does not endorse a "mini-tender" offer by Canadian investment firm TRC Capital. TRC is trying to buy two million shares at a discount to current market prices (source: AP). We see no changes from our previous update on 05/15/05. We still suggest readers wait for a move over $60.00 before considering new bullish positions. 

Picked on May 04 at $ 60.15
Change since picked: - 0.75
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 4.7 million 

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Reynolds American - RAI - cls: 81.30 chg: +2.85 stop: 77.95

Ding! We've been triggered in RAI. The stock gapped open this morning and proceeded to climb throughout the day. In the last 30 minutes of the session the shares spiked higher to breakout over resistance in the $81.25-81.30 range and hit our entry point at $81.31. Volume was above average on today's 3.6 percent gain. What's odd is that we cannot find any specific news to account for RAI's out performance. Our short-term target is the $85-86 range.

Picked on May 16 at $ 81.31
Change since picked: - 0.01
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand 

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Research In Motion - RIMM - cls: 69.91 chg: -0.67 stop: 66.85

Hmm... this is not a good sign. RIMM lost almost one percent compared to a 0.9 percent gain in the NASDAQ in what was a very broad-market rally. Aggressive traders may want to look for another move over the $70.50 level or the $71.00 level before considering new bullish positions. 

Picked on May 10 at $ 70.51
Change since picked: - 0.60
Earnings Date 04/05/05 (confirmed)
Average Daily Volume = 1.7 million 

Put Updates

L-3 Comm. - LLL - close: 67.93 chg: +2.70 stop: 69.55 

Danger! LLL produced a big bounce today and looks ready to retest the 200-dma's as overhead resistance. The move higher today was fueled by positive comments from a broker over LLL's earnings estimates. Plus, LLL announced a contract for its VIS explosive detection system from the S. Korea Incheon Intl. airport. We are not suggesting new bearish positions and readers should double-check their stop loss placement. We would expect shares to continue to rally toward the $69 level.

Picked on May 10 at $ 68.01
Change since picked: - 0.08
Earnings Date 04/26/05 (confirmed)
Average Daily Volume = 855 thousand 

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Marriot - MAR - close: 61.88 chg: +1.08 stop: 63.37 *new*

The broad-market bounce fueled a 1.7 percent rebound in MAR and shares closed over short-term resistance at the simple 10-dma. We are growing concerned that MAR may not reach the $60 level and the 60.50 region will end up being support. We're not suggesting new bearish positions. We are lowering our stop loss to $63.37.

Picked on April 28 at $ 63.37
Change since picked: - 1.49
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 1.2 million 

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MGIC Invest. - MTG - close: 59.40 change: +0.49 stop: 61.11

No change from our previous update on 05/15/05.

Picked on May 15 at $ 58.91
Change since picked: + 0.49
Earnings Date 04/14/05 (confirmed)
Average Daily Volume = 742 thousand 

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Precision Castparts - PCP - cls: 73.90 chg: +0.65 stop: 75.05

No change from our previous update on 05/15/05. We are waiting for PCP to breakdown below support near $72.00 and hit our entry point at $71.95. 

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: - 0.00
Earnings Date 05/03/05 (confirmed)
Average Daily Volume = 492 thousand 

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Parker Hannifin - PH - close: 58.66 change: +0.69 stop: 62.01

No change from our previous update on 05/15/05.

Picked on April 28 at $ 59.08
Change since picked: - 0.42
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 1.2 million 

Dropped Calls

None

Dropped Puts

Fording Cndn Coal - FDG - close: 78.90 chg: -0.45 stop: 86.51 

Target achieved. FDG continued to show weakness on Monday morning and the stock quickly traded through and below our target range of $76.00-75.00. The intraday low was $74.30 before FDG began to bounce. The bottom was very close to the exponential 200-dma. We are closing the play at the top of the target range at $76.00. Given the sharp intraday rebound this looks like a short-term bottom and it would not surprise us to see FDG bounce back into the $84-85 range to retest it as overhead resistance. If you didn't exit with us plan for a bounce.

Picked on May 12 at $ 83.90
Change since picked: - 5.00
Earnings Date 04/25/05 (confirmed)
Average Daily Volume = 394 thousand

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