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Call Updates

Caterpillar - CAT - close: 91.96 chg: +1.58 stop: 89.00

Almost there! CAT surged another 1.74 percent on Tuesday with the stock breaking out over its simple 50-dma and its six-week trend of lower highs. The move was fueled by a strong Dow and news from CAT that its April retail sales rose 20 percent. Our trigger to go long/buy calls is at $92.35 above its simple 100-dma. We are going to wait for CAT to hit our entry point. However, more aggressive traders might want to consider new bullish positions here given what appears to be a breakout above the neckline of its inverse/bullish H&S pattern.

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 


Hovnanian - HOV - close: 54.18 chg: +0.53 stop: 49.99

The housing sector paced the rally in the S&P 500 today despite news that April new home construction rose 11 percent, more than anticipated. Shares of HOV look poised to breakout to new relative highs. We are still suggesting that readers wait for a move over $54.50 before considering new bullish positions but more aggressive traders may want to consider new positions here. In the news HOV announced it will report earnings on May 31st. We will plan to exit this play on the preceding Friday, May 27th.

Picked on May 06 at $ 54.26
Change since picked: - 0.08
Earnings Date 05/31/05 (confirmed)
Average Daily Volume = 1.2 million 


Invitrogen - IVGN - close: 77.99 change: +0.15 stop: 71.49

The BTK biotech index was one of the very few sector indices not to trade higher today. Yet IVGN continues to show relative strength with another gain, albeit a small one. The stock looks poised to breakout over the $78 level. Our short-term target is the $80.00 region.

Picked on May 03 at $ 75.51
Change since picked: + 2.48
Earnings Date 04/28/05 (confirmed)
Average Daily Volume = 888 thousand 


Eli Lilly - LLY - close: 59.56 change: +0.16 stop: 57.49

LLY produced more headlines today. This time the drug giant said that a phase II study of a brain cancer drug was showing positive results. The stock price didn't react much. We continue to suggest readers wait for a move over $60.00 before considering new bullish positions.

Picked on May 04 at $ 60.15
Change since picked: - 0.59
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 4.7 million 


Reynolds American - RAI - cls: 81.54 chg: +0.24 stop: 77.95

This morning RAI saw some profit taking after Monday's big gain but traders stepped in to buy the dip near $80.50. The stock ended higher on the session and continues to look like a bullish entry point here. Our short-term target is the $85-86 range.

Picked on May 16 at $ 81.31
Change since picked: + 0.23
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand 


Research In Motion - RIMM - cls: 72.45 chg: +2.54 stop: 66.85

That's much better! Yesterday we were a bit concerned with RIMM's lack of participation in the technology rally. Now the stock is out performing with a 3.6 percent gain that has pushed RIMM above its 40 and 50-dma. RIMM has closed at a new one-month high and is challenging its 100-dma. Yesterday we suggested that reader look for a move over 70.50 or 71.00 before considering new bullish plays. If you missed the move this morning RIMM still looks attractive here. Just remember this is a high-risk, aggressive play. Our target is $76-77 range.

Picked on May 10 at $ 70.51
Change since picked: + 1.94
Earnings Date 04/05/05 (confirmed)
Average Daily Volume = 1.7 million 

Put Updates

L-3 Comm. - LLL - close: 67.60 chg: -0.33 stop: 69.55 

Today's session could spell good news for the bears. There was no follow through on Monday's big rebound in LLL despite news that the company has one a five-year $45.5 million Navy contract. We're a little hesitant to suggest new bearish positions with the major stock averages climbing higher but a move under $67.00 might be used as a new bearish entry point.

Picked on May 10 at $ 68.01
Change since picked: - 0.41
Earnings Date 04/26/05 (confirmed)
Average Daily Volume = 855 thousand 


Marriot - MAR - close: 62.52 chg: +0.64 stop: 63.37 

We are really close to pulling the plug on this bearish play. Today's gain helps confirm yesterday's minor technical breakout and the technical indicators are looking more positive. The MACD just produced a new buy signal. The stock is trading under minor resistance in the $62.50-63.00 region but we don't expect it to hold. We're not suggesting new bearish plays. If we do not get stopped out soon we may exit early on any dip back toward the $61 level. 

Picked on April 28 at $ 63.37
Change since picked: - 0.85
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 1.2 million 


MGIC Invest. - MTG - close: 59.55 change: +0.15 stop: 61.11

No change from our previous update on 05/15/05. MTG tried to rally above the $60.00 level this afternoon and failed. Readers may want to use another decline below the $59.00 mark as a new bearish entry point.

Picked on May 15 at $ 58.91
Change since picked: + 0.64
Earnings Date 04/14/05 (confirmed)
Average Daily Volume = 742 thousand 


Precision Castparts - PCP - cls: 73.85 chg: -0.05 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 


Parker Hannifin - PH - close: 59.44 change: +0.98 stop: 62.01

The market-wide rally today inspired some bargain hunting in shares of PH. We expect the stock to continue rebounding toward the $60 level and its 40-dma. No change from our previous update on 05/15/05.

Picked on April 28 at $ 59.08
Change since picked: + 0.32
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 1.2 million 

Dropped Calls

Avalonbay - AVB - close: 75.25 change: +0.62 stop: 72.95 

Target achieved. As expected AVB continued to rally from yesterday's bounce at the simple 10-dma. The stock has traded into our target range of $75.00-76.00. We are closing the play. Traders who choose not to exit can watch out for resistance at the December high near $76.

Picked on April 24 at $ 70.05
Change since picked: + 5.20
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 345 thousand 

Dropped Puts


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