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Call Updates

Amer. Intl Group - AIG - close: 55.55 chg: -0.85 stop: 52.49

Dow-component AIG made headlines today after announcing it would restate results for 2000 through 2004. Plus, the company finally filed its long delayed 10-K report. The initial reaction seemed positive with AIG gapping higher but the rally quickly failed and shares trended lower for the rest of the session. As we discussed in early updates we expected AIG to trade lower with the Dow and we are looking for a dip back toward what should be round-number, psychological support near the $55.00 level. However, it is worth noting that today's candlestick looks like a bearish engulfing pattern, which is normally interpreted as a bearish reversal pattern. AIG may end up trading lower toward the $54 level. We are not suggesting new bullish plays at this time. We'd prefer to wait and see where AIG (and the Dow) actually bounce first.

Picked on May 26 at $ 55.05
Change since picked: + 0.50
Earnings Date 02/09/05 (confirmed)
Average Daily Volume = 15.5 million

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Caterpillar - CAT - close: 94.11 chg: -0.20 stop: 89.00

As we expected CAT is trading lower with a pull back in the DJIA index. Don't be surprised to see a dip back toward the $92.00 level. We're not suggesting any new bullish positions at this time. No change from our previous update.

Picked on May 18 at $ 92.35
Change since picked: + 1.76
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million

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Career Education - CECO - close: 34.67 chg: -0.30 stop: 32.45

No change from our previous update on 05/29/05. We're still looking for a pull back into the $33.50-34.00 region.

Picked on May 23 at $ 35.24
Change since picked: - 0.57
Earnings Date 05/02/05 (confirmed)
Average Daily Volume = 2.5 million

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Rockwell Collins - COL - close: 49.39 chg: -0.16 stop: 44.95

Shares of COL and the Defense sector continue to show relative strength. There is no change from our previous update on 05/29/05. We're looking for a pull back toward the 100-dma. Our entry point to buy calls is in the $46.25-45.50 range.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 800 thousand

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Federated Dept Stores - FD - cls: 67.45 chg: -0.27 stop: 64.45

No change from our previous update on 05/29/05.

Picked on May 17 at $ 66.60
Change since picked: + 0.85
Earnings Date 05/11/05 (confirmed)
Average Daily Volume = 2.9 million

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First Marblehead - FMD - close: 44.65 chg: +0.60 stop: 42.49

FMD is showing relative strength today. The stock added 1.3 percent and closed above its April 29th high, which is technically a break out into its gap down. We're still looking for a little more confirmation with a trigger above the $45.00 level, which could act as round-number support. Our entry point is $45.01. In the news FMD issued a press release stating the company has signed an agreement to provide private student loans to the College Board.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/05 (confirmed)
Average Daily Volume = 782 thousand

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Reynolds American - RAI - cls: 82.91 chg: +0.07 stop: 77.95

No change from our previous update on 05/29/05.

Picked on May 16 at $ 81.31
Change since picked: + 1.60
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand

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United Technologies - UTX - cls: 106.70 chg: -1.18 stop: 102.45

No surprises here. We've been expecting UTX to pull back with a dip in the Dow. We'd like to see shares bounce at the $105 level. There are no other changes from our previous update on 05/29/05.

Picked on May 23 at $106.25
Change since picked: + 0.45
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.0 million
 

Put Updates

United Thera. - UTHR - close: 49.96 chg: +1.15 stop: 53.38

UTHR produced an oversold bounce today but the rally stalled near the $50.00 level where shares oscillated for most of the session. We're not suggesting new plays. Conservative traders may want to exit early. Our target remains the $48.25-47.50 range.

Picked on May 24 at $ 53.38
Change since picked: - 3.42
Earnings Date 05/03/05 (confirmed)
Average Daily Volume = 452 thousand
 

Dropped Calls

None
 

Dropped Puts

None
 

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