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Call Updates

Amer. Intl Group - AIG - close: 55.23 chg: +0.38 stop: 52.95

Tuesday produced an impressive failed rally in the Dow Industrials and shares of AIG, a Dow component, followed right along. We're still expecting shares of AIG to test the $54.00 level as support before the stock trades higher. We would not plan on any new bullish positions until after we see a bounce from $54. Essentially there is no change from our weekend update despite any headlines AIG is getting from the ongoing investigation and lawsuits over the alleged fraud.

Picked on May 26 at $ 55.05
Change since picked: + 0.18
Earnings Date 02/09/05 (confirmed)
Average Daily Volume = 15.5 million

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Caterpillar - CAT - close: 94.53 chg: +0.38 stop: 89.99

CAT, also a Dow component, produced the same sort of failed rally as the Dow Industrial average. We are still expecting a pull back toward the $92.00 level. We just hope the $92 level holds as a dip that deep will appear to break the five-week up trend. We're not suggesting any new bullish positions at this time. Wait for the bounce. The best case scenario here would be to see a bounce from the $94 region, which would reaffirm the current trend.

Picked on May 18 at $ 92.35
Change since picked: + 2.18
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million

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Career Education - CECO - close: 36.31 chg: +0.86 stop: 32.95 *new*

We have good news here with CECO. The stock broke through the top of its two-week trading range and resistance near $35.50. This looks like a new bullish entry point and could spark a small short squeeze. The latest data put short interest at almost 12 percent of CECO's float. There is some technical resistance near $36.50, which is where you'd find the exponential 200-dma but we'd be willing to consider new long positions here. We are going to raise the stop loss to $32.95. More conservative traders may want to consider a tighter stop under the two-week trading range.

Picked on May 23 at $ 35.24
Change since picked: + 1.07
Earnings Date 05/02/05 (confirmed)
Average Daily Volume = 2.5 million

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Rockwell Collins - COL - close: 48.38 chg: -0.58 stop: 44.95

The DFI defense sector index continued to dip and shares of COL followed suit. This is what we want to see as our plan calls for COL to pull back toward technical support at its simple 100-dma. Currently the entry point is for a dip into the $46.25-45.50 range. The 100-dma is currently at $46.18. Remember, you the reader may want to watch the dip and then wait for the bounce first before initiating new positions.

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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Reynolds American - RAI - cls: 82.96 chg: -0.01 stop: 78.75

RAI came close to breaking out from its two-week trading range but the rally failed after the initial gap higher. We would still look for a pull back before considering new bullish positions. Essentially there is no change from our weekend update.

Picked on May 16 at $ 81.31
Change since picked: + 1.65
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand

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Teekay Shipping - TK - close: 44.40 chg: +0.19 stop: 42.45

TK tried again but the rally failed at the simple 100-dma near the $45.00 level. That's okay with us. We want to see confirmation of the breakout and that's why we're suggesting a trigger at $45.05 to open the play. More aggressive traders might want to watch for a pull back (and bounce) near the $43.00 level as an alternative entry point.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/05 (unconfirmed)
Average Daily Volume = 681 thousand

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United Technologies - UTX - cls: 107.03 chg: +0.08 stop: 102.45

Dow component UTX actually tagged a new all-time high during the market rally today but like the Dow Industrial average shares of UTX fell lower towards the close. Traders have multiple entry points to consider depending on your risk profile. You could watch for a bounce from the bottom of the current trading range near $106.00 as a new bullish entry point. One could wait for a potential dip toward old resistance, now support near $105. Or if UTX produces one a momentum entry point on a breakout over $108.25 could work but if this is your entry point you might want to consider a tighter stop loss.

Picked on May 23 at $106.25
Change since picked: + 0.78
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.0 million

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Wellpoint Inc - WLP - close: 67.65 chg: -0.08 stop: 64.90

We find it very interesting that WLP produced a very flat session versus the market which saw a nice rally early on only to turn lower into the close. We see no change from our previous update on 06/05/05.

Picked on June 05 at $ 68.40
Change since picked: - 0.68
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 3.5 million
 

Put Updates

MedcoHealth Sol. - MHS - close: 51.60 change: +0.91 stop: 52.21

It's time to go to red alert. MHS surged higher with the broader market today and broke through its simple 50-dma, which had been acting as technical resistance. The rally stopped at the $52 level but it's noteworthy that MHS managed to maintain most of its gains versus give them back like the broader market indices. More conservative traders may want to seriously consider exiting here to avoid further losses. We're going to let our stop loss at $52.21 do it's job for now. We are not suggesting new bearish positions at this time. In the news MHS announced that it will present at the Goldman Sachs Global Healthcare conference on June 14th.

Picked on June 01 at $ 49.90
Change since picked: + 1.70
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 2.0 million
 

Dropped Calls

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Dropped Puts

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