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Call Updates

Amer. Intl Group - AIG - close: 54.95 chg: -0.28 stop: 52.95

Despite any headlines that AIG might be a part of today the stock isn't doing much and continues to slip towards the $54 level as we expected. We would not consider new bullish plays at this time. Wait for the stock to bounce.

Picked on May 26 at $ 55.05
Change since picked: - 0.10
Earnings Date 02/09/05 (confirmed)
Average Daily Volume = 15.5 million


Caterpillar - CAT - close: 96.58 chg: +2.05 stop: 91.49 *new*

Dow component CAT bucked any market weakness today with a 2.16 percent gain on above average volume. Shares got a boost from an upgrade by Prudential who raised their rating from "neutral" to an "overweight" and raised their price target from $100 to $120. Prudential was pretty positive on CAT's earnings growth. Meanwhile CAT also helped propel its stock price higher with news of a higher dividend and a stock split. The company plans to boost its cash dividend from 41 cents to 50 cents per share, which will equate to 25 cents per share on a post-split basis. The 2-for-1 stock split is due to occur on July 13th. We're obviously encouraged by the stock's strength and continue to target a move into the $99.25-100.00 range. We are raising our stop loss to $91.49.

Picked on May 18 at $ 92.35
Change since picked: + 4.23
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million


Career Education - CECO - close: 36.28 chg: -0.03 stop: 32.95

CECO didn't produce much follow through on yesterday's breakout but we remain bullish on the stock. Broken resistance near $35.50 should now act as new short-term support. CECO is currently fighting with its exponential 200-dma. Our target is the $38.50-39.50 range.

Picked on May 23 at $ 35.24
Change since picked: + 1.04
Earnings Date 05/02/05 (confirmed)
Average Daily Volume = 2.5 million


Rockwell Collins - COL - close: 48.53 chg: +0.15 stop: 44.95

No change here. We continue to wait for COL to pull back toward its 100-dma. Our suggested entry is a dip into the $46.25-45.50 range although we made adjust this range higher as the 100-dma keeps climbing.

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


Reynolds American - RAI - cls: 83.48 chg: +0.52 stop: 78.75

Tobacco-related stocks inched higher after government prosecutors reduced their request from a 25-year $130 billion anti-smoking campaign to a 5-year $10 billion campaign. This is certainly a positive for the industry (we'll keep our personal comments to ourselves). At any rate shares of RAI are trending higher after a two-week consolidation. Our short-term target remains the $85.00-86.00 range.

Picked on May 16 at $ 81.31
Change since picked: + 2.17
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand


Teekay Shipping - TK - close: 44.37 chg: -0.03 stop: 42.45

We are still sitting on the sidelines here. Our plan is to catch a breakout over resistance at the $45.00 mark and its 100-dma. Our specific entry point is at $45.05 and until TK trades at or above this point we'll sit back and watch. More aggressive traders may want to give TK another look here with today's intraday bounce off the simple 50-dma.

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


United Technologies - UTX - cls: 106.22 chg: -0.81 stop: 102.45

UTX has pulled back toward the bottom of its current trading range between $106 and $108. If it bounces here traders might consider new bullish positions but we would prefer to wait a day or two just in case the stock dips lower toward the $105 level.

Picked on May 23 at $106.25
Change since picked: - 0.03
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.0 million


Wellpoint Inc - WLP - close: 66.71 chg: -1.01 stop: 64.90

WLP has pulled back to three-week old support near the $66.00 level. A bounce from here could be used as a new bullish entry point. However, if you suspect that the market is going to continue lower then consider waiting for a potential dip toward the $65.00 level.

Picked on June 05 at $ 68.40
Change since picked: - 1.69
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 3.5 million

Put Updates

ITT Industries - ITT - close: 93.57 chg: -0.59 stop: 96.01

Ding! ITT has hit our trigger point to buy puts. The stock continued to drift lower following yesterday's failed rally and ITT traded through our trigger at $93.85. The play is now open and the stock's MACD sell signal looks more pronounced. Our initial target is the $90.00 level with a secondary target near $87.50.

Picked on June 08 at $ 93.85
Change since picked: - 0.28
Earnings Date 07/22/05 (unconfirmed)
Average Daily Volume = 581 thousand


MedcoHealth Sol. - MHS - close: 51.28 change: -0.32 stop: 52.21

No change from yesterday's update. We remain cautious and we are not suggesting new bearish positions at this time. Wait for MHS to trade back below the $49.50 level.

Picked on June 01 at $ 49.90
Change since picked: + 1.38
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 2.0 million


Whole Foods - WFMI - close: 116.87 chg: -1.25 stop: 121.05

Ding! We have been triggered in WFMI. The stock continued to trade lower this morning following yesterday's failed rally. Shares traded below their Friday session low and hit our trigger to buy puts at $17.40. The stock's MACD sell signal looks more pronounced. This is a new two-week low as the stock tests its 21-dma. Our target is the $111.00-110.00 range.

Picked on June 08 at $117.40
Change since picked: - 0.53
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 859 thousand

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