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Call Updates

Amer. Intl Group - AIG - close: 55.55 chg: +0.60 stop: 52.95

We're starting to believe that AIG is not going to dip toward the $54.00 level. Today's bounce appears to be a bounce from its five-week trendline of support (see chart). Thursday's gain could have also been fueled by news that embattled chairman M. Greenberg resigned from the AIG board last night. We are going to suggest new bullish positions here but traders may want to consider a stop loss tighter than our own at $52.95.

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: 97.45 chg: +0.87 stop: 92.49 *new*

CAT continues to show relative strength and came relatively close to our $99.25-100.00 target with today's high of $98.58. We are going to raise our stop loss to $92.49 but more conservative traders may want to use a tighter stop loss. One alternative would be a stop under the $94 level. Actually truly conservative traders may want to consider exiting here for a profit with CAT up over $5 from our entry point or at least taking partial profits off the table.

Picked on May 18 at $ 92.35
Change since picked: + 5.10
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million

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Rockwell Collins - COL - close: 48.57 chg: +0.04 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

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Reynolds American - RAI - cls: 84.45 chg: +0.97 stop: 79.99 *new*

Shares of RAI continue to creep higher. The stock is actually lagging behind rivals Altria (MO) and Loews (LTR), who have both broken out to new highs (and incidentally look like potential momentum plays). RAI is nearing our target range in the $85.00-86.00 region so we are not suggesting new plays. Instead traders can prepare to exit or at least raise their stop losses. We're going to raise our stop to $79.99.

Picked on May 16 at $ 81.31
Change since picked: + 3.14
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand

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Teekay Shipping - TK - close: 44.49 chg: +0.12 stop: 42.45

No change here. We are still waiting for TK to breakout over resistance at its 100-dma and the $45.00 level. Our official entry point to buy calls is at $45.05. However, more aggressive traders may want to consider positions now given TK's intraday bounce of its 50-dma for the second day in a row.

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: 106.02 chg: -0.20 stop: 102.45

UTX did dip below the bottom of its trading range at the $106.00 level but traders were there to buy the dip at $105.25. Readers might want to consider new bullish positions on today's intraday bounce or look for a little confirmation with a move over $106.50 or even $108.00.

Picked on May 23 at $106.25
Change since picked: - 0.23
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.0 million

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Wellpoint Inc - WLP - close: 69.06 chg: +2.35 stop: 64.90

It was a strong day for health insurers and WLP surged with a 3.5 percent gain off yesterday's dip toward support near the $66.00 level. This is a new high for WLP. We also note similar strength in shares of Cigna (CI) and Aetna (AET), which also look like momentum candidates. Our WLP target is the $74.00-75.00 range.

Picked on June 05 at $ 68.40
Change since picked: + 0.66
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 3.5 million
 

Put Updates

ITT Industries - ITT - close: 94.73 chg: +1.16 stop: 96.01

Overbought or not stocks can always get more overbought and ITT may be headed that direction. The stock reversed from yesterday's breakdown after the company reaffirmed earnings toward the high end of previous guidance today. Volume was pretty strong on today's rally and that puts bears like us in danger. We labeled this a more aggressive, risky play and now that risk is looming closer. We're not suggesting new bearish positions at this time and conservative traders may want to bail out early.

Picked on June 08 at $ 93.85
Change since picked: + 0.88
Earnings Date 07/22/05 (unconfirmed)
Average Daily Volume = 581 thousand

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MedcoHealth Sol. - MHS - close: 50.60 change: -0.68 stop: 52.21

We are encouraged by MHS' under performance today but remain wary. We are not suggesting new bearish positions until the stock trades under the $49.50 level.

Picked on June 01 at $ 49.90
Change since picked: + 0.70
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 2.0 million

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Whole Foods - WFMI - close: 117.97 chg: +1.10 stop: 121.05

WFMI is seeing a little bit of a bounce here. Watch for a failed rally under the $120.00 level. Traders may want to wait for another drop below the $117.40 or even the $117.00 level before considering new bearish positions. Remember this is an aggressive, higher-risk play. A stock like WFMI can always become more overbought.

Picked on June 08 at $117.40
Change since picked: + 0.57
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 859 thousand
 

Dropped Calls

Career Education - CECO - close: 38.90 chg: +2.62 stop: 32.95

Target achieved. CECO soared for a 7.2 percent gain today on strong volume and traded into our target range of $38.50-39.50. Nearly all the major education stocks posted gains today

Picked on May 23 at $ 35.24
Change since picked: + 3.66
Earnings Date 05/02/05 (confirmed)
Average Daily Volume = 2.5 million
 

Dropped Puts

None

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