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Call Updates

AmerisourceBergen - ABC - close: 66.95 change: -0.40 stop: 63.85

ABC held up pretty well considering the market sell-off today. We're not changing our strategy here but we'd hesitate to consider new long plays. Watch for a bounce from the $66.00 level if the markets continue to slide. Actually, if the DJIA breaks down below the 10,400 level or its 50-dma near 10,375 then readers may want to consider exiting their bullish positions. 

Picked on June 13 at $ 65.57
Change since picked: + 1.38
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume = 1.3 million 

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Ashland Inc - ASH - close: 71.13 chg: +0.64 stop: 66.99

ASH continues to show lots of relative strength and the stock hit another new high today despite the market sell-off. We're certainly encouraged by its gain. Our target is the $74.75-75.25 range but we do not plan on holding over ASH's July earnings report.

Picked on June 16 at $ 70.05
Change since picked: + 1.08
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume = 1.1 million 

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Chubb Corp - CB - close: 83.65 change: -1.60 stop: 82.49

Uh-oh! Today's decline in CB does not look healthy. Shares have broken down through the bottom of its narrow, rising channel over the last few weeks. The selling did pause near its 40-dma but we suspect that CB will continue to fall toward its 50-dma near $82.50. Conservative traders may want to seriously consider exiting now to avoid further losses. Our stop loss is at $82.49.

Picked on June 10 at $ 85.05 
Change since picked: - 1.40
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume = 1.2 million 

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Rockwell Collins - COL - close: 47.60 chg: -0.76 stop: 44.95

The defense sector was hit with some profit taking today as the DFI index lost 1.65 percent. We suspect the selling will continue tomorrow and in this case that may be a good thing. We're still waiting for COL to dip toward its 100-dma currently near $47.00. However, since the markets tend to overreact we're going to keep our suggested bullish entry point at $46.75-46.50. More conservative traders may feel better if they wait for the dip and then bounce back above the $47.50 level before initiating new positions. After the closing bell it looks like COL announced it had one a $350 million deal from the Air Force. 

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 800 thousand 

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Cummins Inc - CMI - close: 72.98 change: -1.90 stop: 70.95

CMI was not immune from the profit taking today and lost 2.5 percent to close back under its 200-dma and its 10-dma. At this time we'd probably watch for CMI to dip toward the $72-71 region. We would not suggest new bullish positions until we see a rebound. Our stop at 70.95 might be too tight as the $70.00 level should be stronger support. However, we don't want to lower our stop only to see CMI continue to fall. 

Picked on June 19 at $ 74.03
Change since picked: - 1.05
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume = 970 thousand 

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Eagle Materials - EXP - close: 90.91 chg: -2.49 stop: 89.49 

Whoa! Looks like traders did a little bit of panicking and tried to lock in some profits in EXP today. The $90.00 level should be the next level of support. We would not suggest new bullish positions until we see a significant bounce from the $90.00 region. 

Picked on June 09 at $ 90.45
Change since picked: + 0.46
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 134 thousand 

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Fording Candn Coal - FDG - cls: 93.83 chg: +0.56 stop: 87.49 

FDG out performed the market with another gain today but we suspect that shares might pull back tomorrow. We would not be surprised to see a dip back toward the $91-92 level before FDG continues higher. 

Picked on June 19 at $ 90.30
Change since picked: + 3.63
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume = 384 thousand 

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Intl Bus. Mach. - IBM - cls: 75.41 chg: -1.82 stop: 74.99

And that's why we suggest triggers on a lot of our plays. IBM followed the DJIA lower and never got close to our suggested entry point above resistance at the $78.00 level. We'll keep IBM on the list as a candidate for now but if the stock trades under $74.00 it may be time to start looking at put options. Our current trigger is $78.25.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/14/05 (unconfirmed)
Average Daily Volume = 7.4 million 

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St Joe Co - JOE - close: 80.43 change: -0.97 stop: 79.45

JOE held up reasonably well considering the pull back in the market today. The 80.00 level is still acting as support but if the selling continues then chances will certainly rise on JOE stopping us out at $79.45. Watch for a bounce back over $81.50 before considering new bullish positions. FYI: if we do get stopped out we'll watch the $75.00 level as the next region of support and potential bullish entry point.

Picked on June 20 at $ 82.56
Change since picked: - 2.13
Earnings Date 07/20/05 (unconfirmed)
Average Daily Volume = 507 thousand 

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Netease.com - NTES - close: 59.44 chg: -1.61 stop: 55.95 

All we can say about NTES is that volume was pretty light during today's profit taking. The trend remains bullish for now. 

Picked on June 13 at $ 57.29
Change since picked: + 2.15
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 752 thousand 

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SLM Corp - SLM - close: 50.66 change: -0.29 stop: 48.95

Watch for a bounce from the $50.00 level as a new bullish entry point.

Picked on June 20 at $ 50.92
Change since picked: - 0.26
Earnings Date 07/14/05 (unconfirmed)
Average Daily Volume = 1.8 million 

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Wellpoint Inc - WLP - close: 68.74 chg: -1.24 stop: 65.90 

Healthcare and insurance stocks were not immune from the profit taking today and WLP appears to be headed for a retest of the $68.00 level. We are not suggesting new bullish plays at this time. Wait to see where it rebounds. 

Picked on June 05 at $ 68.40
Change since picked: + 0.34 
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 3.5 million 

Put Updates

Quality Systems - QSII - cls: 45.97 chg: -0.40 stop: 50.01 

No change from our previous update on 06/21/05. Our target is the exponential 200-dma near $41-40.

Picked on June 15 at $ 47.75
Change since picked: - 1.80
Earnings Date 06/13/05 (confirmed)
Average Daily Volume = 330 thousand

Dropped Calls

United Technologies - UTX - cls: 52.37 chg: -0.59 stop: 51.80 

We are calling it quits on UTX. The stock remains above what should be support near the $52.00 level and its 50-dma but we're just not seeing the sort of upward momentum we need. 

Picked on May 23 at $ 53.12
Change since picked: - 0.75
Earnings Date 07/20/05 (unconfirmed)
Average Daily Volume = 4.0 million

Dropped Puts

Semiconductor Holders - SMH - cls: 34.66 chg: -0.12 stop: 35.05

Now there is a surprise. The semiconductor sector rallied this morning moving the opposite direction of the markets today. The rally did fail but not before the SMH hit an intraday high of $35.62. We have been stopped out at $35.05. 

Picked on June 15 at $ 33.95
Change since picked: + 0.71
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 26.3 million

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