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Call Updates

AmerisourceBergen - ABC - close: 69.15 change: +0.55 stop: 65.57*new* 

Try as it might ABC's rally today fell short of our target of $69.50. The stock hit an intraday high of $69.46. We remain bullish and are encouraged by today's relative strength. More conservative traders may want to exit here to avoid any pre-weekend profit taking. We are raising the stop loss to break even at $65.57. Today ABC confirmed that it will report earnings on July 21st. 

Picked on June 13 at $ 65.57
Change since picked: + 3.58 
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 1.3 million 

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Ashland Inc - ASH - close: 71.87 chg: +0.56 stop: 67.95 

ASH continues to be strong and added another 0.7 percent on above average volume today. Our target is the $74.75-75.25 range.

Picked on June 16 at $ 70.05
Change since picked: + 1.82
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume = 1.1 million 

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Chubb Corp - CB - close: 85.61 change: -0.08 stop: 82.49

CB's loss of 8 cents today sounds like relative strength to us considering the DJIA's 99-point decline.

Picked on June 10 at $ 85.05 
Change since picked: + 0.56
Earnings Date 07/26/05 (confirmed)
Average Daily Volume = 1.2 million 

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Rockwell Collins - COL - close: 47.68 chg: -0.09 stop: 46.49 

The DFI defense sector index was one of the few sectors that closed in the green today. We're disappointed that shares of COL didn't follow suit but the stock continues to look like a bullish candidate and its MACD is narrowing more closely toward a new buy signal.

Picked on June 27 at $ 46.75
Change since picked: + 0.93
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 800 thousand 

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Cummins Inc - CMI - close: 74.61 change: -0.58 stop: 70.95

No change from our previous update. Our target is the $77.50-80.00 range. 

Picked on June 19 at $ 74.03
Change since picked: + 0.58
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume = 970 thousand 

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Coventry Hlth Care - CVH - cls: 70.75 chg: -0.99 stop: 68.49

No change from our update on Wednesday. We are suggesting a trigger to buy calls at $72.75. Our target is the $77.50-80.00 range.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 1.0 million 

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Fording Candn Coal - FDG - cls: 92.20 chg: +0.40 stop: 88.49 

No change from our previous updates.

Picked on June 19 at $ 90.30
Change since picked: + 1.90
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume = 384 thousand 

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Rio Tinto - RTP - close: 121.92 chg: -1.89 stop: 119.99

The action in RTP today doesn't look very healthy. The stock is testing its recent low and support near the 40 and 50-dma's. Traders may want to turn defensive. If RTP trades under the June 27th low of $121.45 then we would expect it to test the $120.00 level as support or its 200-dma at $120.25. We would not suggest new positions here. Wait for a bounce.

Picked on June 27 at $123.33
Change since picked: - 1.41
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 160 thousand 

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SLM Corp - SLM - close: 50.80 change: +0.56 stop: 48.95

We would be long calls on SLM with the stock above the $50.00 level but we would hesitate to initiate new positions with the major averages sinking.

Picked on June 20 at $ 50.92
Change since picked: - 0.12
Earnings Date 07/14/05 (unconfirmed)
Average Daily Volume = 1.8 million 

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Molson Coors - TAP - close: 62.00 chg: +0.62 stop: 59.49

No change from yesterday's update. TAP continues to show relative strength and is challenging resistance near the $62.00 level and its simple 50-dma. Actually, if you want to be technical, TAP has broken through its simple 50-dma, which is at 61.95. If the broader indices continue to sink we would expect TAP to retest the $60 region as support.

Picked on June 29 at $ 61.38
Change since picked: + 0.62
Earnings Date 07/28/05 (unconfirmed)
Average Daily Volume = 909 thousand 

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Wellpoint Inc - WLP - close: 69.64 chg: -0.02 stop: 65.90 

WLP hit yet another new high today at $71.23 but it's having a terrible time holding on to any gains. If the major averages continue to sink we'd look for a dip back toward the $68.00 region.

Picked on June 05 at $ 68.40
Change since picked: + 1.24 
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 3.5 million

Put Updates

Ambac Fincl. - ABK - close: 69.76 chg: -0.90 stop: 71.51

Good news! It does look like yesterday was a failed rally at resistance and today's decline back under the $70.00 level looks like a new bearish entry point to buy puts. Our target is the $65.50-65.00 range but we do not plan on holding past ABK's earnings report.

Picked on June 26 at $ 69.62
Change since picked: + 0.14
Earnings Date 07/20/05 (unconfirmed)
Average Daily Volume = 992 thousand 

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ESCO Tech. - ESE - close: 100.80 chg: -0.20 stop: 102.51

Our aggressive put play in ESE is still in hot water but we're encouraged to see that ESE is struggling under its three-week trend of lower highs. We would not suggest new bearish positions until ESE traded under $99 or $98 again.

Picked on June 26 at $ 97.80
Change since picked: + 3.00
Earnings Date 08/10/05 (unconfirmed)
Average Daily Volume = 102 thousand 

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KLA-Tencor - KLAC - close: 43.68 chg: -0.20 stop: 45.76

The good news here is that the SOX semiconductor index did breakdown under support at the 420 level. The less than good news is that KLAC's 20-cent decline today was not the sort of follow through we were expecting on yesterday's breakdown. KLAC did close near its lows for the session and we remain optimistic that the stock is headed lower. If you're a technical trader the next immediate challenge is the 50-dma near 43.36.

Picked on June 29 at $ 43.88
Change since picked: - 0.20
Earnings Date 07/28/05 (unconfirmed)
Average Daily Volume = 5.4 million 

Dropped Calls

Goldman Sachs - GS - close: 102.02 chg: -0.77 stop: 101.89

Our bullish play in GS did not pan out very well. The breakout over resistance at the $104.00 level proved to be a bull trap. The stock continued to decline today and broke down under its exponential 200-dma. The technical oscillators for GS have turned sour and its MACD indicator is nearing a new sell signal. We also notice that the XBD broker dealer index's upward momentum has stalled and looks prone to profit taking. We would keep an eye on GS for a dip toward the $100 level. We are stopped out at $101.89.

Picked on June 28 at $104.35
Change since picked: - 2.33
Earnings Date 06/16/05 (confirmed)
Average Daily Volume = 4.8 million 

Dropped Puts

None

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