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Call Updates

Chubb Corp - CB - close: 85.84 change: +0.39 stop: 83.49

CB traded lower at the open like most of the market but the stock rallied throughout the remainder of the session. We see no changes from our previous update. Our target is the $89.50-90.00 range but we plan to exit ahead of CB's July earnings report.

Picked on June 10 at $ 85.05
Change since picked: + 0.79
Earnings Date 07/26/05 (confirmed)
Average Daily Volume = 1.2 million


Cummins Inc - CMI - close: 74.50 change: -0.26 stop: 72.99

CMI held support at its simple 200-dma and managed a meager bounce from its lows. We see no change from our previous update although more aggressive traders may want to use today's bounce as a new entry point.

Picked on June 19 at $ 74.03
Change since picked: + 0.47
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume = 970 thousand


Coventry Hlth Care - CVH - cls: 74.86 chg: +1.53 stop: 69.49*new*

CVH displayed lots of relative strength today. There was no gap lower like many stocks on the bombing news. We are raising the stop loss again to $69.49. Our target is the $77.50-80.00 range.

Picked on July 05 at $ 72.75
Change since picked: + 2.11
Earnings Date 08/02/05 (unconfirmed)
Average Daily Volume = 1.0 million


Fording Candn Coal - FDG - cls: 94.80 chg: +1.18 stop: 89.49

FDG is also showing relative strength today with a 1.2 percent gain. The stock is nearing resistance at the $95.00 level. More conservative traders may want to strongly consider taking some profits here. Our target is the $97-100 range but we plan to exit before FDG's July earnings report.

Picked on June 19 at $ 90.30
Change since picked: + 4.50
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume = 384 thousand


Fortune Brands - FO - close: 91.60 chg: +1.07 stop: 86.95

Traders were quick to buy the dip in shares of FO this morning. This looks like a new bullish entry point here.

Picked on July 03 at $ 90.51
Change since picked: + 1.09
Earnings Date 07/22/05 (unconfirmed)
Average Daily Volume = 648 thousand


Noble Energy - NBL - close: 79.77 chg: +1.64 stop: 73.99

Oil stocks turned in another positive session despite a pull back in the price of crude today. NBL has rallied right back toward resistance at the $80.00 level while producing a bullish engulfing candlestick pattern. The MACD is very close to a new buy signal. Our target is the $84-85 range.

Picked on July 05 at $ 78.15
Change since picked: + 1.62
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 1.0 million


Quanex - NX - close: 55.05 change: +0.66 stop: 52.45

Ding! We have been triggered. NX broke out through resistance at the $55.00 level and traded at our trigger to buy calls at $55.10 opening the play. The move has produced a fresh quadruple top breakout buy signal on its P&F chart with a $68.00 target. Our target is the $59.50-60.00 range.

Picked on July 07 at $ 55.10
Change since picked: - 0.05
Earnings Date 08/25/05 (unconfirmed)
Average Daily Volume = 337 thousand


Rio Tinto - RTP - close: 125.65 chg: -1.20 stop: 121.49

Whoa! RTP is showing a lot of volatility lately. We warned readers to expect a potential "fill the gap" move but we didn't expect it so soon. RTP gapped lower like most stocks today due to the London bombing but shares of RTP were climbing higher throughout the rest of the session.

Picked on June 27 at $123.33
Change since picked: + 2.32
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 160 thousand


Sunoco Inc - SUN - close: 120.89 chg: +2.33 stop: 114.49

Last night we mentioned that we expected a dip toward the $118, maybe the $116 level, and SUN delivered. The stock traded to $116.31 near its simple 10-dma before rebounding. News that the company announced a 2-for-1 stock split certainly didn't hurt us either. Yet technically the split announcement didn't hit the wires until after the closing bell today so that should put an upward bias on the stock for tomorrow. The split date is set for August 1st. If you missed the initial entry point today's dip would have been a good one. More conservative traders may not feel like chasing it here but the move over round-number resistance at the $120 level is encouraging. Our target is the $124.50-125.00 range.

Picked on July 03 at $117.87
Change since picked: + 3.02
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume = 1.3 million


Wellpoint Inc - WLP - close: 69.91 chg: +0.04 stop: 67.49

No change from our previous update.

Picked on June 05 at $ 68.40
Change since picked: + 1.51
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 3.5 million

Put Updates

Ambac Fincl. - ABK - close: 69.30 chg: -0.34 stop: 71.51

ABK gapped lower like many stocks today but also began to rebound as well. We remain bearish on the stock but would expect the rebound to continue. Look for ABK to trade back toward the $69.65-70.00 range before any loss of momentum.

Picked on June 26 at $ 69.62
Change since picked: - 0.32
Earnings Date 07/20/05 (unconfirmed)
Average Daily Volume = 992 thousand


KLA-Tencor - KLAC - close: 45.36 chg: +0.45 stop: 45.76

We are still at red alert here. There was only minor weakness at the open and KLAC's push higher today only confirms yesterday's breakout over the 200-dma. The stock appears to be coiling for a push past the $45.50 level. We are not suggesting new plays. Instead we are suggesting that readers consider exiting early to avoid further losses.

Picked on June 29 at $ 43.88
Change since picked: + 1.48
Earnings Date 07/28/05 (unconfirmed)
Average Daily Volume = 5.4 million

Dropped Calls

Rockwell Collins - COL - close: 46.63 chg: -0.13 stop: 46.49

Normally one would have expected the defense stocks to rally on the news of today's London bombing. The group did turn higher by the close but shares of COL gapped lower at the open like many stocks today. The gap lower to open at $46.22 was below our stop loss at $46.49, so we would have been immediately stopped out. We might consider new long positions on the stock if COL can trade above the $48.00 level again.

Picked on June 27 at $ 46.75
Change since picked: - 0.12
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 800 thousand


SLM Corp - SLM - close: 49.60 change: +0.13 stop: 48.95

The market weakness this morning due to the terrorist attack in London was too much for SLM to bear. The stock traded under technical support at its 50-dma, 100-dma and 200-dma and it pierced the $49.00 mark as well. We were stopped out at $48.95. We might consider new bullish positions again if SLM can trade above the $51 level.

Picked on June 20 at $ 50.92
Change since picked: - 1.32
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 1.8 million


Molson Coors - TAP - close: 60.18 chg: -0.13 stop: 59.49

One might argue that our stop loss was too close but when implementing this play we really didn't want to get caught in a breakdown under the $60.00 level. This morning's gap down, like many stocks today, pushed TAP through our stop loss and closed the play. We would probably watch for a move over $61.00 before considering new bullish positions again.

Picked on June 29 at $ 61.38
Change since picked: - 1.20
Earnings Date 07/28/05 (unconfirmed)
Average Daily Volume = 909 thousand

Dropped Puts


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