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Call Updates

Las Vegas Sands - LVS - close: 39.60 chg: +1.14 stop: 36.99

Another strong day in the markets helped propel LVS' rebound that began yesterday. The stock remains under technical resistance at the simple 100-dma, the exponential 200-dma and round-number resistance at the $40.00 mark. We only have a few trading days left before LVS is due to report earnings on August 3rd so we are not suggesting new bullish positions. Our plan is to exit on Tuesday afternoon at the close.

Picked on July 21 at $ 40.31
Change since picked: - 0.71
Earnings Date 08/03/05 (confirmed)
Average Daily Volume = 934 thousand


Pediatrix Med Group - PDX - cls: 78.58 chg: +1.33 stop: 74.25

Strong gains in PDX (+1.7%) were fueled by a broad market rally and super strength in the healthcare sector. The stock is nearing our target in the $80-82 range. Traders may want to seriously consider exiting in the $79.50-80.00 range since $80 is likely to be psychological resistance. We plan to exit at the closing bell on Tuesday, August 2nd to avoid PDX's earnings the following session.

Picked on July 11 at $ 76.10
Change since picked: + 2.48
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 158 thousand

Put Updates

AutoZone - AZO - close: 99.38 chg: +1.53 stop: 100.01

The stock market's defiant show of strength this week is just killing the bears. Today's market rally helped push AZO toward resistance at the $100 mark but thankfully bulls could not muster enough momentum to break through it. We have to turn defensive here. The broad market indices are overbought and we are nearing what is usually a market dip in the August-September time period but thus far stocks aren't cooperating with seasonal trends. We would not suggest new bearish positions until AZO traded back under $98.00.

Picked on July 25 at $ 98.13
Change since picked: + 1.25
Earnings Date 09/20/05 (unconfirmed)
Average Daily Volume = 748 thousand


Best Buy Co - BBY - close: 78.47 chg: +0.58 stop: 76.61

There is no change here. BBY continues to defy gravity although today would constitute a small bearish reversal under round-number resistance at the $80.00 level. We are comfortably on the sidelines just watching and waiting for the right entry point. Currently our suggested entry is a dip under $73.25 but we'll probably need to adjust that higher. Don't forget that BBY is due to split 3:2 on August 4th. If we don't enter the play before then we may wait a day or two after the split to re-evaluate our strategy. What we do know is that nothing defies gravity forever and BBY will eventually consolidate lower even if it's just to rest before the next leg up.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/14/05 (confirmed)
Average Daily Volume = 3.3 million


Fannie Mae - FNM - close: 57.30 chg: +0.60 stop: 59.51

FNM did see a bit of a bounce today but shares stalled near the $57.50 region and this may prove to be a new bearish entry point. In the news a Reuters article said that FNM's mortgage portfolio declined an annualized 25.3 percent in June, its eighth consecutive monthly decline. Also in the headlines was news that the Senate Banking Committee approved a bill that would tighten regulatory control over GSE's Fannie Mae (FNM) and Freddie Mac (FRE). While know one knows if the bill will make it into law or even reach the Senate floor for a vote it does create a cloud over the two stocks that investors need to be aware of.

Picked on July 27 at $ 56.49
Change since picked: + 0.81
Earnings Date 00/00/05 (unconfirmed)
Average Daily Volume = 3.3 million


Infosys Tech. - INFY - cls: 71.93 chg: +0.02 stop: 75.01

No change from our previous update. Strength in stocks here in the U.S. and in India (which hit another new all-time high) is stalling INFY's decline. We would not suggest new bearish positions until INFY traded back under the $70.00 level.

Picked on July 20 at $ 69.92
Change since picked: + 2.01
Earnings Date 07/12/05 (confirmed)
Average Daily Volume = 922 thousand


Lehman Brothers - LEH - cls: 106.92 chg: +0.55 stop: 108.01

Shares of LEH continue to churn sideways between $105.00 and $107.00. However, if the market continues higher tomorrow we would not be surprised to see LEH spike through our stop loss at $108.01. Remember, that our stop loss on this particular play is merely superficial. If LEH does trade that high we suspect that the option values for the August 100 puts will be virtually worthless. While we will close the play if this occurs but in real life we would keep the options open although they'll probably be close to worthless. Put owners would still have three weeks for LEH consolidate lower to potentially recoup the cost of the play or dare we say it score a profit. We are not suggesting new positions at this time.

Picked on July 21 at $105.13
Change since picked: + 1.79
Earnings Date 06/14/05 (confirmed)
Average Daily Volume = 2.7 million


3M Co. - MMM - close: 74.70 change: +1.05 stop: 77.51

With the market in rally mode we can't be surprised to see MMM producing the occasional bounce higher. We see no change from our previous updates although we would not open new positions until MMM traded back under $74.00. Our short-term target is the $70-68 range.

Picked on July 19 at $ 74.29
Change since picked: + 0.41
Earnings Date 07/18/05 (confirmed)
Average Daily Volume = 3.4 million

Dropped Calls


Dropped Puts

KB Home - KBH - close: 83.86 chg: +2.59 stop: 82.51

No surprises here. The reaction to Pulte's (PHM) earnings report today was very positive and the entire homebuilding sector surged higher on the news. KBH gapped open higher at $82.80 above our stop loss immediately stopping us out.

Picked on July 26 at $ 79.85
Change since picked: + 4.01
Earnings Date 09/15/05 (unconfirmed)
Average Daily Volume = million


Children's Place - PLCE - cls: 47.01 chg: +1.80 stop: 47.51

This is a really tough market to be a bear. The major averages will eventually consolidate lower but the broad market rally helped fuel a rebound in PLCE right back toward resistance at the $48.00 level. PLCE's rally failed again but not before hitting our stop loss t $47.51 closing the play.

Picked on July 27 at $ 44.90
Change since picked: + 2.11
Earnings Date 08/11/05 (unconfirmed)
Average Daily Volume = 775 thousand

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