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Call Updates

Kerr Mcgee - KMG - close: 86.72 chg: +0.73 stop: 81.99

An intraday spike higher in crude oil helped keep the momentum alive for oil-related stocks. Shares of KMG hit another new all-time high this morning before the stock pared its gains. If traders don't feel like chasing KMG here then watch for a possible pull back toward the $84.50-85.00 region and buy the bounce. Our short-term target is the $89.50-90.00 range.

Picked on August 21 at $ 85.99
Change since picked: + 0.73
Earnings Date 07/27/05 (confirmed)
Average Daily Volume = 2.4 million

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Sierra Health Svs. - SIE - cls: 68.31 chg: -0.70 stop: 66.95

There is no change with our strategy on SIE. We're waiting for a breakout over round-number resistance at $70.00 and technical resistance at the 50-dma. Our suggested entry point to buy calls is at $70.11. If triggered our target is the $75.00-75.25 range.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/05 (confirmed)
Average Daily Volume = 426 thousand
 

Put Updates

Best Buy Co - BBY - close: 47.45 chg: -0.20 stop: 51.01

Retail stocks continued to under perform the market on Monday and shares of BBY followed suit with its second decline under its 50-dma in as many days. We continue to target the $45.50-45.00 range but would not be surprised to see BBY bounce from here and retest the 50-dma or its 10-dma as overhead resistance before moving lower again.

Picked on August 08 at $ 49.31
Change since picked: - 1.86
Earnings Date 09/13/05 (unconfirmed)
Average Daily Volume = 5.0 million

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Building Materials - BMHC - cls: 74.68 chg: +2.07 stop: 75.01

The homebuilders under performed the market today but that didn't stop BMHC, a supplier for the industry, from bucking the trend and posting a strong 2.8% gain. We cannot find any catalyst for today's show of strength in BMHC. It is worth noting that shares are very close to resistance at the $75 mark and its 50-dma. More importantly traders need to be defensive here as BMHC looks poised to breakout to the upside from its two-week trading range. Our stop loss is at $75.01.

Picked on August 16 at $ 71.33
Change since picked: + 3.35
Earnings Date 07/26/05 (confirmed)
Average Daily Volume = 289 thousand

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Carnival Corp - CCL - close: 51.13 chg: +0.20 stop: 52.51

An analyst firm reiterated their "out perform" rating on shares of CCL today and that helped propel the stock higher at the open. The rally was short lived but CCL still looks poised to rebound toward the $52 level and technical resistance at its 100-dma and exponential 200-dma. We're not suggesting new plays at this time as short-term oscillators are pointing higher and its MACD is nearing a new buy signal.

Picked on August 10 at $ 51.79
Change since picked: - 0.66
Earnings Date 09/15/05 (unconfirmed)
Average Daily Volume = 2.5 million

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Federated Dept. Stores - FD - cls: 71.90 chg: -0.45 stop: 75.75

Retail stocks under performed the broader market today and contributing to the group's decline was FD, which broke down under minor support at the $72 level. Today's decline under $72 has opened the play at our suggested trigger of $71.99. Our target is the $67.00-65.00 range but we fully expect to see a bounce on the way down at the $70 mark and/or its 100-dma. Readers can open positions here or watch for a failed rally under its 10-dma near $73.40.

Picked on August 22 at $ 71.99
Change since picked: - 0.09
Earnings Date 08/10/05 (confirmed)
Average Daily Volume = 2.2 million

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Fedex Corp - FDX - close: 83.84 chg: -0.93 stop: 86.01

FDX under performed the broader market and its peers in the transportation sector today. We remain on the sidelines with a suggested trigger to buy puts at $82.99. Yet we can't help but wonder if today's decline, pulling its technical indicators lower, might not be the beginning of the next leg lower. More aggressive traders might want to consider positions with FDX under the $84 level.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/22/05 (unconfirmed)
Average Daily Volume = 2.0 million

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F5 Networks - FFIV - close: 37.90 chg: +0.06 stop: 40.01

There has been very little follow through on FFIV's oversold bounce. The stock has essentially churned sideways for the past three sessions. Yet it may be worth noting that the short-term trend is one of higher lows. We are not suggesting new plays at this time. Traders with open put positions might want to tighten their stop losses.

Picked on August 03 at $ 38.76
Change since picked: - 0.86
Earnings Date 07/20/05 (confirmed)
Average Daily Volume = 1.4 million

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Google - GOOG - close: 274.01 chg: -5.99 stop: 293.01

Monday proved to be an interesting day for GOOG. We were expecting a bounce back toward $284-285 to fill the gap down from last week. Instead the early morning strength was very quickly sold and the stock hit new relative lows at $273.35 before managing an afternoon bounce, which also failed. This sort of action makes GOOG look even weaker and our target at the 100-dma is looking pretty good. The 100-dma is currently at $261 but we're using a range of $262-260 to exit. Keep in mind this is a moving target and we're updating the exit price as we go. In the news today GOOG confirmed reports that it was working on a new sidebar program, which is being seen as a threat to both Yahoo (YHOO) and Microsoft (MSFT).

Picked on August 11 at $284.50
Change since picked: -10.49
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 13.6 million

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Ingersoll Rand - IR - close: 78.98 chg: -0.08 stop: 80.61

The action in IR today might be interpreted as a positive for the bears. The early morning rally failed at the $80.00 mark but unfortunately there was not much follow through to the downside. IR still has short-term support at the $78.00 level, which is why our suggested entry point is at $77.49. Remember, we do not have much time left in this play because we do not want to hold over IR's September 2nd stock split. That means that if IR doesn't hit our trigger soon we're going to exit early.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 1.1 million

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KOS Pharma - KOSP - close: 67.85 chg: -1.67 stop: 72.51

Biotech stocks under performed the market today and KOSP helped lead the way down with a 2.4% decline on above average volume. This decline broke technical support at its simple 50-dma and the move under $69 has produced a fresh Point & Figure chart sell signal that now points to a $62 target. Our suggested entry point was $68.25 so the play is now open. Our target is the $62.00-60.00 range. However, if the 100-dma rises above $62.00 we'll adjust the target to the 100-dma.

Picked on August 22 at $ 68.25
Change since picked: - 0.40
Earnings Date 08/04/05 (confirmed)
Average Daily Volume = 642 thousand

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3M Co. - MMM - close: 71.92 change: -0.15 stop: 74.46

There is nothing new to report on for MMM. The stock's intraday volatility left it with a 15-cent decline, which erased Friday's 15-cent gain. MMM could be trying to build a base here so we are not suggesting new plays. More conservative traders may want to tighten their stop loss. Our target is the $70-68 range.

Picked on July 19 at $ 74.29
Change since picked: - 2.37
Earnings Date 07/18/05 (confirmed)
Average Daily Volume = 3.4 million

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Simon Prpty Grp - SPG - close: 75.43 chg: +0.37 stop: 77.26

We see no changes from our weekend update on SPG. More conservative traders may want to wait for a decline under $74.75 before considering new plays. Our target is the $70.75-70.00 range near its 100-dma.

Picked on August 18 at $ 75.24
Change since picked: + 0.19
Earnings Date 07/28/05 (confirmed)
Average Daily Volume = 946 thousand

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United Parcel Svc - UPS - cls: 72.35 chg: +0.87 stop: 74.21

UPS is still trying to bounce from the $71.50 level and its 50-dma. Today the stock had some success and we would not be surprised to see UPS trade near the $73 level before the bounce failed again. We would not suggest new positions until UPS traded back below the $72 mark or even the afternoon low near $71.80. Our target is the $68-67 range.

Picked on August 17 at $ 71.99
Change since picked: + 0.36
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 2.6 million

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Wynn Resorts - WYNN - close: 49.00 chg: -0.35 stop: 54.01

Shares of WYNN continued to sink lower today confirming Friday's breakdown under round-number support at the $50.00 mark. We see no changes from our weekend update. Our target is the $45.25-45.00 range.

Picked on August 19 at $ 49.95
Change since picked: - 0.95
Earnings Date 08/01/05 (confirmed)
Average Daily Volume = 2.0 million
 

Dropped Calls

None
 

Dropped Puts

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