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Call Updates

Aetna - AET - close: 83.20 change: +1.15 stop: 78.95*new*

Another positive day for the DJIA and the insurance sector helped AET climb another 1.4% on rising volume. We are raising our stop loss again, this time to $78.95. Our target is the $84.75-85.25 range. In the news AET said it would present at a healthcare conference on September 13th.

Picked on September 06 at $ 80.25
Change since picked: + 2.95
Earnings Date 10/27/05 (unconfirmed)
Average Daily Volume = 2.0 million

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Centex - CTX - close: 68.58 chg: +0.35 stop: 63.99

Homebuilders continued to climb on Wednesday although the rally did slow down a bit. Shares of CTX churned sideways in a very tight range all session before creeping higher at the close. We remain bullish here although the $70.00 mark is bound to be short-term overhead resistance. Our target is the $73-75 range.

Picked on September 01 at $ 68.25
Change since picked: + 0.33
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 1.6 million

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Kerr Mcgee - KMG - close: 90.27 chg: +1.37 stop: 85.90

KMG displayed lots of relative strength today out performing its peers in the oil sector, the latter of which saw some profit taking as crude oil prices declined. KMG reported today that all of its staff working in the gulf region was safe and that its mid and western deepwater oil operations in the gulf were back up and operating at pre-hurricane levels. This helped push shares of KMG to a new all-time high above resistance at the $90.00 level. Our initial target in the $89.50-90.00 range has already been hit and we're now aiming for a secondary target in the $92.00-92.50 range.

Picked on August 21 at $ 85.99
Change since picked: + 4.28
Earnings Date 07/27/05 (confirmed)
Average Daily Volume = 2.4 million

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Lehman Brothers - LEH - cls: 110.39 chg: +0.91 stop: 103.90

Shares of LEH do not want to cooperate with us. We've been suggesting that readers buy a dip in the stock but LEH just won't pull back - at least not yet. We do not want to chase the stock here and believe that if we're patient we will get a chance to buy the dip. Right now we're suggesting that readers consider buying calls in the $107.55-106.50 range.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/20/05 (unconfirmed)
Average Daily Volume = 1.9 million

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MDC Holdings - MDC - close: 77.54 change: +1.20 stop: 71.99

Shares of MDC are starting to show some strength here. The stock out performed the market and its peers in the homebuilding sector today with a 1.5% gain. If you missed the recent dip as an entry point we would still consider new entries here above $77.00. We do expect some short-term resistance near $80.00 and its 50-dma but our target is the $83-85 range.

Picked on September 01 at $ 77.01
Change since picked: + 0.53
Earnings Date 10/13/05 (unconfirmed)
Average Daily Volume = 489 thousand

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Noble Corp - NE - close: 70.41 change: +0.76 stop: 67.25

Shares of NE are also displaying relative strength today. The stock added more than one percent on very strong volume today. In the news the company announced a new CFO. More aggressive traders may want to consider bullish positions here. We're suggesting that readers wait for a move over $71.00 before considering new bullish plays. Right now the oil sector looks ripe for some profit taking now that crude oil prices are slipping and that makes us cautious although NE's display of strength today is a good sign.

Picked on August 31 at $ 71.30
Change since picked: - 0.89
Earnings Date 10/17/05 (unconfirmed)
Average Daily Volume = 1.8 million
 

Put Updates

Carnival Corp - CCL - close: 49.87 chg: +0.52 stop: 50.51*new*

The positive market environment helped fuel a second day in CCL's oversold bounce. Shares did stall under round-number resistance at the $50.00 level and its multi-week trend of lower highs. Normally we would expect CCL to turn lower from here. However, we're growing a bit concerned because volume has been pretty strong the last two sessions and that could suggest that CCL is forming a short-term bottom. We are going to tighten our stop loss to $50.51.

Picked on August 10 at $ 51.79
Change since picked: - 1.92
Earnings Date 09/15/05 (unconfirmed)
Average Daily Volume = 2.5 million

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Electronic Arts - ERTS - close: 56.55 change: +0.41 stop: 60.01

ERTS produced a minor bounce today but we would expect the rebound to carry ERTS toward the $58.00 level near it simple 200-dma before running out of gas. A failed rally under $58.00 could be used as a new bearish entry point.

Picked on August 30 at $ 56.41
Change since picked: - 0.14
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 3.7 million

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Fedex Corp - FDX - close: 81.15 chg: -0.20 stop: 85.01

The rally in the Dow transports has stalled and so has the bounce in shares of FDX. It may not be over yet so keep watching for a rebound toward the $82.50 region. Readers can choose to enter new bearish plays on a failed rally below 82.50 or a new low under $80.00 (or the June low of 79.55).

Picked on August 23 at $ 82.99
Change since picked: - 0.84
Earnings Date 09/22/05 (unconfirmed)
Average Daily Volume = 2.0 million

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KOS Pharma - KOSP - close: 68.06 chg: +1.57 stop: 70.51

KOSP is a bit oversold so we're starting to see an oversold bounce. It doesn't help that the BTK biotech index is near multi-year highs. Yes, KOSP has been under performing its peers but the stock could easily rally back toward overhead resistance near $70.00 and its simple 50-dma. We are not suggesting new plays at this time.

Picked on August 22 at $ 68.25
Change since picked: - 0.19
Earnings Date 08/04/05 (confirmed)
Average Daily Volume = 642 thousand

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United Parcel Svc - UPS - cls: 69.73 chg: -0.32 stop: 74.21

Much like its rival FDX, shares of UPS have stalled following yesterday's bounce. We would watch the $71 level to act as overhead resistance.

Picked on August 17 at $ 71.99
Change since picked: - 2.26
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 2.6 million

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Urban Outfitters - URBN - cls: 56.53 chg: +0.97 stop: 57.01

This oversold bounce in retail stocks and shares of URBN has really stung our bearish play here! Right now URBN is challenging its trendline of resistance that began weeks ago. We expect to be stopped out tomorrow if URBN doesn't reverse this trend.

Picked on August 31 at $ 54.25
Change since picked: + 2.28
Earnings Date 08/11/05 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

None
 

Dropped Puts

AutoZone - AZO - close: 96.30 change: +1.32 stop: 95.51

Retail stocks continued yesterday's rally and shares of AZO gapped higher to open at $95.47 before climbing even further. Odds are yesterday's spike spooked some bears into short covering and that exacerbated today's gain. We admit that it's frustrating to see AZO stop us out at $95.51 after the stock came close to our target near $91.50.

Picked on August 28 at $ 95.45
Change since picked: + 0.85
Earnings Date 09/20/05 (unconfirmed)
Average Daily Volume = 732 thousand

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CDW Corp - CDWC - close: 60.64 chg: +1.57 stop: 62.01

Heads up! It's time to exit early in CDWC. The stock may not have participated in yesterday's big retail stock rally but it made up for it today. Shares added 2.65% on decent volume to breakout over resistance at the $60.00 mark, its 200-dma, 50-dma and its four-week trendline of resistance. We are exiting now to avoid further losses!

Picked on August 31 at $ 58.99
Change since picked: + 1.65
Earnings Date 07/19/05 (confirmed)
Average Daily Volume = 867 thousand

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Wynn Resorts - WYNN - close: 50.91 chg: +1.54 stop: 50.25

Gaming and casino-related stocks as a group moved higher today and that helped shares of WYNN breakout over resistance at the $50.00 level. We've been stopped out at $50.25.

Picked on August 19 at $ 49.95
Change since picked: + 0.96
Earnings Date 08/01/05 (confirmed)
Average Daily Volume = 2.0 million
 

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