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Call Updates

BP Prudhoe Bay - BPT - close: 77.50 chg: -1.88 stop: 73.99

Shares of BPT were also caught up in the energy sector sell-off today. The stock lost 2.3% but managed an intraday bounce from the $76 region near its 50-dma. Volume was above average and suggests more weakness ahead. Aggressive traders might want to watch for a bounce from support near the $74.00 level as a bullish entry point. We are going to stick to our suggested entry with a trigger at $80.11 above resistance at $80.00.

Picked on October xx at $ xx.xx <-- see Trigger
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 175 thousand

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Broadcom - BRCM - close: 47.60 chg: +0.68 stop: 44.49 *new*

BRCM continues to show great relative strength. The stock added another 1.44% despite a one-percent decline in the SOX and a 0.7% drop in the NASDAQ. Positive comments on BRCM from Prudential certainly didn't hurt the bulls today. Our target remains the $49-50 range but given the weakness in the markets we have to expect that BRCM will eventually see some profit taking. The 46.50 and 46.00 levels should offer short-term support. We are raising our stop loss to $44.49. Meanwhile in the news BRCM announced that its Q3 earnings report will come out on Thursday, October 20th. That means we plan to exit the day before on Wednesday, the 19th, assuming BRCM does not hit our target or stop before then.

Picked on September 25 at $ 45.05
Change since picked: + 2.55
Earnings Date 10/21/05 (unconfirmed)
Average Daily Volume = 7.0 million

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Bear Stearns - BSC - close: 107.70 chg: -1.65 stop: 102.49

Financials were also hit hard during today's market weakness and the broker-dealer stocks were no exception. The XBD broker-dealer index lost 1.18%. Shares of BSC lost 1.5% but stalled near the $107.50 region where we have been suggesting that readers watch for a dip. If BSC bounces from here we would initiate new plays. However, given the action in the broader markets we would expect more weakness ahead. Our readers may want to wait and see if BSC dips toward the $106.00 level, which is the next level of short-term support. Our ten-week target is the $119.50-120.00 range.

Picked on October 02 at $109.75
Change since picked: - 2.05
Earnings Date 09/15/05 (confirmed)
Average Daily Volume = 1.2 million

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Cardinal Health - CAH - close: 63.62 chg: +0.68 stop: 59.85

Healthcare-related stocks were one of the few bright spots in the market today. Shares of CAH rallied to a new one-year high above resistance at the $64 level but was unable to hold it. Watch for a dip toward the $62.00 level. A bounce from $62 could be used as a new bullish entry point. Our target is the $66.00-67.00 range.

Picked on September 25 at $ 61.95
Change since picked: + 1.73
Earnings Date 11/04/05 (unconfirmed)
Average Daily Volume = 2.0 million

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Cameco Corp - CCJ - close: 55.02 chg: +0.70 stop: 49.49

Surprise! Instead of selling off with the rest of the market shares of CCJ hit a new all-time high this afternoon. Volume came in well above its average, which normally suggests more strength ahead. In the news today CCJ announced it was in acquisition talks with Zircatec Precision Industries, a producer of nuclear fuel bundles for nuclear-powered electricity plants. Our target for CCJ is the $58-60 range.

Picked on September 18 at $ 53.30
Change since picked: + 1.72
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 862 thousand

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Cigna - CI - close: 119.30 change: +1.11 stop: 111.49

One of the few leaders in the market today was CI, part of the healthcare sector. The stock added another 0.9% and closed at another new all-time high. While this is encouraging we do expect the $120.00 level to act as short-term resistance. We would not be surprised to see CI pull back into the $116.00-117.50 region before continuing higher. Plan your trades accordingly. Our target is the $124 level.

Picked on September 29 at $116.51
Change since picked: + 2.79
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume = 991 thousand

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Harman Intl - HAR - close: 102.63 chg: +0.24 stop: 98.99

HAR is our new play from Monday night's newsletter. The stock has lived up to some of its history of partially ignoring the major market averages. Today's relative strength is encouraging but we would hesitate to initiate new bullish positions with the broader averages looking so weak (even though HAR tends to ignore the major averages). Aggressive traders can watch for another bounce from the $100 level as a new bullish entry point.

Picked on October 03 at $102.39
Change since picked: + 0.24
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume = 720 thousand

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Intuitive Surg. - ISRG - close: 75.15 chg: +1.25 stop: 70.99

Medical equipment stocks joined the rest of the healthcare sector as one of the few green spots in the market today. Shares of ISRG surged to a new one-month high near $78 but could not hold its gains. The relative strength is encouraging but the move looks like a potential failed rally. We're still not suggesting new plays at this time. Our target is the $79.50-80.00 range.

Picked on September 28 at $ 75.11
Change since picked: + 0.04
Earnings Date 10/24/05 (unconfirmed)
Average Daily Volume = 962 thousand

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Altria Group - MO - close: 74.16 change: +0.00 stop: 69.90

The nice thing about MO is that it's not just a momentum play but it's a defensive stock too. Shares showed relative strength during today's sell-off but as a Dow-component the stock's ascent will likely be impeded by a declining Dow. Our target is the $78-79 range. Remember that we plan to exit ahead of its October earnings report.

Picked on September 18 at $ 73.14
Change since picked: + 1.02
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume = 6.7 million
 

Put Updates

Black & Decker - BDK - close: 81.44 chg: +0.19 stop: 85.05

In an unusual show of strength shares of BDK rallied to $83.12 this afternoon before turning lower again. It's worth nothing that the rally failed under its 21-dma and its exponential 200-dma, which has been resistance for the past couple of weeks. We remain bearish and continue to target the $78-77 range.

Picked on September 14 at $ 83.31
Change since picked: - 1.87
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 636 thousand
 

Dropped Calls

Apache - APA - close: 71.71 change: -3.44 stop: 72.49

Investors rushed to lock in profits in the energy sector today. A strong decline in crude oil helped spark another round of selling across the board for energy stocks. We were playing APA for its exposure to the natural gas industry. Natural gas contracts did not sell-off but instead closed at a new high. Unfortunately, APA was not spared from the sector wide decline. The stock has broken down below support near $73.00 and the $72 level and is currently trading just above its simple 50-dma. We have been stopped out at $72.49. Meanwhile in the news APA reported that it has restored approximately half of its Gulf of Mexico natural gas output and a third of its oil output (-CBSMW).

Picked on September 18 at $ 73.42
Change since picked: - 1.71
Earnings Date 10/27/05 (unconfirmed)
Average Daily Volume = 2.6 million

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Noble Energy - NBL - close: 46.10 chg: -1.69 stop: 44.49

NBL is another casualty of the energy sector sell-off today. No, we have not been stopped out but odds are good NBL is headed lower. Looking at the daily chart you'll see a big red candlestick. This big red candlestick paints a perfect bearish engulfing (reversal) pattern. Now it is interesting that the "high" for the day says $48.75 but we can't see it. This looks like a bad tick. Looking at the intraday we only see a high near $47.67. Despite this discrepancy we're choosing to exit early! The next level of support is the $45.00 level.

Picked on September 11 at $ 44.90
Change since picked: + 1.20
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume = 796 thousand

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Total S.A. - TOT - close: 131.52 chg: -2.87 stop: 131.99

Energy stock investors decided to sell first and ask questions later after BP reported this morning that it may not hit its production targets and will take a $700 million loss due to hurricane damages. TOT, another big integrated oil company, fell with the energy sector indices. Unfortunately for us TOT's sell-off broke down through support at the $132.00 level late this afternoon and hit our stop loss at $131.99. There is still a chance for an oversold rebound from the 50-dma near 130.60 but we must close the play at a loss.

Picked on September 28 at $137.23
Change since picked: - 5.71
Earnings Date 08/05/05 (confirmed)
Average Daily Volume = 872 thousand
 

Dropped Puts

None
 

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