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Call Updates

BP Prudhoe Bay - BPT - close: 72.19 chg: -3.21 stop: 73.99

Wow! The sell-off in energy has been pretty sharp. Shares of BPT lost over four percent today on very heavy volume. Fortunately, we're watching this decline as spectators. It will be interesting to see if BPT produces any sort of oversold bounce from today's low of 70.80 and the afternoon bounce back toward the 100-dma. FYI: both the OIX and OSX oil indices dipped to their simple 100-dma's today. We are not suggesting new plays at this time but our trigger to buy calls is at 80.11.

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: 45.89 chg: -1.46 stop: 44.49

Just as we expected shares of BRCM finally gave into some of the selling pressure. It didn't help that the SOX fell another 1.7% today. Shares of BRCM dropped three percent and closed near the $46.00 level, which we've been suggesting would be support. In the news BRCM announced that it would spend about $21.6 million (a small amount) to acquire Athena Semiconductors, Inc. Athena is a fabless semiconductor company that specializes in the design and development of mobile digital television tuner and low-power Wi-Fi technology, two markets of interest to Broadcom (source: BRCM press release). The major stock averages did produce a sharp rebound this afternoon and the markets could see an oversold bounce tomorrow. Readers may want to consider bullish positions on a bounce in BRCM but do so carefully. We suspect that October has not yet seen its lows for the month.

Picked on September 25 at $ 45.05
Change since picked: + 0.84
Earnings Date 10/21/05 (unconfirmed)
Average Daily Volume = 7.0 million

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Bear Stearns - BSC - close: 106.35 chg: -0.54 stop: 102.49

We do not see much change from our previous updates on BSC. The $106.00 level is currently holding up as support. Readers can use a bounce from this level as a new bullish entry point but it may be worth while to wait on initiating new positions. We would keep an eye on the XBD broker-dealer index. It may be prudent to wait and watch the XBD to see if the index dips to and bounces from its rising 50-dma.

Picked on October 02 at $109.75
Change since picked: - 3.40
Earnings Date 09/15/05 (confirmed)
Average Daily Volume = 1.2 million

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Cardinal Health - CAH - close: 63.06 chg: +0.41 stop: 59.85

There is no change from our previous updates on CAH. The stock spent most of the session sideways. We're not suggesting new plays but traders might want to consider new entries if CAH bounces from the $62 level.

Picked on September 25 at $ 61.95
Change since picked: + 1.17
Earnings Date 11/04/05 (unconfirmed)
Average Daily Volume = 2.0 million

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Cameco Corp - CCJ - close: 50.38 chg: -2.62 stop: 49.49

Ouch! CCJ suffered a stinging 4.9% decline today on strong volume. Believe it or not we have not been stopped out. Our stop is 49.49 and the low today is 49.50. Now whether or not that was a good thing or a bad thing is a matter of opinion. The energy sector is falling sharply and investors decided to lock in profits in CCJ too. The good news is that CCJ was bouncing higher into the close after testing support near its simple 50-dma. The bad news is that today's decline under the $50.00 mark has reversed its P&F chart into a new sell signal. Aggressive traders might be tempted to buy a bounce from the $50 level, since it's the bottom of the current trading range. We're not suggesting new plays at this time.

Picked on September 18 at $ 53.30
Change since picked: - 2.92
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 862 thousand

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Cigna - CI - close: 115.75 change: -0.30 stop: 111.49

Healthcare stocks, in general, saw some minor selling and Cigna was one of them. We would keep a close eye on the 50-dma near 113.50 and watch it for a bounce. Traders can use a bounce from the 50-dma as a new bullish entry point.

Picked on September 29 at $116.51
Change since picked: - 0.76
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume = 991 thousand

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Altria Group - MO - close: 72.75 change: -1.33 stop: 69.90

It was a tough day for MO. The stock started off weak and slid lower most of the session. Maybe the stock was playing catch up to the rest of the market, which marked its fourth loss in a row. The next level of support is the $71.00 region. We would wait to see a significant bounce before considering new bullish plays.

Picked on September 18 at $ 73.14
Change since picked: - 0.39
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume = 6.7 million
 

Put Updates

Black & Decker - BDK - close: 79.80 chg: +0.95 stop: 83.05

BDK tried to produce an oversold bounce this morning but it eventually failed. The stock is close to our target in the $78-77 range but readers may want to consider exiting right here.

Picked on September 14 at $ 83.31
Change since picked: - 3.51
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 636 thousand

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Ryland Group - RYL - close: 63.35 chg: -0.91 stop: 68.75

Homebuilders continued to get beat up as investors react to all the worry over inflation. We see no change from our previous update. Our target is the $60.50-60.00 range. Broken support near $66.00 should now act as new resistance.

Picked on October 05 at $ 65.70
Change since picked: - 2.35
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 1.0 million

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Whole Foods Mkt - WFMI - cls: 128.76 chg: -0.86 stop: 133.01

Some of the retailing stocks managed a bounce after the September retail sales figures came in above analysts' expectations. This was not the case for WFMI today. However, if the major averages produce an oversold bounce tomorrow we would expect WFMI to participate. Watch the $131.00-132.00 range to act as short-term overhead resistance. Remember, our plan is to sell half our position near support at $125.50 and the second half at $120.50.

Picked on October 05 at $129.62
Change since picked: - 0.86
Earnings Date 11/10/05 (unconfirmed)
Average Daily Volume = 983 thousand
 

Dropped Calls

Harman Intl - HAR - close: 100.82 chg: -0.52 stop: 98.99

HAR hit some more selling pressure today and dipped to $98.89, which was enough to stop us out. Now it is arguable that we either had our stop loss too tight or not tight enough. What we do see is that HAR did manage a decent afternoon rebound after testing the 40-dma region. Looking at the daily chart you can see that HAR rebounded from the 40-dma multiple times in late September. This may actually be a new bullish entry point but we would not suggest new plays at this time. Wait for a new relative high over $103.75.

Picked on October 03 at $102.39
Change since picked: - 1.57
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume = 720 thousand

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Intuitive Surg. - ISRG - close: 70.36 chg: -2.46 stop: 70.99

The simple 50-dma offered bulls no help today. The stock kept right on dropping and actually traded under round-number support at the $70.00 level before its late afternoon bounce. The move has produced a new MACD sell signal. It also hit our stop loss at $70.99 closing the play.

Picked on September 28 at $ 75.11
Change since picked: - 4.75
Earnings Date 10/24/05 (unconfirmed)
Average Daily Volume = 962 thousand
 

Dropped Puts

None
 

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