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Call Updates

Cummins Inc. - CMI - cls: 108.17 change: +2.17 stop: 102.49

Another market rally on Wednesday helped keep the rebound alive in shares of CMI. The stock has now broken out above its simple 10-dma. Our short-term target is the $109.75-110.00 range. The $110 level looks like short-term resistance but more aggressive traders might want to aim higher.

Picked on March 13 at $105.25*gap higher*
Change since picked: + 2.92
Earnings Date 04/20/06 (unconfirmed)
Average Daily Volume = 867 thousand

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Hartford Fin. Srv. - HIG - cls: 82.99 chg: +0.74 stop: 79.95

HIG continued to bounce for the fourth day in a row. Today's gain was noteworthy only for the above average volume. If you're looking for a new bullish entry point here then we'd wait for a move over $83.75 or a move above its simple 50-dma, currently at 83.94. Our target is the $87.50-90.00 range.

Picked on February 14 at $ 82.12
Change since picked: + 0.87
Earnings Date 01/26/06 (confirmed)
Average Daily Volume = 1.1 million

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Hydril - HYDL - close: 72.91 change: +0.51 stop: 67.99 *new stop

HYDL is still creeping above its simple 50-dma but the rally stalled a bit after crude oil slipped lower and took the wind out of the oil sector's sails. We'd probably not consider new bullish positions right here. Watch for a dip toward $70.75-70.00 as a new entry point. We are raising our stop loss to $67.99. Our target is the $77.50-80.00 range.

Picked on March 12 at $ 70.23
Change since picked: + 2.61
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 289 thousand

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Altria Group - MO - close: 73.87 chg: -0.59 stop: 71.85

MO experienced a little bit of profit taking today and readers might want to use the pull back as a new bullish entry point to buy calls. Our target is the $77.50-78.00 range but more aggressive traders may want to aim higher. The Point & Figure chart points to a $107 target.

Picked on March 14 at $ 74.11
Change since picked: - 0.24
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume = 8.1 million

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Toyota Motor Corp. - TM - close: 108.39 chg: +0.35 stop: 104.75

TM traded near its February highs near $108.85 this afternoon before succumbing to some profit taking. The pattern remains bullish but readers might want to watch for a dip toward the $107.50 region as a new bullish entry point. Our target is the $112.50-115.00 range. Traders with a longer-term horizon may want to aim higher.

Picked on March 12 at $106.68
Change since picked: + 1.71
Earnings Date 02/07/06 (confirmed)
Average Daily Volume = 438 thousand

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Ultra Petrol. - UPL - close: 58.49 change: +2.69 stop: 53.49*new*

UPL shrugged off any relative weakness in the oil sectors and charged higher. The stock broke out over its simple 100-dma and closed with a 4.8% gain on above average volume, both of which are bullish developments. Our target is the $59.50-60.00 range. FYI: the high today was $58.95. We are raising our stop loss to $53.49.


Picked on March 14 at $ 55.05
Change since picked: + 3.44
Earnings Date 05/09/06 (unconfirmed)
Average Daily Volume = 1.7 million

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Valero Energy - VLO - close: 57.68 change: +1.00 stop: 53.49

We have been triggered in VLO. The stock finally broke out over resistance in the $57.00-57.50 range and hit our trigger at $57.55. Now that the play is open our target is the $62.50-63.00 range. If VLO trades over $58.00 it should produce a new P&F chart buy signal.

Picked on March 15 at $ 57.55
Change since picked: + 0.13
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume = 10.7 million
 

Put Updates

KB Home - KBH - close: 65.12 chg: -1.33 stop: 68.05

The rebound in the homebuilders is struggling. There was no follow through today and the sector was one of the few to close in the red. Shares of KBH lost 2%. We remain wary and we're not suggesting new bearish positions.

Picked on March 06 at $ 64.75
Change since picked: + 0.37
Earnings Date 03/22/06 (confirmed)
Average Daily Volume = 1.9 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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Encana Corp. - ECA - close: 47.40 chg: +0.81 stop: n/a

ECA's rally continues following yesterday's bullish breakout over its significant moving averages. We are not suggesting new strangle positions. Our strangle strategy involves the April $50 calls (ECA-DJ) and the April $40 puts (ECA-PH). Our estimated cost is $3.45. We are aiming for a rise to $5.95.

Picked on January 10 at $ 45.56
Change since picked: + 1.84
Earnings Date 02/15/06 (confirmed)
Average Daily Volume = 4.4 million

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Loews Corp. - LTR - close: 98.91 change: +0.58 stop: n/a

Time is running out for our speculative, high-risk strangle play in LTR. We have two days left before March options expire. We are not suggesting new strangle positions.

Picked on February 13 at $ 95.72
Change since picked: + 3.19
Earnings Date 02/16/06 (confirmed)
Average Daily Volume = 513 thousand

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Ryland Group - RYL - close: 67.41 change: -1.01 stop: n/a

We are not suggesting new strangle positions at this time. Our play involves the April $80 calls (RYL-DP) and the April $70 puts (RYL-PN). Our estimated cost is $7.00. Our target is $12.00.

Picked on January 22 at $ 75.19
Change since picked: - 7.78
Earnings Date 01/24/06 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

Cigna - CI - close: 130.98 change: +3.72 stop: 121.90

Target achieved. This morning Prudential reiterated their "overweight" rating on Cigna and raised their price target for the stock from $150 to $160. The positive broker comments helped spark a 2.9% rally in the stock that pushed shares through the $130.00 level. Our target was the $129.75-130.00 range.

Picked on February 26 at $124.57
Change since picked: + 6.41
Earnings Date 02/08/06 (confirmed)
Average Daily Volume = 944 thousand

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Garmin Ltd. - GRMN - cls: 76.97 change: +1.67 stop: 69.75

Target achieved. Some positive analyst comments helped re-awaken the rally in shares of GRMN. Before the bell an analyst firm reiterated their "buy" rating and raised their price target on GRMN from $80 to $90. This helped fuel a 2.2% gain in the stock price and GRMN hit an intraday high of $77.49. Our target was the $77.00-78.00 range.

Picked on March 02 at $ 72.70
Change since picked: + 4.27
Earnings Date 02/22/06 (confirmed)
Average Daily Volume = 1.2 million
 

Dropped Puts

Unibanco Brasilrs - UBB - close: 83.58 chg: +2.79 stop: 83.26

We have been stopped out of UBB at $83.26. The stock continued to rally after yesterday's bullish reversal. Volume remains low suggesting a lack of conviction on the part of buyers but we remain stopped out nonetheless. The stock should have short-term resistance near $84.00 and then stronger resistance at the $90.00 level.

Picked on March 09 at $ 77.44
Change since picked: + 6.14
Earnings Date 02/16/06 (confirmed)
Average Daily Volume = 755 thousand
 

Dropped Strangles

None
 

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