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Call Updates

Cummins Inc. - CMI - cls: 108.17 change: +0.37 stop: 102.49

The markets did not move much today and neither did shares of CMI. We don't see any changes from our weekend update. Watch for a dip toward the $105 level, which should be stronger support, as a new bullish entry point. 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 set their target 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: 82.84 chg: +0.24 stop: 79.95

HIG is still consolidating under technical resistance at its simple 50-dma. We do not see any changes from our weekend update. More conservative traders may just want to exit early right here to limit their losses. We are not suggesting new plays. The two potential entry points we will be watching for is a bounce from $80.00 or a move over $84.00 (and its 50-dma). Our target is the $87.50-90.00 range.

Picked on February 14 at $ 82.12
Change since picked: + 0.72
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Hydril - HYDL - close: 73.45 change: -0.41 stop: 69.49

The oil sector was beaten up today by profit taking after a 4% decline in crude oil prices toward $60 a barrel. Shares of HYDL actually weathered the session pretty well but the stock does look poised to move lower. We are not suggesting new bullish positions at this time. Watch for a dip into the $72.00-70.00 range. Our target is the $77.50-78.00 range.

Picked on March 12 at $ 70.23
Change since picked: + 3.22
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 289 thousand

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ITT Industries - ITT - close: 56.35 change: +0.43 stop: 51.69

ITT stretched its run of gains to five days in a row now. Volume continued to come in above average. Shares almost hit our target in the $57.00-58.00 range. We are not suggesting new bullish positions and more conservative traders may want to exit early!

Picked on March 15 at $ 53.84
Change since picked: + 2.51
Earnings Date 04/28/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Macerich Co. - MAC - close: 73.63 change: -0.71 stop: 69.95

MAC saw its rally pause on Monday. We would be somewhat wary given the lack of follow through on Friday's bounce from what should be support near $73.00. Our target is the $79.00-80.00 range. The Point & Figure chart is bullish with a double-top breakout buy signal pointing to an $87 target.

Picked on March 16 at $ 74.05
Change since picked: - 0.42
Earnings Date 05/16/06 (unconfirmed)
Average Daily Volume = 371 thousand

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Altria Group - MO - close: 73.59 chg: +0.04 stop: 71.85

Shares of MO were weak early on this morning but rebounded back into the green by the closing bell. The move looks like a potential bullish entry point but we would wait for a new advance past the $74.50 level before considering new bullish positions. In the news today a U.S. court refused to review a $50 million damage award against Phillip Morris. The original punitive damages were $3 billion, which was then reduced to $100 million and then reduce again in an appeals court to $50 million. The P&F chart remains bullish and points to a triple-digit target for the stock. Our target is the $77.50-78.00 range.

Picked on March 14 at $ 74.11
Change since picked: - 0.55
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume = 8.1 million

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Silicon Labs - SLAB - close: 47.61 change: -0.20 stop: 45.95

We do not see any change from our weekend update on SLAB. We're suggesting that readers use a trigger at $51.05 to buy calls. If triggered we will target a rally into the $54.90-55.00 range. More aggressive traders may want to target the $58.00-60.00 range. Should SLAB close under its 50-dma we'll drop it as a bullish candidate.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Sunoco Inc. - SUN - close: 75.37 change: -4.24 stop: 74.99

Ouch! Monday was a rough day for shares of SUN. Crude oil futures lost 4% and slid toward $60 a barrel. This weighed on the sector and the OIX oil index lost 1.9% and the OSX oil services index fell 3.1%. Shares of SUN lead the way after Deutsche Securities downgraded SUN from a "hold" to a "sell" rating. SUN lost 5.3% on above average volume and looks poised to hit our stop loss at $74.99. We are not suggesting new bullish positions and odds look good that we'll be stopped out tomorrow.

Picked on March 16 at $ 80.26
Change since picked: - 4.89
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 2.4 million

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Toyota Motor Corp. - TM - close: 109.11 chg: +0.91 stop: 104.75

Another strong day for the Japanese stock market helped launch a breakout in shares of TM. TM gapped higher to open near $110 this morning but pared its gains by the closing bell. Yet the stock remains above the $109 level, which has been resistance for weeks. 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: + 2.43
Earnings Date 02/07/06 (confirmed)
Average Daily Volume = 438 thousand

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Valero Energy - VLO - close: 56.75 change: -1.11 stop: 53.49

Oil stocks were weak today on the heels of a strong decline in crude oil futures. It didn't help that rival refiner SUN was downgraded to a "sell" this morning. We are not suggesting new bullish positions in VLO at this time although on a technical basis a bounce from here (near its 50-dma) would look like a new bullish entry point. Our target is the $62.50-63.00 range.

Picked on March 15 at $ 57.55
Change since picked: - 0.80
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume = 10.7 million

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Vertex Pharma - VRTX - close: 40.19 chg: -0.37 stop: 37.49

VRTX saw a little bit of volatility this morning but at the end of the day we don't see any change from our weekend play description for VRTX. Short-term the stock looks bullish and it could see a short squeeze toward $44.00. Our target will be the recent highs in the $44.00-44.50 range.

Picked on March 19 at $ 40.56
Change since picked: - 0.37
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 1.5 million
 

Put Updates

Biosite Inc. - BSTE - close: 50.80 chg: +0.59 stop: 52.55

Shares of BSTE managed to bounce from the $50.00 level but the stock didn't bounce very high. The rebound was probably fueled by news this morning that BSTE would partner with Eli Lilly (LLY) on a clinical trial for LLY's sepsis drug Xigris. We are going to stock to our game plan. If BSTE trades under $49.00 it will produce a new P&F chart sell signal. We're going to suggest a trigger at $49.75 to buy puts since the $50.00 mark is acting as round-number support. The $49.00 level is also support and more conservative traders may want to wait for a breakdown under $49.00 before initiating positions. Our target will be the $45.25-45.00 range.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/25/06 (unconfirmed)
Average Daily Volume = 261 thousand

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Gannett Co Inc. - GCI - close: 58.81 chg: -0.23 stop: 61.76

GCI continued to sink today but the selling pressure seemed to stall. It might be prudent to wait for a bounce back toward $60.00 and consider a failed rally near $60.00 as a new bearish entry point. We are going to target a decline into the $55.50-55.00 range.

Picked on March 19 at $ 59.04
Change since picked: - 0.23
Earnings Date 04/12/06 (confirmed)
Average Daily Volume = 1.1 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: 45.85 chg: -2.09 stop: n/a

We do not see any changes from our weekend update on ECA. 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: + 0.29
Earnings Date 02/15/06 (confirmed)
Average Daily Volume = 4.4 million

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Ryland Group - RYL - close: 68.76 change: -1.77 stop: n/a

It looks like the oversold bounce in the homebuilders has run out of steam. As a group the builders seemed to roll over. Several stocks in the sector have produced what look like bearish reversal patterns today. RYL produced a bearish engulfing candlestick pattern. 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: - 6.43
Earnings Date 01/24/06 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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