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Call Updates

Cummins Inc. - CMI - cls: 107.00 change: +1.68 stop: 103.85

Wednesday's market rebound helped fuel a bounce in shares of CMI and the stock added almost 1.6% on average volume. The overall pattern remains bullish but short-term we're feeling a bit cautious. More aggressive traders might want to use this bounce as a potential entry point. Keep in mind that our short-term target is the $109.75-110.00 range. Aggressive traders may want to aim higher assuming CMI can breakout over the $110 level.

Picked on March 13 at $105.25*gap higher*
Change since picked: + 1.75
Earnings Date 04/20/06 (unconfirmed)
Average Daily Volume = 867 thousand

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Hartford Fin. Srv. - HIG - cls: 82.87 chg: +0.82 stop: 79.95

HIG's bounce today erased yesterday's losses but volume on the rally was about average. We would not suggest new bullish entries until HIG can breakout over technical resistance at the simple 50-dma near 83.36. Currently our target is the $87.50-90.00 range.

Picked on February 14 at $ 82.12
Change since picked: + 0.75
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Hydril - HYDL - close: 74.55 change: +1.79 stop: 69.49

Oil stocks rebounded a little bit today and HYDL out performed most stocks in the group with a 2.4% rebound. Volume was a bit light on the move. More conservative traders may want to plan an exit in the $74.50-75.00 region. Our target is the $77.50-80.00 range.

Picked on March 12 at $ 70.23
Change since picked: + 4.32
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 289 thousand

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ITT Industries - ITT - close: 56.53 change: +0.52 stop: 51.69

The good news here is that there was no follow through on yesterday's bearish reversal in ITT. The stock remains near our target and we're not suggesting new positions at this time. We are aiming for a rise into the $57.00-58.00 range.

Picked on March 15 at $ 53.84
Change since picked: + 2.69
Earnings Date 04/28/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Macerich Co. - MAC - close: 73.13 change: +0.14 stop: 69.95

The overall pattern remains bullish for MAC but we remain cautious. We are not suggesting new bullish positions at this time. Wait for a new move over $74.15 before considering buying calls. Our target is the $79.00-80.00 range.

Picked on March 16 at $ 74.05
Change since picked: - 0.92
Earnings Date 05/16/06 (unconfirmed)
Average Daily Volume = 371 thousand

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Altria Group - MO - close: 73.29 chg: +0.83 stop: 71.85

Wow! We thought for sure that MO would hit our stop loss today. Instead the stock turned higher this morning after one analyst firm raised their price target on MO to $81 a share. Bulls are not out of the woods yet. We would not consider new bullish positions until MO traded back above the $74.00 level. Tomorrow could see a little bit of volatility. MO owns a controlling stake in Kraft (KFT) and KFT rival ConAgra (CAG) is due to report earnings tomorrow morning. Estimates for CAG are at 34-cents a share.

Picked on March 14 at $ 74.11
Change since picked: - 0.82
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume = 8.1 million

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Silicon Labs - SLAB - close: 49.26 change: +1.56 stop: 45.95

The SOX semiconductor index is still under performing but that's not stopping SLAB from rebounding from support near its 50-dma. 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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Toyota Motor Corp. - TM - close: 108.97 chg: -0.13 stop: 104.75

It was a weak day for the Japanese markets and the NIKKEI's decline was probably influenced by the U.S. market's decline yesterday. TM did slip under the $109 level but we remain bullish although we're not suggesting new call positions at this time. 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: + 2.29
Earnings Date 02/07/06 (confirmed)
Average Daily Volume = 438 thousand

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Valero Energy - VLO - close: 57.46 change: +0.63 stop: 53.49

We do not see any change from our previous update on VLO. We are not suggesting new bullish positions in VLO at this time. Our target is the $62.50-63.00 range.

Picked on March 15 at $ 57.55
Change since picked: - 0.09
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume = 10.7 million
 

Put Updates

Biosite Inc. - BSTE - close: 51.00 chg: +0.70 stop: 52.55

We are still on the sidelines with BSTE. The stock bounced today but failed near $52.00 for the second day in a row. We are suggesting 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: 59.05 chg: -0.07 stop: 61.76

Yesterday GCI produced a bullish reversal but today the stock failed to follow through on the move. That's good news for the bears. Watch for a failed rally near $60.00 or its 10-dma as a new bearish entry point. Our target is the $55.25-55.00 range.

Picked on March 19 at $ 59.04
Change since picked: + 0.01
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: 46.30 chg: +0.18 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: + 0.74
Earnings Date 02/15/06 (confirmed)
Average Daily Volume = 4.4 million

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Ryland Group - RYL - close: 68.08 change: +0.44 stop: n/a

We do not see any changes from our previous updates on RYL. 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: - 7.11
Earnings Date 01/24/06 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

Vertex Pharma - VRTX - close: 37.85 chg: -0.10 stop: 37.49

VRTX continued to show relative weakness today. The stock dipped under its simple 50-dma on an intraday basis and we were stopped out at $37.49. Shares did manage to bounce from their lows but VRTX appears to have a precarious grip on support at the 50-dma. Traders might want to keep an eye on VRTX. A breakdown under $36.00 might be considered a bearish entry point. Meanwhile a bounce back above the $40 level could be used as a bullish entry point.

Picked on March 19 at $ 40.56
Change since picked: - 2.71
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 1.5 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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