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Call Updates

Anadarko Petrol. - APC - close: 100.40 chg: -0.15 stop: 96.95

We see no change from our weekend play description for APC. The stock is still poised to breakout higher over resistance near the 50-dma and the $102 level. We are going to suggest a trigger to buy calls at $102.10. If triggered then we will aim for a rally into the $109.50-110.00 range.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/06 (unconfirmed)
Average Daily Volume = 2.5 million

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Burlington NrthSanta Fe - BNI - cls: 81.73 chg: +1.38 stop: 78.99

Railroad stocks were strong again on Monday. Shares of BNI rallied higher right from the opening bell and eventually broke through resistance at the $82.00-82.50 range. Our trigger to buy calls was at $82.51 so the play is now open. We remain bullish on BNI but we are cautious given the stock's decline back under the $82.00 level, which as broken resistance, should have acted as new support. Traders can choose to watch for a bounce from $80.00 or a new move over $82.50 as a bullish entry point to buy calls. Our target is the $87.50-90.00 range. The P&F chart is on the verge of a new buy signal. We do not want to hold over BNI's late April earnings report.

Picked on March 27 at $ 82.51
Change since picked: - 0.78
Earnings Date 04/25/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Bear Stearns - BSC - close: 139.05 change: +0.91 stop: 131.99

Broker stocks were in focus today if you listen to the talking heads on CNBC. The XBD broker-dealer index did rise toward record highs but has yet to breakout again. However, leading the charge was BSC, which did close at new highs but remains under the $140.00 level, which could be round-number resistance. Traders looking for a new bullish entry point here might want to wait for a dip back toward the $138-137 region. Our target is the $144-145.00 range.

Picked on March 24 at $137.65
Change since picked: + 1.40
Earnings Date 06/15/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Cleveland Cliffs - CLF - close: 93.00 chg: -1.14 stop: 89.45

Shares of CLF ran into some resistance at the $95.00 level and then consolidated lower today. The weakness was a little bit surprising given the bullishness in metal and mining stocks today. Watch for any bounce above the $90.00 level as a new bullish entry point. We are targeting a rally into the $107-110 range but more conservative traders may want to exit near $100.

Picked on March 26 at $ 94.14
Change since picked: - 1.14
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 545 thousand

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Deere Co - DE - close: 78.52 change: +0.27 stop: 74.95

DE is challenging resistance under the $80.00 level today and it looks like it could be a fight between the bulls and the bears. More conservative traders may want to wait for a move over $79.50 or even $80.00 before considering new positions. Our target is the $84.00-85.00 range. The P&F chart is bullish and points to a $112 target.

Picked on March 22 at $ 77.29
Change since picked: + 1.23
Earnings Date 05/16/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Grainger W.W.Inc. - GWW - close: 74.80 change: -0.45 stop: 73.95

We do not see any change from our weekend update on GWW. We are suggesting a trigger to buy calls at $76.51. If triggered we'll target a rally into the $79.90-80.00 range. The P&F chart is bullish with a triple-top breakout buy signal pointing to a $90 target.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/15/06 (unconfirmed)
Average Daily Volume = 449 thousand

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Lehman Brothers - LEH - close: 146.70 change: +1.79 stop: 140.79

LEH is another broker stock that turned in a bullish session today. Shares added 1.2% and broke out over short-term resistance at the $146.00 level. The MACD indicator is very close to a new buy signal. We do expect some resistance in the $149-150 region but LEH looks like it has the momentum to breakout higher. Conservative traders may want to exit near $149. We're going to aim for the $153.00-155.00 range.

Picked on March 22 at $144.61
Change since picked: + 2.09
Earnings Date 06/14/06 (unconfirmed)
Average Daily Volume = 2.0 million

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MedcoHealth - MHS - close: 58.45 change: +1.64 stop: 57.95

Uh-oh! Double-check those stop losses! MHS' bullish breakout on Friday was a head fake or a bull trap. Shares immediately turned south this morning, gapping lower under the $60.00 level and heading toward three-week old support near $58.00. From where things stand right now we expect to be stopped out tomorrow at $57.95. Should MHS surprise us and turn higher we would wait for a new high before considering bullish positions.

Picked on March 24 at $ 60.05
Change since picked: - 1.60
Earnings Date 04/25/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Altria Group - MO - close: 72.05 chg: -0.89 stop: 71.99

The situation doesn't look good for our bullish play in MO. The stock headed lower today despite some potentially good news. Investors were interested to hear if the Illinois Supreme Court would hear an appeals case regarding Phillip Morris and its marketing of "light" cigarettes. The case was not listed today as a case the court would hear but then that doesn't mean the appeal is dead just yet. We are not suggesting new positions and at this point we expect to be stopped out at $71.99.

Picked on March 14 at $ 74.11
Change since picked: - 2.06
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume = 8.1 million

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Nabors Inds. - NBR - close: 68.30 chg: +0.68 stop: 64.99

Believe it or not we are still on the sidelines. Shares of NBR continue to inch higher and the stock looks bullish above the $68.00 level. However, we wanted to see more confirmation and suggested that readers wait for a move to $68.75 before buying calls. The high today was $68.71. We don't see any other changes from our weekend play description. If triggered we will target a move into the $74.00-75.00 range. Please note that NBR is set to split 2-for-1 on April 18th. Our post-split target will be $37.00. We do not want to hold over the late April earnings report.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 3.7 million

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Pantry Inc. - PTRY - close: 62.60 chg: +0.75 stop: 58.85

PTRY set a new closing high today. We remain bullish and don't see any changes from our weekend play description. Our target is the $67.00-68.00 range. We do not want to hold over the late April earnings report.

Picked on March 26 at $ 61.85
Change since picked: + 0.75
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 364 thousand

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Rio Tinto - RTP - close: 199.45 chg: +0.85 stop: 189.90

One of the big stories today was Citigroup's reversal of opinion on metals and commodities. The analyst firm believes that copper and nickel will continue to be strong both short and long-term. One of their conclusions to their bullish flip-flop was to raise their earnings estimates on RTP. The stock didn't react that much but then Friday was a big day and investors were in wait mode with the FOMC meeting tomorrow. We do not see any changes from our weekend play description. We are going to suggest call positions here above $195 but more conservative traders may want to wait for a breakout over $200 before initiating plays. Our target is the $210-212 range.

Picked on March 26 at $198.60
Change since picked: + 0.85
Earnings Date 02/06/06 (confirmed)
Average Daily Volume = 326 thousand

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Silicon Labs - SLAB - close: 51.90 change: -0.34 stop: 46.95

SLAB managed to hit new highs today but was unable to hold on to its gains. The move looks like a short-term bearish reversal. We would expect a dip back toward $51.00 and probably the $50.00 level. A bounce anywhere above $50 could be used as a new bullish entry point. Our target is only the $54.90-55.00 range but more aggressive traders may want to aim higher toward the $58-60 region.

Picked on March 23 at $ 51.05
Change since picked: + 0.85
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Schlumberger - SLB - close: 122.95 chg: +0.77 stop: 118.99

SLB is creeping closer to a bullish breakout. We do not see any changes from our weekend play update. However, more conservative traders may want to wait for a move over $125.00 or $125.50 before initiating positions. We are targeting a rally into the $129.75-130.00 range. The P&F chart is bullish and points to a $144 target. Please note that SLB is due to split 2-for-1 on April 10th. Our post-split target will be the $64.87-65.00 range. We do not want to hold over the April 21st earnings report.

Picked on March 23 at $123.02
Change since picked: - 0.07
Earnings Date 04/21/06 (unconfirmed)
Average Daily Volume = 6.2 million

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Toyota Motor Corp. - TM - close: 109.25 chg: +1.07 stop: 104.99

TM was bouncing higher again today but the stock failed to build on its gap higher at the open. The next hurdle is the $110 level. 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: + 2.57
Earnings Date 02/07/06 (confirmed)
Average Daily Volume = 438 thousand

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Tenaris - TS - close: 183.25 chg: -1.30 stop: 177.79

We do not see any change from our weekend play description. We think shares are poised to breakout higher. We're going to suggest a trigger to buy calls at $186.75. If triggered we will target a rally into the $198-200.00 range, which is consistent with the bullish P&F chart target.

Picked on March xx at $xxx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/01/06 (unconfirmed)
Average Daily Volume = 553 thousand

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Valero Energy - VLO - close: 59.42 change: +0.23 stop: 54.49

VLO is still trying to breakout over round-number resistance at the $60.00 mark. Our target is the $62.50-63.00 range.

Picked on March 15 at $ 57.55
Change since picked: + 1.87
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume = 10.7 million
 

Put Updates

Biosite Inc. - BSTE - close: 51.06 chg: -0.27 stop: 52.55

BSTE continues to display relative weakness so we're going to keep the stock as a bearish candidate for now. We are suggesting a trigger at $49.75 to buy puts 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. If BSTE closes over $52.50 we'll drop the stock as a bearish candidate.

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: 58.85 chg: -0.06 stop: 61.76

We do not see any change from our weekend update on GCI. Our target is the $55.25-55.00 range. Don't forget that we plan to exit ahead of the April 12th earnings report.

Picked on March 19 at $ 59.04
Change since picked: - 0.19
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: 47.58 chg: -0.33 stop: n/a

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: + 2.02
Earnings Date 02/15/06 (confirmed)
Average Daily Volume = 4.4 million

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Ryland Group - RYL - close: 71.49 change: +0.63 stop: n/a

We do not see any changes from our weekend update 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).

Picked on January 22 at $ 75.19
Change since picked: - 3.70
Earnings Date 01/24/06 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

Hartford Fin. Srv. - HIG - cls: 80.15 chg: -0.83 stop: 79.95

Friday's sell-off saw some follow through today and shares of HIG lost another one percent on above average volume. Shares have closed under technical support at their 200-dma. We were stopped out at $79.95 when shares traded under $80.00 intraday. If HIG trades under the February lows near $79.50 then traders might want to consider bearish positions.

Picked on February 14 at $ 82.12
Change since picked: - 1.97
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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ITT Industries - ITT - close: 57.55 change: +0.99 stop: 53.84

Target achieved. ITT rallied strongly from the opening bell this morning and peaked near resistance at the $58.00 level. Our target was a move into the $57.00-58.00 range. The stock looks overbought from its March 14th breakout and shares are testing significant resistance near $58.00.

Picked on March 15 at $ 53.84
Change since picked: + 3.71
Earnings Date 04/28/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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