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Call Updates

Apple Computer - AAPL - close: 71.03 chg: -0.86 stop: 68.45

We continue to suggest caution here with AAPL. The stock is struggling to maintain its bullish posture and some of its technical indicators are starting to falter. We've been warning readers to look for a dip toward $70.00 and it looks like that's about to happen. Wait for a bounce if you're considering new bullish positions. The weakness in the NASDAQ does not inspire a lot of confidence in tech issues right now.

Picked on May 04 at $ 72.25
Change since picked: - 1.22
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 36.0 million

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Autoliv - ALV - close: 59.27 change: 0.68 stop: 54.99

Our short-term target at $60.00 has been achieved. The stock spiked higher this morning to trade at $60.19. The move was fueled by a rise in shares of GM, who restated its earnings to report a profit. ALV pared its gains and the move looks like a failed-rally/short-term top. We'd expect a dip back toward the $58.00 region. Our mid-June target is the $62.50-63.00 range. We're not suggesting new positions at this time.

Picked on May 04 at $ 57.53
Change since picked: 1.74
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 513 thousand

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Bear Stearns - BSC - close: 141.22 chg: -0.56 stop: 137.99

The XBD broker-dealer index churned sideways in a narrow point-and-a-half range today. The lack of sector strength let BSC continue to slide toward the $140 level. We don't see any changes from our previous updates. Aggressive traders may want to consider bullish positions on a bounce near $140. We are suggesting a trigger at $144.10 to buy calls. We do see some resistance at $148 but our target is going to be the $149.50-150.00 range. Our time frame is six weeks.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 06/15/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Cleveland Cliffs - CLF - close: 99.38 chg: 3.05 stop: 89.95

Gold futures are on fire and closed over $700.00 an ounce for the first time in 26 years. This helped fuel the rally in metal and mining stocks like CLF even though CLF doesn't deal in gold. The real contributing factor in CLF was probably the company's press release. Management announced an increase in the company's cash dividend, an increase in the company's stock buy back program and a 2-for-1 stock split to be payable on June 30th. Shares of CLF responded with a 3.1% gain on strong volume. We're not suggesting new bullish positions at this time but would prefer to wait for a dip back toward the $95 region, which should act as new support. Conservative traders might want to take some money off the table right here. Our target is the $104.50-105.00 range.

Picked on May 08 at $ 95.11
Change since picked: 4.27
Earnings Date 04/26/06 (confirmed)
Average Daily Volume = 692 thousand

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Goldman Sachs - GS - cls: 165.75 chg: 2.22 stop: 157.95

GS out performed its peers today with a 1.3% gain after CIBC raised their price target on the stock to $205. Everything continues to look bullish for GS but we're a little concerned by the lack of volume. The P&F chart points to a $173 target. We are going to target a rise into the $174.00-175.00 range. We'll plan to exit ahead of the June 13th earnings report.

Picked on May 07 at $164.39
Change since picked: 1.36
Earnings Date 06/13/06 (unconfirmed)
Average Daily Volume = 3.9 million

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Red Hat - RHAT - close: 31.97 chg: -0.30 stop: 28.81

Tech stocks were mostly weak following DELL's earnings warning last night. Shares of RHAT pulled back about 0.9%. We don't see any changes from our previous updates. Our target is the $34.75-35.00 range.

Picked on May 04 at $ 31.11
Change since picked: 0.86
Earnings Date 06/27/06 (unconfirmed)
Average Daily Volume = 3.4 million
 

Put Updates

Amazon.com - AMZN - close: 34.84 chg: 0.15 stop: 36.51

AMZN is still trying to rebound from the $34.00 level. We are not suggesting new bearish positions at this time and more conservative traders may want to think about tightening their stop loss. Our target remains unchanged at $31.00-30.75. The P&F chart remains bearish and points to a $17.00 target.

Picked on May 01 at $ 34.85
Change since picked: - 0.01
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

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Atheros Comm. - ATHR - close: 25.01 chg: -0.41 stop: 26.26

DELL's earnings warning cast a shadow on their main chip supplier Intel (INTC), which in turn weighed on the semiconductor sector. Shares of ATHR dipped under support at the 50-dma and the $25.00 level but managed to rebound back above $25.00 by the closing bell. Short-term oscillators remain bearish but we don't like the bullish tilt in the daily chart's MACD indicator. We're not suggesting new plays at this time.

Picked on May 01 at $ 23.77
Change since picked: 1.24
Earnings Date 04/24/06 (confirmed)
Average Daily Volume = 1.6 million

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Research In Motion - RIMM - cls: 76.43 chg: 1.28 stop: 79.01

Watch out! It may be time to abandon ship. Shares of RIMM soared this morning to gap higher at $78.78 before it pared its gains to a 1.7% rise. The move appears to have been fueled by a very bullish call on the stock by Standard & Poor's equity research. The analyst there outlined why RIMM was a compelling buy discussing how it was out-doing its rivals and was prepared to launch its Blackberry business in China soon. The move today appears to have produced a new MACD buy signal on its daily chart. We are not suggesting new positions and more conservative traders may want to strongly consider exiting right now!

Picked on April 30 at $ 76.63
Change since picked: - 0.20
Earnings Date 07/06/06 (unconfirmed)
Average Daily Volume = 5.8 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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Fedex - FDX - close: 119.42 chg: 0.36 stop: n/a

FDX managed a minor bounce from the $118 level. We don't see any changes from our previous updates. We're not suggesting new strangle positions at this time. We were suggesting the June $120 calls and the June $110 puts. This is a bet that FDX will trade significantly north of $120 or under $110 by June option expiration. Our estimated cost is about $2.60.

Picked on April 30 at $115.13
Change since picked: 4.29
Earnings Date 06/21/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Calls

CDW Corp. - CDWC - close: 57.89 chg: -1.67 stop: 57.99

Thank you Dell Computer (DELL). DELL issued an earnings warning last night and shares of CDWC were caught up in the sell-off this morning. Shares of DELL and CDWC gapped lower this morning. CDWC gapped open at $57.34, which is under our stop loss at $57.99. In the news today CDWC also released its April sales data. Here's an excerpt from CDWC's press release: "...announced average daily sales for April 2006 were $24.088 million, an increase of 5.5 percent compared to average daily sales of $22.834 million for April 2005. Total sales for April 2006 were $481.8 million based on 20 billing days compared to total sales of $479.5 million based on 21 billing days. Both the corporate and public sector segments grew average daily sales in April 2006. The public sector segment achieved 13.4 percent growth on an average daily basis and the corporate sector segment achieved 2.5 percent growth on an average daily basis..." We are closing the play at this morning's opening trade.

Picked on May 07 at $ 59.33
Change since picked: - 1.44
Earnings Date 04/25/06 (confirmed)
Average Daily Volume = 880 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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