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Call Updates

Autoliv - ALV - close: 56.70 change: +1.06 stop: 54.99

ALV has reversed yesterday's losses with a 1.9% gain today. The stock has gapped open again this time opening at $56.68. Volume was above average on today's rebound, which is positive news. The three-day candlestick pattern, while not inspiring, still looks like a bullish reversal pattern. We are still suggesting that readers look for a move over $57.00 or $57.50 before considering new bullish positions. ALV provided a move over $57.00 this morning. Our mid-June target is the $62.50-63.00 range.

Picked on May 04 at $ 57.53
Change since picked: - 0.83
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 513 thousand

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Omnicom - OMC - close: 91.92 chg: -0.19 stop: 89.99

OMC dipped to its simple 10-dma this morning before traders bought the dip. Shares continue to show relative strength but the technical oscillators, like the MACD, are nearing sell signals. Be careful about opening new positions here. Our target is the $97.50-98.00 range. The P&F chart is very bullish with a $110 target.

Picked on May 15 at $ 92.05
Change since picked: - 0.13
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Amazon.com - AMZN - close: 32.75 chg: -0.03 stop: 35.51

We were expecting more of a bounce in shares of AMZN today so we're not complaining with the lackluster session. Unfortunately, the intraday chart still suggests that AMZN is poised to bounce higher. Watch for overhead resistance near AMZN's 10-dma in the $34.00 region. We are not suggesting new positions. Our target is the $31.00-30.75 range.

Picked on May 01 at $ 34.85
Change since picked: - 2.10
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

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Apollo Group - APOL - close: 52.69 chg: -0.09 stop: 55.05

We do not see any change from our previous updates on APOL. We are suggesting a trigger to buy puts at $51.75. The good news is that APOL appears to have produced a failed rally today so shares could slip toward the $52.00 level tomorrow. If triggered will target the $47.75-47.50 range.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/22/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Franklin Res. - BEN - close: 88.99 chg: +0.24 close: 92.55

BEN tried to bounce higher today but the rebound stalled at the $90.00 level again. Volume continues to come in above average. The overall trend continues to look bearish but we'd be cautious given the lack of direction in the market today. The P&F chart for BEN points to a $77.00 target. We are suggesting puts here under $90.00 with a target in the $85.00-84.50 range. Be advised that we do expect a bounce at the $87.50 region.

Picked on May 14 at $ 89.30
Change since picked: - 0.31
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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IDEXX Labs - IDXX - close: 77.82 chg: +1.38 stop: 79.51

This could be bad news! Yesterday we warned readers that Monday's candlestick looked like a bullish reversal. IDXX appears to have confirmed that today with a 1.8% gain on above average volume. More conservative traders may want to exit early right now or significantly tighten their stops. We're watching for the simple 10-dma near 78.27 or the 100-dma near 78.77 to act as overhead resistance. We're not suggesting new plays.

Picked on May 11 at $ 77.93
Change since picked: - 0.11
Earnings Date 04/28/06 (confirmed)
Average Daily Volume = 125 thousand

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Merrill Lynch - MER - close: 72.70 chg: +0.20 stop: 75.55*new*

MER looks like it is trying to produce an oversold bounce. Shares still look poised to rebound toward the $75 level, or at least the $74 region. We'd be careful about starting new put plays. Wait for the bounce to fail. The P&F chart points to a $67 target. We're going to target a decline into the $70.50-70.00 range. Please note we're lowering the stop loss to $75.55.

Picked on May 11 at $ 74.00
Change since picked: - 1.30
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 4.7 million

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USG Corp. - USG - close: 92.75 chg: -3.91 stop: 100.01*new*

USG is performing very well. Shares continue to sell-off with today's 4% loss on rising volume. Volume today was very strong at almost three times the daily average. We are lowering our stop loss to $100.01. More conservative traders may want to strongly consider exiting right now or tightening their stop even further. USG is nearing our target in the $92.00-90.00 range. Watch out for potential support at the 100-dma near $91.00.

Picked on May 15 at $ 99.75
Change since picked: - 7.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 888 thousand
 

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: 115.43 chg: -0.01 stop: n/a

The long-term trend for the transports is still bullish but short-term the group is consolidating. FDX spent most of the day churning sideways to close virtually unchanged. 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 was about $2.60.

Picked on April 30 at $115.13
Change since picked: - 0.30
Earnings Date 06/21/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Calls

None
 

Dropped Puts

Black Box - BBOX - close: 45.95 chg: +2.85 stop: 45.55

We have been stopped out of BBOX at $45.55. The only news we could find that might account for today's misplaced rally in BBOX were some positive analyst comments but they weren't anything new. Yet the news sparked what appears to be a short squeeze. BBOX traded through resistance near $45.00 and its 200-dma's to finally trade near $47 and its 50-dma before paring its gains.

Picked on May 12 at $ 44.85
Change since picked: + 1.10
Earnings Date 06/01/06 (confirmed)
Average Daily Volume = 90 thousand
 

Dropped Strangles

None
 

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