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Call Updates

Peabody Energy - BTU - close: 62.34 chg: +2.00 stop: 54.90

If you believe the news some end-of-month fund rebalancing helped lead the market bounce on Wednesday. We were encouraged by BTU's bounce from the $60 region. This looks like a potential entry point to buy calls but we remain very wary about market direction. Today's market bounce may have been widespread but it wasn't very convincing. Traders may want to tighten their stop loss. Our target is the $66.00-67.00 range.

Picked on May 28 at $ 61.00
Change since picked: + 1.34
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 4.0 million

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Goldman Sachs - GS - close: 150.95 chg: +1.12 stop: 146.75

Shares of GS continue to consolidate sideways. The stock has traded between $149.00 and $153.00 for the last three sessions. If you're feeling optimistic it looks like the low today was a bounce from GS' rising 100-dma. Plus, the MACD on the daily chart is nearing a new buy signal. We are not suggesting new bullish positions at this time. Our target is the $153.50-154.00 range. More aggressive traders may want to aim higher.

Picked on May 25 at $147.32
Change since picked: + 3.63
Earnings Date 06/13/06 (confirmed)
Average Daily Volume = 4.5 million

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Halliburton - HAL - close: 74.59 chg: +2.67 stop: 68.65

Oil stocks turned in a bullish session despite a volatile day for crude oil. Crude oil fell about 2.5% at its worst levels of the session before bouncing back toward $71 a barrel. The commodity's weakness was sparked by new talk of diplomatic efforts to solve the Iran issue over nuclear power. For the most part it looks like oil stocks ignored the volatility in crude. The OIX and OSX oil indices churned sideways this morning before an afternoon rally began. HAL managed to out perform the OSX oil services index with a 3.7% gain. Shares of HAL are back above the 100-dma and its MACD on the daily chart is nearing a new buy signal. We would consider new bullish positions here in HAL but traders might want to consider a tighter stop loss. Our target is the $80.00-82.00 range.

Picked on May 25 at $ 73.80
Change since picked: + 0.79
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 7.1 million

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Holly Corp. - HOC - close: 83.43 chg: +3.68 stop: 75.95

HOC got to show off its relative strength today. Shares bounced from the $79.50 mark and closed the session with a 4.6% gain on above average volume. This is a new four-week closing high and is a healthy sign for our bullish play. We would consider bullish positions but traders may want to tighten their stop loss. Our target is the $89.00-90.00 range.

Picked on May 25 at $ 81.20
Change since picked: + 2.23
Earnings Date 08/07/06 (unconfirmed)
Average Daily Volume = 475 thousand

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iShares Global Energy - IXC - cls: 104.20 chg: +1.20 stop: 99.49

We were pretty worried yesterday. The IXC had produced a failed rally and bearish engulfing candlestick on Tuesday. Thankfully there was no follow through lower on Wednesday. Today's bounce could be used as a new entry point. Chart readers will note that the MACD on the daily chart is nearing a new buy signal.

Picked on May 25 at $103.67
Change since picked: + 0.53
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 47 thousand

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Omnicom - OMC - close: 95.11 chg: +1.54 stop: 91.75 *new*

OMC also got to show off its relative strength today. Shares rebounded from the $93.00 region and closed at a new multi-year high over potential round-number resistance at the $95.00 level. More conservative traders may want to think about taking some money off the table here. Our target is the $97.50-98.00 range. We're going to adjust our target to $91.75.

Picked on May 15 at $ 92.05
Change since picked: + 3.06
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Priceline.com - PCLN - close: 31.09 chg: +0.08 stop: 29.25

Internet stocks under performed the rest of the tech sector on Wednesday. PCLN managed to out perform its peers but the stock did not truly participate in the market rebound today. A dip back toward $30.00 may still be in the near future. Our target is the $34.50-35.00 range.

Picked on May 25 at $ 30.67
Change since picked: + 0.42
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 432 thousand

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VF Corp. - VFC - close: 62.93 change: +0.71 stop: 61.84

VFC bounced from the $62.00 level and almost erased yesterday's losses. We are still on the sidelines with VFC. Our strategy calls for traders to wait for the breakout over resistance with a trigger at $63.51. If triggered our target is the $68.00-70.00 range.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 545 thousand
 

Put Updates

Amgen Inc. - AMGN - close: 67.59 chg: +0.76 stop: 70.01

Biotech stocks produced a decent bounce today with a 2.39% gain in the BTK index. This marks a breakout over its trendline of lower highs but the BTK may still have overhead resistance near 660 and its 200-ema, 200-dma, and 50-dma. Meanwhile AMGN added 1.1% but remains under its bearish trend of lower highs. Our target is the $62.50-62.00 range. We do expect some sort of bounce near $65.00. Bear in mind that the ASCO conference is coming up in Atlanta from June 2nd through the 6th. This is a big biotech/drug conference with a lot of news and presentations that could produce volatility (up or down) in the drug and biotech sectors. It used to be that biotech stocks tended to rally ahead of the ASCO conference and then sell-off afterwards. Last week's big bounce in the biotech sector may have been influenced by the upcoming conference.

Picked on May 23 at $ 66.85
Change since picked: + 0.74
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.8 million

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Apollo Group - APOL - close: 52.31 chg: +0.45 stop: 54.05 *new*

APOL is still trying to bounce and shares added 0.8% today but volume was about half the daily average. The technical picture has grown muddy again but thus far APOL remains under its bearish trend of lower highs. We're going to adjust our stop loss to $54.05 to account for descending overhead resistance at the 100-dma (54.00).

Picked on May 17 at $ 51.75
Change since picked: + 0.56
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Franklin Res. - BEN - close: 89.95 chg: +2.25 close: 92.55

BEN has been relatively volatile over the past several weeks and shares continue the whipsaw action today with a 2.5% rally back toward the $90 level. So far shares remain under their bearish trend of lower highs but we're not suggesting new put positions at this time. Watch for the 200-dma and/or the $92 level to act as overhead resistance. Our target is the $85.00-84.00 range.

Picked on May 14 at $ 89.30
Change since picked: - 0.65
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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3M Co. - MMM - close: 83.66 chg: +0.20 stop: 85.01

MMM tried to rally higher this morning but the early strength reversed. Shares still closed with a 0.2% gain but the stock remains inside its recent trading range. The technical picture is mixed with various indicators hinting at both bullish and bearish moves to come. We are not suggesting new positions and more conservative traders may want to exit early right here or tighten stops toward today's high.

Picked on May 23 at $ 83.44
Change since picked: + 0.18
Earnings Date 07/21/06 (unconfirmed)
Average Daily Volume = 3.2 million

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SanDisk - SNDK - close: 56.27 chg: -0.56 stop: 61.55 *new*

SNDK continues to sink, losing almost 1%, in spite of a 1.7% bounce in the SOX semiconductor index. Shares of SNDK are testing their 200-dma so we would not be surprised to see a bounce tomorrow. The $60.00 level should act as overhead resistance. We are lowering our stop loss to $61.55. Our target is the $53.00-52.50 range.

Picked on May 23 at $ 58.98
Change since picked: - 2.71
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 11.1 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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