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Call Updates

Bear Stearns - BSC - close: 136.00 chg: +2.25 stop: 131.49

BSC oscillated sideways this morning giving us a chance to enter positions before slowly grinding higher and then finally breaking out past the $135.00 level. The gain today really helped confirm the new MACD buy signal. Our target is only the $137.25-138.50 range because we're worried about BSC's descending trendline of resistance (lower highs). More aggressive traders may want to aim higher.

Picked on May 31 at $133.75
Change since picked: + 2.25
Earnings Date 06/15/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Peabody Energy - BTU - close: 64.76 chg: +2.42 stop: 59.85*new*

Shares of BTU enjoyed a very strong session. The stock hit a high of $65.50 before paring its gains to close with a 3.88% gain on above average volume. Our target is the $66.00-67.00 range but more aggressive traders may want to aim higher. We are raising our stop loss to $59.85.

Picked on May 28 at $ 61.00
Change since picked: + 3.76
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 4.0 million

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Cummins Inc - CMI - close: 112.69 chg: +2.48 stop: 106.99

Our new call play in CMI is off to a strong start. Shares added 2.25% and closed over potential resistance at $112.00. The MACD is very close to a new buy signal. Our target is the $116.00-117.00 range.

Picked on May 31 at $110.21
Change since picked: + 2.48
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Halliburton - HAL - close: 75.15 chg: +0.56 stop: 68.65

Oil stocks did creep higher today but they lagged behind the rest of the market. HAL added 0.75% and closed at a new two-week high. The MACD indicator has produced a new buy signal. The next challenge for the bulls is potential resistance at the 50-dma near 76.32 and a small gap down near $77.00. Our target is the $80.00-82.00 range.

Picked on May 25 at $ 73.80
Change since picked: + 1.35
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 7.1 million

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Holly Corp. - HOC - close: 85.05 chg: +1.62 stop: 79.49 *new*

HOC is looking very bullish here. Traders bought the dip at $80.85 this morning and HOC powered to a 1.9% gain on above average volume. Technically the MACD buy signal looks stronger and shares have closed over potential resistance at the $85.00 level. We are raising our stop loss to $79.49. Our target is the $89.00-90.00 range.

Picked on May 25 at $ 81.20
Change since picked: + 3.85
Earnings Date 08/07/06 (unconfirmed)
Average Daily Volume = 475 thousand

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iShares Global Energy - IXC - cls: 104.79 chg: +0.59 stop: 99.49

As we mentioned earlier in the HAL update oil stocks lagged the markets today but they were still inching higher. IXC's MACD indicator is nearing a new buy signal. Our target is the $110.00-112.00 range.

Picked on May 25 at $103.67
Change since picked: + 1.12
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 47 thousand

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Omnicom - OMC - close: 96.64 chg: +1.53 stop: 91.75

Shares of OMC continue to soar nearing new four-year highs. Our target is the $97.50-98.00 range but more conservative traders may want to think about taking some money off the table right now.

Picked on May 15 at $ 92.05
Change since picked: + 4.59
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Priceline.com - PCLN - close: 32.00 chg: +0.90 stop: 29.25

PCLN turned in a strong day adding 2.89% on above average volume. We are going to raise our stop loss to $29.75. Our target is the $34.50-35.00 range.

Picked on May 25 at $ 30.67
Change since picked: + 1.33
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 432 thousand

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Terex Corp. - TEX - close: 92.88 chg: +1.38 stop: 88.99

We are surprised that shares of TEX did not perform better on Thursday. This morning TEX announced a 2-for-1 stock split payable in July. The stock did hit our trigger to buy calls at $92.65 so the play is now open. Our target is the $99.50-100.00 range. More aggressive traders may want to target the highs near $103.

Picked on June 1 at $ 92.65
Change since picked: + 0.23
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 719 thousand

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VF Corp. - VFC - close: 64.72 change: +1.79 stop: 61.84

Shares of VFC were strong right from the start this morning and the rally just seemed to pick up speed and momentum. Volume came in above average as shares broke out over resistance. The MACD indicator has produced a new buy signal. Our trigger to buy calls was at $63.51. Our target is the $68.00-70.00 range.

Picked on June 01 at $ 63.51
Change since picked: + 1.21
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 545 thousand
 

Put Updates

Apollo Group - APOL - close: 53.62 chg: +1.31 stop: 54.01 *new*

Double-check your stop loss because APOL looks ready to hit it. The market rally today inspired APOL to push past the $53 region and its 50-dma. The stock is now headed for descending technical resistance at its 100-dma (53.90). We've adjusted our stop to $54.01. More conservative traders may just want to exit immediately and save yourself the trouble. We're not suggesting new positions.

Picked on May 17 at $ 51.75
Change since picked: + 1.87
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Franklin Res. - BEN - close: 90.65 chg: +0.70 close: 92.55

We're a little surprised that shares of BEN did not bounce higher today but we're not going to argue about the stock's relative weakness. BEN did add 0.77% and looks poised to challenge resistance near its 50-dma and 200-dma. We are not suggesting new positions and more conservative types may want to exit early to minimize any losses.

Picked on May 14 at $ 89.30
Change since picked: + 1.35
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Monster Worldwide - MNST - cls: 48.95 chg: +0.08 stop: 52.01

MNST failed to participate in the market rally today, which is good news for the bears. However, given the bounce underway in the major averages we'd hesitate to open new put positions right here even though MNST is displaying relative weakness. We don't see any changes from our previous updates.

Picked on May 31 at $ 48.87
Change since picked: + 0.08
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Nucor - NUE - close: 53.38 chg: +0.74 stop: 56.65

Hmm... NUE dipped to $50.99 before bouncing. We warned readers that NUE has been volatile and it could be a very bumpy ride. The stock looks poised to bounce back toward the $55.00 region. We'd wait and watch for a failed rally before initiating new positions here. Our target is the $46.25-45.00 range on a post-split basis.

Picked on May 31 at $ 52.64 *split adjusted
Change since picked: + 0.74
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.8 million

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SanDisk - SNDK - close: 55.23 chg: -1.04 stop: 61.55

The SOX semiconductor index added 2.2% today, which was driven by bullish comments from AMD. Yet in spite of the sector strength and the market-wide rally shares of SNDK continued to sink. Shares lost 1.8% and have closed under their simple 200-dma. Our target is the $53.00-52.50 range.

Picked on May 23 at $ 58.98
Change since picked: - 3.75
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 11.1 million
 

Strangle Updates

None
 

Dropped Calls

Goldman Sachs - GS - close: 153.55 chg: +2.60 stop: 146.75

Target achieved. A strong day in the markets let the XBD broker-dealer index run for a 1.2% gain. Shares of GS added 1.7% and hit our target in the $153.50-154.00 range. The move today helped the MACD indicator produce a new buy signal. Our play is closed but more aggressive traders may want to aim higher. GS may have resistance near the May low around $156.00 or the 50-dma near $157.00.

Picked on May 25 at $147.32
Change since picked: + 6.23
Earnings Date 06/13/06 (confirmed)
Average Daily Volume = 4.5 million

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Johnson Controls - JCI - close: 90.00 chg: +4.83 stop: 81.85

Target achieved. Whoa! JCI displayed some major strength today. The stock doesn't have a lot of short interest so we can probably rule out a short squeeze. Volume on the move was over double the daily average. Our target was the $89.00-90.00 range. More aggressive traders might just want to let this stock run or set their target around $92.50-95.00.

Picked on May 31 at $ 85.17
Change since picked: + 4.83
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 951 thousand
 

Dropped Puts

Amgen Inc. - AMGN - close: 68.79 chg: +1.20 stop: 70.01

Biotech stocks continue to push higher so we're throwing in the towel on AMGN as a put play. The stock is still trading under resistance at its 50-dma and its trendline of lower highs but shares look poised to breakout over the $69 level soon. We're exiting early.

Picked on May 23 at $ 66.85
Change since picked: + 1.94
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.8 million

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3M Co. - MMM - close: 84.51 chg: +0.85 stop: 85.01

We are closing MMM as a put candidate. The stock is breaking out higher from its sideways consolidation and technical indicators are growing more bullish.

Picked on May 23 at $ 83.44
Change since picked: + 1.07
Earnings Date 07/21/06 (unconfirmed)
Average Daily Volume = 3.2 million
 

Dropped Strangles

None
 

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