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Call Updates

Priceline.com - PCLN - close: 32.18 chg: +0.65 stop: 29.85

PCLN displayed relative strength again for the second day in a row. Shares spiked higher near the open and closed with a 2% gain. Volume came in well above its daily average. We did not find any specific news to account for the strength today. Readers should remain wary as the MACD on the daily chart is nearing a new sell signal. We are not suggesting new positions. Our target is the $34.50 level.

Picked on May 25 at $ 30.67
Change since picked: + 1.51
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 432 thousand

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VF Corp. - VFC - close: 64.31 change: +0.40 stop: 61.84

VFC tried to rally higher again but its momentum was sapped by the market's weakness. On a technical basis we remain bullish but given the weakness in the major indices we would really hesitate to open new call positions. VFC is likely to retest the $63.50 region again. Be ready for it. Our target is the $68.00-70.00 range.

Picked on June 01 at $ 63.51
Change since picked: + 1.35
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 545 thousand
 

Put Updates

Amgen Inc. - AMGN - close: 67.21 chg: -0.40 stop: 69.55

Biotech stocks tried to rally this morning but the sector reversed course midday to produce another bearish failed rally. AMGN lost 0.59% on the session and looks poised to head lower tomorrow. More conservative traders may want to wait for a drop under $66.75-66.50 before initiating positions. Our target is the $62.65-62.25 range. More aggressive traders may want to aim lower since the P&F chart points to a $60 target. We do expect a bounce near the $65.00 level. We do not want to hold over the July earnings report.

Picked on June 05 at $ 67.48
Change since picked: - 0.27
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Franklin Res. - BEN - close: 88.23 chg: +0.70 close: 92.55

The XBD broker-dealer index managed a minor bounce today and BEN followed suit. Yet it's worth noting that like many stocks today BEN pared its gains and was headed lower into the close. The MACD looks ready to roll over into a new sell signal. Meanwhile the 50-dma is crossing under the 200-dma, which is a very bearish (longer-term) signal. More conservative traders may want to lower their stop loss. Our target is the $85.25-85.00 range.

Picked on May 14 at $ 89.30
Change since picked: - 1.07
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Burlington Nrth.SntFe - BNI - cls: 74.41 chg: -2.35 stop: 80.01

The Dow Jones transportation index only lost 0.9% today but railroad stocks were hit much harder. CSX fell 2.8%, UNP lost 3.1% and BNI fell 3% on strong volume, which is bearish. Today's failed rally in BNI looks like another bearish entry point to buy puts. We are suggesting two targets. Consider selling half your position at $70.50 and the rest of your position at $66.00.

Picked on June 05 at $ 75.64
Change since picked: - 1.23
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Barr Pharma - BRL - close: 51.86 chg: -0.34 stop: 54.25

Drug stocks managed a meager bounce today but shares of BRL failed to hold any gains. The stock has produced what looks like a failed rally at its simple 10-dma that readers can use as a new bearish entry point to buy puts. The MACD indicator is nearing a new sell signal. Our target is the $48.00-47.50 range near the May lows.

Picked on June 05 at $ 52.20
Change since picked: - 0.34
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Digital River - DRIV - close: 39.25 chg: +0.01 stop: 44.25

DRIV tried to produce an oversold bounce today but the stock's momentum failed under the $40.50 level and shares gave up almost all of their gains. We want to remind readers that we had two targets on DRIV. Our first target was the $40.20 level. Our second target is at $37.65. More conservative traders may just want to exit now to lock in any gains.

Picked on June 04 at $ 43.56
Change since picked: - 4.31
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 983 thousand

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Intl. Bus. Mach. - IBM - cls: 79.15 chg: -0.61 stop: 81.05

We were almost stopped out today. Yesterday's bullish reversal fed this morning's rally until IBM stalled under its 21-dma near $80.75. Shares ended up producing a big failed rally pattern. More aggressive traders may want to open new put positions right here given the weakness in the major market averages. More conservative traders will probably feel better waiting for a drop under $78.75 or $78.50 to buy puts.

Picked on June 06 at $ 78.75
Change since picked: + 0.40
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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Nucor - NUE - close: 47.92 chg: -3.48 stop: 54.05 *new*

The selling in steel-related stocks today picked up speed. Shares of NUE lost 6.77% to drop back below the $50.00 level and break technical support at its 100-dma. We are adjusting our stop loss to $54.05. We are also adjusting our target to the $47.00-46.50 range. More conservative traders might want to consider exiting now to lock in gains. Aggressive traders may want to aim lower since the P&F chart points to a $37 target.

Picked on May 31 at $ 52.64 *split adjusted
Change since picked: - 4.72
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.8 million

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Wynn Resorts - WYNN - close: 69.79 chg: +1.30 stop: 73.51

WYNN produced a pretty decent bounce today and shares closed with a 1.89% gain. However, the stock's intraday trading is more revealing. The rally failed at $71.50 and the stock closed back under the $70 level and its 100-dma. This looks like a new bearish entry point to buy puts. We are going to suggest two targets. Consider selling half your position in the $65.25-65.00 range and then sell the rest of your position in the $61.00-60.00 range. The simple 200-dma near $60 could be support.

Picked on June 05 at $ 69.11
Change since picked: + 0.68
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.2 million
 

Strangle Updates

None
 

Dropped Calls

Halliburton - HAL - close: 70.35 chg: -3.03 stop: 69.99

It's time to abandon ship. The selling in the oil stocks is just picking up in intensity. The OIX lost 2.99% while the OSX oil services index lost 4.77%. Shares of HAL fell 4.1% on strong volume. Yes, there is a chance that HAL could bounce from $70.00 or its 200-dma near 68.50 but we'd rather exit now especially with the major averages looking so sour.

Picked on May 25 at $ 73.80
Change since picked: - 3.45
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 7.1 million

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Hydril - HYDL - close: 70.67 change: -3.47 stop: 71.75

The volatile shares of HYDL lived up to their label with a 4.6% sell-off. The stock plunged through technical support at its simple 200-dma today. We've been stopped out at $71.75. If shares trade under the May 22nd low at $69.60 readers might want to enter bearish plays.

Picked on June 04 at $ 77.65
Change since picked: - 6.98
Earnings Date 07/24/06 (unconfirmed)
Average Daily Volume = 328 thousand

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iShares Global Energy - IXC - cls: 100.20 chg: -2.84 stop: 99.49

One could argue that IXC still has support at $100 and its rising 200-dma (99.49) or its exponential 200-dma (98.93). However, the sell-off in the oil stocks doesn't appear to be slowing down any time soon. We're going to exit early now before being stopped out.

Picked on May 25 at $103.67
Change since picked: + 3.47
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 47 thousand

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Kerr Mcgee - KMG - close: 103.16 chg: -4.45 stop: 104.85

It looks like we should have abandoned ship with Monday's bearish engulfing candlestick pattern. KMG continued to sell-off and the selling was pretty sharp today with shares closing down 4.1% and breaking down under the $105 level and its 50-dma. We would have been stopped out at $104.85.

Picked on June 04 at $110.86
Change since picked: - 7.70
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Marathon Oil - MRO - close: 74.14 chg: -2.87 stop: 72.95

MRO did not escape the oil-sector carnage today. Shares lost 3.7% to breakdown under the $75.00 level and its 100-dma. We are suggesting that readers exit immediately as MRO looks headed toward the $70.00 level and maybe lower near its 200-dma.

Picked on June 04 at $ 78.39
Change since picked: - 4.25
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 3.1 million

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Omnicom - OMC - close: 95.54 chg: +0.24 stop: 91.75

OMC continues to show relative strength but we're going to suggest an early exit here too. The rally today reversed course given the market's afternoon weakness. That's to be expected. The problem here is that we do not want to see OMC consolidated back toward short-term support at $94.00 and again at $92.00 only to stop us out. We are suggesting that readers exit early here due to the major indices bearish tone. More aggressive traders might want to risk it and let OMC ride since the stock performed pretty well during the last market sell-off.

Picked on May 15 at $ 92.05
Change since picked: + 3.49
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Transocean Inc. - RIG - close: 76.40 chg: -3.56 stop: 77.99

RIG was one of the big names in the oil services sector leading the way lower today. The stock lost 4.4% on big volume. Bob Pisani was on CNBC today talking about how investors were worried that the rates these companies can charge for their equipment may be slipping. We would have been stopped out at $77.99. If the stock trades under the May low you might want to consider bearish plays and aim for the 200-dma near $70.

Picked on June 04 at $ 83.15
Change since picked: - 6.75
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 5.7 million

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Valero Energy - VLO - close: 58.66 chg: -2.19 stop: 59.85

VLO is another oil-sector casualty today. The stock broke down under short-term support at the $60.00 level and technical support at its 100-dma today. We would have been stopped out at $59.85.

Picked on June 04 at $ 63.05
Change since picked: - 4.39
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 9.8 million
 

Dropped Puts

Apollo Group - APOL - close: 55.38 chg: +2.46 stop: 53.85

We warned readers yesterday that something didn't look right with APOL. Today the stock completely out performed the markets with a bullish breakout over technical resistance at its 100-dma. Shares closed with a 4.6% gain on above average volume. We would have been stopped out at $53.85. We cannot find any news to account for APOL's strength today.

Picked on May 17 at $ 51.75
Change since picked: + 3.63
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Monster Worldwide - MNST - cls: 44.59 chg: -1.61 stop: 50.05

Target achieved (surpassed). MNST continued to sell-off and shares lost another 3.48% today on above average volume. Our target was the $45.25-45.00 range.

Picked on May 31 at $ 48.87
Change since picked: - 4.28
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.2 million
 

Dropped Strangles

None
 

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