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Call Updates

Chipolte Mex Grill - CMG - cls: 60.67 chg: -0.31 stop: 57.45

The bounce in CMG is definitely struggling but the stock isn't seeing a lot of selling pressure so far. CMG failed to breakout over the $62 level this afternoon and we're starting to think that shares will dip toward the $58.00-59.00 region. We suggest patience. Wait for the dip and signs of a bounce first. Of course we'll be pleasantly surprised if CMG does bounce from the $60.00 level like we initially thought it might. Our target is the $67.50-70.00 range. We do not want to hold over the late July earnings report. FYI: The P&F chart points to a $75 target.

Picked on June 18 at $ 61.76
Change since picked: - 1.09
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 384 thousand

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Cognizant Tech. - CTSH - close: 62.48 chg: +0.27 stop: 62.49

There is no change from our previous updates on CTSH. We're still waiting for a breakout over the $65.00 level. Our suggested trigger to buy calls is at $65.05. More aggressive traders may want to jump in early around $64.35. Our target is the May highs in the $69.50-70.00 range.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.4 million

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General Dynamics - GD - cls: 65.21 chg: -0.29 stop: 63.99

GD lost another 0.4% today and closed near its simple 50-dma. We're starting to think that shares will dip into the $64.50-64.00 region. Wait for signs of a bounce (from $65.00 or) above the $64.00 level as our next entry point to buy calls. We're a little surprised that defense-related stocks aren't showing more strength given all the headlines about N. Korea's plans to test a new long-range missile. Our target is the $69.00-70.00 range.

Picked on June 18 at $ 66.12
Change since picked: - 0.91
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Google - GOOG - close: 387.17 chg: -0.97 stop: 384.50

GOOG is still consolidating under its 50-dma. We don't see any changes from our previous updates. Traders might want to consider put plays if GOOG trades under its 200-dma ($379) and the $375.00 level. We're sticking to our plan to buy calls with a trigger at $401.00 for now.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

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Legg Mason - LM - close: 99.92 chg: -0.22 stop: 96.99

The sell-off in the broker-dealer sector stalled today. The XBD actually closed in the green but remains vulnerable and under technical resistance at its 200-dma. Given the XBD's precarious position any bullish plays on LM are risky. The stock (LM) tried to bounce this morning but failed near $102. Traders can choose to buy a bounce above $99.00 or wait for a new move over $102. Just remember this is an aggressive play. More conservative traders may want to bail out early if shares traded under $98.80.

Picked on June 18 at $102.45
Change since picked: - 2.53
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Manpower - MAN - close: 65.23 change: +1.46 stop: 64.45

It was a strong day for MAN with volume coming in above average. The stock has bounced twice in the last two days near $63.50 and its 10-dma. The MACD on the daily chart is nearing a new buy signal. More aggressive traders may want to buy calls right here. We're going to stock to our plan with a trigger at $66.05. We do not want to hold over the mid-July earnings report.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 959 thousand

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Reynolds American - RAI - cls: 111.49 chg: +0.68 stop: 107.45

Shares of RAI closed higher today adding 0.6% but studying the intraday action on RAI make the session look more bearish. The stock appears to have produced a short-term failed rally. While technicals are bullish we're expecting another dip toward the $110 region. We would continue to keep an eye on larger rival MO, which has rallied toward resistance at its simple 200-dma. Watch for another bounce above the $110 level as a new entry point for RAI. We are suggesting two targets. Our conservative target is $115.00. Our aggressive target is $119.00.

Picked on June 15 at $111.15
Change since picked: + 0.34
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 632 thousand

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United Tech. - UTX - close: 60.98 chg: +0.08 stop: 58.75

We do not see any changes from our previous updates on UTX. The stock traded mostly sideways on Tuesday although it may be noteworthy that the MACD has produced a new buy signal today. Our target remains the $64.00-65.00 range.

Picked on June 08 at $ 60.13
Change since picked: + 0.85
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Put Updates

Apple Computer - AAPL - close: 57.47 chg: +0.27 stop: 60.05

AAPL is still consolidating near support at the $57.00 level. We don't see any changes from our previous updates. We're suggesting a trigger to buy puts at $56.85 in an attempt to capture the next leg lower. If triggered our target will be the $50.50-50.00 range. We do not want to hold over AAPL's mid July earnings report.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 33.1 million

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Amgen Inc. - AMGN - close: 64.96 chg: -0.79 stop: 68.05 *new*

The bears appear to be in control of AMGN. The stock lost another 1.2% and closed under potential support at the $65.00 level. We are lowering our stop loss to $68.05. Our target is the $62.65-62.25 range. We do not want to hold over the mid July earnings report.

Picked on June 05 at $ 67.48
Change since picked: - 2.52
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Barr Pharma - BRL - close: 51.14 chg: +0.42 stop: 52.65 *new*

Bear did not make any progress in BRL today. The stock traded mostly sideways. Look for the $52.00 level to act as short-term overhead resistance. Our target is the $48.00-47.50 range. We are adjusting our stop loss to $52.65.

Picked on June 05 at $ 52.20
Change since picked: - 1.06
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Carpenter Tech. - CRS - close: 100.75 chg: +0.28 stop: 105.01

Shares of CRS tried to bounce this morning but the rally failed under $104.50. We do not see any changes from last night's new play description. We're suggesting a trigger to buy puts at $99.25. If triggered our target will be the $92.00-90.00 range, which is above potential support at $90.00 and its exponential 200-dma at $89. We do not want to hold over the late July earnings report. The P&F chart currently points to a $76 target.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/24/06 (unconfirmed)
Average Daily Volume = 651 thousand

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Digital River - DRIV - close: 40.00 change: +0.63 stop: 42.55

DRIV produced a bit of a bounce today adding 1.6% on below average volume. We wouldn't begin to worry until shares traded over $41.00 and then we'd look for the 100-dma near $41.60 to act as resistance. Our target is the $35.25-35.00 range.

Picked on June 19 at $ 39.45
Change since picked: + 0.55
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Express Scripts - ESRX - cls: 65.46 chg: -1.36 stop: 70.10

ESRX lost another 2% today. Volume came in below average on the decline. More conservative traders might want to think about locking in some gains again. Our conservative target was the $65.25 level. Right now we're aiming for our aggressive target at $60.50. The P&F chart is bearish and points to a $52.00 target. We do not want to hold over the late July earnings report.

Picked on June 08 at $ 69.59
Change since picked: - 4.13
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Expeditors - EXPD - close: 100.40 chg: +1.24 stop: 100.35

EXPD is still showing a lot of relative strength. Traders might want to switch sides and buy calls if EXPD trades over the $102.00 or $102.50 levels. A breakout over the $102.50 region would suggest the current six-week consolidation was nothing but a big bull flag pattern. We're trying to catch a decline back toward the bottom of the current channel. We're suggesting a trigger to buy puts at $97.85. If triggered our target is the $90.50-90.00 range, where shares found support a few days ago. We want to reiterate that this is an aggressive play.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Group 1 Auto - GPI - close: 53.54 chg: -4.16 stop: 60.15

Negative analyst comments that GPI may be overvalued sent shares of the stock to a 7.2% loss on very big volume. Both Moody's and S&P downgraded their credit rating on GPI from stable to negative. More conservative traders may want to seriously consider locking in some profits right here although it's worth noting that GPI closed at its low for the day, which is usually bearish for the next trading session. Our target is the $51.50-50.00 range.

Picked on June 11 at $ 58.46
Change since picked: - 4.92
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

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Intl. Bus. Mach. - IBM - cls: 77.99 chg: +0.32 stop: 80.05

We do not see any changes from our previous updates on IBM. The stock remains in a bearish pattern in spite of the news out today. The company released news that IBM has developed a new transistor with a speed of 500 gigahertz, which is about 100 times faster than the fastest PC chips on the market today. Our target is the $73.50-73.00 range. Please note that we will be running into a time crunch soon. We don't want to hold over the mid-July earnings report.

Picked on June 06 at $ 78.75
Change since picked: - 0.76
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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IDEXX Labs - IDXX - close: 75.74 chg: -0.89 stop: 80.05

IDXX lost another 1.1% today and its daily chart's MACD indicator has produced a new sell signal. The stock is nearing what appears to be support at the $75.00 level and its 200-dma. We have two targets. Our conservative target is the $75.25 mark. Our aggressive target is the $72.00 level. Odds are good that IDXX will see some kind of bounce near $75.00.

Picked on June 12 at $ 77.95
Change since picked: - 2.21
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand

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Intuitive Surgical - ISRG - cls: 98.99 chg: -0.81 stop: 108.25

We do not see any changes from our previous update. ISRG looks pretty bearish with the breakdown under its 200-dma and the $100 level. At the same time ISRG look short-term oversold and the stock could easily bounce back toward the $105 level. The stock's volatility makes this an aggressive, higher-risk play.
Our target is the $91.00-90.00 range. The P&F chart points to a $74 target.

Picked on June 19 at $102.45
Change since picked: - 3.46
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Nucor - NUE - close: 49.18 chg: +0.56 stop: 51.61

Traders need to be on their toes here with NUE. The stock failed to produce any sort of follow through on Monday's bearish reversal and bearish engulfing candlestick pattern. That doesn't mean that NUE isn't headed lower but we're seeing mixed signals and one of those signals is a buy signal on the daily chart's MACD indicator. We would consider buying puts with NUE under $50.00 but more conservative traders may want to wait for a move under $48.00 first. Our target will be in the $42.75-42.50 region near the bottom of NUE's channel (see chart). We do not want to hold over the July earnings report.

Picked on June 19 at $ 48.62
Change since picked: + 0.56
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 5.9 million

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Oshkosh Truck - OSK - close: 49.10 chg: +0.16 stop: 52.05

We do not see any changes from our previous updates on OSK. The stock spent Tuesday's session trading sideways. Our target is the $45.50-45.00 range. The P&F chart looks bearish with a $34.00 target.

Picked on June 13 at $ 49.49
Change since picked: - 0.39
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 737 thousand

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Supertex - SUPX - close: 35.62 change: -0.36 stop: 39.25

Semiconductor stocks are still moving lower and shares of SUPX lost 1% today. At the moment we would look for an oversold bounce. SUPX is testing support near $35.00 and its exponential 200-dma. The stock bounced from $35.00 back in mid-May and shares do look a little short-term oversold. A bounce back toward $38.00 may be in the near future but readers can use a failed rally under $38.50 as a new entry point for puts. Our target is the $31.00-30.00 range. We do not want to hold over the early August earnings report.

Picked on June 19 at $ 35.99
Change since picked: - 0.37
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 263 thousand
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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