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Call Updates

Chipolte Mex Grill - CMG - cls: 63.00 chg: +2.33 stop: 57.45

A market-wide bounce on Wednesday re-inspired the bulls and buyers drove shares of CMG to a 3.8% gain. Volume failed to hit its daily average. If you haven't opened new positions yet then we'd wait for another pull back, this time toward the $62 region. 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: + 1.24
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 384 thousand

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Cognizant Tech. - CTSH - close: 64.91 chg: +2.43 stop: 62.49

The market strength also propelled shares of CTSH to a strong session. The stock added 3.88% on strong volume. The stock has broken out above resistance in the $64.25-64.35 zone. Our trigger to buy calls was at $65.05, which was hit today. The rally today also produced a new triple-top breakout buy signal on the P&F chart, which points to a $74 target. Our target is the May highs in the $69.50-70.00 range.

Picked on June 24 at $ 65.05
Change since picked: - 0.14
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.4 million

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General Dynamics - GD - cls: 65.52 chg: +0.31 stop: 63.99

We are unhappy with GD's performance so far. The market produced a widespread rally today and GD fails to really participate and volume was below average. This sort of relative weakness flashes a warning sign for us. We're suggesting caution and hesitate to suggest new bullish plays. Our target is the $69.00-70.00 range.

Picked on June 18 at $ 66.12
Change since picked: - 0.60
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Google - GOOG - close: 402.13 chg: +14.96 stop: 384.50

It was a big day for GOOG. The stock soared higher adding 3.8% by the closing bell and breaking out past resistance at its 50-dma, the $395.00 level and the $400.00 mark. Our trigger to buy calls was at $401.00 so the play is now open. Driving the stock higher were some positive analyst comments. GOOG posted a gain in its domestic market share for search grabbing just over 44% of the pie, up from 43.1% a month ago and up from 37.5% a year ago. This news inspired talk that GOOG might surprise to the upside with its next earnings report. Plus, there was news that GOOG had signed a multi-year deal with Adobe Systems (ADBE) to have its Google Toolbar bundled with several of ADBE's products. If shares see any profit taking tomorrow look for the 50-dma and the $395 level to act as new support. Our target is the $440-445.00 range but we do not want to hold over the July earnings report.

Picked on June 21 at $401.00
Change since picked: + 1.13
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

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Legg Mason - LM - close: 100.88 chg: +0.96 stop: 96.99

A strong earnings report from Morgan Stanley (MS) sparked a 2.66% gain in the XBD broker-dealer index. Shares of GS and BSC are looking pretty bullish with their follow on rallies today. We're a little disappointed that LM did not participate more but we won't ignore a 0.9% gain. However, while the bounce from today's lows looks like a new entry point in LM, we'd probably wait for a move over $102 and maybe over $102.50 before initiating new call positions. Currently our target is the $107.50-108.00 range but we might adjust it to account for the falling 50-dma, which could be resistance.

Picked on June 18 at $102.45
Change since picked: - 1.57
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Manpower - MAN - close: 66.30 change: +1.07 stop: 64.45

The market rally inspired new strength in shares of MAN and the stock broke out past the $66.00 level and its trendline of lower highs. The strength today (+1.6%) helped confirm the new MACD buy signal on its daily chart. Our trigger to buy calls was at $66.05 so the play is now open. Our target is the $69.85-70.00 range. The P&F chart now points to an $80.00 target so more aggressive traders may want to aim higher. We do not want to hold over the mid-July earnings report.

Picked on June 21 at $ 66.05
Change since picked: + 0.25
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 959 thousand

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Reynolds American - RAI - cls: 112.25 chg: +0.76 stop: 107.45

Shares of RAI continue to creep higher. Our only complaint today would be the very lackluster volume, which doesn't inspire a lot of confidence in the current rally. 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: + 1.10
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 632 thousand

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United Tech. - UTX - close: 61.49 chg: +0.51 stop: 58.75

Technicals continue to improve with UTX and the MACD indicator's recent buy signal is looking stronger. We did warn readers to watch out for resistance near $62.00 and UTX is still struggling with that area and its 50-dma. More conservative traders may want to think about tightening their stops toward the $60 level. Our target remains the $64.00-65.00 range.

Picked on June 08 at $ 60.13
Change since picked: + 1.36
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Put Updates

Apple Computer - AAPL - close: 57.86 chg: +0.39 stop: 60.05

The lack of a real rebound in AAPL sticks out like a sore thumb. Shares tried to rally midday but a late day sell-off cut its gains. 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: 65.56 chg: +0.60 stop: 68.05

AMGN produced an oversold bounce today, adding 0.9%, but it failed near the $66.00 level and shares were headed lower into the closing bell. We do not see any changes from our previous updates. 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: - 1.92
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Carpenter Tech. - CRS - close: 104.70 chg: +3.95 stop: 105.01

The market rally today inspired a new wave of buying in the steel and metal stocks. Shares of CRS added 3.9%. Thankfully we're still sitting on the sidelines. Our trigger to buy puts is at $99.25. We're going to keep CRS on the play list as a bearish candidate for now but if the stock closes over $105 we'll drop it. The P&F chart is still bearish and 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 - cls: 41.51 change: +1.51 stop: 42.05*new*

The widespread market rally on Wednesday definitely helped DRIV, which saw a 3.77% gain and a new MACD buy signal. The stock is trading under resistance at $42.00 and its 21-dma and 100-dma. We are going to lower our stop loss to $42.05. We are not suggesting new plays at this time.

Picked on June 19 at $ 39.45
Change since picked: + 2.06
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Express Scripts - ESRX - cls: 67.79 chg: +2.33 stop: 70.10

ESRX produced another oversold bounce but overall we don't see any big changes from our previous updates. We're not suggesting new bearish plays. Shares of ESRX still have overhead resistance near $70.00.

Picked on June 08 at $ 69.59
Change since picked: - 1.80
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Group 1 Auto - GPI - close: 52.54 chg: -1.00 stop: 58.46 *new*

We thought volume was big on Tuesday at five times the daily average. Volume today was over nine times the daily average. Today's 1.8% decline is a huge sign of relative weakness considering the market-wide rally. We are not suggesting new bearish positions. Traders should seriously consider exiting early right here for a gain. We're thinking about it. Our target is the $51.50-50.00 range. We are lowering the stop loss to breakeven at $58.46.

Picked on June 11 at $ 58.46
Change since picked: - 5.92
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

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Intl. Bus. Mach. - IBM - cls: 78.30 chg: +0.31 stop: 80.05

IBM posted a meager gain today and the stock remains inside its bearish trend. We would not consider new put positions while the market is bouncing right now. More conservative traders may want to exit early if IBM trades over $79.00. 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: - 0.45
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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IDEXX Labs - IDXX - close: 75.63 chg: -0.11 stop: 80.05

IDXX displayed more relative weakness today. The stock tried to bounce this morning but it quickly failed. We were expecting a bounce near the $75.00 level and one could still occur. 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: - 2.32
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand

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Intuitive Surgical - ISRG - cls: 102.06 chg: +3.07 stop: 108.25

ISRG bounced back to the $104 region and then began to fade. The close back under its simple 200-dma may be the sort of failed rally traders can use as a new entry point to buy puts. However, the market bounce may not be over yet. We'd wait for a new decline under $100.00 before initiating new plays here. 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: - 0.39
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Oshkosh Truck - OSK - close: 50.19 chg: +1.09 stop: 51.51 *new*

OSK added 2.2% and managed to breakout back above resistance at the $50.00 mark and its 200-dma. This could be bad news for the bears. We are not suggesting new plays and instead we're lowering our stop loss to $51.51.

Picked on June 13 at $ 49.49
Change since picked: + 0.70
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 737 thousand

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Supertex - SUPX - close: 36.43 change: +0.81 stop: 39.25

It looks like SUPX 2.2% bounce today is also a failed rally under its simple 200-dma, which should be acting as technical resistance. Watch for another decline under $36.00 as a potential entry point to buy puts or wait for a new relative low under the $35.00 level. If SUPX continues to bounce the $38.00-38.50 level appears to be the next level of resistance.

Picked on June 19 at $ 35.99
Change since picked: + 0.44
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 263 thousand
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

Barr Pharma - BRL - close: 48.60 chg: -2.54 stop: 52.65

Target achieved. BRL spiked under the $50 level this morning, bounced and then sold off again hitting a low of $47.83 before a late day rebound. Our target was the $48.00-47.50 range. Volume was very strong on today's show of relative weakness and the MACD is nearing a new sell signal. We do not see any specific news to account for the breakdown but investors may have panicked after hearing that drug-giant Merck was going to lower their price on Zocor to compete with generic versions. Teva was the big loser on that story but BRL has a generic division and investors might be worried that MRK could be starting a trend that would damage the generic drug makers.

Picked on June 05 at $ 52.20
Change since picked: - 3.60
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Expeditors - EXPD - close: 104.77 chg: +4.37 stop: 100.35

We are dropping EXPD as a bearish candidate. The stock has broken out through the top of its bearish channel. Volume on today's breakout was above average. We have been suggesting that if EXPD did breakout higher that traders might want to buy calls on a move past the $102.50 region. Our bearish strategy involved a trigger to buy puts at $97.85, which was never hit.

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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Nucor - NUE - close: 50.77 chg: +1.59 stop: 51.61

We have been stopped out of NUE at $51.61. The rally in the steel stocks was pretty strong today and NUE hit $51.64, trading above Monday's high. Studying the charts again it looks like the $52.00 level is the key level to watch. Traders might want to consider buying calls if NUE trades over $52.50 or its 50-dma. A drop back under $48.00 could be used as a new entry point for puts.

Picked on June 19 at $ 48.62
Change since picked: + 2.15
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 5.9 million
 

Dropped Strangles

None
 

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