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Call Updates

Bear Stearns - BSC - cls: 133.59 chg: -2.91 stop: 129.99

After today's weakness we're feeling good about using a trigger above resistance. We are still on the sidelines as spectators and avoided today's big sell-off. The XBD index lost 2.2% and BSC paced the move with a 2.1% drop. The action in the markets today looks pretty bearish and we would hesitate to open new call plays. We're going to leave BSC as a bullish candidate on the newsletter for now but we're sticking to our trigger at $137.51.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/14/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Chipolte Mex Grill - CMG - cls: 61.80 chg: -0.95 stop: 57.45

CMG tried to rally this morning but it failed and shares closed with a 1.5% loss as the stock chased the markets lower. The technical picture for CMG is deteriorating. Right now we're expecting the stock to consolidate toward the $60.00 level and potentially to the 50-dma. We would not consider new plays at this time. We do not want to hold over the late July earnings report.

Picked on June 18 at $ 61.76
Change since picked: + 0.04
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 384 thousand

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Cognizant Tech. - CTSH - close: 63.88 chg: -2.46 stop: 62.49

Ouch! CTSH's recent strength is evaporating quickly. The stock lost 3.7% today under performing the broader markets. The close back under support/resistance at the $65.00 level is bearish. The next stop could be the $62.50 level and that puts us in jeopardy of being stopped out.

Picked on June 24 at $ 65.05
Change since picked: - 1.17
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.4 million

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General Dynamics - GD - cls: 64.15 chg: -0.43 stop: 63.99

GD continues to drift toward support near $64.00 and its 100-dma. If there is any follow through on today's market weakness then odds are good we'll be stopped out at $63.99. More conservative traders may want to try and exit early!

Picked on June 18 at $ 66.12
Change since picked: - 1.97
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Google - GOOG - close: 402.32 chg: - 1.90 stop: 384.50

So far GOOG is showing relative strength by resisting today's market sell-off. The stock lost just 0.4% and is currently clinging to the $400 level for now. It might be investor optimism over GOOG's new GBuy program that could challenge Ebay's PayPal system. We are not suggesting new bullish plays at this time and expect that GOOG will probably dip to its 10-dma or 50-dma in the $393-395 region.

Picked on June 21 at $401.00
Change since picked: + 1.32
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

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Legg Mason - LM - close: 100.07 chg: -1.38 stop: 98.45*new*

The technical picture for LM is also deteriorating. Shares lost 1.3%, which was better than the 2.2% decline in the XBD index, but still puts LM in a position to breakdown from its current sideways consolidation. We are raising the stop loss to $98.45. More conservative traders might want to consider just exiting early right here. You could always jump back in on a move over $102.50.

Picked on June 18 at $102.45
Change since picked: - 2.38
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Marathon Oil - MRO - close: 79.81 chg: +2.93 stop: 73.95

Our play in MRO is now open. Shares traded at our trigger to buy calls at $77.55. Some positive comments from MRO's CFO today, including talk about making smaller acquisitions instead of a large purchase, were interpreted as positives by the market today. The stock added 3.8% on strong volume to breakout over its 50-dma. Our target is the $84.00-85.00 range. The Point & Figure chart's bullish price target has jumped from $85 to $97.

Picked on June 27 at $ 77.55
Change since picked: + 2.26
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 3.2 million

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Reynolds American - RAI - cls: 112.43 chg: -0.07 stop: 107.75

Shares of RAI closed virtually unchanged today. Traders bought the dip near $111.75 for the second time in as many days. We don't see any changes from our previous updates. We are suggesting two targets. Our conservative target is $115.00. Our aggressive target is $119.00. The P&F chart is still bullish and points to a $148 target.

Picked on June 15 at $111.15
Change since picked: + 1.28
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 632 thousand

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United Tech. - UTX - close: 61.40 chg: -0.84 stop: 59.95

Uh-oh! This doesn't look good. The triple-digit loss in the DJIA weighed on UTX. The stock produced a failed rally near its 50-dma this morning and closed near its lows for the session. We would expect the dip to continue and for UTX to drop toward support near $60 and its 100-dma. More conservative traders, given the bearish action in the markets today, might want to consider exiting early!

Picked on June 08 at $ 60.13
Change since picked: + 1.27
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Put Updates

Apple Computer - AAPL - close: 57.43 chg: -1.56 stop: 60.05

The recent oversold bounce in AAPL appears to be failing and once again shares are on the verge of breaking down under support at the $57.00 level. Our strategy is to buy puts if AAPL trades at $56.85 or 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. FYI: The Point & Figure chart points to a $44 target.

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: 63.98 chg: -0.87 stop: 67.55

The BTK biotech index looks vulnerable to a new bearish breakdown and AMGN is leading the way. Shares of AMGN lost another 1.3% to close at a new relative low. Currently our target is the $62.65-62.25 range although the P&F chart points to a $60 target. AMGN is due to present at another conference on Tuesday this week. That always increases the risk of some sort of news event moving the stock.

Picked on June 05 at $ 67.48
Change since picked: - 3.50
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Digital River - DRIV - cls: 40.63 change: -0.76 stop: 42.05

The market weakness today has spared us from being stopped out at $42.05. Shares of DRIV traded mostly sideways and struggled to trade over the $41.50 level all day long before finally sinking into the closing bell. Another drop under $40.00 or $39.50 could be used as a new entry point.

Picked on June 19 at $ 39.45
Change since picked: + 1.18
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Express Scripts - ESRX - cls: 67.02 chg: -0.69 stop: 70.10

We have nothing new to report on for ESRX. The stock tried to breakout past the $68.00 level and failed to hold any gains. We're not suggesting new plays at this time. Our conservative target at $65.25 was hit days ago and now we're aiming for the $60.50 mark. The Point & Figure chart points to a $52 target.

Picked on June 08 at $ 69.59
Change since picked: - 2.57
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Group 1 Auto - GPI - close: 54.35 chg: +0.10 stop: 58.46

Hmm... lack of any weakness today is not a great sign for our put play in GPI. Shares do appear to have found new resistance at the $55.00 level but we're still strongly suggesting that readers consider locking in some gains here. Conservative traders who don't want to exit might want to adjust their stop toward $55.00. We're not suggesting new plays. Our target is the $51.50-50.00 range.

Picked on June 11 at $ 58.46
Change since picked: - 4.11
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

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Intl. Bus. Mach. - IBM - cls: 76.63 chg: -0.52 stop: 79.05*new*

IBM has finally broken down under support near $76.75 to close at a new one-year low. If you were considering a new entry point this would be it. 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 expected in about three weeks. We are going to lower our stop loss to $79.05.

Picked on June 06 at $ 78.75
Change since picked: - 2.12
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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IDEXX Labs - IDXX - close: 74.31 chg: -1.09 stop: 78.05

IDXX lost 1.44% today and closed back under support/resistance at the $75.00 level and its 200-dma. We remain bearish and expect shares to continue lower but we're a little concerned by the very low volume today. Our conservative target at $75.25 has already been hit. Now we're aiming for the $72.00 level.

Picked on June 12 at $ 77.95
Change since picked: - 3.64
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand

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Oshkosh Truck - OSK - close: 47.57 chg: -1.04 stop: 50.51*new*

Honestly we are surprised that OSK did not bounce at the $48.00 level. The close under $48.00 is bearish and good news for our put play. We are going to lower our stop loss to $50.51. Our target is the $45.50-45.00 range. The P&F chart points to a $34 target.

Picked on June 13 at $ 49.49
Change since picked: - 1.92
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 737 thousand
 

Strangle Updates

None
 

Dropped Calls

Manpower - MAN - close: 63.65 change: -1.39 stop: 63.99

We have been stopped out of MAN at $63.99. The market sell-off today was too much for shares of MAN, which had been consolidating sideways near the $65.00 level. Today's 2.1% drop is a breakdown under its 10-dma and 50-dma.

Picked on June 21 at $ 66.05
Change since picked: - 2.40
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 959 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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