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Call Updates

Bear Stearns - BSC - cls: 135.41 chg: +1.82 stop: 129.99

We continue to sit on the sidelines waiting for BSC to push past the $137.50 level. Our trigger to buy calls is at $137.51. Our concern tomorrow is that the markets might overreact to any FOMC news and shares could spike higher only to reverse course again. It's pretty common to see the first reaction to an interest rate decision change course. While we are sticking to our plan more conservative traders may want to pay close attention tomorrow afternoon and use a tighter stop loss.

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: 59.95 chg: -1.85 stop: 57.45

Ouch! CMG lost 2.99% today on low volume and no news. We shouldn't be too surprised since we've been warning readers to look for a pull back toward the $60.00 level and potentially the 50-dma (currently 58.91). We're not suggesting new call positions 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: - 1.81
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 384 thousand

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Google - GOOG - close: 406.11 chg: + 3.79 stop: 384.50

GOOG showed some relative strength today with a minor bounce from the $401 level this afternoon. We would hesitate to open new positions ahead of the FOMC decision tomorrow. Any market weakness could send GOOG to its 10-dma or the 50-dma in the $393-395 region. Our target remains the $440-445 range.

Picked on June 21 at $401.00
Change since picked: + 5.11
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

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Marathon Oil - MRO - close: 81.80 chg: +1.99 stop: 76.45*new*

Oil stocks continue to rally and shares of MRO added 2.49% on decent volume. We are raising our stop loss to $76.45. If you're looking for a new entry point we'd wait for a pull back instead of chasing MRO here. 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: + 4.25
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 3.2 million

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Reynolds American - RAI - cls: 113.87 chg: +1.44 stop: 107.75

RAI produced some relative strength with a 1.28% gain today. 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: + 2.72
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 632 thousand

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United Tech. - UTX - close: 61.33 chg: -0.07 stop: 59.95

Volume was pretty light for UTX today as investors wait for tomorrow's FOMC decision on rates. Shares of UTX dipped to $60.60 before bouncing. We would hesitate to open new positions ahead of the Fed decision.

Picked on June 08 at $ 60.13
Change since picked: + 1.20
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Put Updates

Apple Computer - AAPL - close: 56.02 chg: -1.41 stop: 60.05

Our bearish put play in AAPL is now open. The stock finally broke down under support at the $57.00 level and hit our trigger to buy puts at $56.85. The stock suffered a 2.45% loss after some negative analysts comments and concerns over delays for the company's newest iPods. Our target is the $50.50-50.00 range. The P&F chart has produced a descending triple-bottom breakdown sell signal with a $44 target. Please note that we do not want to hold over the company's July earnings report.

Picked on June 28 at $ 56.85
Change since picked: - 0.83
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 33.1 million

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Amgen Inc. - AMGN - close: 63.94 chg: -0.04 stop: 67.25

AMGN continues to look bearish with a couple of intraday failed rallies on Wednesday. However, more conservative traders may want to seriously consider exiting early tomorrow morning and lock in some gains. There is no way to know how the markets will react following the Fed decision. Our target is the $62.65-62.25 range. We are inching our stop loss down to $67.25.

Picked on June 05 at $ 67.48
Change since picked: - 3.54
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Digital River - DRIV - cls: 40.53 change: -0.10 stop: 42.05

DRIV looks a little bearish here with an afternoon failed rally but we are not suggesting new positions ahead of the FOMC decision. Besides, our previous updates suggested waiting for another drop under $40.00 or $39.50 before initiating plays and DRIV has failed to break either level lately.

Picked on June 19 at $ 39.45
Change since picked: + 1.08
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Express Scripts - ESRX - cls: 68.74 chg: +1.72 stop: 70.10

An upgrade for ESRX before the opening bell sparked the gap higher and the mini-bullish breakout. We are not suggesting new plays. 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: - 0.85
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Group 1 Auto - GPI - close: 55.34 chg: +0.99 stop: 58.46

There is no change from our previous updates. We're still suggesting that readers consider exiting early to lock in a gain. More conservative traders may want to adjust their stops toward the $56.00 level. Our target is the $51.50-50.00 range.

Picked on June 11 at $ 58.46
Change since picked: - 3.12
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

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Intl. Bus. Mach. - IBM - cls: 76.56 chg: -0.07 stop: 79.05

We see no changes from our previous updates. IBM is churning sideways as investors wait for tomorrow's interest-rate decision. We would not suggest new plays ahead of that announcement. We don't want to hold over the mid-July earnings report expected in about three weeks.

Picked on June 06 at $ 78.75
Change since picked: - 2.19
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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IDEXX Labs - IDXX - close: 74.25 chg: -0.06 stop: 78.05

It's the same story here with IDXX. Traders are waiting for the Fed decision. We're not suggesting new plays. 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: - 3.70
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand

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Oshkosh Truck - OSK - close: 47.02 chg: -0.55 stop: 50.51

OSK continues to show relative weakness. The stock lost 1.15% today to close at a new five-month low. 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: - 2.47
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 737 thousand

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Sears Holding - SHLD - cls: 150.24 chg: -3.62 stop: 154.36

We do not see any changes from our new play description from Tuesday night. Our suggested entry point to buy puts is at $148.99. If we are triggered at $148.99 our target will be the $142.00-140.00 range. Currently the Point & Figure chart displays a triple-bottom breakdown sell signal with a $140 target but we suspect that target will drop even further. The biggest risk right now is probably catching an intraday spike lower as markets move on the Fed decision tomorrow. We're going to stock to our plan but more conservative traders should monitor the stock tomorrow and consider using a tighter stop.

Picked on June xx at $xxx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/17/06 (unconfirmed)
Average Daily Volume = 2.0 million
 

Strangle Updates

None
 

Dropped Calls

Cognizant Tech. - CTSH - close: 63.59 chg: -0.29 stop: 62.49

We have been stopped out of CTSH at $62.49. Yesterday's sell-off continued this morning and the stock fell to $62.30 before bouncing.

Picked on June 24 at $ 65.05
Change since picked: - 1.46
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.4 million

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General Dynamics - GD - cls: 64.06 chg: -0.09 stop: 63.99

We have been stopped out of GD at $63.99. We've been cautious on the stock for a few days now given its lack of upward follow through. While GD did bounce well off its lows today the stock closed under technical support at its 100-dma.

Picked on June 18 at $ 66.12
Change since picked: - 2.06
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Legg Mason - LM - close: 98.62 chg: -1.45 stop: 98.45

We have been stopped out of LM at $98.45. We're a little surprised at LM's relative weakness today. Shares definitely under performed the market and their peers in the broker-dealer sector. The only news we could find was a press release on some management shuffling to integrate its acquisition of Citigroup's asset management division. Chart readers will note that the short-term technicals are turning bearish and its MACD is now hinting at a bearish sell signal soon.

Picked on June 18 at $102.45
Change since picked: - 3.83
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.8 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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