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Call Updates

Dominion - D - close: 76.50 change: +1.48 stop: 74.49

The market's strength on Wednesday helped push shares of D back above resistance at the $76.00 level. The stock closed at a new five-month high. This looks like a new entry point to buy calls. Our target is the $81.00-82.00 range although more conservative types may want to exit near $80.00. Please note that we do not want to hold over D's early August earnings report.

Picked on July 17 at $ 76.05
Change since picked: + 0.45
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 1.5 million

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EOG Resources - EOG - close: 67.99 change: +1.11 stop: 69.90

Oil stocks rallied higher with the market today in spite of a third day of losses for crude oil futures. Shares of EOG added 1.6% but remains under the short-term trend of lower highs. We are still sitting on the sidelines. Our trigger to buy calls is at $72.55. Nimble and aggressive traders might consider buying a bounce from current levels but EOG needs to breakout from its short-term trend of lower highs.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 3.5 million

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Fortune Brands - FO - close: 72.10 change: +1.36 stop: 69.74

Wednesday was a bullish day for FO. The stock added 1.9% and looks poised to move higher. We hesitate to suggest new positions right here because FO has short-term resistance near $73.00 and its descending 50-dma near 72.92. We did note that FO is now expected to report earnings on August 1st so that gives us more time. We're going to adjust our target to the $74.75-75.00 range.

Picked on July 06 at $ 71.30
Change since picked: + 0.80
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 674 thousand

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Reynolds American - RAI - close: 120.32 chg: -0.05 stop: 117.45

With the market in rally mode investors forgot about relative-strength winner RAI. Highlighting just how much investors ignored RAI for other, more beaten down equities, the company's positive news this afternoon failed to inspire any buying interest. Late in the session RAI announced it was raising its cash dividend by 20% and had approved a 2-for-1 stock split payable on August 14th, 2006. We don't see any other changes from our previous updates. Our short-term target is the $124.50-125.00 range. We have a limited amount of time for this play to work since we plan to exit ahead of the late July earnings report.

Picked on July 17 at $120.20
Change since picked: + 0.12
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 636 thousand
 

Put Updates

Alcon Inc. - ACL - close: 93.24 chg: -0.59 stop: 100.05

We knew ACL looked bearish but we're still surprised that the stock failed to participate in today's widespread market bounce. Today's relative weakness is a good sign for the future but that doesn't mean we should be ready for a bounce. The $97.50-98.00 region should offer some overhead resistance if ACL does rebound. We're suggesting two targets. Our conservative target is the $90.50 mark. Our aggressive target is the $87.00-85.00 range. We do not want to hold over the July 24th earnings report so we don't have a lot of time.

Picked on July 13 at $ 95.61
Change since picked: - 2.37
Earnings Date 07/24/06 (confirmed)
Average Daily Volume = 805 thousand

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Air Products Chem. - APD - close: 63.47 chg: +1.57 stop: 65.01

APD responded with the market's bullish tone with a 2.5% gain in the stock price today. Shares did move over short-term resistance near $62 and its 200-dma but the rally stalled near the 50-dma and the $64.00 level. We can't say if the market rally today is a one-day pop or the start of something more. At this time we're not suggesting new positions. More conservative traders may want to tighten their stops toward the $64.00 level or just exit early to reduce any losses. Our target is the $59.00-58.00 range.

Picked on July 09 at $ 62.95
Change since picked: + 0.52
Earnings Date 07/26/06 (confirmed)
Average Daily Volume = 1.2 million

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Apollo Group - APOL - close: 49.31 chg: +0.82 stop: 51.01

APOL did add 1.69% today but the stock remains under broken support and what should be new resistance at the $50.00 mark. APOL is also still trading under its trend of lower highs. We are not suggesting new bearish plays at this time. More conservative traders may want to consider a tighter stop loss. Our target is the $45.50-45.00 range. The P&F chart points to a $40.00 target.

Picked on July 09 at $ 49.92
Change since picked: - 0.61
Earnings Date 09/19/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Caterpillar - CAT - close: 71.12 chg: +1.65 stop: 72.31

A 200-point rally in the DJIA helped fuel a 2.3% gain in shares of CAT on Wednesday. So far the stock remains under its short-term trend of lower highs and minor resistance at the $72.00 level. There is no way to know if today's market rally is a one-day fluke or something more. We're not suggesting new positions and more conservative traders may want to tighten their stops or just exit early. Our target is the $67.50-66.50 range, which is just above the rising, simple 200-dma.

Picked on July 12 at $ 71.31
Change since picked: - 0.19
Earnings Date 07/21/06 (confirmed)
Average Daily Volume = 5.1 million

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IDEXX Labs - IDXX - close: 74.91 chg: +1.30 stop: 76.05*new*

We warned readers yesterday that IDXX would probably rebound if the market responded well toward Bernanke's comments. We're actually a little surprised that shares closed under resistance at the $75.00 level and its simple 200-dma. We're not suggesting new plays and we're repeating our suggestion to exit early. Please note that our new stop loss is at $76.05. Our conservative target at $75.25 has already been hit and we're aiming for the $72.00 level.

Picked on June 12 at $ 77.95
Change since picked: - 3.04
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 144 thousand

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Jacobs Engineering - JEC - cls: 74.46 chg: +1.47 stop: 76.55*new*

The market rally fueled a 2% rebound in JEC but the stock's momentum stalled near the $75.00 level and its 200-dma. We don't know if the market will see any follow through tomorrow so we're not suggesting new bearish positions at this time. Please note that our stop loss has been adjusted to $76.55, this is below JEC's three-month trendline of resistance (around $77.50) so more aggressive traders may want to leave a wide stop. Our target is the $69.00 level near the June lows. More conservative traders may want to exit at $70 while aggressive traders may want to aim lower. Bear in mind that we do not want to hold over the July 25th earnings report so we only have a few trading days.

Picked on July 16 at $ 73.75
Change since picked: + 0.71
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 583 thousand

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Panera Bread - PNRA - close: 60.01 chg: +0.60 stop: 62.01

PNRA produced an initial bounce this morning but it failed and the stock spent the session consolidating in a tight range near the $60.00 mark. While this looks like relative weakness we're not suggesting new put positions at this time. We do not want to hold over the July 25th earnings report.

Picked on July 18 at $ 59.49
Change since picked: + 0.52
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 494 thousand
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

Cardinal Health - CAH - cls: 65.84 chg: +2.34 stop: 65.25

Healthcare stocks turned in a very big rally today. The HMO index added 2.75%. Shares of CAH out performed its peers with a 3.6% gain on above average volume to breakout over resistance near $65.00 and its 50-dma. Our plan was to buy puts if CAH traded at $62.25 or lower. We were never triggered so we're dropping CAH as a bearish put candidate.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 1.6 million

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Express Scripts - ESRX - cls: 72.90 chg: +2.80 stop: 71.51

We've been stopped out of ESRX at $71.51. The stock responded strongly to the market's rally today and shares of ESRX added almost 4% although it may be worth noting that the rally stalled under resistance in the $73.50 region.

Picked on July 17 at $ 69.30
Change since picked: + 3.60
Earnings Date 07/26/06 (confirmed)
Average Daily Volume = 2.0 million

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Lazard Ltd. - LAZ - close: 36.55 chg: +2.15 stop: 36.75

We have been stopped out of LAZ at $36.75. The XBD broker-dealer index was one of the best performing sectors in the market today with a 4.1% gain. The strength of the rally probably produced some panic short covering and LAZ responded with a 6.2% gain and a move back above resistance at $35.00, $36.00 and its 200-dma.

Picked on July 18 at $ 34.49
Change since picked: + 2.06
Earnings Date 08/08/06 (unconfirmed)
Average Daily Volume = 504 thousand
 

Dropped Strangles

None
 

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