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Call Updates

None
 

Put Updates

Autozone Inc. - AZO - close: 88.12 chg: +0.51 stop: 90.05

The market rally is still fueling a bounce in AZO but so far the stock remains under resistance at its descending 50-dma. We are not suggesting new put positions at this time. Our target is the $82.50-80.00 range.

Picked on August 08 at $ 87.73
Change since picked: + 0.39
Earnings Date 09/21/06 (unconfirmed)
Average Daily Volume = 700 thousand

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Boeing - BA - close: 78.83 change: +2.25 stop: 80.45*new*

We struggled with what to do with BA. The rebound today was pretty strong and the action in the broader market indices is suggesting a trend change higher. Yet BA, in spite of today's bounce, is still in a bearish pattern of lower highs and has a bearish P&F chart. We are not suggesting new positions. We urge more conservative traders to think about exiting early to minimize losses. We're going to lower our stop loss to $80.45, near its simple 50-dma.

Picked on August 10 at $ 75.75
Change since picked: + 3.08
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Burlington Nor.SantaFe - BNI - cls: 68.99 chg: +3.29 stop: 70.25

Wow! It looks like the big drop in crude oil today helped fuel a massive rally in the transports. The Dow Jones transportation index produced a 6.2% gain today. Shares of BNI added 5% on above average volume. We warned readers that the next move in BNI might be a rally toward the top of its descending channel near $70.00. The technical picture for BNI is definitely improving. We're not suggesting new positions and conservative traders may want to jump out now!

Picked on August 08 at $ 68.06
Change since picked: + 0.93
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 2.7 million

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Chipotle Mex Grill - CMG - close: 53.50 chg: +2.86 stop: 54.01

The 5.6% gain in CMG today might have been a big short-squeeze. We've been warning readers to expect a rally toward the $52-53 region. Today's gain was a bit stronger than expected and the technical picture is turning more bullish. We're not suggesting new positions at this time. More aggressive traders may want to put their stop loss above $55.00 and/or its 50-dma. If the markets see any follow through higher tomorrow we would expect to be stopped out of CMG at $54.01.

Picked on August 09 at $ 50.28
Change since picked: + 3.22
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand

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Intuitive Surgical - ISRG - cls: 96.92 chg: +1.36 stop: 101.55

We are a little surprised that shares of ISRG did not show more strength today. Bears remain in jeopardy with today's breakout over $95 and its 10-dma. We're not suggesting new positions on this aggressive play. More conservative traders may want to exit early.

Picked on August 10 at $ 94.90
Change since picked: + 2.02
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Lam Research - LRCX - close: 41.94 change: +0.77 stop: 42.01

The SOX semiconductor index is up over 9% this week alone. The move is a big bullish breakout from its bearish channel and its 50-dma but now the group looks overbought and due for a dip. Shares of LRCX have been bouncing as well but they're under performing their peers today. LRCX remains under resistance at $42.00 and its 50-dma and 200-dma but bears are in danger if there is any follow through tomorrow! We're not suggesting new positions at this time.

Picked on August 13 at $ 39.04
Change since picked: + 2.90
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 3.0 million

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MDC Holdings - MDC - close: 44.72 change: +1.41 stop: 45.15

Even after yesterday's 15-year low on the NAHB housing index and today's bearish analyst comments on the group the homebuilders still managed to produce strong gains today. MDC's 3.2% gain put it above its 10-dma and 21-dma. More conservative traders may want to exit early right here to minimize losses. We're not suggesting new positions.

Picked on August 14 at $ 42.25
Change since picked: + 2.47
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 991 thousand

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NII Holdings - NIHD - close: 51.40 chg: +1.31 stop: 52.51

NIHD rallied back above the $50 level and is now challenging technical resistance at its 50-dma and 200-dma near $51.50. We are not suggesting new plays at this time.

Picked on August 07 at $ 49.90
Change since picked: + 1.50
Earnings Date 07/27/06 (confirmed)
Average Daily Volume = 2.2 million

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Transocean Inc. - RIG - cls: 67.80 chg: +1.35 stop: 70.25

Shares of RIG are still bouncing in spite of a big decline in crude oil futures today. The stock rallied to its 10-dma and stalled. We're not suggesting new positions at this time. The stock has already hit our conservative target at $65.25. Our secondary, aggressive target is the $61 level.

Picked on August 07 at $ 69.49
Change since picked: - 1.69
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 6.4 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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Bausch Lomb - BOL - close: 46.13 change: +0.70 stop: n/a

We only have two days left for this strangle and BOL's lack of movement is a not a good sign. We are not suggesting new positions. Our estimated cost on the strangle was $2.15. The options in our suggested strangle are the August $50 call (BOL-HJ) and the August $45 put (BOL-TI).

Picked on July 23 at $ 47.40
Change since picked: - 1.27
Earnings Date 00/00/06 (unconfirmed)
Average Daily Volume = 2.2 million

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3M Co. - MMM - close: 70.79 change: +1.01 stop: n/a

Our strangle in MMM is pretty much dead. We're right back to where we started. Our estimated cost for our August strangle was $0.75. The options in our strangle are the August 65 put (MMM-TM) and the August 75 call (MMM-HO).

Picked on July 23 at $ 70.72
Change since picked: + 0.07
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 3.7 million
 

Dropped Calls

None
 

Dropped Puts

Apple Computer - AAPL - close: 67.98 chg: +1.53 stop: 70.01

We are throwing in the towel on our AAPL put play. Today's better than expected reading on the CPI produced a widespread follow through on the market's gains from Tuesday. Shares of AAPL continued higher after breaking out over its 10-dma and 200-dma yesterday. Short-term technicals are bullish. AAPL does still have resistance at the $70.00 level but this time traders might want to be thinking about buying calls on a breakout over $70.00.

Picked on August 08 at $ 64.78
Change since picked: + 3.20
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 28 million

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Chaparral Steel Co. - CHAP - cls: 72.49 chg: +3.02 stop: 70.01

Steel-related stocks continue to surge and it may be time to start thinking about call plays on CHAP if the stock can breakout over the $74-75 region. The stock never hit our trigger to buy puts at $65.40 so we're dropping it as a bearish candidate.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/20/06 (unconfirmed)
Average Daily Volume = 510 thousand

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Cummins Inc. - CMI - close: 120.47 chg: +1.68 stop: 121.27

We are choosing to abandon our aggressive put play in CMI. Shares rallied higher on above average volume and the technical picture is turning bullish pretty quickly. CMI does still have resistance near the $123 level but traders might want to start thinking about bullish plays should CMI breakout to new highs.

Picked on August 08 at $119.77
Change since picked: + 0.70
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Fastenal - FAST - close: 37.24 chg: +0.44 stop: 37.26

The market's positive reaction to the CPI report this morning helped shares of FAST breakout over its descending 50-dma. We're surprised that the stock didn't hit our stop loss at $37.26 but we're choosing to exit early before it does. Readers might want to consider bullish positions on the breakout today.

Picked on August 10 at $ 34.90
Change since picked: + 2.34
Earnings Date 10/11/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Hartford Fincl - HIG - close: 83.10 chg: +0.38 stop: 82.01

The market rally has powered the insurance stocks to their fifth gain in a row. Short-term HIG and the sector look overbought but the stock is a ways off from any breakdown below support at the $80 level. It was our plan to buy puts at our $79.20 trigger. The stock never hit our trigger so we're dropping HIG as a bearish candidate.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.5 million

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US Airways - LCC - close: 43.00 chg: +2.40 stop: 42.85

We have been stopped out of LCC at $42.85. A strong decline in crude oil in addition to market strength helped the airline index (XAL) add more than 3.5%. Shares of LCC out performed its peers with a 5.9% gain after one analyst firm started coverage this morning with a "strong buy" rating. LCC had already hit our primary target at $40.25 on last week's drop to 37.19. We kept the play open with a secondary target at $36.00.

Picked on August 01 at $ 43.54
Change since picked: - 0.54
Earnings Date 07/27/06 (confirmed)
Average Daily Volume = 1.6 million

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Ryland Group - RYL - close: 43.51 chg: +2.65 stop: 42.05

We have been stopped out of RYL at $42.05. The tame CPI data inspired new strength in the Fed is done for the year party. No more rate hikes will help the mortgage lenders and thus the homebuilders. Investors did a lot of bargain shopping today with a big rally in the homebuilders in spite of yesterday's bearish news about the NAHB's housing index and builder confidence.

Picked on August 14 at $ 39.40
Change since picked: + 4.11
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Whirlpool - WHR - close: 78.60 chg: +1.87 stop: 76.26

WHR continues to bounce and the stock is moving farther and farther away from a breakdown under $74.00. Traders may want to consider buying calls if shares can push past the $80 level. The stock never hit our trigger to buy puts at $73.99 so we're dropping WHR as a bearish candidate.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.2 million

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United States Steel - X - cls: 61.87 chg: +2.34 stop: 60.05

Steel-related stocks are enjoying a lot of strength during this widespread market rally. Shares of X added 3.9% to breakout over the $60.00 level today. The stock never hit our trigger to buy puts at $55.85 so we're dropping it as a bearish candidate.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 5.7 million
 

Dropped Strangles

None
 

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