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Call Updates

Cymer Inc. - CYMI - close: 41.71 chg: -0.42 stop: 39.95

Once again the semiconductors lead the rally in tech stocks today. The SOX added over 2.3% but failed to breakout over resistance at its simple 100-dma today. Meanwhile shares of CYMI consolidated sideways and remains under resistance near $42.50. We do not see any changes from our weekend update that suggests readers wait for a move over $42.50 before considering new positions.

Picked on September 06 at $ 42.55
Change since picked: - 0.81
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Omnicom - OMC - close: 91.23 chg: +0.26 stop: 87.84

OMC continues to inch higher following last Friday's bullish breakout over resistance. We do not see any changes from our weekend comments and continue to aim for the $96.00-96.50 range. The Point & Figure chart for OMC is very optimistic with a $131 target.

Picked on September 10 at $ 90.97
Change since picked: + 0.26
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million

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United Ind. - UIC - close: 51.93 change: -0.96 stop: 49.99

There are still no changes from our previous comments on UIC. The stock is drifting lower as we expected. We'd like to see a bounce soon but shares might continue lower until they test support near its 100-dma, 200-dma around the $50 level. We are not suggesting new positions in UIC at this time. The stock has already hit our primary target in the $54.75-55.00 range. Our secondary target is the $57.50 level.

Picked on August 27 at $ 51.77
Change since picked: + 0.16
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand

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VF Corp. - VFC - close: 72.77 change: +1.35 stop: 68.95

The rally in VFC picked up speed on Monday and shares added another 1.89% to close at another new all-time high. Volume improved to better than average levels, which is a bullish sign for the rally. We're not suggesting new plays at this time. We are aiming for the $74.00-75.00 range.

Picked on August 30 at $ 70.25
Change since picked: + 2.52
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 567 thousand
 

Put Updates

Boeing - BA - close: 73.82 change: +1.02 stop: 76.26

Traders came back from the weekend and decided to buy the new relative low in BA. The company had some news today about potentially getting a $5 billion contract from the U.S. military. On a technical basis the move today is a bullish engulfing candlestick pattern, which is typically seen as a bullish reversal. Our readers shouldn't be too surprised. We expected a bounce back toward the $75-76 levels, which is still a distinct possibility. We are not suggesting new positions at this time. Our target is the $70.50-70.00 range.

Picked on August 10 at $ 75.75
Change since picked: - 1.93
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Burlington NorSantaFe - BNI - cls: 65.87 chg: -0.06 stop: 66.75

There is no change from our weekend play description on BNI. The transports produced a minor bounce in spite of another drop in crude oil today. We remain bearish but we're waiting for a breakdown under $64.00. We're suggesting that traders use a trigger at $63.74 to open positions. We are going to have two targets. We suggest readers sell part of their position at $60.25 then sell the rest at our second target of $57.00. The P&F chart is bearish with a $50 target.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 2.8 million

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Chipotle Mex Grill - CMG - close: 49.10 chg: +1.18 stop: 51.55

CMG produced an oversold bounce on Monday with shares rebounding with a 2.4% gain. We are not suggesting new positions at this time but readers can watch for a failed rally under $50 as a potential entry point.

Picked on August 09 at $ 50.28
Change since picked: - 1.18
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand

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EOG Resources - EOG - close: 59.77 chg: -1.12 stop: 65.31

Oil stocks really took a beating today with crude oil sliding to its sixth decline in a row. Shares of EOG gapped open lower but managed to bounce back just enough to "fill the gap". Overall the stock looks short-term oversold and due for a bounce so readers can expect a rebound over the next couple of days. We're not suggesting new plays at this time. Our target is the $57.50-55.00 range.

Picked on September 06 at $ 63.85
Change since picked: - 4.08
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 3.3 million

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Express Scripts - ESRX - close: 82.42 chg: +1.13 stop: 82.51

There is no change from our weekend play comments on ESRX. We're still waiting for a breakdown under support at the $80.00 level. It's our plan to capture the breakdown with a suggested trigger to buy puts at $79.85. If triggered our short-term target is the $75.50-75.00 range. It's worth noting that a move under $80 would reverse the P&F chart into a new sell signal.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Fluor - FLR - close: 81.23 change: -0.51 stop: 86.01

FLR continues to decline following Friday's breakdown below support at the $82.00 level. The stock did bounce from the $80.00 level (as we expected) so readers can watch for a failed rally under $82 as a new entry point to buy puts. Our target is the $75.50-75.00 range.

Picked on September 10 at $ 81.74
Change since picked: - 0.51
Earnings Date 11/06/06 (unconfirmed)
Average Daily Volume = 863 thousand

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Johnson Controls - JCI - close: 68.84 chg: -0.78 stop: 75.51

JCI managed to tag another new relative low on Monday. The relative weakness is a good sign for our play. We're not suggesting new positions at this time. More conservative traders might want to tighten their stops toward $73.00. Our target is the $68.50-67.50 range. The P&F chart points to a $59 target.

Picked on August 22 at $ 72.96
Change since picked: - 3.84
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Radian Group - RDN - close: 58.90 chg: +0.30 stop: 61.51

RDN produced a rather meager bounce on Monday. Shares struggled to make it past the $59 level. Readers can watch for another failed rally under $60 (or $59) as a new entry point to buy puts. Our target is the $55.15-55.00 range. The P&F chart points to a $50 target.

Picked on September 06 at $ 58.99
Change since picked: - 0.09
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 722 thousand
 

Strangle Updates

None
 

Dropped Calls

Cameco - CCJ - close: 38.10 change: -2.58 stop: 38.75

We have been stopped out of CCJ at $38.75. The stock was swept up in the commodity sell-off on Monday. Gold futures fell under psychological support at $600 an ounce and the XAU gold & silver index plunged 7% to breakdown below its simple and exponential 200-dma(s). CCJ is more of a uranium miner than a gold miner but investors sold first and asked questions later. The stock closed with a 6.3% loss and a breakdown below the $40.00 level.

Picked on August 22 at $ 40.33
Change since picked: - 2.23
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 1.9 million

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Carpenter Tech. - CRS - cls: 94.09 chg: -5.15 stop: 97.45

We have been stopped out of CRS at $97.45. Normally M&A news helps prop up a sector and can many times inspire new buying activity. That didn't help CRS today. News that fellow steel maker IPS had announced a buyout of NSS failed to inspire any strength in the sector. Shares of CRS sold off and lost more than 5% as investors dumped stocks in the materials sector. The drop in CRS is a bearish breakdown below the $95 level and its simple 200-dma.

Picked on September 05 at $101.10 *gap higher*
Change since picked: - 7.01
Earnings Date 10/23/06 (unconfirmed)
Average Daily Volume = 847 thousand

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Emerson Elec. - EMR - close: 80.96 chg: -0.21 stop: 79.99

Over the weekend we were very cautious on EMR but chose to keep the stock to see if shares would bounce from the 200-dma. Shares are still flirting with the 200-dma but EMR failed to bounce with the major averages on Monday. Therefore we're choosing an early exit, especially after the new MACD sell signal appeared. More aggressive traders might want to reconsider and keep the play open.

Picked on September 05 at $ 83.55
Change since picked: - 2.59
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Freeport McMoran - FCX - close: 53.95 chg: -4.36 stop: 57.45

We have been stopped out of FCX at $57.20. FCX is another casualty of the commodity sell-off. Oil and gold plunged lower and that weighed on silver and copper futures. Copper fell 4.2% and this sparked a big sell-off in the copper miners like FCX and PD. Shares of FCX gapped open lower at $57.20, which was under our stop loss at $57.45. The 7.4% sell-off in FCX has produced a very bearish breakdown below its trendline of support and its 50-dma and 200-dma.

Picked on August 23 at $ 57.51
Change since picked: - 3.56
Earnings Date 10/17/06 (unconfirmed)
Average Daily Volume = 5.1 million

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Phelps Dodge - PD - close: 84.05 change: -7.04 stop: 87.95

We have been stopped out of PD at $87.95. The sell-off in commodities hit the mining stocks pretty hard and shares PD gapped open lower at $88.50 and then plunged toward the $83 level. The move is a bearish breakdown below its six-week trendline of support and its 50-dma.

Picked on September 01 at $ 90.55
Change since picked: - 6.50
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 6.7 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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