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Call Updates

Cymer Inc. - CYMI - close: 43.92 chg: -0.46 stop: 39.95

The rally in semiconductors paused on Wednesday. The SOX slipped 0.7% following two days of solid gains. Shares of CYMI slipped about 1% as the stock struggled to breakout over technical resistance at the 100-dma. The stock continues to look bullish following the breakout over resistance near $42.50 and traders might want to wait for a dip back toward $42.50-43.00 as a new entry point to buy calls. Our target is the $47.00-48.00 range but the next hurdle for CYMI is the 100-dma (near 44.55) and the $45.00 mark.

Picked on September 06 at $ 42.55
Change since picked: + 1.37
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Hartford Finc. - HIG - close: 86.80 chg: +0.51 stop: 82.99

HIG continues to rally. The stock added another 0.59% following yesterday's breakout over resistance near $86.00. Our only concern today was the lack of volume, which came in below average. We remain bullish and don't see any changes from our new play description from Tuesday. Our target is the $91.50-92.00 range, near its May highs. However, we do expect some resistance in the $89-90 region. We do not want to hold over the early November earnings report.

Picked on September 12 at $ 86.29
Change since picked: + 0.51
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Manpower - MAN - close: 62.38 chg: +2.10 stop: 57.99 *new*

Our new play in MAN is off to a strong start. Shares vaulted higher following yesterday's bullish breakout. The stock added 3.48% on rising volume and is currently challenging potential resistance at its 100-dma. If you didn't get a position filled this morning you might want to wait for a pull back into the $60-61 region before opening new positions. We're raising the stop loss to $57.99. The P&F chart has produced a new buy signal (bearish signal reversed) and points to a $77 target. Our target is the $65.00-66.00 range.

Picked on September 12 at $ 60.28
Change since picked: + 2.10
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 900 thousand

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Omnicom - OMC - close: 93.44 chg: +1.20 stop: 88.84 *new*

The rally in OMC just marked its sixth gain in a row. Today's session saw OMC rise to $94.24 before paring its gains. Volume on the session was very strong and we can't see any specific news to account for the rise in volume. Shares continue to look short-term overbought so we're not suggesting new positions at this time. Our target is the $96.00-96.50 range. The Point & Figure chart for OMC is very optimistic with a $131 target. Please note that we're raising the stop loss to $88.84.

Picked on September 10 at $ 90.97
Change since picked: + 2.47
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million

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United Ind. - UIC - close: 53.55 change: +0.76 stop: 49.99

There is really no change from our previous update on UIC. The profit taking might be over as shares continue to bounce from Monday's low. Short-term technical indicators are improving. Traders looking for a new entry point might want to jump in here but we'd suggest a higher stop loss. 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: + 1.78
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand
 

Put Updates

EOG Resources - EOG - close: 60.78 chg: +0.96 stop: 65.31

After seven days of losses for crude oil futures the commodity finally produced an oversold bounce. This fueled some short covering and bargain buying in the oil and oil service stocks. Shares of EOG added 1.6%. We have been warning readers to expect a rebound toward the 10-dma, which is currently near $63. We're not suggesting new positions at this time. Our target is the $57.50-55.00 range.

Picked on September 06 at $ 63.85
Change since picked: - 3.07
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 3.3 million

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Express Scripts - ESRX - close: 83.50 chg: -0.81 stop: 82.51

There is no change from our previous updates on ESRX. On Sunday we added ESRX as a put candidate because the stock looked poised to breakdown from its five-week trading range and slide under support near $80.00. Now, with a positive market, the stock has rallied toward the top of its trading range near $85.00. Nimble traders may want to consider switching directions and buying calls if ESRX can breakout over the $85 level. If a breakout higher occurs we'd aim for the $90 region. Currently our suggested trigger to buy puts is at $79.85.

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: 81.08 change: +1.12 stop: 86.01

FLR finally produced an oversold bounce near the $80 level but the early strength failed near $82.50 and its exponential 200-dma. This sort of failed rally might be used as a new entry point but more conservative traders may feel better waiting for another decline under the $80.00 mark. Our target is the $75.50-75.00 range.

Picked on September 10 at $ 81.74
Change since picked: - 0.66
Earnings Date 11/06/06 (unconfirmed)
Average Daily Volume = 863 thousand

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Johnson Controls - JCI - close: 72.91 chg: +0.98 stop: 74.16

The oversold bounce in JCI continues. The stock added another 1.3% and the two-day rally has turned short-term momentum indicators higher. So far the stock remains in a bearish pattern of lower highs but the question is where will this current rally fail? JCI appears to have some resistance near $74, which is why we put our stop loss is at $74.16. There is stronger technical resistance at the 50-dma and 200-dma but these moving averages are near $76. We're not suggesting new positions and more conservative traders might want to think about cutting their losses early.

Picked on August 22 at $ 72.96
Change since picked: - 0.05
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Radian Group - RDN - close: 60.90 chg: +0.49 stop: 61.16

Double check your stop loss placement. The oversold bounce in RDN continued for another day and the stock is challenging short-term resistance near $61.00. Odds are good that if the markets are positive tomorrow then RDN will follow suit and hit our stop loss at $61.16. We're not suggesting new positions at this time.

Picked on September 06 at $ 58.99
Change since picked: + 1.91
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 722 thousand
 

Strangle Updates

None
 

Dropped Calls

Las Vegas Sands - LVS - close: 68.81 chg: -3.33 stop: 67.95

Abandon ship! Abort mission! Reverse course! There was no follow through on yesterday's bullish surge higher in LVS. A dip back toward $70.00 and a bounce would have been okay but LVS only spiked higher at the open and then plunged. We do not see any news to explain the relative weakness on Wednesday. The only thing we could find was a bearish breakdown in rival WYNN, which slid through the bottom of its recent trading range on big volume. Part of trading is knowing when to exit and today's move in LVS is not just a decline but a bearish engulfing candlestick pattern (a.k.a. bearish reversal). Yes, there is a chance that the stock might bounce near $68.25-68.00 but we're not willing to risk it.

Picked on September 12 at $ 72.14
Change since picked: - 3.33
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 2.2 million
 

Dropped Puts

Boeing - BA - close: 76.32 change: +2.06 stop: 76.26

We have been stopped out of BA at $76.26. The company issued some positive comments about air cargo traffic and investors responded with a 2.77% rally and a breakout over one of its descending trendline of resistance (lower highs) and minor resistance near $76.00. What the company said was that air cargo traffic would rise over 6% annually for the next couple of decades. Bulls still have some hurdles on BA's chart with the 50-dma and 200-dma still overhead.

Picked on August 10 at $ 75.75
Change since picked: + 0.57
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Burlington NorSantaFe - BNI - cls: 70.56 chg: +2.72 stop: 66.75

We are dropping BNI as a bearish candidate. It was our suggested strategy to buy puts on a breakdown under support near $64.00 with a trigger at $63.74. This never occurred. Instead the transports and the railroad stocks have reversed higher. The bullish breakout over $68.00, the 50-dma, and now the $70.00 level is pretty positive for BNI. Rising volume on the breakout is also a bullish signal.

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
 

Dropped Strangles

None
 

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