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Call Updates

Beazer Homes - BZH - close: 39.65 change: -0.24 stop: 38.49*new*

Homebuilders, as a sector, continued to under perform. The DJUSHB index lost 1.1% today. Shares of BZH performed a little better with a 0.6% loss on declining volume. It looks like BZH wants to move higher and is resisting attempts at profit taking but if shares don't follow through higher soon the stock might see a retest of its lows. Some of the short-term technical indicators are starting to turn over into bearish signals. We would wait for another move over $40.50 or $41.00 before considering new call positions (remember, we said "over" these levels. BZH actually hit $40.50 today on an intraday spike). Our target is the $46-47 range. We do not want to hold over the November earnings report. Please note that we're raising the stop loss to $38.49.

Picked on September 18 at $ 40.75
Change since picked: - 1.10
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Cymer Inc. - CYMI - close: 43.84 chg: +0.53 stop: 41.95

Tech stocks led the way higher on Wednesday with software rushing to the lead on ORCL's positive earnings news. The semiconductor stocks were the worst performing tech sector with a +0.39% gain (SOX). Shares of CYMI managed to out perform its peers (+1.22% today) but CYMI remains under resistance at its 100-dma and the $45.00 level. We're not suggesting new plays at this time. Our target is the $47-48 range.

Picked on September 06 at $ 42.55
Change since picked: + 1.29
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Hartford Finc. - HIG - close: 86.85 chg: +1.07 stop: 84.45 *new*

Today's rally in HIG, following yesterday's intraday reversal higher, looks like a new entry point to buy calls. We're going to raise our stop loss to $84.45. Our target is unchanged in the $91.50-92.00 range. 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: + 0.56
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Manpower - MAN - close: 60.79 chg: +0.51 stop: 58.99 *new*

Yesterday's intraday bullish bounce higher in MAN saw some follow through this morning. Yet the rally ran out of steam under the stock's 100-dma. This is not a good sign when you consider the S&P is hitting new five-year highs. We are raising our stop loss to $58.99, which is under the simple 50-dma. Readers can watch for another bounce from the $60 region as a potential entry point but enter new positions cautiously.

Picked on September 12 at $ 60.28
Change since picked: + 0.51
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 900 thousand

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Mettler Toledo - MTD - close: 64.50 chg: -0.57 stop: 61.99 *new*

It's decision time for some of our readers. Today's action in MTD is bearish. The stock has produced another failed rally in the $65.00-65.60 region. We expect that shares will pull back toward broken resistance and what should be new support in the $62.00-62.50 region. Our more conservative traders may want to exit early right here to avoid or minimize any losses. You can always jump back in if there is a bounce from the $62.50 level. We are not abandoning the play just yet but we are raising the stop loss to $61.99. Our target is the $68.00-69.00 range. Please note that we normally try to avoid playing stocks with average volume this low so traders may want to consider this a higher-risk play. We do not want to hold over the late October earnings report.

Picked on September 13 at $ 63.66
Change since picked: + 0.84
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 169 thousand

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Omnicom - OMC - close: 91.28 chg: +0.40 stop: 89.75

We remain somewhat cautious on OMC. The stock did bounce today but the rally stalled out at its 10-dma, now acting as short-term resistance, directly overhead. We don't see any other changes and we're hesitant to suggest new plays at this time.

Picked on September 10 at $ 90.97
Change since picked: + 0.31
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million

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United Ind. - UIC - close: 54.61 change: +1.01 stop: 51.77

Defense-related stocks took advantage of the market's rally. The DFI index added 1.2% and closed near its highs for the session and appears to be breaking out higher from its recent trading range. Shares of UIC, which had fallen unexpectedly yesterday, managed a bounce (+1.88%) but volume continues to come in low. We are not suggesting new positions at this time.

Picked on August 27 at $ 51.77
Change since picked: + 1.83
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand
 

Put Updates

Caterpillar - CAT - close: 65.88 chg: -0.68 stop: 67.36

Isn't it interesting that the DJIA is trading near new multi-year highs and the S&P 500 is trading at new five-year highs but shares of CAT are slipping lower. There was no participation in the market's rally today, which is definitely a sign of relative weakness in CAT. We are still waiting for a breakdown under $65.00 to open the play. Our suggested entry point is a trigger at $64.59. The P&F chart points to a $48 target. If triggered our short-term target is the $60.25-60.00 range.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/20/06 (unconfirmed)
Average Daily Volume = 5.2 million

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EOG Resources - EOG - close: 60.99 chg: -0.91 stop: 64.15

Volume on EOG's sell-off is creeping higher. The stock lost another 1.4% following a 2% drop in crude oil, which was on top of yesterday's 3.3% decline in oil futures. We are not suggesting new positions at this time. We still see the biggest risk here as the Iran-vs.-West conflict over its nuclear program. Our target for EOG is the $57.50-55.00 range. The P&F chart points to a $48 target.

Picked on September 06 at $ 63.85
Change since picked: - 2.86
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 3.3 million

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Express Scripts - ESRX - close: 83.94 chg: +1.17 stop: 82.51

There is no change from our weekend update on ESRX. We are still sitting on the sidelines waiting for a breakout in ESRX. The stock has been trading sideways in the $80-85 range for six weeks. Taking into account that the next four weeks are usually a very bearish time period for stocks odds are definitely growing in favor of a breakdown. We're suggesting a trigger to buy puts at $79.85. If triggered our target is the $75.50-75.00 range.

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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Johnson Controls - JCI - close: 71.31 chg: +0.33 stop: 74.16

A relatively widespread rally in the market today helped JCI bounce for a 0.4% gain. We are not suggesting new positions at this time. More conservative traders may want to adjust their stop toward last week's high (73.60). More aggressive traders may want to keep their stop above $75.00 or the 50-dma (near 74.42). Our target remains the $68.50-67.50 range. The P&F chart is more bearish with a $56 target.

Picked on August 22 at $ 72.96
Change since picked: - 1.65
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Jacobs Engineering - JEC - cls: 75.54 chg: -1.76 stop: 80.15 *new*

There was no slow down in JEC's sell-off on Wednesday. The stock lost another 2.2% on strong volume marking its fifth decline in a row. The lack of participation in the market's rally is definitely bearish. We're lowering our stop loss to $80.15. More conservative traders may want to lock in some profits right here since JEC might try and bounce from round-number, psychological support at the $75.00 level. This would not be a good spot to consider new plays. JEC is starting to look a little oversold and due for a dip. Our target is the $72.50-70.00 range.

Picked on September 18 at $ 79.45
Change since picked: - 3.91
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume = 416 thousand

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Joy Global - JOYG - close: 34.81 change: -2.08 stop: 37.51

Look out below! JOYG failed to join the major market indices and their rally higher today. Instead the stock produced a failed rally at the $38 level this morning and plunged through support at $36.00 and the $35.00 levels. It was our suggested trigger to buy puts at $34.95 so the play is now open. Our target is the $30.50-30.00 range.

Picked on September 20 at $ 34.95
Change since picked: - 0.14
Earnings Date 11/30/06 (unconfirmed)
Average Daily Volume = 2.6 million

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Las Vegas Sands - LVS - close: 65.26 change: -0.35 stop: 70.05

LVS is still under performing the broader market. The stock lost another 0.5% today after its morning bounce failed. We don't see any changes from our previous updates. Our target is the $60.50-60.00 range. We do not want to hold over the early November earnings report.

Picked on September 19 at $ 65.99
Change since picked: - 0.73
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 2.2 million

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Nucor - NUE - close: 48.74 change: +0.60 stop: 50.01

The major indices may have been hitting new relative highs but that failed to help NUE breakout over resistance in the $49.50-50.00 region. We are still waiting for a breakdown under support near $46.00. Our suggested trigger to buy puts is at $45.95. If triggered our target is the $40.50-40.00 range. The P&F chart has a relatively new triple-bottom breakdown sell signal with a $41 target. We do not want to hold over the mid October earnings report.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Steel Dynamics - STLD - close: 51.46 chg: -0.36 stop: 52.05

STLD under performed the S&P 500 on Wednesday and continues to edge lower following Monday's failed rally. We're still on the sidelines waiting for a bearish breakdown under support. Our suggested entry point to buy puts is at $49.40. If triggered our target is the $45.15-45.00 range. We do not want to hold over the mid October earnings report.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.5 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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