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Call Updates

Cymer Inc. - CYMI - close: 44.60 chg: -0.75 stop: 41.95

The SOX semiconductor index added 0.95% led by another (fourth) day of gains in shares of Intel (INTC), its biggest component. Shares of CYMI under performed both the market and its peers with a 1.6% loss. We could not find any specific news to account for the weakness in CYMI and volume came in below average, which doesn't suggest a lot of conviction behind the move. It is worth noting that today's session appears to have produced a bearish engulfing candlestick, which tends to act as a one-day bearish reversal pattern. More conservative traders may want to take some profits early or tighten their stops. We're not suggesting new plays. Our target is the $47.00-48.00 range.

Picked on September 06 at $ 42.55
Change since picked: + 2.02
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.0 million

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General Dynamics - GD - close: 72.41 change: +0.96 stop: 69.94

GD got some good news today with a $62 million contract from the U.S. Navy to work on some submarines. However, we suspect that the stock's strength was probably more window dressing. Shares hit another new all-time high but pared their gains by the closing bell. The good news for traders is that GD did not see any follow through on yesterday's failed-rally type pattern. We are not suggesting new call plays at this time. Our target is the $74.00-75.00 range. We do not want to hold over the mid October earnings report.

Picked on September 24 at $ 70.61
Change since picked: + 1.80
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Mettler Toledo - MTD - close: 66.03 chg: +0.44 stop: 63.45

MTD posted another gain and closed at new three-month highs. The breakout over last week's area of congestion/resistance is a good sign. Currently our target is the $68-69 range. We do not want to hold over the late October earnings report.

Picked on September 13 at $ 63.66
Change since picked: + 2.37
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 169 thousand

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Omnicom - OMC - close: 93.90 chg: -0.20 stop: 89.89

The rally in OMC stalled on Thursday. However, the profit taking was negligible and the lack of selling could be seen as a sign of strength. More conservative traders may want to take some money off the table right now. We continue to aim for the $96.00-97.00 range.

Picked on September 10 at $ 90.97
Change since picked: + 2.93
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Caterpillar - CAT - close: 66.59 chg: +0.91 stop: 67.36

Shares of CAT continued to see buying pressure on Thursday. The stock bounced from a dip near $65 and the stock's 1.38% gain certainly helped the DJIA's attempt at a new high. Thus far CAT remains under the bearish pattern of lower highs but we're not suggesting new positions with CAT above $65.00. More conservative traders may want to tighten their stops. Our target is the $60.25-60.00 range but more aggressive traders may want to aim lower. The P&F chart does point to a $48 target.

Picked on September 21 at $ 64.59
Change since picked: + 2.00
Earnings Date 10/20/06 (unconfirmed)
Average Daily Volume = 5.2 million

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Chipotle - CMG - close: 49.60 change: -0.20 stop: 52.61

Our new play in CMG is now open. The stock dipped under $49.50 and hit our trigger to buy calls at $49.45. The bounce back is a little discouraging but looking at the intraday chart the rebound appears to stall under the $50 level. Our bias remains bearish but traders may want to wait for further weakness before opening new put positions, especially since the DJIA seems determined to hit a new high in the next day or two. Our target is the $45.50-45.00 range. We do not want to hold over the late October earnings report.

Picked on September 28 at $ 49.45
Change since picked: + 0.15
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 459 thousand

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Monster - MNST - close: 36.29 change: +1.01 stop: 37.55

MNST experienced a little bit of a dip this morning but traders bought the dip at $34.81. That means we're still spectators and sitting on the sidelines. Our suggested trigger to buy puts is at $34.65, which is under the June 2006 low. If triggered our target is the $30.50-30.00 range. If you study the weekly chart you'll notice a long-term trendline of support stretching out just above the $30 level. More conservative traders might want to exit earlier near $31.00. We do not want to hold over the late October earnings report.

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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Maxim Integrated - MXIM - close: 28.74 chg: +1.01 stop: 30.05

Recently we have been cautiously bearish on MXIM since the stock was under performing and breaking down under support. Yet today shares bounced strongly and out performed the market and its peers with a 3.6% gain. We suspect this is just bargain hunting since there was not any specific news to account for the move. The SOX did add almost 1% and we've been warning readers that the SOX has not yet broken support at the bottom of its rising channel. We are not suggesting new plays at this time.

Picked on September 25 at $ 27.90
Change since picked: + 0.84
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume = 5.4 million

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Nucor - NUE - close: 49.58 change: +0.44 stop: 50.01

NUE is still trying to bounce. The stock dipped to $48.09 this morning but rallied back toward resistance near $50.00 and its 50-dma. We are not suggesting new positions at this time.

Picked on September 25 at $ 45.95
Change since picked: + 3.63
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 4.2 million

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FreightCar Amer. - RAIL - close: 52.98 chg: -1.77 stop: 56.32

RAIL continues to under perform and lost more than 3% on Thursday. The recent trading looks like a failed rally under $56 and we see the weakness as a new entry point for puts. We're going to list two targets. We suggest selling half or more of your position at our first target in the $50.25-50.00 range. Sell the rest at our second target in the $46.00-45.00 range.

Picked on September 21 at $ 54.50
Change since picked: - 1.52
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 353 thousand

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SanDisk - SNDK - close: 53.02 chg: -1.15 stop: 60.05

SNDK is also showing more relative weakness today. The stock produced a failed rally under $56 yesterday and followed up with a 2.1% decline on Thursday. Please note that we're adjusting the target from $51.50-50.00 to $52.00-51.00 because the 50-dma is rising and could be support just under $52. We do not want to hold over the mid October earnings report so that only gives us about four weeks.

Picked on September 22 at $ 56.69
Change since picked: - 3.67
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 9.9 million

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U.S.Steel - X - close: 57.10 chg: -1.08 stop: 60.05

The bounce in X appears to be fading with today's 1.8% decline but we hesitate to suggest new positions at this time. Another drop under the $56.00 level would be a new entry point to buy puts but if you do open new plays we'd suggest a tighter stop loss probably near $58.50.

Picked on September 22 at $ 55.95
Change since picked: + 1.15
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 4.4 million
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

Express Scripts - ESRX - close: 75.55 chg: -1.26 stop: 82.51

Target achieved. The sell-off in ESRX hit another new relative low with a break under the $76 level. The intraday low was $75.22 and our target was the $75.50-75.00 range. If you failed to exit be careful. The $75 level looks like potential support boosted by its 100-dma.

Picked on September 21 at $ 79.85
Change since picked: - 4.30
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Joy Global - JOYG - close: 36.96 change: +0.76 stop: 36.55

We have been stopped out of JOYG at $36.55. Thursday saw investors still bargain buying stocks in the construction and agricultural machinery industry. Shares of CAT also ticked higher. We warned readers yesterday that if the markets displayed any strength today we'd be stopped out.

Picked on September 20 at $ 34.95
Change since picked: + 2.01
Earnings Date 11/30/06 (unconfirmed)
Average Daily Volume = 2.6 million

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Las Vegas Sands - LVS - close: 68.33 change: +1.76 stop: 70.05

LVS is just not cooperating so we are suggesting an early exit to cut our losses. The bearish breakdown several days ago has reversed and the technical picture is turning more bullish although we would not switch directions and buy calls since the $72 level looks like overhead resistance.

Picked on September 19 at $ 65.99
Change since picked: + 2.34
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 2.2 million

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Textron - TXT - close: 86.51 change: +0.43 stop: 84.01

The breakout over resistance in the $85.00-86.00 region for TXT looks pretty bullish although we'd stop short of buying calls with additional overhead resistance with its 200-dma, 100-dma and its multi-month trendline of lower highs. It was our plan to buy puts on a breakdown under support at $80.00 but it hasn't happened yet and doesn't look like it will happen any time soon. We're dropping TXT as a candidate.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (confirmed)
Average Daily Volume = 829 thousand
 

Dropped Strangles

None
 

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