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Call Updates

Allegheny Tech - ATI - cls: 107.62 change: +4.63 stop: 102.49*new*

Steel stocks displayed a lot of strength today. Investors responded positively to better than expected earnings from Arcelor Mittal (MT). Shares of ATI reacted with a 4.49% gain on better than average volume. The stock closed at another new high. More conservative traders may want to exit immediately although we suspect that ATI will hit our target ($109.00-110.00 range) tomorrow. We are raising our stop loss to $102.49.

Picked on February 18 at $102.59
Change since picked: + 5.03
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.8 million

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Boeing - BA - close: 90.96 change: -0.07 stop: 87.99

Boeing garnered some additional good news today after it was released that British Airways was choosing Boeings' 777s over rival Airbus' A330s. Yet the positive press was not enough to fuel a breakout in shares of BA. The stock rallied to resistance at the $92 level and failed again. We remain bullish and we're sticking to our plan to use a trigger to buy calls at $92.51. If triggered our target is the $99.50-100.00 range. More aggressive traders may want to jump in early on a bounce near $90 or a move over $92.00. FYI: The P&F chart shows a fresh triple-top breakout buy signal with a $107 target.

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 3.9 million

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Diageo - DEO - close: 81.44 change: -0.55 stop: 78.45

DEO lost 0.6% as it continues to digest the bullish breakout from last week. Readers may want to wait and watch for a pull back near the $80.00 level or at least near its simple 10-dma (around 80.45) before considering new bullish call positions. Our short-term target is the $84.75-85.00 range although more aggressive traders may want to aim higher. FYI: The P&F chart points to an $89 target.

Picked on February 14 at $ 81.04
Change since picked: + 0.40
Earnings Date 02/15/07 (confirmed)
Average Daily Volume = 452 thousand

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Chinese iShares - FXI - close: 107.99 chg: +0.78 stop: 103.99

The FXI ishares continue to creep higher. The ETF's breakout from its pennant-shaped pattern is more noticeable now as is the bullish buy signal on the daily chart's MACD indicator. We would still consider new positions here. Our target is the $114.00-115.00 range. We do expect some resistance near $110 so expect a short-term pull back after testing the $110 region.

Picked on February 18 at $106.90
Change since picked: + 1.09
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 1.9 million

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OM Group - OMG - close: 53.00 change: +1.11 stop: 49.75 *new*

Wednesday proved to be a bullish session for OMG. The stock finally broke out over resistance at the $52.00 level and closed with a 2.1% gain. Volume continues to come in very low, which is a yellow flag for the bulls. More conservative traders may want to strongly consider an early exit tomorrow to lock in a gain. We are adjusting our stop loss to $49.75. Our target is the $54.00-55.00 range.

Picked on January 25 at $ 48.05
Change since picked: + 4.95
Earnings Date 03/02/07 (unconfirmed)
Average Daily Volume = 770 thousand

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Research In Motion - RIMM - cls: 141.98 chg: +0.36 stop: 132.39

With the markets struggling to maintain their upward momentum on Wednesday shares of RIMM bounced around the $139-143 range. We do not see any changes from our previous comments on RIMM. There is potential resistance near $142.50 and $145.00 at the November and January highs but we suspect that given the current bullishness for stocks that RIMM can trade higher. Our target is the $149.00-150.00 range. We do have a wide stop loss placing it under last week's low. The P&F chart has reversed into a buy signal and points to a $176 target.

Picked on February 20 at $140.51
Change since picked: + 1.47
Earnings Date 03/22/07 (unconfirmed)
Average Daily Volume = 9.1 million

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Rio Tinto - RTP - cls: 222.62 chg: +0.65 stop: 212.45

Metal stocks were generally higher today. Gold miners certainly had a tailwind. The core CPI number today renewed inflation fears and the gold futures contract soared $23 to $684 an ounce. RTP mines for several different types of metals and minerals. Gold is definitely one of them. The stock gapped down at the open but traders bought the dip near RTP's rising 10-dma. Shares rallied into the green and produced a bullish engulfing candlestick. We remain bullish and readers can pick their entry points in the $217-225 range. RTP will probably have some resistance at its November 2006 highs near $230 but our target is the $237.50-240.00 range. FYI: RTP is a high-dollar stock and is bound to see some bigger swings (volatility) and this makes the options somewhat "expensive". Consider this a more aggressive play.

Picked on February 14 at $221.15
Change since picked: + 1.47
Earnings Date 02/01/07 (confirmed)
Average Daily Volume = 437 thousand

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Sears Holding - SHLD - cls: 188.78 chg: -0.30 stop: 179.89

A rise in crude oil prices and concerns over inflation undermined any strength in the retail sector. One could argue that SHLD's lack of real profit taking is a sign of relative strength. The stock looks poised to challenge the $190 level soon. The $190 level might be short-term resistance so don't be surprised to see a pull back from here. More conservative traders might want to consider taking some money off the table. We are going to tighten the stop loss to $179.89. The Point & Figure chart points to a $228 target. We are aiming for the $195.00-200.00 range. We do not want to hold over the mid March earnings.

Picked on February 14 at $183.64
Change since picked: + 5.14
Earnings Date 03/15/07 (unconfirmed)
Average Daily Volume = 1.2 million
 

Put Updates

MarineMax - HZO - close: 23.24 change: -0.26 stop: 24.25

HZO did pull back on Wednesday but it doesn't look like a very convincing failed rally yet. We are still concerned about a potential short squeeze. We are not suggesting new positions. More conservative traders may want to exit immediately following Tuesday's breakout over short-term resistance near $23.00. Our target is the $20.25-20.00 range.

Picked on February 11 at $ 22.59
Change since picked: + 0.65
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 300 thousand

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Meritage - MTH - close: 42.84 change: -0.49 stop: 45.26

The higher than expected CPI numbers this morning fanned the coals of inflation fears and pushed back expectations of a rate cute by the FOMC. This produced a negative impact on the homebuilders. Shares of MTH gapped open lower and eventually closed with a 1.1% loss. We would wait for a new decline under $42.00 before considering new positions. More conservative traders might want to tighten their stops. The P&F chart has produced a triple-breakdown sell signal with a $37.00 target. We are aiming for the $37.50-37.00 range.

Picked on February 11 at $ 41.99
Change since picked: + 0.85
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 473 thousand
 

Strangle Updates

None
 

Dropped Calls

RTI Int. - RTI - close: 87.56 change: +0.58 stop: 79.75

Target achieved. Traders bought the dip near $85.00 this morning and shares of RTI rallied to $88.09 before paring their gains. Our target was the $88.00-90.00 range. Technically the bounce near $85 looked like another entry point for bullish positions and the next level of overhead resistance is probably $90.00.

Picked on January 31 at $ 81.75
Change since picked: + 5.81
Earnings Date 03/12/07 (unconfirmed)
Average Daily Volume = 737 thousand
 

Dropped Puts

Harley Davidson - HOG - cls: 70.24 chg: +0.43 stop: 70.11

We have been stopped out of HOG at $70.11. Shares of HOG continued to rebound following news out late Friday night that the company had reached a tentative agreement with its striking workers. The breakout over round-number resistance at $70 is bullish.

Picked on February 11 at $ 67.80
Change since picked: + 2.44
Earnings Date 04/19/07 (unconfirmed)
Average Daily Volume = 2.3 million
 

Dropped Strangles

None
 

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