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Call Updates

Advance Auto Parts - AAP - cls: 40.80 chg: +0.71 stop: 38.59*new*

A widespread market rally on Friday helped AAP post a 1.77% gain and set a new ten-month closing high. The move looks pretty bullish now that AAP has cleared congestion in the $39.50-40.50 region. Traders might want to jump in now or on a dip back towards $40.50. Our target is the $44.50-45.00 range. We do not want to hold over the mid-May earnings report. FYI: The P&F chart points to a $48 target. Please note that we're raising the stop loss to $38.59, just under the simple 50-dma.

Suggested Options:
We are suggesting the May calls. As with all of our plays it is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL MAY 35.00 AAP-EG open interest=1000 current ask $6.20
BUY CALL MAY 40.00 AAP-EH open interest=1011 current ask $1.95
BUY CALL MAY 45.00 AAP-EI open interest= 52 current ask $0.20

Picked on April 11 at $ 40.05
Change since picked: + 0.75
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume = 854 thousand

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Apple Inc. - AAPL - cls: 90.97 chg: +0.70 stop: 89.45

AAPL spent last week consolidating along support near the $90.00 level and its rising 50-dma. Hopefully after a week of rest the stock will see some pre-earnings excitement. The company is due to report earnings on April 25th after the market's close. We are planning to exit at the closing bell on Wednesday to avoid holding over the earnings announcement. More aggressive traders who want to hold positions into the iPhone launch may want to hold over the announcement. We're not suggesting it. However, there were some bullish comments recently suggesting this is our last chance to own it near $90 and that the stock was ready to take off. We'd like to think so and will certainly be re-evaluating a new entry point after we see the dust settle from the earnings report on Wednesday. Currently the P&F chart points to a $123 target. Our target has been the $97.50-100.00 range. We are adjusting our target to $96.50-97.00 given the March highs near $96.80. We're not suggesting new positions although more aggressive traders will want to reconsider if shares rebound from here.

Suggested Options:
We are not suggesting new positions at this time.

Picked on March 19 at $ 91.01
Change since picked: - 0.04
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 35 million

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Boeing - BA - close: 93.29 change: +0.30 stop: 89.85 *new*

BA was a bit of a disappointment on Friday. The rest of the market was in rally mode but BA lost most of its early morning gains. Shares have struggled to build on Wednesday's bullish breakout. The company is due to report earnings on April 25th before the market's open. That doesn't give us a lot of time so we're not suggesting new positions. We will plan to exit at the closing bell on Tuesday to avoid holding over earnings. Please note that we're adjusting the stop loss to $89.85. Our target is the $97.50-100.00 range.

Suggested Options:
We are not suggesting new positions in BA at this time.

Picked on April 18 at $ 92.35
Change since picked: + 0.94
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 4.1 million

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Cigna - CI - close: 152.27 chg: +2.24 stop: 144.95

The market's big rally on Friday was a huge help to CI. The stock rebounded and actually recouped all of Thursday's declines and more. Shares are getting closer to our target in the $154.50-155.00 range. If you plan to aim higher you might want to use Friday's rebound as a new entry point - just consider using a tighter stop loss. We do not want to hold over CI's earnings report in early May.

Suggested Options:
CI is approaching our target. We're not suggesting new positions at this time.

Picked on April 05 at $147.75
Change since picked: + 4.52
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 910 thousand

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Core Labs - CLB - cls: 85.50 chg: +0.72 stop: 83.99 *new*

Traders continued to buy the dip above $84.00 and CLB managed a 0.8% gain after a late-day rebound on Friday. Unfortunately, the stock is still looking a little weak and we've run out of time. CLB is due to report earnings after the closing bell on Monday, April 23rd. We plan to exit on Monday at the close to avoid holding over the report. Please note that we're adjusting the stop loss to $83.99.

Suggested Options:
We are not suggesting new plays on CLB at this time.

Picked on April 08 at $ 87.25
Change since picked: - 1.75
Earnings Date 04/23/07 (confirmed)
Average Daily Volume = 275 thousand

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Chicago Merc.Exc. - CME - cls: 555.89 chg: +2.04 stop: 544.75

We have bad news. It looks like investors are going to wait for CME's upcoming earnings report before they place any new bets. This left shares trading in a relatively tight range (for CME) on Friday. The stock definitely under performed the broader market. We are not suggesting new call positions. However, given this sideways consolidation and the upcoming report on Tuesday. We are going to launch a new high-risk, speculative strangle play on CME. Look for it below in the strangles section of the newsletter. We plan to exit ahead of the April 24th earnings report.

Suggested Options:
We are not suggesting directional call plays on CME at this time. Please see our new strangle play on CME elsewhere in this newsletter.

Picked on April 16 at $557.50
Change since picked: - 1.61
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 733 thousand

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ConocoPhillips - COP - cls: 71.25 chg: +1.97 stop: 68.75 *new*

Wow! What a difference a day can make. A rebound in markets overseas and a bounce in crude oil helped power a strong rally for oil stocks. Rival oil stocks XOM and CVX made it to new all-time highs. Shares of COP spiked at the open and kept climbing to set a new three-month high. COP looks poised for more gains on Monday. More conservative traders may want to consider locking in some gains soon (or now). We plan to exit on Tuesday at the closing bell to avoid holding over COP's earnings report on Wednesday morning. Please note that we're raising our stop loss to $68.75, just under last week's low.

Suggested Options:
We are not suggesting new positions in COP at this time.

Picked on March 20 at $ 66.31
Change since picked: + 4.94
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 12.1 million

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HESS Corp. - HES - cls: 57.56 chg: +1.40 stop: 55.45*new*

The widespread bounce in the markets and the oil sector helped HES rally 2.5%. Volume came in above average on the gain, which is bullish. Unfortunately, we're almost out of time. Earnings are due out on Wednesday morning so we plan to exit on Tuesday at the closing bell. Please note we're adjusting the stop loss to $55.45, just under last week's low. FYI: The weekly chart appears to have a wide, bullish channel. We'll keep an eye on HES post-earnings for any new entry points.

Suggested Options:
We are not suggesting new plays on HES at this time.

Picked on April 15 at $ 57.87
Change since picked: - 0.31
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 3.0 million

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Joy Global - JOYG - cls: 47.81 chg: +0.81 stop: 44.75

JOYG enjoyed a lot of strength on Friday morning. The stock gapped open at $48.03 and spiked to $49.32 before paring its gains and closing with a 1.7% gain for the session. The stock tagged the top edge of its short-term channel so don't be surprised to see a dip back toward the 10-dma near $46.50. We are suggesting two targets. Our conservative target is $49.85-50.00. Our aggressive target is the $52.25-55.00 range.

Suggested Options:
We are not suggesting new positions in JOYG at this time.

Picked on April 12 at $ 46.48
Change since picked: + 1.33
Earnings Date 05/30/07 (unconfirmed)
Average Daily Volume = 2.5 million

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McKesson Corp. - MCK - cls: 60.22 chg: +0.18 stop: 57.99

MCK is trading near seven-year highs but we are a little disappointed that the stock didn't show more strength on Friday. Shares traded in a narrow 47-cent range. The close over $60.00 is still positive but our enthusiasm is cooling a bit. Readers can choose to buy calls now or look for a dip (or bounce) near $59.00 as a new entry point. Our target is the $64.00-65.00 range. FYI: The Point & Figure chart points to a $73 target. More conservative traders may want to see a new relative high (over $60.51) before initiating positions.

Suggested Options:
We are suggesting the May calls. We do not want to hold over the May 7th earnings report.

BUY CALL MAY 55.00 MCK-EK open interest= 812 current ask $5.80
BUY CALL MAY 57.50 MCK-EY open interest=1308 current ask $3.50
BUY CALL MAY 60.00 MCK-EL open interest=2232 current ask $1.70
BUY CALL MAY 65.00 MCK-EM open interest= 402 current ask $0.20

Picked on April 19 at $ 60.15
Change since picked: + 0.07
Earnings Date 05/07/07 (unconfirmed)
Average Daily Volume = 1.7 million

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Wynn Resorts - WYNN - cls: 102.51 chg: +0.50 stop: 97.49

The rally in WYNN on Friday was a bit under-whelming. Shares gapped open but reversed course at $103.69. The trend is still bullish and we would still consider new positions here but more conservative traders may want to tighten your stops. We plan to exit ahead of the early May earnings report. Our target is the $108.00-110.00 range. More conservative traders may want to exit early near the late February highs around $106.60. FYI: WYNN's P&F chart points to a $120 target.

Suggested Options:
We are suggesting the May calls but plan to exit ahead of the early May earnings report.

BUY CALL MAY 100 UWY-ET open interest=1073 current ask $5.90
BUY CALL MAY 105 UWY-EA open interest=1127 current ask $3.20
BUY CALL MAY 110 UWY-EB open interest=1233 current ask $1.50

Picked on April 15 at $102.44
Change since picked: + 0.07
Earnings Date 05/05/07 (unconfirmed)
Average Daily Volume = 1.4 million
 

Put Updates

None
 

Strangle Updates

None
 

Dropped Calls

Allegheny Tech. - ATI - cls: 117.04 chg: +3.40 stop: 109.85

Target achieved. Positive earnings reports from RS and NUE on Thursday night helped fuel a rally in the steel stocks. Shares of ATI surged higher on Friday morning and hit an intraday high and new all-time high of $117.82. Our target was the $117.00-120.00 range. We are closing the play but more aggressive traders might want to hold out for a rise closer to $120 since ATI still looks poised for gains on Monday.

Picked on April 03 at $110.26
Change since picked: + 6.78
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 2.6 million

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TEREX - TEX - close: 77.55 chg: +0.96 stop: 69.89

Target achieved. The market's early morning rally had a big affect on TEX. The stock gapped open at $78.07 and spiked to $79.00 before slipping back to close with a 1.2% gain. Our target was the $79.00-80.00 range. If you didn't exit with us consider tightening your stop loss. TEX continues to look poised for more gains on Monday.

Picked on April 15 at $ 73.95
Change since picked: + 3.60
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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