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Call Updates

Apple Inc. - AAPL - cls: 105.06 chg: +1.14 stop: 99.85

AAPL continues to rally. The company got some positive analyst' comments and a new higher price target this morning. Volume came in above average on the gain, which is normally bullish. Plus, the close over potential round-number resistance at $105 is positive. Our target is the $108.00-110.00 range. FYI: The Point & Figure chart forecasts a $123 target.

Picked on May 07 at $102.55
Change since picked: + 2.51
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 23.9 million

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Abbott Labs - ABT - cls: 58.84 chg: -0.11 stop: 55.69

Drug stocks hit some profit taking this morning and both the DRG drug index and shares of ABT spiked lower at the opening bell. Fortunately, traders bought the dip in ABT near $58.25. We were suggesting that readers watch for a dip near $58.00 and that may be a close as it gets. The next hurdle is resistance is potential resistance in the $59.15-59.50 range (or just round-number resistance at $60.00). Our target is the $62.00-62.50 range. FYI: The P&F chart points to a $65 target.

Picked on May 06 at $ 58.30
Change since picked: + 0.54
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 7.1 million

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Bear Stearns - BSC - cls: 153.39 chg: -2.46 stop: 154.75

BSC is taking a turn for the worse. Shares spiked lower at the open and the afternoon bounce looked pretty meager. The daily chart's MACD indicator has produced a new sell signal. We're currently on the sidelines waiting for a breakout over $160.00. Our suggested entry point to buy calls is at $160.25. More nimble traders may want to watch for a bounce near $152 and its 50-dma or 200-dma (in the $151.50 region) as a potential, and aggressive, entry point. A breakdown under $150 would be very bearish for BSC.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = 2.7 million

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Ctrip.com - CTRP - cls: 72.35 chg: +1.25 stop: 67.45

Online travel site Expedia (EXPE) reported earnings this morning. The company missed estimates but revenues came in better than expected. The EXPE earnings news did garner one upgrade. While shares of EXPE traded lower shares of CTRP traded higher. CTRP actually produced a small spike at the open and closed with a 1.75% gain. More conservative traders may want to tighten their stops toward $69.50. Our short-term target is the stock's highs in the $74.50-75.00 range. The Point & Figure chart forecasts a $93 target. We do not want to hold over the May 16th earnings report.

Picked on April 29 at $ 70.63
Change since picked: + 1.72
Earnings Date 05/16/07 (confirmed)
Average Daily Volume = 389 thousand

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General Dynamics - GD - cls: 80.32 chg: -1.09 stop: 77.75

News that GD had won another $100 million order from the U.S. Army failed to fuel any buying momentum. The stock actually spiked lower at the open and then began to bounce after dipping under the 10-dma. Traders can choose to buy the bounce but we'd wait for a new rally past $81.00. We have two targets. Our conservative target will be the $84.75-85.00 range. Our aggressive target will be the $89.00-90.00 range. The P&F chart has produced a triple-top breakout buy signal with a $96 target.

Picked on April 29 at $ 80.27
Change since picked: + 0.05
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.4 million

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Lehman Brothers - LEH - cls: 75.99 chg: -0.86 stop: 74.85

Broker-dealer stocks were weak this morning and LEH was no exception. Bulls did buy the dip twice near $75.15 and the afternoon rebound looks like a new entry point to buy calls. However, it's worth noting that the short-term momentum indicators are looking more bearish. More cautious traders may want to wait for a new rally past $77.50 or $78.00 before considering new positions. The P&F chart is bullish with a $100 target. We see potential resistance near $80 on the daily chart. Our target is the $84.00-85.00 range.

Picked on May 06 at $ 77.30
Change since picked: - 1.31
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 5.9 million

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Marathon Oil - MRO - cls: 105.42 chg: +1.02 stop: 99.75

Our new play in MRO is now open. Crude oil finally bounced. This may just be an oversold bounce in crude oil futures but the move lifted energy stocks. Shares of MRO hit an intraday high of $105.61. Our suggested trigger to buy calls was at $105.55 so the play is open. We have two targets. Our conservative target is the $109.85-110.00 range. Our aggressive target will be the $114.00-115.00 range. FYI: The P&F chart points to $110 and MRO has a 2-for-1 split coming up on June 19th.

Picked on May 08 at $105.55
Change since picked: - 0.13
Earnings Date 07/31/07 (unconfirmed)
Average Daily Volume = 3.8 million

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Research In Motion - RIMM - cls: 146.76 chg: +6.93 stop: 138.99*new*

RIMM was off to the races on Tuesday. Positive analysts' comments following yesterday's analyst day sent shares of RIMM to a 4.9% gain on big volume. Today's rally even made it past potential resistance at $145.70 near the top of its April gap. This is very bullish and we're raising the stop loss to $138.99. More conservative traders may want to consider taking a little money off the table right here. Our target is the $149.00-150.00 range.

Picked on May 07 at $140.25
Change since picked: + 6.51
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = 6.1 million

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WATSCO - WSO - cls: 56.24 change: +0.49 stop: 53.95

WSO continues to show relative strength. Shares posted another 0.8% gain. We would still consider new positions here. The P&F chart looks very positive with a bullish triangle breakout pattern and a $68 target. We're suggesting calls with WSO above $55. Our target is the $59.50-60.00 range.

Picked on May 06 at $ 55.73
Change since picked: + 0.51
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 382 thousand
 

Put Updates

AvalonBay - AVB - cls: 119.03 chg: -0.99 stop: 125.26

The bounce in AVB is already running out of gas. Shares lost 0.8% and closed back under the $120 level. We're not suggesting new positions at this time. Our target is the $112.50-110.00 range. The P&F chart points to a $110 target. More conservative traders might want to think about taking some money off the table here.

Picked on April 30 at $124.45
Change since picked: - 5.42
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 770 thousand

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Equinix - EQIX - cls: 81.37 chg: -0.24 stop: 86.05

EQIX is still slipping. Shares are nearing potential support near $80.00. If the market's rally tomorrow on something the FOMC says then EQIX will likely bounce but we can watch for resistance at the simple 10-dma overhead. More conservative traders may want to wait for a breakdown under $80.00 before initiating positions. Our target is the $75.25-75.00 range. Aggressive traders may want to aim closer to $70 but be aware that the 200-dma might offer new technical support. FYI: The P&F chart points to a $70 target.

Picked on May 06 at $ 82.83
Change since picked: - 1.46
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 515 thousand

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Essex Property - ESS - cls: 125.84 chg: -1.30 stop: 130.05

ESS displayed relative weakness on Tuesday. The stock lost over 1% and looks poised to breakdown under support near $125.00. We're almost tempted to buy puts now but we'll stick to the plan. Our hypothetical trigger to buy puts is at $124.65, which is under the March 2007 low. There is potential support near $120 but if triggered our target is the $115.50-115.00 range. FYI: The P&F chart points to a $100 target.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million

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Itron - ITRI - cls: 66.33 change: -0.12 stop: 70.01

Caution! ITRI displayed weakness today but the big bounce back is dangerous. ITRI broke down under support at the 50-dma and the $66 level and $65 level before suddenly seeing a big bounce back from its intraday low of $64.57. The candlestick pattern today actually looks like a bullish reversal so we would expect more of a bounce tomorrow. Watch for resistance near $68.00 or its 10-dma near $68.75. A failed rally under either level could be used as a new entry point for puts. Our target is the $60.50-60.00 range. More conservative traders may want to aim for the rising 100-dma (currently near 61.00) since the 100-dma could be support.

Picked on May 08 at $ 65.85
Change since picked: + 0.07
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 547 thousand

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Las Vegas - LVS - cls: 79.13 change: -1.11 stop: 85.01

This looks like another entry point to buy puts on LVS. Rival WYNN reported earnings yesterday and investors sold the WYNN news today. Shares of LVS slipped 1.3% and broke down under round-number support at $80.00. Furthermore LVS' decline was fueled by strong volume, which is normally bearish. Our target is the $71.50-70.00 range. Currently the P&F chart sports a triple-bottom breakdown sell signal with a $75 target.

Picked on May 07 at $ 79.85
Change since picked: - 0.72
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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Lockheed Martin - LMT - cls: 98.22 change: +0.15 stop: n/a

The new trend in LMT looks bullish with Monday's breakout over the 50-dma but we're running out of time. May options expire after the 18th. We only have eight trading days left. We're not suggesting new strangle plays at this time. The suggested options we had listed were the May $100 calls (LMT-ET) and the May $90 puts (LMT-QR). Our estimated cost was $1.50. We want to sell if either option rises to $2.25 or more.

Picked on April 22 at $ 95.40
Change since picked: + 2.82
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 1.7 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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