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Call Updates

Apple Inc. - AAPL - cls: 106.88 chg: +1.82 stop: 99.85

AAPL rocketed higher again today. The stock posted another 1.7% gain and another record high on Wednesday. We remain bullish here but we're not suggesting new positions at this time. More conservative traders may want to consider a little profit taking of their own. 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: + 4.33
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 23.9 million

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Abbott Labs - ABT - cls: 58.68 chg: -0.16 stop: 55.69

ABT under performed the markets on Wednesday after a study came out suggesting that the use of drug-coated stents were commonly misused in situations not approved for by the FDA. This left shares of ABT bouncing around the $58-59 range. ABT looks like it wants to move higher but is facing resistance at its April highs. If it fails to breakout this will look like a bearish double-top pattern. 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: + 0.38
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 7.1 million

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Allegheny Tech - ATI - cls: 116.28 chg: +2.83 stop: 108.45

More M&A fever continued to fuel the fire in the metal sector. This time it was mining stock RTP, which spiked almost $50 on an intraday basis to $314.49, on rumors it was a takeover candidate. Shares of ATI were much more subdued with healthy 2.4% gain. Our target will be the $119.00-120.00 range. FYI: The Point & Figure chart forecasts a $122 target.

Picked on May 08 at $113.45
Change since picked: + 2.83
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.4 million

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Bear Stearns - BSC - cls: 155.56 chg: +2.17 stop: 154.75

All the M&A rumors lifted the broker-dealer sector today. BSC bounced to a 1.4% gain. Aggressive traders might want to consider new positions here. We're sticking to our plan and waiting for a breakout over $160.00. Our suggested entry point to buy calls is at $160.25. Our target would be the $169.75-172.50 range.

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: 72.45 chg: +0.10 stop: 69.45 *new*

CTRP is slowly inching higher. Volume came in very low today. Most of the technical indicators are bullish so we're not sure what investors are waiting for. Please note that we're adjusting the stop loss to $69.45. 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: + 1.82
Earnings Date 05/16/07 (confirmed)
Average Daily Volume = 389 thousand

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General Dynamics - GD - cls: 80.63 chg: +0.31 stop: 77.75

GD offered a minor bounce on Wednesday. The move was almost high enough to "fill the gap" down from Tuesday morning, which is not necessarily bullish. The overall trend is positive but we hesitate to suggest new positions with GD under $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: + 0.36
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.4 million

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Lehman Brothers - LEH - cls: 76.60 chg: +0.61 stop: 74.85

The constant M&A news today lifted the broker-dealers and LEH managed a 0.8% gain. We remain bullish and would consider this a new entry point but 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: - 0.70
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 5.9 million

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Marathon Oil - MRO - cls: 106.51 chg: +1.09 stop: 99.75

MRO continues to show relative strength. The stock rose over 1% and closed at a new all-time high in spite of a decline in crude oil futures. If you missed yesterday's entry point today looks like another entry. 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: + 0.96
Earnings Date 07/31/07 (unconfirmed)
Average Daily Volume = 3.8 million

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WATSCO - WSO - cls: 57.00 change: +0.76 stop: 53.95

WSO turned in a strong session. Shares rose to a 1.3% gain with an afternoon spike to new nine-month highs. Our biggest concern today was the lack of volume, which was very low and doesn't really confirm the rally. More conservative traders may want to tighten their stops toward $55.00. The P&F chart looks very positive with a bullish triangle breakout pattern and a $68 target. Our target is the $59.50-60.00 range.

Picked on May 06 at $ 55.73
Change since picked: + 1.27
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 382 thousand
 

Put Updates

AvalonBay - AVB - cls: 120.71 chg: +1.68 stop: 125.26

AVB produced a much more convincing bounce today with a 1.4% gain on rising volume. Shares traded to short-term resistance at the simple 10-dma before pulling back. Will AVB continue to bounce or roll over from here? We're concerned that the stock will continue to bounce. The REITs were generally higher as a group and the major averages are hitting new relative highs. If AVB does bounce it should find resistance near $125. More conservative traders may not want to endure such a rebound and should consider a tighter stop loss (maybe $122.55). 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.

Picked on April 30 at $124.45
Change since picked: - 3.74
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 770 thousand

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Equinix - EQIX - cls: 80.83 chg: -0.54 stop: 86.05

EQIX is still flirting with a bearish breakdown under $80.00. The trend looks bearish and the stock appears ready to drop toward $75. However, if the major averages continue to rally then investors may feel more empowered to buy this dip. We suggest extra caution here. Readers may want to tighten their stops toward $85 or lower. We're leaving our stop loss at $86.05 for now. 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: - 2.00
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 515 thousand

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Essex Property - ESS - cls: 126.73 chg: +0.89 stop: 130.05

REITs managed a bounce on Wednesday. The rebound in ESS was meager and shares closed well off their best levels, which is probably a good sign for the bears. Our 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: 67.21 change: +1.25 stop: 70.01

If you're looking for a new entry point in ITRI be ready! We're expecting potential resistance in the $67.50-68.00 range. A failed rally under the 10-dma can be used as a new spot to buy 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: + 1.32
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 547 thousand

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Las Vegas - LVS - cls: 78.71 change: -0.42 stop: 85.01

LVS continues to under perform the markets. The stock lost 0.5% on above average volume, which is 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: - 1.14
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: 98.76 change: +0.54 stop: n/a

We don't see any changes from our previous comments on LMT. We're running out of time. May options expire after the 18th. We only have seven 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: + 3.36
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 1.7 million
 

Dropped Calls

Research In Motion - RIMM - cls: 154.83 chg: +8.07 stop: 138.99

Target achieved and exceeded. RIMM spiked higher right out of the gate this morning after more bullish comments from two separate analyst firms. RIMM flew right past potential resistance at its April highs and blew past potential resistance at the $150 level. Our suggested target was the $149.00-150.00 range.

Picked on May 07 at $140.25
Change since picked: +14.58
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = 6.1 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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