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Call Updates

Allegheny Tech - ATI - cls: 114.57 chg: +0.29 stop: 109.99

ATI posted another gain on Monday but it wasn't very convincing. Overall the trend in the stock remains bullish but we're growing a bit more cautious given the slow down in ATI's momentum. We're leaving our stop loss at $109.99 but more conservative traders may want to adjust theirs toward Thursday's low (near $111). Our target is the $119.00-120.00 range. FYI: The Point & Figure chart forecasts a $122 target. Given the bullish channel more aggressive traders may want to aim higher (see chart).

Picked on May 08 at $113.45
Change since picked: + 1.12
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.4 million

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Baidu.com - BIDU - cls: 134.66 chg: +3.61 stop: 124.95

Many of the Chinese Internet-related stocks were trading higher today. BIDU surged at the open but hitting resistance at the $136.00 level, which held all day. The stock closed up 2.7% on above average volume. It didn't hurt that the Internet sector in general got a boost thanks to a big move in AMZN today. This is an aggressive, higher-risk play. Our target is the $139.50-140.00 range. The P&F chart is bullish with a $203 target.

Picked on May 14 at $130.51
Change since picked: + 4.15
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 2.2 million

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General Dynamics - GD - cls: 81.96 chg: +0.70 stop: 78.85

GD has broken out from its recent trading range and closed at a new all-time high. Volume came in above average on today's rally, which is bullish. This looks like a new entry point to buy calls. 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: + 1.69
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.4 million

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Goldman Sachs - GS - cls: 229.23 chg: -1.11 stop: 224.25

The broker-dealer index, the XBD, managed to out perform the broader financial sectors but shares of GS under performed with a 0.48% decline. Volume was a bit stronger today than GS has seen recently and that might be noteworthy. Watch for a bounce anywhere above $225 as a new entry point to buy calls. Our target is the $238.00-240.00 range. The P&F chart points to a $244 target.

Picked on May 13 at $227.50
Change since picked: + 1.73
Earnings Date 06/12/07 (unconfirmed)
Average Daily Volume = 7.4 million

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W.W.Grainger - GWW - close: 85.40 chg: +0.62 stop: 83.24

Our new call play in GWW is now open. A generally bullish market environment helped GWW breakout over resistance at the $85.00 level. Volume came in above average on today's move, which is a positive sign. Our suggested trigger to buy calls was at $85.25. The target is the $89.75-90.00 range. The P&F chart currently points at an $88 target.

Picked on May 21 at $ 85.25
Change since picked: + 0.15
Earnings Date 07/16/07 (unconfirmed)
Average Daily Volume = 507 thousand

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Johnson Controls - JCI - cls: 110.22 chg: -0.38 stop: 107.45

We want to reiterate our weekend comments that JCI is overbought making this a higher-risk momentum play. Thus today's lack of momentum is a warning sign! We're still suggesting call positions here but some traders may want to wait for a new relative high (maybe over $111). More conservative traders might want to tighten their stop closer to the simple 10-dma near $109.00. We're leaving our stop at $107.45 for now. Our short-term target is the $114.50-115.00 range.

Picked on May 20 at $110.60
Change since picked: - 0.38
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 1.0 million

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Monster Worldwide - MNST - cls: 49.78 chg: -0.30 stop: 44.99

It was an interesting day for MNST. We added it over the weekend suggesting it was a takeover target. At least one analyst firm disagrees and voiced their opinion that MNST was not an acquisition candidate. That's probably why shares of MNST gapped down toward $48 this morning. Fortunately, traders bought the dip. We see the dip and rebound as a new entry point to buy calls. More conservative traders may want to see more strength to confirm the breakout over resistance at $50.00 before initiating positions. This is an aggressive, higher-risk, speculative play and we are using a wide stop loss. Our target is the $54.75-55.00 range.

Picked on May 20 at $ 50.08
Change since picked: - 0.30
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 3.6 million

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Precision Castparts - PCP - cls: 116.43 chg: +2.13 stop: 110.91*new*

The PCP momentum train continues to climb. The stock broke out over the $115 zone and posted a 1.8% gain on above average volume. Our target is the $118.00-120.00 range but more conservative traders may want to exit now and lock in a profit. We are raising our stop loss to $110.91. Last Friday there was chatter about PCP becoming a candidate to be added to the S&P 500 index.

Picked on May 13 at $110.91
Change since picked: + 5.52
Earnings Date 05/09/07 (confirmed)
Average Daily Volume = 1.0 million

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Sears Holding - SHLD - cls: 179.59 chg: -0.29 stop: 174.74

SHLD didn't move much on Monday. The stock traded in a relatively narrow $1.55 range. Shares remain under resistance near its 100-dma and the $180 level. We are still suggesting new positions now but more conservative traders may want to wait for a rise past $180 or its 100-dma near $180.20 before opening positions. Our target is the $184.00-185.00 range. Remember, we do not want to hold over the late May earnings report.

Picked on May 13 at $177.96
Change since picked: + 1.63
Earnings Date 05/31/07 (unconfirmed)
Average Daily Volume = 1.7 million

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Sempra Energy - SRE - cls: 64.32 chg: +0.27 stop: 61.45

SRE continues to rally and on above average volume. Today's move is a positive sign with a more defined breakout over the $64.00 level. We don't see any changes from our weekend comments. Our target is the $68.00-70.00 range.

Picked on May 20 at $ 64.05
Change since picked: + 0.27
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 1.3 million

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USEC Inc. - USU - close: 24.08 chg: +0.52 stop: 21.99

USU gapped open at $23.81 and rallied to its all-time high near $24.44. Volume came in strong on the 2.2% gain. If you don't want to chase it here then wait for a possible dip back towards $23.50-23.00. This is an aggressive, speculative play and readers should consider it higher-risk. We'll try and limit our risk with a stop under $22.00. Traders might be able to get away with a stop near $22.35. Our target is the $27.00-30.00 range. The P&F chart points to a $28 target.

Picked on May 20 at $ 23.56
Change since picked: + 0.52
Earnings Date 05/03/07 (confirmed)
Average Daily Volume = 1.8 million

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Vangard Emergy Mkts ETF -VWO- cls: 86.97 chg: +0.19 stop: 83.45

The VWO marked another new high on Monday but the ETF pared its gains and was trading lower into the close. Volume came in pretty strong and given the lack of movement that might indicate a potential top. Technically this is still a bullish entry point with the breakout over $86.00. Our target is the $89.85-90.00 range. More aggressive traders may want to aim higher since the P&F chart points to $113.

Picked on May 16 at $ 86.15
Change since picked: + 0.82
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand
 

Put Updates

Essex Property - ESS - cls: 120.67 chg: +1.44 stop: 126.55

After four down days in a row ESS finally produced an oversold bounce. We're not suggesting new positions at this time. We will reiterate our suggestion that more conservative traders may want to take a profit here. The next level of support looks like the $115 level. Our target is the $115.50-115.00 range. FYI: The P&F chart points to a $100 target.

Picked on May 16 at $124.65
Change since picked: - 3.98
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million

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Itron - ITRI - cls: 67.75 change: +0.58 stop: 69.35

Danger! ITRI looks like it's trying to breakout higher from its consolidation pattern. The stock dipped early this morning but investors bought the dip and they bought the dip again early afternoon. We are not suggesting new positions. More conservative traders will want to consider an early exit right here to limit any losses. The only reason we're not dropping it now is that the markets might see some profit taking tomorrow after the S&P 500's new high today.

Picked on May 08 at $ 65.85
Change since picked: + 1.90
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 547 thousand

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Russell 2000 Ishares - IWM - cls: 82.76 chg: +1.03 stop: 83.55

Our aggressive put play in IWM is now open. The Russell 2000 and the IWM ishares turned in a strong session. The IWM rose 1.2% and traded above resistance at the $83.00 level on an intraday basis. There were probably a lot of stops and triggers hit on the breakout today and volume soared to almost three times the norm. Our suggested trigger to buy puts was at $82.90 so the play is now open. We have a relatively tight stop loss at $83.55. More conservative traders may want to use a tighter stop (above today's high) while more aggressive traders may want to place their stop above $84.00. We have two targets. Our conservative target is $80.25-80.00. Our aggressive target is the $78.25-78.00 range.

Picked on May 21 at $ 82.90
Change since picked: - 0.14
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 58.4 million

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Las Vegas - LVS - cls: 75.91 change: -0.79 stop: 82.55

LVS continues to under perform the market. The stock slipped another 1% to a new relative low. More conservative traders may want to do a little profit taking here. Unfortunately, tomorrow morning might be a tough spot to do it. After the closing bell tonight news hit the wires that Tracinda Corp., the investment firm run by billionaire Kirk Kerkorian, wants to buy the Bellagio Hotel and casino in Las Vegas from MGM. This news sent many of the casino stocks higher after hours. Shares of LVS were trading near $78 after hours tonight. More conservative traders might just want to tighten their stops closer towards $80.00. 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: - 3.94
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 million

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Vital Images - VTAL - cls: 28.35 chg: -0.33 stop: 30.05

VTAL under performed the NASDAQ and the software sector on Monday. Lack of follow through on Friday's bounce is a good sign for the bears. Our target is the $25.15-25.00 range.

Picked on May 16 at $ 27.99
Change since picked: + 0.36
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

None
 

Dropped Calls

Peabody Energy - BTU - cls: 54.24 change: +0.73 stop: 47.99

Target achieved. Coal stocks continued to march higher on Monday. Shares of BTU hit an intraday high of $55.22. Our target was the $54.50-55.00 range. Volume came in above average on today's rally, which is bullish. It's worth noting that BTU does look short-term overbought so we'd wait for a dip back toward $52.00 or $50.00 before considering new positions (actually, we'd wait for a bounce in those areas).

Picked on May 09 at $ 50.70
Change since picked: + 3.54
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 5.3 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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