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Call Updates

Allegheny Tech - ATI - cls: 112.65 chg: -1.92 stop: 109.99

Warning! The steel and metal stocks displayed relative weakness on Tuesday. Shares of ATI slipped 1.6% and look poised to dip toward support near $110 and its rising 50-dma (near $110.80). We are not suggesting new positions at this time. More conservative traders may want to exit early or tighten their stops toward $110.80 or $111.00. Our target is 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: - 0.80
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.4 million

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Baidu.com - BIDU - cls: 135.14 chg: +0.48 stop: 127.49 *new*

A negative earnings report from Chinese company KongZhong
(KONG -25%) weighed on the rest of the Chinese stocks. Shares of BIDU managed to post a gain but the stock traded sideways for the entire session. We are adjusting our stop loss to $127.49. More conservative traders may want to raise their stop closer to $130. If you're looking for a new entry point a dip or better a bounce in the $130-132 zone might work. 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: + 4.63
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 2.2 million

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General Dynamics - GD - cls: 80.56 chg: -1.40 stop: 78.85

Shares of LMT plunged 4.6% after being downgraded this morning. The big sell-off in a major defense contractor weighed on shares of GD. Today's 1.7% decline in GD is a technical breakdown under its rising 10-dma. Watch for potential support at the $80.00 level. 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: + 0.29
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.4 million

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Goldman Sachs - GS - cls: 230.71 chg: +1.48 stop: 224.25

GS has spent the better part of three days churning sideways in the $228.50-231.50 range. Volume on today's gain was low probably due to the upcoming holiday weekend. A new relative high over $232 would be encouraging. 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: + 3.21
Earnings Date 06/12/07 (unconfirmed)
Average Daily Volume = 7.4 million

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W.W.Grainger - GWW - close: 85.82 chg: +0.42 stop: 83.24

GWW continued to show relative strength. The stock rose another 0.5% to confirm yesterday's bullish breakout over resistance at the $85.00 level. We would still consider new positions here although a dip back towards $85 would work well. The target is the $89.75-90.00 range. The P&F chart currently points at an $88 target.

Picked on May 21 at $ 85.255
Change since picked: + 0.57
Earnings Date 07/16/07 (unconfirmed)
Average Daily Volume = 507 thousand

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Monster Worldwide - MNST - cls: 47.25 chg: -2.53 stop: 45.89*new*

Hmm... traders might want to consider an early exit in MNST and cut our losses. There were more analysts comments out today suggesting that MNST isn't a takeover candidate and the fact that a former top manager just sold one million shares is a good indication that they're not talking to anyone. The stock did bounce from its intraday lows but the 5% decline on big volume is definitely bearish. We were expecting some short-term support near $48.00 but MNST plowed right through it. We are going to raise our stop loss to $45.89. More conservative traders may want to cut their losses now. We're not suggesting new positions at this time.

Picked on May 20 at $ 50.08
Change since picked: - 2.83
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 3.6 million

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Precision Castparts - PCP - cls: 115.42 chg: -1.01 stop: 110.91

PCP suffered some minor profit taking on Tuesday. A dip toward the simple 10-dma near $112.90 would not be unusual. More conservative traders may want to lock in a gain now. We're not suggesting new positions. Our target is the $118.00-120.00 range. 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: + 4.51
Earnings Date 05/09/07 (confirmed)
Average Daily Volume = 1.0 million

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Sempra Energy - SRE - cls: 64.50 chg: +0.18 stop: 61.45

SRE displayed relative strength again but it's worth noting that the rally struggled to breakout past the $65.00 level. We would expect a dip soon. A bounce above $63.00 can be used as a new entry point to buy calls. Our target is the $68.00-70.00 range.

Picked on May 20 at $ 64.05
Change since picked: + 0.45
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 1.3 million

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USEC Inc. - USU - close: 24.30 chg: +0.22 stop: 21.99

USU spiked higher at the open and traded to a new high at $24.96 before paring its gains. The move looks like a short-term failed rally pattern. We would not be surprised to see a dip into the $23.25-23.50 zone. 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. FYI: USU has relatively high short interest at more than 11% of the float.

Picked on May 20 at $ 23.56
Change since picked: + 0.74
Earnings Date 05/03/07 (confirmed)
Average Daily Volume = 1.8 million

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Vangard Emergy Mkts ETF -VWO- cls: 87.20 chg: +0.23 stop: 83.45

The VWO hit another new high late this afternoon but for the most part the ETF traded sideways. Volume came in very low probably due to the upcoming three-day holiday weekend. 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: + 1.05
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand
 

Put Updates

Essex Property - ESS - cls: 122.62 chg: +1.95 stop: 126.55

The oversold bounce in ESS continued on Tuesday with a 1.6% gain. The stock was heading lower in the last thirty minutes of trading. ESS should encounter some overhead resistance near the 10-dma around $123.75 and around the $125 zone. We're not suggesting new positions at this time. 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: - 2.03
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million

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Las Vegas - LVS - cls: 80.19 change: +4.28 stop: 82.55

Ouch! The news we mentioned last night had a much bigger impact that expected. The Tracinda Corp., which is the investment firm run by billionaire Kirk Kerkorian, wants to buy two high-profile casinos, including the Bellagio, from MGM. This send shares of MGM up 25% and the rest of the casino stocks soared. LVS, which had been down almost four points quickly erased our potential gains. Volume on today's move in LVS was huge. We would strongly suggest that readers consider an early exit right here to limit their losses. We are going to wait and see if there is any follow through on today's rally. We're not suggesting new positions.

Picked on May 07 at $ 79.85
Change since picked: + 0.34
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 million

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Vital Images - VTAL - cls: 28.60 chg: +0.25 stop: 30.05

VTAL is still bouncing around the $28.00-29.00 range. A failed rally under $30 or its descending 10-dma could be used as a new entry point for puts. Our target is the $25.15-25.00 range.

Picked on May 16 at $ 27.99
Change since picked: + 0.61
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

None
 

Dropped Calls

Johnson Controls - JCI - cls: 109.36 chg: -0.86 stop: 107.45

We are quitting early with JCI. There has been no follow through on last Friday's rally past $110. Momentum is fading and indicators are turning bearish. Today's decline has produced a bearish reversal with the bearish engulfing candlestick pattern. Aggressive traders might even want to switch directions and buy puts with a trigger under $109 or $108.50 and a stop above today's high. We are suggesting readers exit any call plays even though JCI has not yet broken technical support at its rising 10-dma.

Picked on May 20 at $110.60
Change since picked: - 1.24
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 1.0 million

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Sears Holding - SHLD - cls: 178.62 chg: -0.97 stop: 174.74

We are throwing in the towel with SHLD and suggesting readers take an early exit now. The oversold bounce did not have enough fuel to breakout past resistance at the $180 level. The stock tried for multiple days but just couldn't do it. Now short-term indicators are turning bearish again.

Picked on May 13 at $177.96
Change since picked: + 0.66
Earnings Date 05/31/07 (unconfirmed)
Average Daily Volume = 1.7 million
 

Dropped Puts

Itron - ITRI - cls: 68.81 change: +1.06 stop: 69.35

Abandon ship! ITRI continued to rally and broke out over its short-term trend of lower highs. Today's move also looks like a bullish breakout from its more recent sideways consolidation. We're suggesting an early exit immediately.

Picked on May 08 at $ 65.85
Change since picked: + 2.96
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 547 thousand

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Russell 2000 Ishares - IWM - cls: 83.27 chg: +0.51 stop: 83.55

Unfortunately, our put play on the IWM didn't last long. We were triggered at $82.90 yesterday but the rally continued and the IWM has broken out over significant resistance near $83.00. The intraday high was $83.64 and our stop loss was at $83.55.

Picked on May 21 at $ 82.90
Change since picked: + 0.37
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 58.4 million
 

Dropped Strangles

None
 

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