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Call Updates

Allegheny Tech - ATI - cls: 112.84 chg: +0.19 stop: 110.95 *new*

ATI actually posted a gain on Wednesday but we remain very wary. The major indices all produced bearish reversal patterns and we would expect more market weakness tomorrow. ATI produced its own short-term bearish reversal with a pull back from today's highs, which are forming along a new pattern of lower highs. More conservative traders will want to consider an early exit now or at the least a tighter stop near $111. We are not suggesting new positions. We are raising our stop to $110.95, which is under the 50-dma. By raising the stop we risk having ATI dip to $110 and bounce on us but given the market action today we'll risk it.

Picked on May 08 at $113.45
Change since picked: - 0.61
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.4 million

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General Dynamics - GD - cls: 79.81 chg: -0.75 stop: 78.85

Caution! The trading in GD was bearish today. The stock continued to sell-off and broke down under the $80.00 mark. The MACD on the daily chart has produced a new sell signal. There is potential support near $79.00 and again in the $78.00 zone with the rising 50-dma and 100-dma. Yet more conservative traders may want to bail out now and cut their losses early. We're not suggesting new positions.

Picked on April 29 at $ 80.27
Change since picked: - 0.46
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.4 million

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Goldman Sachs - GS - cls: 228.54 chg: -2.17 stop: 226.45*new*

Warning - bearish reversal alert! GS has produced a bearish engulfing candlestick pattern, which is normally seen as a bearish reversal, especially after a run higher. At the least we would expect a dip toward $227.50-227.00. More conservative traders may want to exit now. We're adjusting our stop loss to $226.45.

Picked on May 13 at $227.50
Change since picked: + 1.04
Earnings Date 06/12/07 (unconfirmed)
Average Daily Volume = 7.4 million

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W.W.Grainger - GWW - close: 86.14 chg: +0.32 stop: 83.24

GWW reaffirmed its positive earnings outlook for 2007 and it was enough to push the stock to another new high. The relative strength today is encouraging but we would hesitate to open new positions now given the market's ominous trading on Wednesday. Our target for GWW 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: + 0.89
Earnings Date 07/16/07 (unconfirmed)
Average Daily Volume = 507 thousand

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Monster Worldwide - MNST - cls: 46.87 chg: -0.38 stop: 45.89

We are going to reiterate our previous warning that readers may want to exit early with MNST. The stock has been showing relative weakness. Investors did buy the dip this morning but the bounce was fading by the afternoon. If the major market indices turn lower tomorrow then we would expect to be stopped out of MNST at $45.89 pretty quickly. We're not suggesting new positions at this time.

Picked on May 20 at $ 50.08
Change since picked: - 3.21
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 3.6 million

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Sempra Energy - SRE - cls: 64.52 chg: +0.02 stop: 61.45

SRE closed fractionally higher but the trading today looks like a bearish reversal. We would expect a dip towards $63.50-63.00. 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: + 0.47
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 1.3 million

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USEC Inc. - USU - close: 24.83 chg: +0.53 stop: 21.99

USU continues to spike higher. Shares hit $25.65 before noon but eventually settled back to close with a 2.1% gain. Volume came in pretty strong. We're not suggesting new positions at this time. More conservative traders may want to tighten their stops! This is an aggressive, speculative play and readers should consider it higher-risk. 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: + 1.27
Earnings Date 05/03/07 (confirmed)
Average Daily Volume = 1.8 million

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Vangard Emergy Mkts ETF -VWO- cls: 86.63 chg: -0.57 stop: 83.45

The VWO was no exception to the bearish momentum this afternoon. The ETF has produced a bearish engulfing candlestick pattern. At the very least we're expecting a dip back toward $86.00 and probably toward the $85.00 level. More conservative traders may want to adjust their stops accordingly. 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: + 0.48
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand
 

Put Updates

Essex Property - ESS - cls: 121.32 chg: -1.30 stop: 126.55

Good news! ESS produced a clear failed pattern under the $124.00 level today. This looks like a new entry point to buy puts. More conservative traders could tighten their stops toward $124. 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: - 3.33
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million

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Las Vegas - LVS - cls: 80.10 change: -0.09 stop: 82.55

There was no upward follow through on LVS' big move from Tuesday. That's good news for the bears. We're still not suggesting new positions at this time. More conservative traders may want to tighten their stops toward the $81.00 level.

Picked on May 07 at $ 79.85
Change since picked: + 0.25
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 million

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Vital Images - VTAL - cls: 28.17 chg: -0.43 stop: 30.05

VTAL has produced a failed rally under its 10-dma. This looks like a new entry point to buy puts. More conservative traders may want to wait for a new relative low first before initiating plays. Our target is the $25.15-25.00 range.

Picked on May 16 at $ 27.99
Change since picked: + 0.18
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

None
 

Dropped Calls

Baidu.com - BIDU - cls: 130.70 chg: -4.44 stop: 127.49

Ouch! BIDU has almost completely erased our potential gains. The stock traded to $138.11 this morning and then plunged late this afternoon. The move today is a clear failed rally pattern. We are suggesting an immediate exit even though BIDU could bounce at its 10-dma (where it is now) or bounce near $130.00.

Picked on May 14 at $130.51
Change since picked: + 0.19
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 2.2 million

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Precision Castparts - PCP - cls: 116.57 chg: +1.15 stop: 110.91

We are suggesting that traders exit now and try to lock in a profit with PCP. Shares hit another new high and displayed some impressive relative strength with a 0.99% gain on Wednesday. More aggressive traders may want to let the stock run. Our target was the $118.00-120.00 range. The reason we are electing an early exit is the wider market's bearish reversal tone today. We'd hate to see the market correct and have PCP plunge back toward $110 or lower in a session or two.

Picked on May 13 at $110.91
Change since picked: + 5.66
Earnings Date 05/09/07 (confirmed)
Average Daily Volume = 1.0 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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