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Call Updates

Freeport McMoran - FCX - cls: 75.84 chg: +1.23 stop: 69.95

Copper producer FCX continued to rally on Tuesday. Shares shot higher at the open and closed over potential round-number resistance at the $75.00 level. We don't see any changes from our weekend comments and would still consider new positions here or on a dip back towards $75.00. More cautious types might also want to use a tighter stop loss. Our target is the $79.50-80.00 range.

Picked on May 27 at $ 74.61
Change since picked: + 1.23
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 12.3 million

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OM Group - OMG - cls: 61.94 chg: -0.50 stop: 59.85

OMG failed to keep pace with the market on Tuesday and shares suffered some profit taking. We would still consider new positions here but it might pay off more to wait and watch for a dip and bounce near the $60.00 level or the 10-dma, which should be short-term support. Our target is the $68.50-70.00 range. The P&F chart is bullish with an $86 target.

Picked on May 27 at $ 62.44
Change since picked: - 0.50
Earnings Date 08/02/07 (unconfirmed)
Average Daily Volume = 801 thousand

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Vangard Emergy Mkts ETF -VWO- cls: 86.15 chg: -0.27 stop: 83.95

Shares of the VWO ETF continued to trade sideways. We didn't see anything noteworthy except for the very light volume, which is a surprise. Traders were buying the dip this afternoon. A rally from here can be used as a new entry point. We remain cautious given the market and hesitate to suggest new positions. Our target is the $89.85-90.00 range.

Picked on May 16 at $ 86.15
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand

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XTO Energy - XTO - cls: 57.17 chg: -0.46 stop: 54.99

Oil stocks lagged the market on Tuesday. Crude oil futures plunged over 3% after Nigerian workers ended their strike and news surfaced that some U.S. refineries were coming back online. XTO dipped 0.79% but we did notice that traders bought the dip near last Thursday's lows. A bounce from here or over $58.00 (or over $58.50) could be used as a new entry point for calls. More conservative traders may want to step back and wait before initiating positions given today's relative weakness. The P&F chart is very bullish with a $76 target. We are aiming for the $62.50-65.00 range. More conservative traders may want to use a tighter stop loss under the 50-dma or under $56.00. FYI: Readers should note that XTO is due to present at a conference on May 31st. It's an opportunity for news to move the stock.

Picked on May 27 at $ 57.63
Change since picked: + 0.00
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Anixter Intl. - AXE - cls: 70.64 chg: +0.64 stop: 72.05

AXE continued to bounce on Tuesday but the initial rebound struggled. The pattern still looks bearish but we're sticking to our plan. Shares look poised to breakdown under technical support at the 50-dma. Nimble traders may want to buy puts on a drop below $69.30 (near Friday's low). We want to see a new relative low so we're suggesting a trigger at $68.49. If triggered we have two targets. Our conservative target is the $65.15-65.00 range. Our more aggressive target is the $62.00-60.00 range.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 520 thousand

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Gilead Sciences - GILD - cls: 81.96 chg: +0.22 stop: 82.55

The BTK biotech index turned in a decent bounce with a 0.78% gain today. Shares of GILD under performed its peers with a 0.26% bounce. GILD did have some news today. The company announced some positive Phase III clinical trial results for its cystic fibrosis treatment. We are still waiting for a breakdown under support. We are suggesting a trigger to buy puts at $79.90. If triggered we will have two targets. Our conservative target is $75.25-75.00. Our aggressive target is the $72.50-70.00 range. Readers should note that GILD is due to present at a conference on May 30th. Plus. the stock is set to split 2-for-1 on June 25th. FYI: The P&F chart is still bullish with a $97 target but a drop under $80 should reverse it into a new sell signal.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 4.1 million

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Las Vegas - LVS - cls: 76.63 change: +0.05 stop: 81.15

Casino-related stocks were generally higher but LVS under performed its peers and the market. We don't see any changes from our weekend comments. We remain bearish on LVS but would probably expect another bounce soon. Watch for the $80.00 level to act as short-term resistance. Our target is the $71.50-70.00 range.

Picked on May 07 at $ 79.85
Change since picked: - 3.22
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 million

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Vital Images - VTAL - cls: 28.01 chg: +0.06 stop: 30.05

VTAL flirted with both sides of the $28.00 level on Tuesday. The overall trend continues to look bearish. Watch for the 10-dma and the $29.00 level to act as short-term overhead resistance. More conservative traders may want to adjust their stop closer to the $29.00 level. Our target is the $25.15-25.00 range. The Point & Figure chart displays a descending triple-bottom breakdown pattern with a $23 target.

Picked on May 16 at $ 27.99
Change since picked: + 0.02
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

Essex Property - ESS - cls: 126.55 chg: +4.15 stop: 124.26

We have been stopped out of ESS. News that Archstone (ASN) might be a takeover candidate last Friday fueled a big rally in the group ahead of the weekend. The news today, that Tishman Speyer and Lehman Brothers are making a $13.5 billion bid to acquire ASN, sent the REIT sector soaring again. ASN rallied 8.9%. Shares of ESS gapped open higher at $124.50 and closed up 3.3%. Our stop loss was at $124.26 so we would have been stopped out at the open.

Picked on May 16 at $124.65
Change since picked: + 1.90
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million
 

Dropped Strangles

None
 

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