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Call Updates

Baker Hughes - BHI - cls: 85.48 change: -0.07 stop: 79.95

Oil stocks were no exception to the market's widespread profit taking on Tuesday, although BHI faired better than most. Traders bought the dip in BHI near $84.50. We see the rebound from its lows today as another bullish entry point to buy calls. Our target is the $89.00-90.00 range. The P&F chart has reversed from a sell signal to a new buy signal with a $94 target.

Picked on June 04 at $ 84.26
Change since picked: + 1.22
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 4.3 million

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Chaparral Steel - CHAP - cls: 73.36 chg: -0.38 stop: 69.95

Tuesday turned out to be a volatile day for shares of CHAP. The stock spiked higher to $75.94 this morning and then quickly reversed course. Buyers eventually stepped in near the $72.25 level. Overall the move today is somewhat bearish with a failed rally under $76.00. We are now suggesting that readers wait for a new move over $75.00 or over $76.00 before considering new positions. More conservative traders might want to tighten their stops toward the $72.00 level. We do have two targets. Our first target is the $79.50-80.00 range. Our aggressive target is the $84.00-85.00 range. The P&F chart currently points to a $99 target.

Picked on May 30 at $ 73.69
Change since picked: - 0.33
Earnings Date 07/10/07 (unconfirmed)
Average Daily Volume = 801 thousand

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Carpenter Tech - CRS - cls: 136.53 chg: +1.38 stop: 129.90

CRS displayed relative strength on Tuesday with a 1% gain and on above average volume. We would consider new bullish positions here. More conservative traders may want to wait for a new high over $138 before buying calls. The P&F chart shows a triple-top breakout buy signal that points to a $170 target. Our target is the $147.50-150.00 range although we would expect some resistance near its all-time high around $142.

Picked on June 03 at $135.67
Change since picked: + 0.86
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 429 thousand

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F5 Networks - FFIV - close: 80.47 chg: -1.42 stop: 74.95

The NWX networking index was one of the few sector indices to close in the green today. Unfortunately, FFIV lagged its peers. What's even more disappointing was that FFIV couldn't rally after one analyst firm issued some positive comments on the stock this morning. We remain bullish with shares above $80 but we suspect the stock is poised to dip toward $78. More conservative traders may want to tighten their stops appropriately. Our target is the $89.00-90.00 range.

Picked on June 03 at $ 81.54
Change since picked: - 1.07
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 1.3 million

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Global SantaFe - GSF - cls: 70.35 chg: +0.10 stop: 65.90

GSF spent Tuesday's session trading sideways. Yet shares did manage to hit a new all-time high and close in the green. We remain bullish here or on a dip near $68.00. Our target is the $74.50-75.00 range. The P&F chart displays a triple-top breakout buy signal with an $87 target.

Picked on June 03 at $ 68.86
Change since picked: + 1.49
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 4.8 million

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Altria Group - MO - cls: 70.68 change: -1.12 stop: 69.90

Another down day for the bond market pushed yields to 5% for the first time in months. This event weighed on almost every stock that has a significant dividend yield. A U.S. bond with a 5% return is usually seen as a lot safer than equities. Shares of MO responded with a 1.55% decline. The action over the last couple of days is turning the short-term technicals bearish. More conservative traders may want to consider an early exit. We are expecting a dip toward $70.00 soon. We're not suggesting new positions at this time.

Picked on June 03 at $ 71.82
Change since picked: - 1.14
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 11.7 million

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OM Group - OMG - cls: 61.79 chg: -0.77 stop: 59.85

The action in OMG is looking bearish. We mentioned how upward momentum had been struggling. Now today's breakdown under the 10-dma is another bearish development. The stock should have support near $60.00 but if the markets continue lower then we would expect OMG to see some significant profit taking and stop us out. We're not suggesting new positions at this time. 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: - 0.65
Earnings Date 08/02/07 (unconfirmed)
Average Daily Volume = 801 thousand

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Sunoco - SUN - cls: 83.37 chg: -0.80 stop: 79.45

As expected the $85.00 level is acting a overhead resistance. Shares traded to $84.99 and turned lower. We warned readers to expect some profit taking. A dip back toward $80 would not be out of the question. The stock has already hit our target in the $84.00-85.00 range. Now we're aiming for the $88.00-90.00 range. Watch for a bounce above $80 as a new entry point. The updated P&F chart has seen its buy signal rise from $94 to $109 over the last several days.

Picked on June 01 at $ 80.26
Change since picked: + 3.11
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 3.3 million

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Tesoro - TSO - close: 63.14 change: -0.81 stop: 57.99

We need to urge a little caution on TSO. The candlestick pattern over the last three days is starting to look like a bearish reversal. We are still expecting the stock to find some support near $62 and again near $60.00 but readers should be on guard. Wait and watch for a bounce before considering new bullish positions. We remain bullish on the sector. Our target is the $69.00-70.00 range.

Picked on June 03 at $ 63.74
Change since picked: - 0.60
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 6.2 million

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Vangard Emergy Mkts ETF -VWO- cls: 88.53 chg: -0.49 stop: 84.99

The VWO showed some weakness this morning but traders were buying this dip by the closing bell. The ETF was down 0.5% but volume was very light. We're not suggesting new positions at this time. More conservative traders may want to tighten their stops. The ETF is near our target in the $89.85-90.00 range. More aggressive traders may want to aim higher.

Picked on May 16 at $ 86.15
Change since picked: + 2.38
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand

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XTO Energy - XTO - cls: 61.02 chg: -0.59 stop: 56.74

We are encouraged that XTO did not see more profit taking today. The stock gapped down but traders bought the dip near $60.00. The news about XTO issuing another 15 million shares has not derailed the rally yet. Our target is the $62.50-65.00 range. Aggressive traders may want to aim higher.

Picked on May 27 at $ 57.63
Change since picked: + 3.39
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Anixter Intl. - AXE - cls: 71.77 chg: -0.84 stop: 72.05

AXE posted its third decline in a row. The technical indicators are starting to roll over again. We're still waiting for a breakdown. Currently it is our suggested strategy to buy puts on a breakdown under $68.50. We are considering a higher trigger point at $69.00 or just under $70.00 but for now we'll stick with a $68.49. More nimble traders might actually want to scope out potential bullish positions if AXE can trade over resistance at the $75.00 mark.

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: 83.29 chg: -0.49 stop: 82.55

We don't see any changes from our previous comments. Nimble traders might want to consider buying calls on a breakout over $84.50 or over $85.00. We might switch directions on a move over $85.00. Currently we've been waiting for a breakdown under $80 and the bottom of its trading range. Our suggested trigger is at $79.90. Readers should note that the stock is set to split 2-for-1 on June 25th.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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Vital Images - VTAL - cls: 27.22 chg: -0.33 stop: 29.05

VTAL sank to another new relative low today. The overall trend continues to look bearish. Our target is the $25.15-25.00 range.

Picked on May 16 at $ 27.99
Change since picked: - 0.77
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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