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Call Updates

Ashland - ASH - cls: 61.93 change: +0.44 stop: 59.95

ASH out performed the markets on Monday with a 0.7% gain but the rally began to run out of steam late in the session near June's highs. Should the broader indices dip tomorrow we'd look for a pull back in ASH near $61.00 or $60.50. We reiterate our concerns from the weekend newsletter that given the market's action the last few days this is a risky spot to be considering new bullish positions anywhere. Looking at ASH's chart we see potential resistance at the falling 100-dma near $64 but we're going to aim for the 200-dma near $64.50. More aggressive traders may want to aim higher. FYI: The P&F chart is still bearish with a $54 target.

Picked on June 10 at $ 61.49
Change since picked: + 0.44
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 657 thousand

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Avery Dennison - AVY - cls: 65.91 chg: +0.27 stop: 64.19

Our new play in AVY is now open. Shares continued to rally and hit an intraday high of $66.10, breaking out over the $66.00 level. Our suggested trigger was at $66.05. Volume came in a little bit better than average, which is positive. However, AVY's failure to hold its breakout over $66 is a concern. We would probably expect a dip back toward $65.50 or $65.00 especially if the major averages pull back. More aggressive traders might consider buying a dip. We would wait for a new high over $66.10 before considering new positions. Our target is the $69.75-70.00 range. FYI: The P&F chart is still bearish and points to a $55 target but the stock is bouncing from P&F support.

Picked on June 11 at $ 66.05
Change since picked: - 0.14
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 728 thousand

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Baker Hughes - BHI - cls: 83.98 change: +0.96 stop: 79.95

Another rally in crude oil helped the oil stocks trek higher. Shares of BHI out performed its peers with a 1.1% gain and a rally past its 10-dma again. The move over $84.00 intraday looked like a new entry point to buy calls but BHI failed to hold it. We remain bullish here but more conservative traders may want to tighten their stops toward last week's lows. Currently our target for BHI is the $89.00-90.00 range.

Picked on June 04 at $ 84.26
Change since picked: - 0.28
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 4.3 million

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FTSE/Xinhau China Index - FXI - cls: 116.95 chg: +1.25 stop: 111.90

The Chinese market continued to rally with the Shanghai index up over 2%. The FXI rose over 1% and broke out over resistance near $116.00. The ETF hit our trigger to buy it at $116.75. Now that the play is open our target is the $124.00-125.00 range. We would expect some temporary resistance near $120. FYI: The Chinese markets are long-term overbought even after the recent correction. We would consider this a more aggressive, higher-risk play.

Picked on June 11 at $116.75
Change since picked: + 0.20
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 2.4 million

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General Dynamics - GD - cls: 80.31 change: -0.27 stop: 78.35

Caution! Shares of GD failed to breakout past the $81.00 level. The stock struggled near $80.60 and was rolling over late in the session. While a bounce near $79 or its 50-dma could be a new entry point we are growing more nervous with the lack of follow through. We're suggesting that readers now wait for a rise past $81 before considering new positions. We have two targets. Our first target is the $84.50-85.00 range. Our second target is the $87.50-90.00 range. We do not want to hold over the mid July earnings report. FYI: GD will be presenting at an investor conference on June 14th.

Picked on June 10 at $ 80.58
Change since picked: - 0.27
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 1.3 million

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Global SantaFe - GSF - cls: 68.59 chg: +0.66 stop: 65.90

The 0.97% bounce in GSF was encouraging but we wouldn't get too excited yet. The rally began to fail midday and the stock was sliding lower into the close. It's unfortunate that GSF began to pare its gains since the rise past $69.00 looked like another entry point. More conservative traders may want to place their stop loss under Friday's low.

Picked on June 03 at $ 68.86
Change since picked: - 0.27
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 4.8 million

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China Life - LFC - cls: 47.67 chg: +0.01 stop: 45.75

Most of the Chinese stocks were in rally mode with the Shanghai index up 2%. Yet shares of LFC, at least the ones traded here in New York, failed to participate. There was a midday rally to $48.21 but that eventually failed. We're still on the sidelines. Our suggested trigger to buy calls is at $48.25. After today more conservative traders may want to set their trigger to buy calls at $48.51. If triggered our target is the $54.00-55.00 range. We do expect some temporary resistance near $51.00.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/25/07 (unconfirmed)
Average Daily Volume = 1.0 million

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Vangard Emergy Mkts ETF -VWO- cls: 87.80 chg: +0.26 stop: 84.99

The VWO produced a decent bounce on Monday but the ETF began to pare its gains late this afternoon. We're not suggesting new positions. Our target is the $89.85-90.00 range.

Picked on May 16 at $ 86.15
Change since picked: + 1.65
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand

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XTO Energy - XTO - cls: 60.70 chg: +0.18 stop: 56.74

Gosh! After Cramer's big endorsement of XTO on Friday we expected a bigger pop today. XTO posted another gain but the stock struggled near $61.30 more than once today. Shares look poised to dip back to the $60 level and probably near the 10-dma (currently near 59.50). Our target is the $64.75-67.50 range. More conservative traders may want to tighten their stops toward $58.00.

Picked on May 27 at $ 57.63
Change since picked: + 3.07
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Anixter Intl. - AXE - cls: 70.35 chg: +1.29 stop: 71.55

The rebound in AXE was a little too strong for our liking today. Shares rose 1.8% and rallied back above what should have been resistance near $70.00 and its 50-dma. While the trend remains bearish we're concerned that AXE might stop us out before rolling over again. More aggressive traders may want to widen their stop loss a bit to give AXE more room to maneuver. We would wait for a new decline under today's low near $69.30 before considering new positions. We are aiming for the $65.25-65.00 range. The P&F chart is bearish with a $63.00 target.

Picked on June 07 at $ 68.99
Change since picked: + 1.36
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 520 thousand

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Gilead Sciences - GILD - cls: 79.22 chg: +0.22 stop: 82.55

It looks like Monday's trading in GILD has provided a new entry point to buy puts. The stock produced a bearish failed rally pattern in the $80 zone (actually 80.26). Our target is the $75.25-72.50 range. FYI: The stock is set to split 2-for-1 on June 25th. The P&F chart shows a new quadruple bottom breakdown sell signal with a $71 target.

Picked on June 07 at $ 79.90
Change since picked: - 0.78
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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QUALCOMM - QCOM - cls: 41.39 change: -0.48 stop: 44.05

Shares of QCOM continue to slide. We don't see any changes from our weekend comments. If shares of QCOM can bounce from here we would look for a failed rally under $44 and its 50-dma, which could be used as a new entry point. However, we're not going to wait for a bounce so we're suggesting puts now. QCOM can be a volatile stock so this should be considered a higher-risk, more aggressive play. Shares should see some support near $40.00 and its 200-dma but we're aiming for the $37.00-36.00 range. FYI: In the news today Nokia (NOK) filed a counter suit against QCOM in response to QCOM's patent infringement suit it filed back in April.

Picked on June 10 at $ 41.87
Change since picked: - 0.48
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 18.0 million

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Vital Images - VTAL - cls: 26.02 chg: -0.18 stop: 29.05

We don't see any changes from our weekend comments on VTAL. More conservative traders may want to tighten their stops a bit. Our target is the $25.15-25.00 range.

Picked on May 16 at $ 27.99
Change since picked: - 1.97
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

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Dropped Calls

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