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Call Updates

Ashland - ASH - cls: 62.34 change: +0.57 stop: 59.95

The markets continue to rebound and ASH rose almost 1% to breakout over $62.00. This looks like a new bullish entry point to buy calls. Beware of the 100-dma overhead, which might be technical resistance. Our target is the 200-dma near $64.50.

Picked on June 10 at $ 61.49
Change since picked: + 0.85
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 657 thousand

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Avery Dennison - AVY - cls: 66.44 chg: +0.27 stop: 64.19

AVY continues to inch higher. We remain bullish and would still consider new positions here. More conservative traders might still want to tighten their stops toward $64.80-65.00. Our target is the $69.75-70.00 range.

Picked on June 11 at $ 66.05
Change since picked: + 0.39
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 728 thousand

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Baker Hughes - BHI - cls: 86.38 change: +2.38 stop: 81.75 *new*

A 2% rally in crude oil futures fueled a big move in the oil stocks. BHI rose 2.8% and closed at a new relative high over the $86.00 level. We are adjusting our stop loss to 81.75. Our target is the $89.00-90.00 range.

Picked on June 04 at $ 84.26
Change since picked: + 2.12
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 4.3 million

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FTSE/Xinhau China Index - FXI - cls: 119.85 chg: +3.02 stop: 111.90

The Chinese Shanghai index was actually down 1.4% today but that didn't stop a 2.5% rally in the FXI. The ETF for the top Chinese companies has hit a new all-time high and is challenging round-number resistance at $120. A dip back toward $117.50 zone from here would not be a surprise and readers could use it as a new entry point. Our target is the $124.00-125.00 range. We would expect some temporary resistance near $120. We would consider this a more aggressive, higher-risk play.

Picked on June 11 at $116.75
Change since picked: + 3.10
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 2.4 million

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General Dynamics - GD - cls: 80.04 change: -0.15 stop: 78.35

Caution! Shares of GD produced another failed rally under the $81 level. We are reiterating our previous comments that more conservative traders may want to wait for a new relative high over $81.00 or $81.07 before initiating positions. We do not want to hold over the mid July earnings report. Currently we have two targets. Our first target is the $84.50-85.00 range. Our second target is the $87.50-90.00 range.

Picked on June 10 at $ 80.58
Change since picked: - 0.54
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 1.3 million

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Global SantaFe - GSF - cls: 70.62 chg: +1.29 stop: 66.65 *new*

The rally in oil also lifted shares of GSF, which rose 1.8%. Today's volume for GSF was below average, which is warning signal for the bulls. The stock is now challenging its early June highs. A pull back to fill today's morning gap would not be uncommon. We are lifting our stop loss to $66.65, under the recent lows. Our target is the $74.50-75.00 range.

Picked on June 03 at $ 68.86
Change since picked: + 1.76
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 4.8 million

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China Life - LFC - cls: 48.27 chg: +0.41 stop: 45.75

China's LFC broke out over short-term resistance at $48.00 and hit our trigger to buy calls at $48.25. Volume was below average but we would still consider new positions here. Our target is the $54.00-55.00 range. We do expect some temporary resistance near $51.00.

Picked on June 14 at $ 48.25
Change since picked: + 0.02
Earnings Date 08/25/07 (unconfirmed)
Average Daily Volume = 1.0 million

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XTO Energy - XTO - cls: 62.58 chg: +1.35 stop: 58.95 *new*

The strength in oil and the markets helped fuel a 2.2% rally in XTO. Shares surged to a new all-time high. More conservative traders may want to take some profits right here if you entered in the $57-58 range. We are raising our stop loss to $58.95. More conservative traders, if you're not taking profits, may want to raise their stop closer to the $60 level. Our target is the $64.75-67.50 range.

Picked on May 27 at $ 57.63
Change since picked: + 4.95
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Allegheny Tech - ATI - cls: 109.42 chg: +1.89 stop: 112.15

It's been pretty dangerous to be a bear these days. ATI gave us a scare this morning with a gap higher and spike toward the $112 level. The rally did fail near short-term resistance at $112 but it's anyone's guess where ATI will go next if the major indices keep climbing. More aggressive traders might want to consider new puts right here. We are now suggesting that readers wait for a new decline under $107.75 or $107.50 before opening new put positions. More conservative traders may want to wait for a new decline under $106. We have two targets for ATI. Our first target is the $100.50-100.00 range. Our second target is the $95.50-95.00 range. More aggressive traders may want to aim for the simple 200-dma (currently near $92).

Picked on June 12 at $106.70
Change since picked: + 2.72
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.1 million

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Gilead Sciences - GILD - cls: 80.64 chg: +0.30 stop: 82.55

They way this market just keeps climbing is making it tough to play any puts. More conservative traders might just want to bail out on any GILD put positions. The stock is creeping higher and challenging resistance near $81.00. It could fail right here but traders might want to consider a tighter stop loss. We'll leave ours at $82.55. 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: + 0.74
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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QUALCOMM - QCOM - cls: 42.62 change: +0.02 stop: 44.05

QCOM displayed some relative weakness by not participating in today's market rally. Watch for any sort of failed rally under $44 or its 50-dma as a new entry point for puts. Remember, this is a play on the QCOM-BRCM battle that currently has QCOM losing with a court order to ban the sale of mobile phones in the U.S. using QCOM's latest 3G chips. More conservative traders may want to wait for a decline under $41.00 before opening positions. We're aiming for the $37.00-36.00 range.

Picked on June 10 at $ 41.87
Change since picked: + 0.75
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 18.0 million

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Regency Centers - REG - cls: 73.75 chg: -0.88 stop: 77.76

There was no follow through on yesterday's bounce in REG. That's good news for the bears. This could be used as a new entry point for puts. There is some support near $72.50 but our target is the $70.50-70.00 range.

Picked on June 11 at $ 74.68
Change since picked: - 0.93
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 374 thousand

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Weyerhauser - WY - cls: 81.80 chg: -0.20 stop: 82.05

Thursday proved to be an interesting session for WY. The stock broke out higher but eventually reversed into a bearish failed rally pattern. We're not suggesting new positions at this time but this move doesn't look good for the bulls. Currently we're suggesting a trigger under the $100-dma at $79.34. More aggressive traders may want to jump in early with a trigger at 79.49 under last Friday's low. If we are triggered our target is the $75.00-74.00 range. The $75 level is likely to be psychological support and the $74 level was support back in March. The Point & Figure chart looks very bearish with a $61 target.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/03/07 (unconfirmed)
Average Daily Volume = 2.1 million
 

Strangle Updates

None
 

Dropped Calls

Vangard Emerg.Mkts ETF -VWO- cls: 89.66 chg: +1.37 stop: 84.99

Target achieved. The market's strength helped fuel another 1.5% rally in VWO. Shares hit an intraday high of $90.00. Our target was the $89.85-90.00 range. In previous updates we mentioned that more aggressive traders may want to aim higher.

Picked on May 16 at $ 86.15
Change since picked: + 2.14
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand
 

Dropped Puts

Anixter Intl. - AXE - cls: 72.31 chg: +1.38 stop: 71.55

AXE hit our stop loss at $71.55 this morning. Another day of market strength was just too much and shares continued to rebound. Readers might want to consider bullish positions if AXE can breakout over resistance near $75.00.

Picked on June 07 at $ 68.99
Change since picked: + 3.32
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 520 thousand

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Diamonds - DIA - close: 135.70 chg: +0.90 stop: 135.26

The Dow Industrials continued to rally and the DIA hit our stop loss at $135.26 this morning. The bearish breakdown and failed rally/reversal a few days ago proved to be a trap.

Picked on June 11 at $134.24
Change since picked: + 1.46
Earnings Date 00/00/00
Average Daily Volume = 10.8 million

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S&P 100 Index - OEX - cls: 699.82 chg: +3.76 stop: 700.25

The market's rally lifted the OEX to an intraday high of $701.15. That's enough to hit our stop loss at $700.25.

Picked on June 11 at $693.73
Change since picked: + 6.09
Earnings Date 00/00/00
Average Daily Volume = 1270
 

Dropped Strangles

None
 

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