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Call Updates

Ashland - ASH - cls: 62.99 change: 0.90 stop: 59.95

Shares of ASH followed the market higher and like many of the sector indices today ASH produced a bullish engulfing candlestick pattern. The move looks like a new bullish entry point even though there is potential resistance in the $63.25 area. We're thinking about raising our target toward the $66-67 range but for now our target is the 200-dma at $64.47. We would not hold over the late July earnings report.

Picked on June 10 at $ 61.49
Change since picked: 1.50
Earnings Date 07/23/07 (unconfirmed)
Average Daily Volume = 657 thousand

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Avery Dennison - AVY - cls: 66.37 chg: 0.78 stop: 64.90

AVY also produced a big rebound and a bullish engulfing candlestick pattern today. The rally back above the $66 level looks like a new entry point to buy calls. However, we note that AVY could not make it past the 10-dma near $66.40, which is a surprise. More conservative traders may want to see a little more strength before jumping in. The $67.00 level is AVY's next hurdle. Our target is the $69.75-70.00 range. We do not want to hold over the late July earnings report.

Picked on June 11 at $ 66.05
Change since picked: 0.32
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 728 thousand

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BP Plc. - BP - close: 70.95 change: 0.55 stop: 67.85

The weekly oil and gasoline report showed a drop in gasoline supplies, which launched a rebound in crude oil and the energy sector. Traders bought the dip in BP near $70.00 and the bounce today looks like a new entry point. The P&F chart points to a $90 target. Our target is the $74.85-75.00 range. More aggressive traders may want to aim higher. FYI: We do see some resistance near $73.50.

Picked on June 22 at $ 70.25
Change since picked: 0.70
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 3.5 million

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Cleveland Cliffs - CLF - cls: 76.53 chg: 0.57 stop: 74.99

We are still on the sidelines with CLF. The stock spiked lower this morning, breaking support near $75 and its 50-dma, but shares eventually turned around and closed higher. If CLF continues to bounce tomorrow then we'll keep it on the play list as a candidate. If it doesn't bounce then we'll drop it. We're sticking to our plan for now and suggesting a trigger to buy calls at $80.55. If triggered our target is the $89.00-90.00 range. We plan to exit ahead of the late July earnings report.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 1.6 million

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Chevron Corp. - CVX - close: 83.89 chg: 1.19 stop: 79.90

CVX is looking strong today. The oil and gasoline inventory numbers today fueled a rally in energy stocks. Traders bought the morning dip in CVX and shares closed up 1.4% and poised to breakout over short-term resistance near $84.00. We are suggesting new positions now but more conservative traders may want to wait for a new relative high first. Our target is the $89.00-90.00 range.

Picked on June 18 at $ 83.75
Change since picked: 0.14
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 9.1 million

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Deere Co - DE - close: 121.57 change: 1.44 stop: 117.45

We couldn't find any news to account for DE gapping down at $119.56 but fortunately traders bought the dip near $118.50 and the stock rebounded back into the green. The big bounce looks like a new entry point to buy calls. More conservative traders who haven't adjusted their stops yet might want to raise them toward today's low. We have two targets. Our first target is the $129.50-130.00 range. Our second, more aggressive target is the $134.00-135.00 range. The P&F chart is bullish with a $152 target.

Picked on June 20 at $123.55
Change since picked: - 1.98
Earnings Date 08/15/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Global SantaFe - GSF - cls: 72.50 chg: 1.47 stop: 66.65

Bulls bought the dip at $69.77 and GSF produced a bullish engulfing candlestick pattern, which is normally seen as a bullish reversal. If you think GSF can trade past $75.00 then this looks like a new entry point. We're not suggesting new positions. Our target is the $74.50-75.00 range.

Picked on June 03 at $ 68.86
Change since picked: 3.64
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 4.8 million

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Russell 2000 iShares - IWM - cls: 83.59 chg: 1.85 stop: 81.35

The Russell 2000 and the iShares that follow it spiked lower this morning but traders bought the dip near $81.50. The smallcap index rebounded sharply, and on big volume, producing a bullish reversal with today's bullish engulfing candlestick pattern. This looks like a new entry point. Our target is the $86.50-87.50 range.

Picked on June 24 at $ 82.85
Change since picked: 0.74
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 71.6 million

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Manpower - MAN - cls: 93.21 change: 0.73 stop: 89.90

MAN's rebound today looks like another bullish entry point to buy calls. More conservative traders can wait for a new relative high before jumping in. Our target is the $99.50-100.00 range. The P&F chart has a triple-top breakout buy signal with a $110 target.

Picked on June 20 at $ 94.15
Change since picked: - 0.94
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 829 thousand

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Pacific Ethanol - PEIX - cls: 12.60 chg: -0.03 stop: 11.90

PEIX under performed the markets today but volume was very light so it can be tough to put a lot of importance behind today's session. We're still suggesting bullish positions but more conservative traders may want to wait for a rise past $13.35 or $13.50 before initiating new positions. There is potential resistance near $14.00, the 100-dma and the 200-dma. We're going to aim for the 200-dma, which means we'll use a $15.50-15.75 exit range for now. FYI: We cannot find a future earnings date for PEIX but suspect it will be in August or September.

Picked on June 24 at $ 12.83
Change since picked: - 0.23
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 892 thousand

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Penn National Gaming - PENN - cls: 60.52 chg: 0.09 stop: n/a

We don't see any changes from our previous comments on PENN. This is a high-risk speculative play based on a possible bidding war if another suitor steps into the takeover scenario.

Picked on June 17 at $ 62.12
Change since picked: - 1.03
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 1.0 million

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SanDisk - SNDK - cls: 48.51 change: 1.20 stop: 43.45

This morning SNDK announced a new 4GB memory stock card for $99.99, which might have contributed to the 2.5% gain in the stock price. We have two targets. Our conservative target is the $49.50-50.00 range. Our aggressive target is the $52.50-55.00 range, which might be too optimistic given our time frame. We don't want to hold over the mid July earnings report.

Picked on June 17 at $ 46.40
Change since picked: 2.11
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 7.6 million
 

Put Updates

Allegheny Tech - ATI - cls: 103.39 chg: 0.38 stop: 110.15*new*

Target achieved! ATI spiked lower this morning. Shares hit $99.17 before bouncing back. We have two targets. Our first target is the $100.50-100.00 range. Our second, more aggressive target is the $95.50-95.00 range although we may need to adjust this to the 200-dma, which is rising and currently near $94.70. The P&F chart currently points to a $94 target. We are not suggesting new positions at this time. We are adjusting the stop loss to $110.15.

Picked on June 12 at $106.70
Change since picked: - 3.31
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.1 million

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Gilead Sciences - GILD - cls: 39.80 chg: 1.00 stop: 40.85*new*

GILD produced a big bounce today following a similar rebound in the BTK biotech index. This bounce looks pretty dangerous for the biotech bears. We're not suggesting new positions. Please note that we are adjusting the stop loss to $40.85, just above the simple 50-dma. Our post-split target is $37.62-36.25.

Picked on June 07 at $ 39.95 *split adjusted
Change since picked: - 0.15
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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Las Vegas Sands - LVS - cls: 72.83 chg: -0.20 stop: 78.05*new*

We are suggesting that more conservative traders consider an early exit to lock in a profit with LVS. Shares dipped to $71.24 this morning before paring its losses. The move looks like a short-term bullish reversal inside its bearish trend. We are adjusting the stop loss to $78.05. Our target is the $70.50-70.00 range. More aggressive traders may want to aim lower.

Picked on June 17 at $ 76.78
Change since picked: - 3.95
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 3.0 million

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Mettler Toledo - MTD - cls: 95.55 chg: 0.53 stop: 99.11

MTD is still trying to bounce but remains under short-term resistance at its 10-dma. We remain bearish but traders might want to inch their stops down toward the simple 50-dma around $97.85. Our target is the $90.50-90.00 range. FYI: The P&F chart has reversed into a new triple-bottom breakdown sell signal with an $87 target (was $91).

Picked on June 19 at $ 96.75
Change since picked: - 1.20
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 215 thousand

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QUALCOMM - QCOM - cls: 43.42 change: 0.58 stop: 44.05

Be careful here! We seriously considered dropping QCOM right here to cut our losses. The stock rebounded from the $42.50 level and its rising 100-dma. Short-term technicals are suggesting the next move will be higher. More conservative traders should think about an early exit right here. The only reason we're not dropping QCOM is because overhead resistance at $44.00 has held so far. We're not suggesting new positions at this time.

Picked on June 10 at $ 41.87
Change since picked: 1.55
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 18.0 million

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Weyerhauser - WY - cls: 78.69 chg: 0.36 stop: 82.05

WY dipped to $77.23 before bouncing back into the green. We remain bearish but would wait for a failed rally under $80.00 before considering new positions. Our target is the $75.15-74.00 range. The P&F chart is very bearish with a $61 target.

Picked on June 25 at $ 79.49
Change since picked: - 0.80
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 2.1 million
 

Strangle Updates

None
 

Dropped Calls

Mastercard - MA - close: 163.03 chg: 1.21 stop: 157.99

Our aggressive play in MA is over. The stock spiked to $157.80 this morning. Our stop loss was at $157.99. Shares definitely under performed the rest of the market today, which doesn't look good for the rest of this week.

Picked on June 24 at $168.43
Change since picked: - 5.40
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 3.7 million

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Valero Energy - VLO - cls: 74.14 chg: -0.52 stop: 72.45

VLO hit our stop loss at $72.45. This morning before the bell a Citigroup analyst cut his ratings on multiple oil refining stocks. VLO was downgraded to a "sell" rating. The market reacted with VLO gapping down to open at $72.66 and spiking to $71.90 before bouncing back.

Picked on June 18 at $ 77.55
Change since picked: - 3.41
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 13.2 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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