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Call Updates

Avery Dennison - AVY - cls: 67.30 chg: +0.08 stop: 64.90

AVY is still inching higher and looks bullish following its breakout past the $67.00 level. Traders were relatively quick to buy the two dips under $67 today. This looks like another entry point to buy calls but you may want to use a tighter stop loss than our suggested stop at $64.90. The recent move over $67.00 has produced a new P&F chart buy signal with an $80 target. 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: + 1.25
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 728 thousand

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BP Plc. - BP - close: 72.92 change: -0.59 stop: 68.75

Shares of BP continue to look bullish over $70.00 but the stock also looks short-term overbought and the rally looks tired. Today's move is a bearish failed rally under $74 and a bearish engulfing candlestick pattern. We wouldn't be surprised to see a dip back toward $72 or the 10-dma near $71.45. 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.

Picked on June 22 at $ 70.25
Change since picked: + 2.67
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 3.5 million

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Chevron Corp. - CVX - close: 86.57 chg: +0.24 stop: 79.90

Oil stocks have rebounded sharply in the last few days and CVX broke through resistance near $85.00. We are raising our stop loss to $81.39, which is just under technical support at the 50-dma. We remain bullish on oil but we're not suggesting new positions in CVX at this time but we'll be watching for a dip near $85 or $84 as a potential entry point. CVX's Point & Figure chart is positive with a bullish catapult breakout buy signal and a $120 price target. Our target is the $89.00-90.00 range.

Picked on June 18 at $ 83.75
Change since picked: + 2.82
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 9.1 million

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Deere Co - DE - close: 123.06 change: +0.83 stop: 116.90

DE broke through short-term resistance at the $122 level on Monday. Traders continue to buy the dips so the recent action looks like a new entry point to buy calls. If you're feeling cautious then consider raising your stop loss toward the $118 level or last week's low (118.57). 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.

Picked on June 20 at $123.55
Change since picked: - 0.49
Earnings Date 08/15/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Russell 2000 iShares - IWM - cls: 84.51 chg: +0.15 stop: 81.35

The market's recent strength has continued to fuel the rebound in the Russell 2000 and the short-term technicals are definitely improving. The IWM is nearing resistance in the $84.65-84.75 zone. Our target is the $86.50-87.50 range.

Picked on June 24 at $ 82.85
Change since picked: + 1.66
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 71.6 million

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Manpower - MAN - cls: 93.88 change: -0.03 stop: 89.90

MAN has traded in a relatively narrow range the last three days. We don't see any real changes from our previous comments. More conservative traders may want to tighten their stops toward $91.00. Meanwhile readers may want to wait for a breakout over $95 before considering new positions. The P&F chart has a triple-top breakout buy signal with a $110 target. Currently our target is the $99.50-100.00 range.

Picked on June 20 at $ 94.15
Change since picked: - 0.27
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 829 thousand

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Pacific Ethanol - PEIX - cls: 14.55 chg: +0.93 stop: 11.90

Thursday proved to be a big day for PEIX. The stock broke out past technical resistance at the 50-dma and broke out past price resistance near $14.00 to produce a 6.8% gain on very strong volume. We didn't see any specific news or event to account for PEIX's strength. The rally did stall at the $15.00 level. More conservative traders may want to exit right now with the stock up more than 13% from our suggested pick price. We are adjusting our target to the $15.40-15.60 range to account for potential resistance at the descending 200-dma. 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: + 1.72
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 892 thousand

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Penn National Gaming - PENN - cls: 60.36 chg: -0.01 stop: n/a

There has been almost no movement in PENN. The consolidation has leveled off near the $60.00 level. The company has less than 30 days to solicit more bids before accepting the current cash buyout at $67 a share. We were suggesting high-risk, speculative call positions on the idea that additional companies would make a bid for PENN.

Picked on June 17 at $ 62.12
Change since picked: - 1.76
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 1.0 million

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SanDisk - SNDK - cls: 48.09 change: +0.49 stop: 44.85

SNDK hasn't moved much this week. Traders are buying the dip after Monday's analyst downgrade. The rebound looks like a potential entry point but you may want to use a tighter stop loss. SNDK has already hit our conservative target in the $49.50-50.00 range. We're currently aiming for our aggressive target in the $52.50-55.00 range. We don't want to hold over the mid July earnings report, which doesn't give us a lot of time so you may want to avoid launching new positions.

Picked on June 17 at $ 46.40
Change since picked: + 1.69
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 7.6 million
 

Put Updates

Allegheny Tech - ATI - cls: 108.74 chg: +0.03 stop: 110.15

Shares of ATI continue to be very volatile. Several steel and metal stocks have continued to rebound the last few days and ATI got a boost on Monday after some positive analyst comments. The stock appears to have broken its bearish trendline of lower highs and is currently flirting with a bullish breakout over resistance at the $110 level. More conservative traders may want to exit early right here. Currently we're aiming for our aggressive target in the $95.50-95.00 range.

Picked on June 12 at $106.70
Change since picked: - 2.04
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.1 million

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Gilead Sciences - GILD - cls: 38.98 chg: -0.07 stop: 40.85

GILD continues to trade in a bearish trend of lower highs. The stock recently broke down under technical support at its 100-dma. We're not suggesting new positions at this time but GILD might be vulnerable to a pull back near the 200-dma around $36.00. Our post-split target is $37.62-36.25. Aggressive traders may want to aim lower. More conservative traders may want to lower their stop closer to the $40 level.

Picked on June 07 at $ 39.95 *split adjusted
Change since picked: - 0.97
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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Mettler Toledo - MTD - cls: 95.94 chg: -0.62 stop: 99.11

MTD is still trying to bounce but has been struggling with the $97 level. We remain bearish given the larger pattern but the two-week week rebound is about to turn the daily chart's MACD indicator into a new buy signal. More conservative traders may want to tighten their stops toward the 50-dma around $98.00. Readers can choose to buy puts on today's failed rally or wait for a new decline under $95.00. We're still keeping a wary eye on the 100-dma, which is where shares bounced in June. 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: - 0.81
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 215 thousand

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QUALCOMM - QCOM - cls: 43.54 change: -0.32 stop: 44.05

We are still defensive with QCOM. The stock continues to find resistance at the $44.00 level but we don't know how long it will last. Shares have developed a bullish trend of higher lows suggesting a bullish breakout is imminent. We are not suggesting new positions at this time and more conservative traders may just want to cut their losses right here.

Picked on June 10 at $ 41.87
Change since picked: + 1.67
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 18.0 million
 

Strangle Updates

None
 

Dropped Calls

Global SantaFe - GSF - cls: 74.35 chg: -0.27 stop: 68.86

Target achieved (and exceeded). Shares of GSF actually hit our target in the $74.50-75.00 range on Tuesday, July 3rd with an intraday high of $74.70. The stock rose again this morning with an intraday high of $75.44. GSF continues to rise in its bullish channel but we'd wait for a significant dip before considering new positions. The $70-71 zone should offer some support as would the rising 50-dma.

Picked on June 03 at $ 68.86
Change since picked: + 5.49
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 4.8 million
 

Dropped Puts

Las Vegas Sands - LVS - cls: 78.60 chg: +1.96 stop: 78.05

LVS surged 2.5% on Thursday and broke out over the $78.00 level to hit our stop loss at $78.05. Market pundits were suggesting the merger/buyout news for Hilton Hotels today fueled a rally in casino stocks with big hotels attached. LVS almost hit our target back on June 27th and we're not completely convinced the stock is turning around. Watch for a failed rally under $80 as a potential entry point for puts or a breakout over $80 as a potential entry point for calls. However, if you're buying calls be aware that the 100-dma and 200-dma will be overhead resistance.

Picked on June 17 at $ 76.78
Change since picked: + 1.82
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 3.0 million
 

Dropped Strangles

None
 

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