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Call Updates

Amazon.com - AMZN - cls: 79.25 chg: 1.95 stop: 74.90 *new*

Friday proved to be a strong day for online-retailer AMZN. The stock posted a 2.5% gain and produced what appears to be a bullish candlestick pattern. Looking at the intraday chart you can see where buyers were defending the stock near $78.00 most of the day. AMZN looks poised to hit our initial target in the $79.50-80.00 range on Monday morning. More conservative traders should definitely considering exiting soon and even more aggressive traders will want to consider taking some money off the table. The $80.00 level is short-term resistance. If the stock can breakout higher then AMZN has a shot at our aggressive target in the $84.00-85.00 range. We are not suggesting new positions at this time. Please note that we're raising the stop loss to $74.90.

Suggested Options:
We are not suggesting new positions at this time with AMZN under resistance near $80.00.

Picked on August 19 at $ 75.02
Change since picked: 4.23
Earnings Date 10/23/07 (unconfirmed)
Average Daily Volume = 10.1 million

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L.B.Foster Co. - FSTR - cls: 38.50 chg: 0.60 stop: 34.95*new*

Traders continue to buy the dip in FSTR near its rising 10-dma. The stock posted another gain on Friday and volume was above the daily average. The technical picture is mixed but thus far momentum is holding. We're inching up our stop loss to $34.95. We're not suggesting new positions at this time. We have two targets. Our first target is the $39.90-40.00 range. Our second target is the $42.00-42.50 zone. Please note that this remains an aggressive, higher-risk play.

Suggested Options:
We are not suggesting new positions in FSTR at this time.

Picked on August 14 at $ 37.33
Change since picked: 1.17
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 148 thousand

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Goldman Sachs - GS - cls: 179.73 chg: 2.23 stop: 169.45 *new*

GS rebounded again but is still struggling with resistance near the $180 level. We are adjusting our stop loss to $169.45. We remain bullish on the stock but considering where it's at, just under $180, we would wait for a new rise over $181.00 before considering new bullish positions. We have two targets. Our first target is the $184.75-185.00 range. Our second target is the $194.00-195.00 range. One of our biggest risks is the intraday swings that could easily stop us out. FYI: We only have about two and a half weeks left as we do not want to hold over the earnings report.

Suggested Options:
If GS provided a new entry point we would suggest the September or October calls.

Picked on August 19 at $175.00
Change since picked: 4.73
Earnings Date 09/12/07 (unconfirmed)
Average Daily Volume = 11.6 million

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DJ Transports iShares - IYT - cls: 88.13 chg: 1.11 stop: 83.99

The transports bounced on Friday. This was good news for the bulls and lack of follow through on Thursday's bearish reversal pattern should frustrate and worry the bears. The MACD on the IYT's daily chart has turned bullish although we note that volume on Friday was pretty low. We are not suggesting new positions at this time. The IYT still has resistance near its 200-dma around $89. More conservative traders may want to protect themselves and raise their stops toward $85.00. Our target is the $89.75-90.00 range.

Suggested Options:
We are not suggesting new positions in ITY at this time.

Picked on August 19 at $ 85.43
Change since picked: 2.70
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 600 thousand

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Sears - SHLD - cls: 146.13 chg: 4.70 stop: 137.45 *new*

Retailers were a big part of Friday's rally. The RLX retail index rose 1.9%. Shares of SHLD were helping lead the pack with a 3.3% gain. Traders jumped in to buy the initial dip near support around $140, which was an area we suggested readers could use as a new entry point. The stock rallied to a new one-month high. Our only concern was the low volume behind the move. It's possible that the big gain could spark some more short covering next week. Please note that we are raising the stop loss to $137.45. We originally had two targets. Our first target is the $149.50-150.00 range. Our more aggressive target was the $157.00-160.00 zone. However, since we do not want to hold over the earnings report due out around August 30th (still unconfirmed and SHLD could announce any day this week) then that only gives us three more trading days. We're eliminating the aggressive target. If you're feeling optimistic you could aim for the 50-dma that is potential technical resistance near $151.85.

Suggested Options:
We are not suggesting new positions in SHLD at this time.

Picked on August 21 at $141.50
Change since picked: 4.63
Earnings Date 08/30/07 (unconfirmed)
Average Daily Volume = 2.1 million
 

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