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Call Updates

Amazon.com - AMZN - close: 83.75 change: +1.05 stop: 77.45

AMZN displayed impressive relative strength on Wednesday with a 1.2% gain. Shares rallied toward short-term resistance near $85.00 and tried at least twice to breakout above this level. If the market continues lower tomorrow we suspect that AMZN will see some profit taking. The stock should find support in the $81.00-80.00 zone. We would not suggest new positions at current levels. Our target is the $88.00-89.00 range. The P&F chart is very bullish with a $99 target.

Picked on September 04 at $ 80.85
Change since picked: + 2.90
Earnings Date 10/23/07 (unconfirmed)
Average Daily Volume = 9.5 million

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Ceradyne - CRDN - cls: 71.36 change: -1.96 stop: 68.49

A weak market only exacerbated any profit taking in CRDN today. The stock lost 2.6% after yesterday's failed rally near the 50-dma. Watch for a bounce in the $71.00-70.00 range as a new entry point for bullish positions. Our target is the $78.00-80.00 range.

Picked on September 02 at $ 72.27
Change since picked: - 0.91
Earnings Date 11/01/07 (unconfirmed)
Average Daily Volume = 714 thousand

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Eaton Corp. - ETN - cls: 92.62 change: -2.02 stop: 91.99

We don't see anything new to report on ETN. Shares traded lower with the market following yesterday's failed rally under $95. We're still waiting on a bullish breakout over resistance. We are suggesting a trigger to buy calls at $95.25. If triggered we will have two targets. Our first target is the $99.75-100.00 range. Our second target is the $103.50-104.00 zone. Aggressive traders may want to put their stop loss under support near $90.00. More conservative traders could put their stop closer toward what should be technical support at the 10-dma around $92.50.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/16/07 (unconfirmed)
Average Daily Volume = 1.3 million

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Intl. Bus. Mach.- IBM - cls: 117.88 chg: -0.31 stop: 111.59

We were pleasantly surprised wit IBM's relative strength today. After tagging the July peak it was a perfect set up for some real profit taking. Yet traders bought the dip in IBM near $116.50. We're not suggesting new positions at this time. The stock has already hit our $118-120 target range. Our second, more-aggressive target is the $124.00-125.00 zone. FYI: The Point & Figure is very bullish with a $177 target.

Picked on August 26 at $113.24
Change since picked: + 4.64
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume = 9.5 million

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Millicom - MICC - cls: 81.91 change: -3.86 stop: 79.90

MICC under performed the market and its peers today. The stock suffered a rough day of profit taking. Shares lost 4.5% and closed back below what should have been short-term support in the $83-84-85 zone. We're not suggesting new positions at this time. We have two targets. Our first target is the $89.75-90.00 range. Our second, more-aggressive target is the $94.00-95.00 range.

Picked on September 04 at $ 85.25
Change since picked: - 3.34
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 789 thousand

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Manitowoc - MTW - cls: 80.42 change: +0.87 stop: 74.95 *new*

Unfortunately we need to urge caution on MTW. The stock broke out higher this morning but closed near its lows for the session. We did not see anything specific to account for MTW gapping open higher at $81.20. The stock reversed at $81.97 and traded back toward broken resistance and what should be support at $80.00. We were suggesting a trigger to buy calls at $80.25. This morning's open at $81.20 is definitely a bad fill. If you're looking for new positions wait and watch for a dip and bounce near $78.00 or a rebound from the $80.00 level. Please note that we're adjusting our stop loss to $74.95. Our target is the $88.00-90.00 range. The Point & Figure chart is very bullish with a triple-top breakout buy signal and a $103 target. FYI: MTW is due to split 2-for-1 on September 11th.

Picked on September 05 at $ 80.25
Change since picked: + 0.17
Earnings Date 10/31/07 (unconfirmed)
Average Daily Volume = 1.0 million

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Transocean - RIG - cls: 107.50 change: -0.46 stop: 102.49

Oil stocks took their cue from the price of crude oil and traded sideways most of the session. RIG lost 0.4% and stock to a $1.50 range. Look for a dip and bounce near $105 as a new bullish entry point. The $110 region could be short-term resistance but our target is the $114.00-115.00 range. Please note that we're raising the stop loss to $102.49, which is under the rising 10-dma.

Picked on August 31 at $105.75
Change since picked: + 1.75
Earnings Date 10/31/07 (unconfirmed)
Average Daily Volume = 7.3 million

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Riverbed Tech. - RVBD - cls: 42.72 chg: -3.26 stop: 41.95

Ouch! It looks like something happened or some sort of news hit last night or before the bell this morning but we can't find it. Shares of RVBD gapped open lower at $45.09 and plunged to $42.08 before bouncing. The $42.00 level was support last week and traders bought the dip today. It would be tempting for us to buy the dip here as well but the whipsaw action in this stock is getting out of hand. Volume on today's move was twice the norm, which is another bearish sign. We're not suggesting new positions.

Picked on September 02 at $ 44.400
Change since picked: - 1.68
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 1.2 million
 

Put Updates

Acuity Brands - AYI - cls: 52.00 change: -1.55 stop: 56.01

AYI continues to slip but is holding near short-term and what looks like temporary support near $52.00. This could be used as new entry point or a new low under $51.50. More conservative traders may want to tighten their stops toward the $55.00 level. We're not suggesting new positions at this time. We have two targets. Our first target is the $47.75-47.50 range. Our second target is the $45.25-45.00 zone.

Picked on August 26 at $ 52.80
Change since picked: - 0.80
Earnings Date 10/04/07 (unconfirmed)
Average Daily Volume = 536 thousand
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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Diamonds - DIA - cls: 133.22 chg: -1.12 stop: n/a

The good news, if there is good news today, is that traders bought the dip near $132.50. We don't care what direction the DIA goes as long as it moves enough! We are not suggesting new positions at this time. Our strangle play suggested using the September $137 call (DAZ-IG) and the September $127 put (DAW-UW) with an estimated cost of $2.05. We want to sell if either option rises to $3.10 or more.

Picked on August 30 at $132.57
Change since picked: + 0.65
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 20.8 million

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S&P 100 Index - OEX - cls: 686.63 chg: -7.60 stop: n/a

The OEX can be volatile and the index lost 1% today in addition to close under its 50 and 100-dma. We're not suggesting new positions at this time. Our strangle suggested using the September 700 call (OEZ-IT) and the September 660 put (OEY-UL) with an estimated cost of $14.30. We want to sell if either option rises to $21.45 or more. Considering these prices we probably need to see a move into the $705-710 range or the $655-650 zone to be profitable.

Picked on August 30 at $680.46
Change since picked: + 6.17
Earnings Date 00/00/00
Average Daily Volume = 1306 thousand
 

Dropped Calls

CanadianPacific Rail - CP - cls: 67.37 chg: -2.56 stop: 66.75

Merger news sent shares of CP crashing this morning. Before the opening bell CP announced it would pay $1.48 billion for DM&E railroad. The market reacted by sending CP to gap down at $69.01 and then plunge to $66.10 before bouncing. Our stop loss was at $66.75. It's typical that the acquirer's stock goes down on a buyout announcement unfortunately, it's hard to know beforehand when the company will announce the usually secretive news.

Picked on September 02 at $ 70.48
Change since picked: - 3.11
Earnings Date 10/30/07 (unconfirmed)
Average Daily Volume = 595 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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