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Call Updates

Amazon.com - AMZN - close: 86.21 change: +2.46 stop: 78.95*new*

AMZN is still outshining the market with a 2.9% rally today. The stock spiked higher in the last half hour pushing the stock to new one-month highs. We're raising our stop loss to $78.95. Our target is the $88.00-89.00 range. The P&F chart is very bullish with a $99 target. FYI: After a $5.00 gain more conservative traders will want to strongly consider taking some money off the table right now.

Picked on September 04 at $ 80.85
Change since picked: + 5.36
Earnings Date 10/23/07 (unconfirmed)
Average Daily Volume = 9.5 million

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Ceradyne - CRDN - cls: 70.62 change: -0.74 stop: 68.49

CRDN is still correcting. Traders bought the initial dip this morning near $70 support. Unfortunately, the rebound rolled over near $71.80. We'd wait for another bounce over $71.50 or $71.80 before considering new positions. More conservative traders may want to tighten their stops toward the $70.00 level. Our target is the $78.00-80.00 range.

Picked on September 02 at $ 72.27
Change since picked: - 1.65
Earnings Date 11/01/07 (unconfirmed)
Average Daily Volume = 714 thousand

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Eaton Corp. - ETN - cls: 94.62 change: +2.00 stop: 91.99

ETN managed to reverse yesterday's losses with a 2.1% gain today. The stock remains under resistance at the $95.00 level and its 50-dma but shares look much stronger and poised to breakout soon. 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: 117.62 chg: -0.26 stop: 111.59

We don't see any changes from our previous comments on IBM. The stock's rally is looking a little tired and shares are probably due for a deeper consolidation. We wouldn't be surprised to see a dip near its 10-dma around $115. 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: + 4.38
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume = 9.5 million

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Millicom - MICC - cls: 80.72 change: -1.19 stop: 79.90

MICC continued with its painful profit taking today. The stock lost another 1.45% and is nearing support at the $80.00 level. Technically a bounce from $80.00 could be used as a new bullish entry point. Unfortunately, short-term technical indicators are turning bearish quickly. 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: - 4.53
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 789 thousand

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Manitowoc - MTW - cls: 81.06 change: +0.64 stop: 74.95

MTW is holding on to support. Traders bought the dip this morning and midday making today's session look like another entry point for bullish positions. More conservative traders may want to consider a tighter stop loss in the $76-77.50 range. 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 and will begin trading at its new price on September 11th.

Picked on September 05 at $ 80.25
Change since picked: + 0.71
Earnings Date 10/31/07 (unconfirmed)
Average Daily Volume = 1.0 million

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Transocean - RIG - cls: 107.39 change: -0.11 stop: 102.49

RIG did trade off its lows for the session but we suspect there is more profit taking ahead. 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: + 1.64
Earnings Date 10/31/07 (unconfirmed)
Average Daily Volume = 7.3 million
 

Put Updates

Acuity Brands - AYI - cls: 52.03 change: +0.03 stop: 56.01

There is little to report on for AYI. The stock traded sideways but remains inside its bearish trend of lower highs. Readers could open positions now or look for a new relative low under $51.60 as an entry point. 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: - 0.77
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: 133.53 chg: +0.31 stop: n/a

The major averages didn't move too much ahead of tomorrow's jobs report. If the number is too high it will deflate the market's expectation for a fed rate cut on September 18th. This could provoke some significant selling pressure. 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: + 0.96
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 20.8 million

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S&P 100 Index - OEX - cls: 688.91 chg: +2.28 stop: n/a

The OEX also traded sideways as the market waits on tomorrow's economic reports. 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: + 8.45
Earnings Date 00/00/00
Average Daily Volume = 1306 thousand
 

Dropped Calls

Riverbed Tech. - RVBD - cls: 41.31 chg: -1.29 stop: 41.95

We have been bitten by RVBD's volatility. The stock spiked lower at the open again making it two days in a row. Shares quickly hit our stop loss at $41.95 before bouncing from its lows. Volume on today's session was very strong for the second day in a row. It seems like someone wants out of this stock.

Picked on September 02 at $ 44.40
Change since picked: - 3.09
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 1.2 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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