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Call Updates

Anadarko Petrol. - APC - cls: 59.57 change: +0.47 stop: 55.99

Shares of APC actually managed to hit a new all-time high at $61.22 this morning before running into profit taking again. The stock bounced near $58.00 and the afternoon rebound looks like a new bullish entry point. More conservative traders might want to tighten their stops. Our target is the $64.85-65.00 range. More aggressive traders may want to aim higher. Conservative types might want to place their stop closer to $57.50. The P&F chart points to an $86 target.

Picked on November 07 at $ 60.55
Change since picked: - 0.98
Earnings Date 11/05/07 (confirmed)
Average Daily Volume = 3.9 million

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Boeing - BA - close: 96.28 change: -0.61 stop: 94.85

Bulls are not out of the woods yet. Shares of BA dipped toward support near $95.00 and pierced technical support at its 200-dma on an intraday basis. The low was $94.90, which almost hit our stop loss. While the bounce this afternoon is a tempting entry point it was not very convincing. If you look at the daily chart is almost looks like BA is producing a bearish head-and-shoulders pattern starting with the August dip. We would hesitate to open new bullish positions at this time. A move over $98.00 might change our minds but BA still has resistance at the 50-dma and then again at the $100 mark. Our target is the $104-105 zone. More aggressive traders could aim for the highs near $107.

Picked on October 29 at $ 97.25
Change since picked: - 0.97
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 6.3 million

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Deere Co. - DE - close: 157.91 change: +3.59 stop: 152.75

DE out performed most of the market today. Shares produced a strong bounce from its intraday low of $153.73 and the stock closed up 2.3%. This could be used as a new bullish entry point. More conservative traders might want to tighten their stops toward today's low. DE already hit our first target near $160. Our second target is the $164.00-165.00 zone.

Picked on November 04 at $152.73
Change since picked: + 5.18
Earnings Date 11/21/07 (unconfirmed)
Average Daily Volume = 2.4 million

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Goodrich Corp. - GR - close: 71.90 change: +0.84 stop: 66.90

GR continues to out perform the market and its peers. Traders bought the dip near $70.50 and the afternoon bounce looks like a new bullish entry point to buy calls. More conservative traders might want to tighten their stops. Our conservative target is the $74.90-75.00 range. Our more aggressive target is the $78.00-80.00 range. The P&F chart is bullish and points to a $99 target.

Picked on November 05 at $ 71.05
Change since picked: + 0.85
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 1.0 million

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Icon Pub. Ltd. - ICLR - close: 59.57 chg: +1.44 stop: 55.90

ICLR continues to out perform. Shares rallied and closed up with a 2.47% gain. The stock is poised to breakout over potential round-number resistance at the $60.00 mark. Volume came in above average on today's gain, which is bullish. We would still consider new bullish positions here on a break above $60.00. Our target is the $63.50-65.00 range. We would consider this a higher-risk play for the simple reason that volume is so low on both the stock and the options. FYI: More aggressive traders may want to aim higher.

Picked on November 06 at $ 58.79
Change since picked: + 0.78
Earnings Date 10/23/07 (confirmed)
Average Daily Volume = 107 thousand

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Kennametal - KMT - close: 89.50 change: +1.70 stop: 87.49 *new*

We are pleasantly surprised by the relative strength in KMT today. The stock resisted further profit taking and held support near $87.50-88.00. The bounce added 1.9% but shares still have a one-week trend of lower highs, which remains a concern. Volume on today's session was strong, which would normally be bullish but we remain wary. Please note that we're adjusting the stop loss to $87.49. We would wait for a move over $90.75 or $91.25 before considering new bullish positions. Our target is the $99.00-100.00 range. The P&F chart has a triple-top breakout buy signal with a $102 target. FYI: KMT has a 2-for-1 stock split set for December 19th.

Picked on October 31 at $ 91.21
Change since picked: - 1.71
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 404 million

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L-3 Comm. - LLL - cls: 113.39 chg: +2.81 stop: 107.99 *new*

Target achieved! LLL continues to flex its relative-strength muscles. Investors quickly bought the dip and the stock actually hit a new high late this afternoon at $114.17. Our first target was the $114.00-115.00 range. Our second, more aggressive target is the $118.00-120.00 range. FYI: The P&F chart's bullish target has risen from $133 to $139. We are raising the stop loss to $107.99. Volume on today's session was very strong at almost four times the norm.

Picked on October 29 at $108.10
Change since picked: + 5.29
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 627 thousand

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Northrop Gruman - NOC - cls: 83.90 chg: -0.10 stop: 79.99

NOC is still out performing the broader market but we don't see any real changes from our previous comments. A bounce from here would work as a new entry point or if you're patient consider waiting for a dip in the $82-83 zone. We're suggesting a stop loss at $79.99 but you might be able to get away with a stop near $80.80. Our target is the $89.00-90.00 range. The P&F chart shows a bullish catapult pattern with a $92 target.

Picked on November 06 at $ 84.48
Change since picked: - 0.58
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 1.4 million

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Petro Canada - PCZ - close: 59.68 change: -0.19 stop: 54.90

Yesterday we suggested buying a dip near $59.00 or $58.00 and today PCZ cooperated with a pull back to $58.45. Traders jumped in and the stock was bouncing back this afternoon. If you missed it we would still consider new bullish call positions here. Readers might want to consider a tighter, more conservative stop loss. Our target is the $64.50-65.00 range.

Picked on November 06 at $ 59.25
Change since picked: + 0.43
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 742 thousand

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Steel Dynamics - STLD - close: 51.89 chg: +0.79 stop: 49.25

Bulls bought the dip in STLD near $50.00 and the afternoon bounce looks like a new bullish entry point to buy calls. More conservative traders may want to wait for a rise past $53.10 or $53.25 before initiating new positions. Our target is the $57.50-60.00 range. The P&F chart is bullish with a $78 target.

Picked on November 06 at $ 52.93
Change since picked: - 1.04
Earnings Date 01/23/08 (unconfirmed)
Average Daily Volume = 1.7 million

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Tesoro - TSO - close: 56.30 change: -0.34 stop: 54.59

TSO dipped back toward support near $54.75 again. The afternoon bounce looks like another bullish entry point to buy calls. However, more conservative traders may want to wait and see a little more follow through tomorrow before initiating positions. Our target is the $64.00-65.00 range.

Picked on November 06 at $ 59.13
Change since picked: - 2.83
Earnings Date 01/29/08 (unconfirmed)
Average Daily Volume = 5.4 million
 

Put Updates

None
 

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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Borg Warner - BWA - cls: 101.56 change: +0.75 stop: n/a

We are not suggesting new strangle positions. At this time we have less than two weeks left on November options. The options we suggested for a strangle were the November $100 calls (BWA-KT) and the November $90 puts (BWA-WR). Our estimated cost was $4.50. We want to sell if either option hits $7.25 or more.

Picked on October 23 at $ 95.67
Change since picked: + 5.89
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 392 thousand

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Express Scripts - ESRX - cls: 64.03 chg: +0.51 stop: n/a

ESRX has done a good job at resisting any recent profit taking. Hopefully when the market bounces this stock can post some new highs. We are no longer suggesting new strangle positions on ESRX. The options we suggested for a strangle were the November $65 calls (XTQ-KM) and the November $55 puts (XTQ-WK). Our estimated cost was $1.95. We want to sell if either option hits $3.50 or higher.

Picked on October 21 at $ 59.65
Change since picked: + 4.42
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.1 million

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Monster Worldwide - MNST - cls: 37.66 chg: -0.05 stop: n/a

There is no change from our previous comments on MNST. We are no longer suggesting new positions. The options we suggested for our strangle were the November $40 calls (BSQ-KH) and the November $35 puts (BSQ-WG). Our estimated cost is $1.75. We want to sell if either option hits $2.95 or higher.

Picked on October 23 at $ 37.22
Change since picked: + 0.44
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.0 million
 

Dropped Calls

Aracruz Celulose - ARA - cls: 73.80 chg: -0.50 stop: 72.49

The widespread selling reached a frenzy in the markets today and investors started dumping everything. ARA dipped to $70.54, near its 50-dma, before finding any sort of bottom. The stock hit our stop loss at $72.49, closing the play. We would keep an eye on ARA for a rebound back above the $77.00 zone as a potential entry point for bullish positions.

Picked on October 31 at $ 76.89
Change since picked: - 3.09
Earnings Date 10/09/07 (confirmed)
Average Daily Volume = 427 thousand

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DST Systems - DST - close: 83.49 change: -1.67 stop: 83.45

The sell-off/bearish reversal in DST continued. The stock broke down under support near $85.00 and $84.00 and its 50-dma. Shares hit our stop loss at $83.45 on its way to the intraday low of $82.16. Readers might want to keep an eye on DST. A breakdown under its 200-dma could be used as a bearish entry point while a new relative high over $87 (or the high at $88) could be used as a new bullish entry point.

Picked on November 06 at $ 87.25
Change since picked: - 3.76
Earnings Date 10/22/07 (confirmed)
Average Daily Volume = 606 thousand

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PowerShares NDX ETF - QQQQ - cls: 51.73 chg: -1.62 stop: 52.49

Tech bellwether CSCO reported earnings last night. The results were good but investors were unhappy with their forward guidance. This contributed to the sell-off in technology stocks, which witnessed heavy losses. GOOG lost $39, RIMM lost $8, AAPL lost $10. The resulting loss in the Qs produced a 3% decline and a breakdown under support. Our stop loss was hit at $52.49.

Picked on November 04 at $ 54.42
Change since picked: - 2.69
Earnings Date 00/00/00
Average Daily Volume = 125 million

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Research In Motion - RIMM - cls: 124.48 chg: -8.55 stop: 117.49

Technology stocks sold-off en masse as investors used CSCO's lackluster guidance as a reason to lock in profits. RIMM plunged from $133 to an intraday low of $115.88. Our stop was at $117.49. Shares came within a $1.00 of hitting our target yesterday. We remain bullish on RIMM and believe this was just an over-reaction. We're going to suggest readers buy today's afternoon bounce. However, given the stock's volatility we have to label it an aggressive and speculative play. Look for new details on RIMM in the new play section tonight. FYI: Today's decline did produce a brand new P&F chart sell signal with a $94 target.

Picked on November 04 at $126.95
Change since picked: - 2.47
Earnings Date 12/20/07 (unconfirmed)
Average Daily Volume = 20.9 million

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Siemens - SI - close: 155.16 change: +17.07 stop: 129.75

Target exceeded. Wow! We were not expecting today's 12% jump in SI. Given the U.S. market's sell-off yesterday we were expecting European markets to slide and for shares of SI to gap down when they reopened for trading here in the States. Instead we were lucky enough to catch a post-earnings surprise. That's right. SI reported earnings and the company announced a 9% rise in sales and a net profit well ahead of market expectations. Management's positive comments about rising new orders probably contributed to the stock's big rise. Plus, the $15 billion (or 10 billion euro) stock buy back program announced last night. The stock gapped open higher at $150.57 and traded close to $157 this afternoon. Shares had already hit our conservative target near $140. Today's gap higher was above our aggressive target in the $144.50-145.00 range so we would have been taken out at the opening trade.

Picked on October 29 at $135.54 *gap higher entry
Change since picked: +19.62
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 582 thousand

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Sina Corp. - SINA - cls: 49.88 change: -4.70 stop: 53.45

The technology sector sell-off hit the momentum names especially hard. Shares of SINA broke down under multiple levels of support and closed with a 8.6% loss. We would have been stopped out at $53.45 this morning.

Picked on October 23 at $ 53.40
Change since picked: - 3.52
Earnings Date 11/14/07 (confirmed)
Average Daily Volume = 1.0 million

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Semiconductor Holders - SMH - cls: 33.05 chg: -0.60 stop: 33.29

Semiconductors were big contributors to the technology sector sell-off. The SMH broke down to new relative lows and quickly hit our stop at $33.29.

Picked on November 06 at $ 34.41
Change since picked: - 1.36
Earnings Date 00/00/00
Average Daily Volume = 9.4 million

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Trina Solar - TSL - close: 62.43 chg: -1.24 stop: 59.85

Yesterday we wrote that solar energy stock FSLR was trading up sharply in after hours and we expected the rally in FSLR to lead the entire group higher. FSLR did gap higher and closed up with a $57 (+8.6%) gain at $224 a share. Many of the solar stocks did trade significantly higher. Unfortunately, TSL was not one of them. TSL did gap open higher at $67.97 and traded to $68.26 before suddenly plunging back through short-term support near $60 and its 10-dma. We can't find any specific news to account for the weakness. It just looks like the buyers ran out of breath. TSL hit our stop loss at $59.85 midday as it dipped to $57.80. We warned readers that this was a high-risk play but we were not expecting an $10.46 drop in less than 90 minutes on no news.

Picked on November 07 at $ 65.25
Change since picked: - 2.82
Earnings Date 11/22/07 (unconfirmed)
Average Daily Volume = 1.6 million
 

Dropped Puts

None
 

Dropped Strangles

Intl. Bus. Mach. - IBM - cls: 106.11 chg: -4.97 stop: n/a

Target achieved. A sharp sell-off in technology stocks pushed IBM down through support near $110 and its 200-dma. The stock hit an intraday low of $103.99. That was just enough to push the November $110 puts (IBM-WB) to a high of $6.20. Our suggested target to exit was $6.00. Our November strangle suggested the November $125 call (IBM-KE) and the November $110 put (IBM-WB). Our estimated cost was $3.00.

Picked on October 15 at $118.03
Change since picked: -11.92
Earnings Date 10/16/07 (confirmed)
Average Daily Volume = 7.5 million
 

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