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Call Updates

Constellation Energy - CEG - cls: 99.05 chg: -1.51 stop: 94.45

One day after hitting new highs CEG pulled back thanks to a very widespread market sell-off. Readers can use the decline as a new bullish entry point. However, we would suggest waiting for the dip to hit short-term support near $98.00 before jumping in. If you're feeling conservative then readers might want to raise their stop loss toward $96.00. The trend remains bullish. Our target is the $107.50-110.00 range.

Picked on November 20 at $100.56
Change since picked: - 1.51
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.3 million

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Express Scripts - ESRX - close: 64.36 chg: -1.34 stop: 61.14

Trading in ESRX took on a bearish tone this Wednesday. The stock hit profit taking this morning and the afternoon bounce failed pretty quickly. Shares closed near their lows for the session. We would expect a dip near $63.50 or the $62.00 level should the markets continue lower. Wait for signs of a bounce before considering new bullish call positions. Readers may want to use a tighter stop loss. The P&F chart is bullish with a $97 target. Our short-term target is the $69.50-70.00 range.

Picked on November 13 at $ 64.67
Change since picked: - 0.31
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.4 million

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Gilead Sciences - GILD - cls: 43.06 change: -0.69 stop: 41.74

Investors will want to turn defensive on biotech stocks. The BTK biotech index just broke down to new two-month lows and closed under technical support at its 200-dma. GILD has been out performing its peers but the intraday action is starting to grow more bearish. More conservative traders will want to consider higher stops or an early exit. AT this time we would expect a decline in GILD toward the 50-dma around $42.70 or a dip back toward $42.00. Wait for signs of a bounce before considering new bullish positions but overall we would hesitate to open new call positions at this time. Our target is the $47.00-48.00 range. There might be some resistance its 10-dma near $45.00.

Picked on November 13 at $ 43.11
Change since picked: - 0.05
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.6 million

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ExxonMobil - XOM - close: 87.02 chg: -0.80 stop: 82.99

Crude oil futures traded over $99 a barrel last night in after hours markets but the commodity traded lower, down 74 cents, to $97.29 a barrel during the regular session. Meanwhile the oil stocks failed to be any sort of safe haven during the market weakness. Shares of XOM did not see any follow through on yesterday's impressive rebound. At this time we would expect further declines in XOM. The question is where will traders buy the dip? Look for potential entries on a bounce at $86, 85, and 84. More conservative traders might want to adjust their stops toward $84.00. Our target is the $92.50-95.00 range. More conservative traders may want to lock in some gains near $90.00.

Picked on November 13 at $ 86.75
Change since picked: + 0.27
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 24.2 million
 

Put Updates

Canadian Pacific - CP - cls: 61.59 change: -1.27 stop: 66.26

CP continues to slip and the stock hit new six-month lows today. We do not see any changes from our previous comments although more conservative traders might want to tighten their stops. Do not be surprised to see an oversold bounce near $60.00. Our target is the $57.50-57.00 range. The Point & Figure chart is bearish and points to a $51 target

Picked on November 19 at $ 62.85
Change since picked: - 1.26
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 553 thousand

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ESSEX Property - ESS - close: 102.29 change: +0.48 stop: 107.31

ESS produced an oversold bounce today after traders bought the dip near $99.00 again. A failed rally under the 10-dma (near $104) or a new decline under $101.50 could be used as a new bearish entry point for puts. Our target is support in the $94.00-93.00 range. The P&F chart is much more bearish with a $78 target.

Picked on November 20 at $101.75
Change since picked: + 0.54
Earnings Date 10/31/07 (confirmed)
Average Daily Volume = 272 thousand

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J.B.Hunt - JBHT - close: 24.33 change: -0.67 stop: 27.05

JBHT actually gapped down this morning and opened at $24.41. The stock spent the rest of the day trading sideways and lost 2.68% by the closing bell. Volume was big on the decline, which is normally a bearish sign. Do not be surprised to see an oversold bounce back toward what should be support near $26.00 and its 10-dma. A failed rally under $26 could be used as a new bearish entry point. Our target is the $22.50-22.00 range. Today's move has produced a brand new P&F chart sell signal with a $20 target.


Picked on November 20 at $ 24.95
Change since picked: - 0.62
Earnings Date 01/29/08 (unconfirmed)
Average Daily Volume = 1.8 million

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PACCAR - PCAR - close: 47.68 change: +0.23 stop: 50.81

We warned readers to expect an oversold bounce toward the 10-dma and PCAR delivered one today. A new decline under $47.00 could be used as a new bearish entry point of a failed rally under $50.00. Our target is the $42.50-42.00 range. The Point & Figure chart is forecasting at $38 target.

Picked on November 16 at $ 46.99 *triggered
Change since picked: + 0.69
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.7 million

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Regency Centers - REG - cls: 66.22 chg: +0.83 stop: 72.01

REG hit a new three-month low this morning before bouncing back and closing up on the session. The overall trend remains bearish. Watch for a failed rally near $68.00 as a new bearish entry point. More conservative traders may want to use a tighter stop near $70. Our suggested stop is above resistance near $72.00. Our target is the $62.50-62.00 range near the August 2007 lows.

Picked on November 18 at $ 67.56
Change since picked: - 1.34
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 570 thousand
 

Strangle Updates

None
 

Dropped Calls

Goodrich Corp. - GR - close: 68.48 change: -1.54 stop: 67.90

Today's weakness in GR has changed our mind. It's time to abandon ship. The stock broke down under technical support at its rising 50-dma. Both daily and weekly technical indicators have turned bearish. Shares of GR look poised to fall toward the 100-dma in the $65-66 zone. We'd rather exit now and cut our losses.

Picked on November 05 at $ 71.05
Change since picked: - 2.57
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 1.0 million

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Las Vegas Sands - LVS - cls: 110.45 chg: -3.53 stop: 109.90

Investors quickly sold into strength and erased yesterday's bounce from support near the $110 level. Furthermore the early morning weakness in LVS hit an intraday low of $109.16, thus we've been stopped out at $109.90. The reversal of yesterday's bounce is bad news and LVS looks poised to breakdown further. Nimble traders willing to stand the volatility might want to consider bearish positions on a break below today's low. Look for support near $105 and again near $100.

Picked on November 08 at $111.60
Change since picked: - 1.15
Earnings Date 11/02/07 (confirmed)
Average Daily Volume = 4.0 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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