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Call Updates

Constellation Energy - CEG - cls: 98.42 chg: -0.73 stop: 94.45

CEG surprised us with some relative weakness today. The stock ignored the market's strength and shares lost 07%. Volume came in above average as well, which is a concern and suggests the stock might be seeing some "distribution". However, the overall trend is still bullish. A bounce from here or a new move over $100-101 could be used as a new bullish entry point. 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: - 2.14
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.3 million

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Energizer - ENR - close: 109.68 chg: -1.53 stop: 104.99

Hmmm... ENR also got lost in the market's rally today. Investors seemed to ignore it for equities that have been beaten down. Traders did buy the dip midday at $108. A new rally past $110 can be used as a new bullish entry point. Our target is the $119.00-120.00 range. We'll use a stop loss at $104.99 but more conservative traders could probably get away with a tighter stop near $107.50 or 109. The P&F chart points to a $157 target.

Picked on November 26 at $112.75 *triggered
Change since picked: - 3.07
Earnings Date 01/28/08 (unconfirmed)
Average Daily Volume = 511 thousand

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Express Scripts - ESRX - close: 65.69 chg: +2.92 stop: 62.45

Wow! What a difference a day can make. This morning, before the opening bell, ESRX issued positive earnings surprise and raised guidance for fiscal year 2008. Investors reacted and the stock gapped open higher and closed up with a 4.6% gain. Volume came in strong at close to double the daily norm. ESRX now looks poised to breakout over the $66.00 level soon. A rally over $66 can be used as a new bullish entry point. Our target is the $69.50-70.00 range.

Picked on November 13 at $ 64.67
Change since picked: + 1.02
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.4 million

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Flowserve - FLS - cls: 89.88 change: +0.09 stop: 88.45

We are surprised that FLS did not hit our stop loss today. Yesterday shares produced a bearish reversal pattern. The stock did trade lower, displaying more relative weakness today, but traders bought the dip near $88.50 (actual low was $88.48). We would wait for a rebound back above $92.00 before considering new bullish positions.

Picked on November 25 at $ 93.04
Change since picked: - 3.16
Earnings Date 02/28/08 (unconfirmed)
Average Daily Volume = 724 thousand

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Gilead Sciences - GILD - cls: 44.49 change: +2.58 stop: 41.74

Here is another example of how one day can make a huge difference. Yesterday the stock was breaking down and shares looked poised to crash lower. Today GILD gaps open higher at $42.66 and rallies to a 6.15% gain on above average volume. This move breaks the short-term trend of lower highs but GILD still has some resistance at the $45.00 mark. Today's rally also makes yesterday's dip look like a bullish double-bottom pattern. Aggressive traders may want to buy this bounce but after a 6% move the options probably look expensive. Our target is the $47.00-48.00 range.

Picked on November 13 at $ 43.11
Change since picked: + 1.38
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.6 million

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Synaptics Inc. - SYNA - close: 56.58 chg: +0.46 stop: 50.95

SYNA continues to look strong. Shares may have under performed the market's performance today but the overall pattern is still bullish. We would still consider new positions here. Our short-term target is the $61.50-62.00 range. The P&F chart is bullish with a $65 target.

Picked on November 26 at $ 56.55 *triggered
Change since picked: + 0.03
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 1.1 million

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ExxonMobil - XOM - close: 86.31 chg: +0.63 stop: 82.99

Oil stocks were the laggards today. XOM traded lower this morning. Yet bulls were ready and waiting and traders bought the dip (more than once) near $84.00 and its exponential 200-dma. Today's afternoon bounce in XOM looks like a new bullish entry point to buy calls. More conservative traders might want to adjust their stops toward $84.00. We are leaving our stop under the 200-dma. Our target is the $92.50-95.00 range. More conservative traders may want to lock in some gains near $90.00. More aggressive traders might want to narrow their exit range to the $94-95 zone.

Picked on November 13 at $ 86.75
Change since picked: - 0.44
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 24.2 million
 

Put Updates

Celgene - CELG - close: 62.34 change: +1.93 stop: 63.01

Given today's strength in the major indices traders jumped in to buy the dip in CELG near support at $60.00. Fortunately, we're still on the sidelines waiting for a breakdown under support. Nimble traders could actually try buying calls here with a stop loss just under $60.00 if you think this market bounce has any legs. We're going to stick with our bearish bias for now. We're suggesting a trigger to buy puts at $59.90. If triggered our target is the $55.25-55.00 zone. Please note that any time you play a biotech company there is a higher level of risk. You never know when there will be a positive or negative press release about some drug, some clinical trial or some news from the FDA or a rival that could send shares of a biotech stock gapping either direction.

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 4.3 million

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Canadian Pacific - CP - cls: 63.53 change: +3.10 stop: 65.26

Ouch! CP just erased all of our unrealized gains with today's 5.1% rally. Volume came in above average on the move, which is good news if you're a bull. We warned readers to expect a bounce near round-number support at $60.00 but we were looking for the 10-dma to act as overhead resistance. The $64.00 mark and the $65.00 level both have potential to be overhead resistance. We're not suggesting new positions at this time.

Picked on November 19 at $ 62.85
Change since picked: + 0.68
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 553 thousand

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ESSEX Property - ESS - cls: 100.25 chg: +0.97 stop: 105.55*new*

Some of the REITs were downgraded today. ESS was not one of them and shares managed a minor bounce back above the $100 level. Today's rebound does look like a short-term "reversal" pattern but ESS still has plenty of resistance in the 102-105 zone. We are going to adjust our stop loss to $105.55 just in case the market does continue higher. 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: - 2.47
Earnings Date 10/31/07 (confirmed)
Average Daily Volume = 272 thousand

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J.B.Hunt - JBHT - close: 24.52 change: +0.39 stop: 26.11

JBHT continued to sink this morning and hit $23.60 before rebounding. The bounce was pretty sharp, up 3.8% from its intraday low. We don't think the bounce is over yet and readers watch for resistance near $25.00 or its 10-dma near $25.35. Our target is the $22.50-22.00 range. The new P&F chart sell signal has seen the price target fall from $20 to $18.

Picked on November 20 at $ 24.95
Change since picked: - 0.43
Earnings Date 01/29/08 (unconfirmed)
Average Daily Volume = 1.8 million

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PACCAR - PCAR - close: 48.12 change: +1.80 stop: 50.26

PCAR reversed yet again. Shares almost erased yesterday's losses. Wait and watch for another failed rally (at $49.00 or $50.00) before considering new bearish positions. 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: + 1.13
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.7 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

Apollo Group - APOL - close: 75.55 change: +5.53 stop: 73.01

The action in APOL today looks like a short squeeze. There was no news and yet shares rallied almost 8%. Yesterday's dip under support at $70.00 was enough to hit our suggested trigger at $69.75 and the move now looks like a bear trap. We would have been stopped out at $73.01 today.

Picked on November 26 at $ 69.75 *triggered
Change since picked: + 5.80
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.4 million

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Regency Centers - REG - cls: 64.03 chg: +1.42 stop: 67.51

Target achieved. After yesterday's big sell-off an oversold bounce is not such a surprise but REG dipped to $62.34 before bouncing. Our target was the $62.50-62.00 range.

Picked on November 18 at $ 67.56
Change since picked: - 3.53
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 570 thousand
 

Dropped Strangles

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