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Call Updates

AGCO - AG - close: 59.09 change: +1.28 stop: 48.99

Hmm.. we may have been too conservative with our suggested entry point. Over the weekend we listed AG as a bullish candidate and suggested that readers buy calls on a dip into the $51.50-50.00 zone. AG gapped open lower at $54.34 this morning and dipped to $53.00 before rocketing higher again. The stock rallied to round-number resistance at $60.00 and closed up with a 2.3% gain. We're not completely convinced that the bottom is behind us so we're going to keep AG on the list and stick with our $51.50-50.00 entry zone for now although we would seriously consider buying another dip near $53.00 if one appeared. We do not want to hold over the February 7th earnings report. Please note that we're adjusting our target from $56.00-57.60 to $58.00-60.00.

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/07/08 (confirmed)
Average Daily Volume = 1.8 million

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Blackstone - BX - close: 18.77 chg: +0.10 stop: 17.24

The morning market meltdown sent shares of BX toward the January lows and the stock bounced at $17.25. This is an 8.5% rebound off its intraday lows. The trend is still bearish with a pattern of lower highs but readers might want to consider buying calls on another dip into the $18.00-17.50 region. Remember, this is a high-risk, speculative play. We do not want to hold over the February earnings report. Our target is the $24.00-25.00 range for now but we'll probably need to adjust that and will do so once it looks like BX has produced a bottom.

Picked on January 10 at $19.84
Change since picked: - 1.07
Earnings Date 02/11/08 (unconfirmed)
Average Daily Volume: 2.7 million

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Caterpillar - CAT - close: 63.82 change: +1.01 stop: 59.45 *new*

If you bought the opening dip in CAT this morning then you should be looking at some decent gains. The stock gapped open at $59.60, which proved to be the low of the day. CAT managed a 7% rebound off its lows. We were suggesting that readers buy calls in the $60.50-59.50 zone. Our suggested exit target is $64.50-65.00 and CAT hit an intraday high at $64.45 this afternoon. We would STRONGLY consider taking profits right here if you did jump in this morning. We are adjusting our stop loss to $59.45. Our target will remain unchanged but more aggressive traders may want to aim a couple of points higher. We have to be out of the play by Thursday night. CAT reports earnings on Friday morning and we do not want to hold over the report.

Picked on January 22 at $ 59.60 *triggered
Change since picked: + 4.22
Earnings Date 01/25/08 (confirmed)
Average Daily Volume = 6.0 million

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Foster Wheeler - FWLT - cls: 127.13 chg: -2.81 stop: 118.99

We strongly suggest readers take some profits right here if you did enter FWLT this morning. We were suggesting readers buy a dip into the $123.00-120.00 zone. Our target was the $132.50-135.00 range. FWLT experienced a $12.00 intraday range (almost) with the gap dip to $119.12 and the bounced back to $131.00. The sad news here is that FWLT's rebound failed right at its bearish trendline of lower highs. That does not bode well for tomorrow thus we suggest readers take some money off the table. If FWLT continues lower we would expect another bounce near $120 again and we would be willing to consider buying calls again on a pull back into the $121.00-120.00 zone.

It is IMPORTANT to note that FWLT should begin trading split adjusted for a 2-for-1 stock split on Wednesday. We thought it was Tuesday. This means our suggested entry zone will become the $60.50-60.00 range. Our stop will be $59.49. Our target will be $66.25. The option symbols listed today will change due to the split.

Picked on January 22 at $120.00 *triggered
Change since picked: + 7.13
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.6 million

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Henry Schein - HSIC - cls: 60.79 chg: -2.11 stop: 59.90

Which entry point did you pick? Our official entry point for HSIC is $64.01 as we wait for a breakout but we did suggest an alternative entry to consider on a dip near $60.00. Shares it $60.11 this morning. The $60 level should be bolstered by technical support with its 50-dma. Looking at the chart it suggests that HSIC might retest the $60 level again soon. If we see another bounce we might adjust our entry point to buy the rebound. Our target is the $69.00-70.00 range.

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume = 623 thousand
 

Put Updates

None
 

Strangle Updates

None
 

Dropped Calls

Cleveland Cliffs - CLF - cls: 91.07 change: -0.77 stop: 83.90

Our strategy in CLF would have worked perfectly. We were suggesting readers buy a dip near $85.00 and exit in the $92.50-95.00 range. The intraday high was $92.52. Unfortunately, the stock opened at $86.00 and dipped to $82.86 before bouncing back. Our stop appears to have been too tight at $83.90. The play has been opened and closed on the same day but we are going to keep an eye on CLF for another dip near $85 again.

Picked on January 22 at $ 85.50 *triggered /stopped 83.90
Change since picked: + 5.57
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume = 1.3 million

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Covance - CVD - cls: 86.87 change: -3.07 stop: 86.45

The market panic this morning sent shares of CVD crashing lower. Shares opened at $85.42 and dipped to $84.00 before bouncing back. Unfortunately, our stop loss was at $86.45 so we would have been stopped out at the opening trade. The move today is very bearish with the breakdown and close under its 50-dma and the bottom of its rising channel.

Picked on January 18 at $ 90.50 *triggered / gap down 85.42
Change since picked: - 3.63
Earnings Date 01/30/08 (confirmed)
Average Daily Volume = 395 thousand

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Flowserve - FLS - close: 83.19 change: +2.01 stop: 74.45

Target achieved! Our play on FLS has been opened and closed in the same session. We suggested readers buy a dip in the $77.00-75.00 zone and exit in the $84.00-85.00 range. The morning drop pushed FLS to $75.29 and shares hit an intraday high of $84.35.

Picked on January 22 at $ 77.00 *triggered
Change since picked: + 6.19
Earnings Date 02/28/08 (unconfirmed)
Average Daily Volume = 664 thousand

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Genzyme - GENZ - close: 76.49 change: -0.34 stop: 74.95

Investor panic sent shares of GENZ to an intraday low of $74.00. We had warned readers that GENZ didn't have significant support until $74.00 but we were not expecting such a sharp decline. Shares opened this morning at $74.63, which was underneath our stop loss at $74.95, closing the play. In spite of the recent sell-off the overall pattern for GENZ is still bullish. We would keep it on our watch list.

Picked on January 13 at $ 78.56 stopped 74.63/gap down exit
Change since picked: - 2.07
Earnings Date 02/13/08 (unconfirmed)
Average Daily Volume = 2.5 million

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L-3 Comm. - LLL - cls: 101.99 change: -1.44 stop: 98.90

We could argue that our stop loss was too tight with LLL. However, the rebound wasn't very impressive so we might be better off being stopped out. Shares of LLL gapped down at $98.63. This was outside of our suggested entry zone of $99.50-101.00. The stock sank to an intraday low of $97.21. However, LLL rebounded and hit $99.50 opening the play. Unfortunately, there was a late morning pull back and LLL dipped again to $98.23. With our stop loss at $98.90 we would have been closed out of our positions. Sometimes, during a volatile session, that's just how it goes.

Picked on January 22 at $ 99.50 *triggered /stopped 98.90
Change since picked: + 2.49
Earnings Date 01/31/08 (confirmed)
Average Daily Volume = 1.0 million
 

Dropped Puts

Liberty Media - LCAPA - cls: 102.02 chg: -1.02 stop: 110.05

Target achieved. Shares of LCAPA did not see the steep fall that the rest of the market did but shares still dipped to the $100.00 mark. Our target was the $100.25-100.00 range. The stock is very oversold and this looks like a good spot for a bounce.

Picked on January 15 at $107.49 *triggered /exit $100.25
Change since picked: - 5.47
Earnings Date 02/00/08 (unconfirmed)
Average Daily Volume = 653 thousand

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Priceline.com - PCLN - cls: 96.54 chg: +3.56 stop: 100.51

It was a real struggle to decide how we wanted to play PCLN tonight. Long-term the stock's bullish trend looks broken although an optimist could argue this is just a significant retracement in the stock's two-year up trend. Super short-term today's session produced a bullish engulfing candlestick pattern, which is normally seen as a bullish reversal. Plus, this move follows an inside day from Friday. Plus, the intraday low today almost looks like a mini-double bottom combined with Thursday's low. Yet on the bearish side of things the rally stalled right where it was supposed at resistance near its 10-dma and 100-dma near $98.50. This is under round-number resistance at $100 and happens to line up almost perfectly with the bearish trendline of lower highs. In the end we decided to just exit early right here and cut our losses. More aggressive traders could leave the play open and hope that resistance near $100 holds. We would rather exit now and wait and watch for another failed rally, probably near the $105 level or its 50-dma.

Picked on January 17 at $ 93.99 *triggered
Change since picked: + 2.55
Earnings Date 02/12/08 (unconfirmed)
Average Daily Volume = 1.6 million

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Shire Plc - SHPGY - close: 60.21 change: -2.65 stop: 68.07

Target exceeded! It was a very ugly day for SHPGY. The stock gapped open lower at $57.72 and hit $57.61 before bouncing back. Our secondary target was the $62.00-60.00 zone so we would have exited at the opening trade. Shares are way oversold and due for a bounce back.

Picked on December 13 at $ 68.07 *triggered/gap down entry & exit
Change since picked: - 7.86
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume = 956 thousand
 

Dropped Strangles

None
 

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