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Call Updates

AGCO Corp. - AG - close: 59.69 change: +0.60 stop: 57.75

AG is rebounding back toward the top of its trading range and resistance near $60.00. We're still waiting for a breakout over $60.00. More aggressive traders might want to jump in early now with a stop under the May 14th low. We're sticking to our plan with a suggested entry point to buy calls at $60.40. If triggered at $60.40 our short-term target is the $64.90-65.00 range. FYI: The P&F chart is bullish with a $71 target.

Suggested Options:
If triggered we would suggest the June or August calls.

BUY CALL JUN 60.00 AG-FL open interest=949 current ask $3.20
BUY CALL JUN 65.00 AG-FM open interest=296 current ask $1.35

BUY CALL AUG 60.00 AG-HL open interest=219 current ask $5.80
BUY CALL AUG 65.00 AG-HM open interest=261 current ask $3.70

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/08 (confirmed)
Average Daily Volume = 1.8 million

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CNOOC - CEO - close: 192.08 change: +0.57 stop: 183.49

Shares of CEO turned in an $11 gain for the week. The trend is bullish but it might be time for a little correction. A dip or bounce near $185 could be used as a new entry point to buy calls. Our target is the $199.00-200.00 range. More aggressive traders might want to aim for the highs near $215. FYI: We have to label this a more aggressive play because the option spreads are so wide!

Suggested Options:
If CEO provides another entry point we would use the June calls.

Picked on May 06 at $183.47
Change since picked: + 8.61
Earnings Date 04/28/08 (confirmed)
Average Daily Volume = 548 thousand

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CF Ind. - CF - close: 139.79 chg: +1.06 stop: 129.90

The fertilizer-agriculture stocks are still trending higher. Potash (POT) appears to be showing a little relative strength in the group. CF keeps trying to breakout over the $142 level. The trend of higher lows suggest that it will be successful eventually. More conservative traders will want to seriously consider raising their stop loss toward the $135 level, which was short-term support last week. A dip near $135 or a new move over $142 could be used as alternative entry points to buy calls. Our target is the $155.00-160.00 range.

Suggested Options:
We would suggest the June or August calls.

Picked on May 05 at $137.50 *triggered
Change since picked: + 2.29
Earnings Date 04/27/08 (unconfirmed)
Average Daily Volume = 3.1 million

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Carbo Ceramics - CRR - close: 49.02 change: +0.48 stop: 44.89

We're actually a little surprised that CRR hasn't performed better. The oil service stocks soared to new highs and yet CRR is still trading under resistance near $50.00. The trend is bullish but until CRR clears the $50.00 level bulls are facing a potential double-top pattern. We're not suggesting new positions at this time. We're aiming for the $52.00-52.50 zone.

Suggested Options:
We're not suggesting new positions in CRR at this time.

Picked on May 11 at $ 47.45
Change since picked: + 1.57
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 303 thousand

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Cytec Ind. - CYT - close: 63.77 change: +0.77 stop: 59.95 *new*

CYT was not off to a fast start back in late April but shares have delivered two weeks of gains. This past week saw CYT breakout over resistance at its 200-dma and the $62 level. The stock hit an intraday high of $64.15 on Friday. Our initial target is the $64.75-65.00 range. We do have a secondary, aggressive target at $68.00 but we strongly suggest you do some profit taking at our first target. We're inching up our stop loss to $59.95. We have to label this a more aggressive play because the spreads on the options are pretty wide. There isn't much we as traders can do about that except try to minimize its impact with good entry and exit strategy.

Suggested Options:
We're not suggesting new positions in CYT at this time.

Picked on April 27 at $ 60.64
Change since picked: + 3.13
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 556 thousand

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Express Scipts - ESRX - close: 71.11 chg: -1.06 stop: 69.75 *new*

We are suggesting that readers turn a little defensive on ESRX. The rally seems to have stumbled a bit on Thursday and Friday. Looking at the intraday chart ESRX has not yet broken its trendline of support and that actually makes this dip a new entry point to buy calls. However, we're inching up our stop loss to $69.75. If ESRX breaks down we want to be stopped out pretty quickly. Short-term technical indicators have rolled over so more conservative traders might want to wait for a bounce before initiating new positions. We do expect some resistance at $74.25 but our target is the $77.00-80.00 range. More conservative traders will want to consider taking some profits off the table near $75.00. The Point & Figure chart is bullish with a $81 target.

Suggested Options:
We would suggest the June or August calls.

Picked on May 08 at $ 70.96
Change since picked: + 0.15
Earnings Date 04/29/08 (confirmed)
Average Daily Volume = 2.8 million

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Fortune Brands - FO - close: 71.36 change: +0.18 stop: 69.45 *new*

Last week was definitely bullish for FO. The stock finally broke through resistance near $70.00 after more than two weeks of trying. Most of the technical indicators have turned positive. The short-term trend in the stock suggest a bullish move over $71.50 soon. We are adjusting our stop loss to $69.45. Broken resistance at $70 should be new support. Our target is the $74.00-75.00 range. The 200-dma is technical resistance near $74.50. The P&F chart is bullish with a $95 target.

Suggested Options:
A dip near $70 could be used as a new bullish entry point. We are suggesting the June or September calls.

Picked on May 07 at $ 70.05 *triggered
Change since picked: + 1.31
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 971 thousand

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Harsco - HSC - close: 62.98 change: +0.09 stop: 59.85

The trend in HSC is still bullish. The stock's pattern of higher lows suggest it will break through resistance near $63.00 eventually. HSC tried to rise past the $63 zone twice on Friday. We're not suggesting new positions at this time. Our target is the $64.50-65.00 range but more aggressive traders may want to aim higher.

Suggested Options:
We're not suggesting new positions at this time.

Picked on May 01 at $ 60.38
Change since picked: + 2.60
Earnings Date 04/22/08 (confirmed)
Average Daily Volume = 613 thousand

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Intl.Bus.Mach. - IBM - cls: 127.82 chg: -0.64 stop: 123.49*new*

Last week was positive for IBM. The stock broke out from a three-week trading range and past resistance near $125. While the trend is bullish shares look a little tired and like they want to pull back to retest $125 as new support. Short-term traders could buy a dip near $125 but consider raising your stop to the $124-125 zone. We are adjusting our stop loss to $123.49. Our target is the $129.50 mark so prepare to exit.

Suggested Options:
We're not suggesting new positions at this time. If IBM provides a new entry point we would use the June or July calls.

Picked on April 30 at $120.75 */1st target achieved 124.90
Change since picked: + 7.07
Earnings Date 04/16/08 (confirmed)
Average Daily Volume = 8.8 million

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iShares Russ.2000 - IWM - cls: 73.95 chg: +0.40 stop: 70.90*new*

The trend in the Russell 2000 small cap index is bullish. The IWM mirror of the RUT has found support near $73.00 more than once in the last few days. This is encouraging. We're raising our stop loss to $70.90. It's possible the $75.00 level might offer round-number resistance but technically shares look strong following last week's breakout over the exponential 200-dma. Our multi-week target is the $77.50-80.00 zone. The P&F chart is bullish with an $87 target.

Suggested Options:
We're not suggesting positions at this time but a dip near $73.00 or $72.50 could be used as a potential entry point.

Picked on April 28 at $ 72.55 *triggered
Change since picked: + 1.40
Earnings Date 00/00/00
Average Daily Volume = 84.6 million

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Joy Global - JOYG - close: 81.93 chg: +1.63 stop: 76.90 *new*

It was a rocky week for JOYG but the stock rallied of its lows near $77 and ended at new all-time highs. We are still suggesting that readers take profits now. Our secondary, more aggressive target is the $84.00-85.00 range. We will plan to exit ahead of the May 29th earnings report. The P&F chart is already bullish with an $88 target. Note: We are raising the stop loss to $76.90.

Suggested Options:
We're not suggesting new positions at this time.

Picked on April 16 at $ 72.55 */ fist target exceeded
Change since picked: + 9.38
Earnings Date 05/29/08 (confirmed)
Average Daily Volume = 2.3 million

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Mosaic - MOS - close: 129.66 change: +0.73 stop: 123.24 *new*

The fertilizer-ag stocks want to go higher but MOS gave back most of its early morning gains on Friday. Shares are trying to breakout over the $130.00 level. The trend of higher lows suggests MOS will breakout. We are suggesting new positions now although a dip in the $127-126 zone could be an alternative entry point. Or you could wait for a new rise over $130 again. We are raising the stop loss to $123.24. Our first target is the $138.00-140.00 range.

Suggested Options:
We are suggesting the June calls.

Picked on May 05 at $126.75 *triggered/gap higher entry
Change since picked: + 2.91
Earnings Date 07/30/08 (unconfirmed)
Average Daily Volume = 7.4 million

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Nucor - NUE - close: 82.07 change: +0.63 stop: 77.45 *new*

NUE was actually downgraded on Friday morning but shares shrugged it off and spiked to a new high at $83.10. The stock's bullish trend of higher lows is forecasting another surge higher soon. We're adjusting our stop loss to $77.45 and we're still suggesting that readers take profits right now even though NUE has not yet hit our second target at $84.00.

Suggested Options:
We are not suggesting new positions in NUE at this time.

Picked on April 22 at $ 74.63 /1st target exceeded 79.50
Change since picked: + 7.44
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 5.6 million

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Oil Services HOLDRs - OIH - close: 214.96 chg: +5.72 stop: 199.00

The oil service sector was a market leader on Friday. The OIH rallied 2.7% and the OSX index soared almost 3%, both to new highs. The breakout over $210 on the OIH is definitely bullish. We'd be tempted to skim some profits off this play right now. Our current target is $219.00-220.00. FYI: The Point & Figure chart is forecasting a staggering $306 price target.

Note: Crude oil might see some profit taking after Monday this week. Any significant drop will probably spark profit taking in the oil service stocks as well. Monitor your stops and consider taking some money off the table, especially if the OIH rises again on Monday.

Suggested Options:
We're not suggesting new positions at this time.

Picked on May 13 at $206.78
Change since picked: + 8.18
Earnings Date 00/00/00
Average Daily Volume = 7.1 million

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Reliance Steel - RS - close: 68.15 chg: +0.47 stop: 59.99

I don't want to disagree with Jim in his wrap this weekend but I suspect that the market might see a dip this week. I agree that the trend is up but stocks look like they need a rest. We are going to stick to our plan to buy a dip in RS. It may take a few days. If RS doesn't hit our trigger by the end of the week we'll drop it. Our suggested entry point is a pull back into the $64.75-64.00 zone. If triggered we're setting two targets. Our first target is the $69.50-70.00 range. Our secondary, more aggressive target is the $73.00-75.00 range. The P&F chart is bullish with a $73 target.

Suggested Options:
If RS hits our trigger we are suggesting the June calls.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 851 thousand
 

Put Updates

None
 

Strangle Updates

None
 

Dropped Calls

Foster Wheeler - FWLT - cls: 79.60 chg: +0.97 stop: 71.46

Target achieved. FWLT continued to rise on Friday and shares hit $79.97 with bulls challenging resistance near $80.00 twice during Friday's session. Our second target was the $79.50-80.00 zone. The play is now closed.

Picked on May 13 at $ 71.46 *gap higher entry/1st target hit
Change since picked: + 8.14
Earnings Date 05/07/08 (confirmed)
Average Daily Volume = 3.4 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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