In Play Updates and Reviews, Tuesday, June 16, 2009 2:42:43 AM TEST TEST by James Brown Click here to email James Brown

Amazon.com - AMZN - close: 84.08 change: -1.61 stop: 77.45

Short-term profit taking on Friday brought AMZN to an intraday low of $82.01. Our trigger to buy calls was at $82.50 so our play is now open. Bulls rushed in to buy the dip and the stock pared most of its losses. Keep an eye on the $85.00 level. If we don't see AMZN quickly reclaim the $85.00 mark it could be cause for worry.

Our first target is $89.00. Our second target is $97.50. The P&F chart has produced a new buy signal with a $101 target.

Suggested Options:
I am suggesting the July or October calls but prefer the Julys. We plan to exit before AMZN's late July earnings.

Annotated Chart:

Picked on     June 12 at $ 82.50 *triggered     
Change since picked:      + 1.58
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       6.9 million  
Listed on  June 01, 2009         

Apollo Group - APOL - close: 64.41 change: +0.31 stop: 60.99

APOL's intraday bounce on Friday might be a good bullish entry point. Shares tested the simple 50-dma again and produced another higher low. Unfortunately volume has been light all week including Friday. I'm suggesting readers stick to our original plan and wait for a breakout over $66.00.

Our trigger to buy calls is at $66.10. If triggered our first target to take profits is $69.95. Our second target is $74.00. I consider this somewhat aggressive because APOL has technical resistance at its 200-dma and 100-dma. The Point & Figure chart is forecasting an $82 target. We do not want to hold over the late June earnings report. We will plan to exit on Friday, June 26th or Monday, June 29th.

Suggested Options:
I am suggesting the July calls. I prefer the $65 or $70 strikes.

Annotated Chart:

Picked on     June xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           06/29/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 08, 2009         

Allegheny Tech. - ATI - close: 41.88 change: -1.38 stop: 35.70

Commodity-related stocks started to see some profit taking on Friday. It may not be over yet. Look for a bounce in the $40-38 zone as a possible entry point. More conservative traders might want to raise their stop loss. Our first target is $44.85. Our second target is $49.45.

Suggested Options:
If ATI provides a new entry point I would use the July or October calls. We will plan to exit before the late July earnings report.

Annotated Chart:

Picked on     June 04 at $ 40.83 *gap higher entry
                               /originally listed at $40.36
Change since picked:      + 1.05
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       3.0 million  
Listed on  June 04, 2009         

Alliant Tech - ATK - close: 90.67 change: +0.61 stop: 87.75

ATK provided a nice entry point on Friday. Shares dipped to the $89.00 level and quickly bounced. I suggested readers look for a pull back near the 10-dma. If you missed it I would still open positions now. The MACD is about to produce a new buy signal. The P&F chart produced a new triple-top breakout buy signal with a $143 target. Our first target is $94.90. Our second target is $99.85.

Suggested Options:
I am suggesting the July or August calls. We will plan to exit before the early August earnings.

Annotated Chart:

Picked on     June 10 at $ 90.39
Change since picked:      + 0.18
Earnings Date           08/06/09 (unconfirmed)
Average Daily Volume =       557 thousand 
Listed on  June 10, 2009         

Peabody Energy - BTU - close: 35.66 change: -1.12 stop: 32.99

BTU did erase Thursday's gains but traders were buying the dip on Friday afternoon near $35.00. This looks like a new bullish entry point to buy calls. Our first target is $39.45. FYI: The P&F chart is very bullish with a $55 target.

Suggested Options:
I am suggesting the July or September calls but I prefer the Julys.

Annotated Chart:

Picked on     June 04 at $ 35.90 /gap higher entry
                               /originally listed at $35.31
Change since picked:      - 0.24
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       6.8 million  
Listed on  June 04, 2009         

Core Labs - CLB - close: 91.84 change: -1.90 stop: 89.49

Our bullish play on CLB is open. The plan was to buy calls on a dip at $92.60. I could have said $91.00 instead. The stock dipped toward the 20-dma before traders started buying the pull back. Volume was pretty light on the session. If you haven't opened positions yet I would still do so now.

Our first target is $99.00. I would exit the majority of your position there at $99.00. We're setting a secondary target for $107.00 but CLB will have to breakout past what could be very tough resistance at $100. FYI: The Point & Figure chart is bullish with a $125 target.

Suggested Options:
I'm suggesting the July calls. It is always up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL JUL 90.00 CLB-GR open interest=  38 current ask $5.70
BUY CALL JUL 95.00 CLB-GS open interest=2123 current ask $3.10
BUY CALL JUL 100.0 CLB-GT open interest= 396 current ask $1.65

Annotated Chart:

Picked on     June 12 at $ 92.60 *triggered     
Change since picked:      - 0.76
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       216 thousand 
Listed on  June 11, 2009         

EOG Resources - EOG - close: 77.62 change: +0.53 stop: 70.95

EOG continues to look very strong. This stock looks poised to breakout over resistance near $79-80 soon. I suggested looking for a dip near $75.50 and EOG hit $75.59 on Friday morning. I would still buy calls now but if you think the oil sector is due for a correction you might want to wait. I would expect EOG to have stronger support in the $74-72 zone. Our first target is $79.95. Our second target is $84.80.

Suggested Options:
I am suggesting the July or October calls. My preference is for the Julys. Earnings are very late July.

Annotated Chart:

Picked on     June 10 at $ 75.25
Change since picked:      + 2.37
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       3.3 million  
Listed on  June 10, 2009         

Flowserve - FLS - close: 84.41 change: +0.64 stop: 74.60

FLS continues to show relative strength. Traders bought the dip near $81.80 on Friday. The stock is already coiling for a breakout over the $85.00 level. Our secondary target is $87.40 but more aggressive traders may want to aim for the $90.00 region. More conservative traders may want to raise their stops.

FLS has already exceeded our first target.

Suggested Options:
I'm not suggesting new call positions at this time.

Annotated Chart:

Picked on      May 30 at $ 75.65 /gap higher entry
                               /originally listed at $73.57
                               /1st target hit @ 79.90 (+5.6%)
Change since picked:      + 8.76
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       1.3 million  
Listed on   May 30, 2009         

Intl.Bus.Mach. - IBM - close: 108.21 change: -1.19 stop: 103.90

Friday was a quiet day for IBM. The stock drifted toward its short-term trend of higher lows near its 10-dma. I've been warning readers that there is potential resistance near $110 but I'm setting our first target at $113.50. Our second target is $118.50. My time frame is seven to eight weeks.

Suggested Options:
I would buy the July calls on dips near $106.

Annotated Chart:

Picked on     June 03 at $106.25 *triggered     
Change since picked:      + 1.96
Earnings Date           07/16/09 (unconfirmed)
Average Daily Volume =       7.3 million  
Listed on  June 01, 2009         

iShares Fincl.Srvcs - IYF - close: 44.34 change: +0.42 stop: 42.40

The action in the IYF and the financials looks like a coiled spring ready to shoot higher. What's holding it back is some resistance near $45.00 and the simple 200-dma. This has always been an aggressive trade. I'm going to turn more aggressive with our exit strategy. I'm adjusting our first target to take profits to $49.50. Our second target to take profits and exit completely will be $54.00. More conservative traders may want to go ahead and take some money off the table near $46.00, which could be additional resistance.

I am suggesting that readers only trade half or less than your normal position sizes.

Suggested Options:
Wait for a rally over $45.00 or $46.00. I would buy the July or August calls. My preference is the August strikes.

Annotated Chart:

Picked on      May 30 at $ 43.60
Change since picked:      + 0.74
Earnings Date           00/00/00 
Average Daily Volume =      11.8 million  
Listed on   May 19, 2009         

Mastercard - MA - close: 167.06 change: -2.89 stop: 158.90

The early rally last week in MA has completely vanished and shares have now produced another lower high. I didn't see any specific news on MA's relative weakness but rival Visa was really under performing on Friday. The new lower high in MA is a warning and more conservative traders may want to exit early now. I'm not suggesting new positions at this time.

We have two targets. We want to take some money off the table at $198.50 since the $200.00 mark could be round-number resistance. Our second target is $218.50. The Point & Figure chart is bullish with a $218 target.

I want to remind traders that this is an aggressive trade. MA can be very volatile and the technical picture right here isn't very bullish.

Suggested Options:
No new plays at this time.

Annotated Chart:

Picked on      May 04 at $176.07 *gap down entry
                               /originally listed at $178.99
Change since picked:      - 9.01
Earnings Date           05/01/09 (unconfirmed)
Average Daily Volume =       4.0 million  
Listed on   May 04, 2009         

Mobile Telesys - MBT - close: 41.72 change: +0.72 stop: 37.40

MBT out performed on Friday with a nice rebound in the morning. The stock closed up 1.75% unfortunately volume was pretty light. It's tough to put a lot of significant behind a move with any volume. The lack of follow through on Wednesday's bearish reversal is still good news and thus far MBT is holding support near $40.00.

Our first target to take profits is $44.95. We do have a second target at $49.00 but that could take a while to reach. Broken resistance in the $39-40 zone should offer new support.

Suggested Options:
I'm not suggesting new positions at this time.

Annotated Chart:

Picked on      May 29 at $ 39.55 *triggered     
Change since picked:      + 2.17
Earnings Date           05/26/09 (confirmed)
Average Daily Volume =       2.4 million  
Listed on   May 28, 2009