Stock Picks – August 8, 2007

I’ve been holding tight on a few of my stock picks that have taken some punches during this recent correction.  I kept thinking they would turn around soon and finally they are doing so.  As luck would have it, I’m getting busy at work for the first time in a while and I’m not sure how much time I’ll be able to dedicate to research and trading over the next few days on new positions.

These are the stocks I have a position in my taxable or brokerage account and have been down on, but are now showing a strong bounce: AA, ADBE, ATI, CSCO, HAIN, MRO, MON and NYX. 

HAIN is on a sharp rebound.  I bought my calls back in my IRA on HAIN this morning and really should have done it a few days ago when HAIN found its footing again.  In a panic type move, I sold the covered calls ITM to limit further losses, but now I’m back to profit again.

ATI hit its slightly declining trend line of lower lows and could head all of the way back to above 110 in no time.

AA bounced off the 35 area that was a ceiling earlier in the year, but I don’t know how much higher it will go.  My September 35 puts should be safe, but I’m not getting in deeper yet.

ADBE just bounced off a meeting of trend lines.  I’m long 200 shares in my IRA.  The longer term trend line of higher lows since September 2006 met the shorter term line of lower lows since late May 2007.  So far there’s no winner in either direction since both lines called for a bounce.  I have a limit to sell covered calls at 42.50 if it makes it up a little higher.

CSCO is an obvious winner after last night’s earnings.  I’m long 100 shares in my IRA with no covered call and I’m short two naked puts that are now well OTM.  Since I’m already long 100 shares in my IRA, I’m not selling any more puts for a couple of days to see if CSCO takes a breather after today’s rally.

NYX hit the low it didn’t like last time around 70 and has made a steep accent back towards the 80 area it didn’t like previously.  I’ve left my 80 covered calls in place, but wish I had bought an Aug 75 call I suggested to my friend he should buy.

MON hit its rising line of higher lows right on queue and could take it back into the low to mid-70s before long.  I’m long 100 shares in my IRA with no covered call on it.

MRO is up on a fast bounce from its highs back in March/April.  It’s down today and the 10-day moving average is acting as a ceiling.  If MRO makes it through that line it could have another good run which I’m really hoping for considering that I’m down $2000+ not counting the $800 I’ve received in options premiums.

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