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New Plays
Long Plays
Short Plays
None AKAM
  CMCSA
  SBUX

New Long Plays

None today.
 

New Short Plays

Akamai - AKAM - close: 31.15 chg: -0.35 stop: 34.76

Company Description:
Akamai is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. (source: company press release or website)

Why We Like It:
It is always surprising what can happen within a few days of trading. Three to four days ago AKAM was bouncing from technical support at its 50-dma and looking like a bullish candidate. Now the stock has reversed course and broken down through support. Short-term technicals have reversed and the weekly oscillators look negative but some of the other technicals remain mixed. If you're considering this play be ready for more volatility. Odds are good we'll see another bounce at the $30.00 level, which is the next level of support. However, if the NASDAQ continues to dive then AKAM is likely to breakdown head toward its next level of support near $27.50. We're going to set our target at $27.75-27.00. More aggressive traders may want to aim lower toward the $25.00 level, which is also support. Be advised that we don't have the greatest risk/reward here. We have a wide stop loss due to AKAM's volatility but we'll try and tighten the stop if shares do close under $30.00. The latest data puts short interest at 3.3% of AKAM's 143 million-share float.

Picked on May 23 at $31.15
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 3.2 million

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Comcast - CMCSA - close: 31.11 chg: -0.22 stop: 31.81

Company Description:
Comcast Corporation is the nation's leading provider of cable, entertainment and communications products and services. With 21.4 million cable customers, 8.5 million high-speed Internet customers, and 1.3 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content. (source: company press release or website)

Why We Like It:
The bull run in shares of CMCSA is in jeopardy. Actually the stock has already broken through the bottom of its narrow rising channel. The daily chart's MACD has produced a new sell signal and the weekly oscillators have turned bearish. Plus, the P&F chart points to a $17 target. We want to see some confirmation that the next move is lower. Thus we're suggesting a trigger to short the stock at 30.85, which is under yesterday's low. If triggered we'll target a drop to $29.85, which is near potential support at the top of its gap from late April. More aggressive traders may want to target the bottom of the gap near $29.20. The latest data puts short interest at 2.9% of CMCSA's 1.99 billion-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/16/06 (unconfirmed)
Average Daily Volume: thousand

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Starbucks - SBUX - close: 35.59 chg: -0.64 stop: 36.65

Company Description:
Through the dedication of our passionate partners (employees), Starbucks Coffee Company has transformed the way people in 37 countries enjoy their coffee, one cup at a time. Starbucks is the premier purveyor of the finest coffee in the world, with more than 11,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. (source: company press release or website)

Why We Like It:
SBUX's oversold bounce from support at the 100-dma appears to have failed under the $37.00 level. The stock has already broken down under support at its 50-dma and now shares look poised begin their next leg lower. Short-term technical oscillators are bearish and its weekly chart's MACD has produced a new sell signal. We are suggesting shorts with SBUX under $36.00. More conservative traders might feel better waiting for the stock to trade under its 100-dma (currently 35.38). We are going to target the top of its February gap (33.00) with an exit range of $33.15-33.00.

Picked on May 23 at $35.59
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 5.7 thousand
 

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