New Long Plays
New Short Plays
Long Play Updates
Archstone - ASN - close: 49.38 chg: -0.51 stop: 47.75
ASN is holding up pretty well considering the market sell-off. However, this sideways consolidation is weighing on the technical indicators and some are starting to turn bearish. We are not suggesting new plays at this time. Our target is the $53.85-54.00 range. The Point & Figure chart for ASN has produced a triple-top breakout buy signal with a $70.00 target. More conservative traders may want to use a tighter stop (maybe around $48.50).
Picked on June 05 at $50.21
Potlatch - PCH - close: 38.00 chg: -0.13 stop: 36.99
Shares of PCH are also holding up relatively well considering the widespread market weakness. However, today's session was more bearish than the final numbers might suggest. The stock produced another failed rally at its 50-dma and volume came in above average. We are not suggesting new plays at this time.
Picked on June 04 at $39.39
Ryanair - RYAAY - close: 52.26 change: -0.24 stop: 49.95
RYAAY out performed its peers in the airline sector. The XAL index lost 2.88% while RYAAY only fell 0.4%. Shares of RYAAY spent the session consolidating sideways above the $52.00 level but we're worried that if the major market indices continue lower then RYAAY will eventually succumb. If you're looking for a new entry point keep an eye out for a dip and bounce near the $51.00 region. Our target is the $53.90-54.00 range.
Picked on June 08 at $51.34
UST Inc. - UST - close: 45.03 chg: +0.05 stop: 42.99
UST displayed some relative strength today but we'd still wait to open new plays. Look for a dip toward the $44.50-44.00 region and buy a bounce there. The P&F chart points to $53.00. Our target is the $47.50-48.00 range. More conservative types may want to use a tighter stop near $43.50. We do not want to hold over the July earnings report.
Picked on June 08 at $44.71
Short Play Updates
Autodesk - ADSK - close: 34.74 change: +0.29 stop: 36.65
We do not see any changes from our weekend update. However, today's relative strength in ADSK does make us more cautious. The $36.00 level should be short-term overhead resistance. Our exit strategy is to sell part of your position in the $32.60-32.50 range and the rest in the $30.75-30.50 range. The P&F chart currently points to a $26.00 target.
Picked on June 06 at $34.89
Avid Tech. - AVID - close: 36.56 change: -0.79 stop: 39.41
AVID lost 2.11%, which helped the MACD indicator confirm the new sell signal. We do not see any changes from our new play description this past weekend. Our target is the $32.50 mark but readers should be prepared for a bounce near $35.50-36.00. Traders can open positions here or use a failed rally under the 50-dma.
Picked on June 11 at $37.35
Drew Industry - DW - close: 28.54 chg: -1.10 stop: 30.75
The selling pressure in DW is picking up steam. Shares low another 3.7% following Friday's failed rally near its 200-dma. Our target is the $27.55-27.45 range. The Point & Figure chart points to a $19 target.
Picked on June 07 at $29.67
Flowserve - FLS - close: 49.12 chg: -1.70 stop: 52.25
Our bearish play with FLS is now open. The stock broke down under support near $50.00 to hit our trigger at $49.90. Volume wasn't that strong, which should wave a caution flag for traders. Our target is the $45.75-45.50 range. The Point & Figure chart is bearish with a $40.00 target.
Picked on June 12 at $49.90
The Geo Group Inc. - GGI - cls: 33.05 chg: -1.09 stop: 36.65
GGI continues to sell off and shares lost 3.19% on Monday. At this time we do not see any changes from our new play description this past weekend. We're suggesting that readers sell/cover part of their positions at $32.25 and then exit any remainder at $30.25. Due to GGI's volatility this is an aggressive, higher-risk play.
Picked on June 11 at $34.14
Blue Nile - NILE - close: 29.34 chg: -0.78 stop: 32.01
NILE is once again under the $30.00 level. This is an aggressive short play and more conservative traders may want to pass on it or wait for a decline below the $29.27 level (under the February lows) or the $29.00 mark. NILE does have very high short interest, which increases the risk of a short squeeze. Our target is the $25.50-25.00 range. The P&F chart points to a $15 target.
Picked on June 08 at $29.45
Closed Long Plays
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Today's Newsletter Notes: Market Wrap by Jeff Bailey and all other plays and content by the Option Investor staff.
Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.
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