New Long Plays
New Short Plays
Long Play Updates
ACADIA - ACAD - close: 9.33 chg: -0.18 stop: 8.49
ACAD suffered some profit taking on Wednesday but it wasn't anything to be alarmed about given the stock's recent strength. If you're looking for a new entry point consider waiting for a dip/bounce near the $9.00 level. Our target is the $9.95-10.00 range.
Picked on October 05 at
Arch Coal - ACI - close: 30.03 change: -0.29 stop: 27.99
ACI closed with a 0.9% loss as traders took profits following yesterday's big surge. However, today's session was not as bad as it might seem. ACI consolidated sideways in a $1.00 range and managed to cling to the $30 level, which is probably round-number support/resistance. We don't see any big changes from our new play comments last night. Our target is the $34.00-35.00 range. We only have ten days since we want to avoid holding over ACI's earnings report. FYI: We would keep a careful eye on the simple 50-dma, which might be overhead resistance!
Picked on October 10 at $30.32
Anheuser-Busch - BUD - close: 47.47 change: -0.51 stop: 46.85
We continue to urge caution here with BUD. Yesterday's unexpected buyout news produced an intraday spike that hit our trigger and opened the play. Now the stock is back to trading in its $47.00-48.00 trading range. More conservative traders might want to cut their losses early. Our target is the $49.90-51.00 range. We are not suggesting new positions with BUD under $48.20.
Picked on October 10 at $48.21
D.R.Horton - DHI - close: 24.19 change: -0.57 stop: 22.99
There are no changes from our new play comments on DHI. We're waiting for a breakout over resistance and we're suggesting a trigger to go long at $25.51. If triggered at $25.51 our target is the $29.00-30.00 range although more conservative traders may want to exit at the 200-dma currently near 28.55.
Picked on October xx at $xx.xx <-- see TRIGGER
IAC/InterActive - IACI - close: 29.03 change: -0.02 stop: 28.69
Danger! We came very close to be stopped out today. IACI suffered a late afternoon spike lower but bounced at $28.71. The stock's bullish breakout buy signal from a week ago has failed. We would strongly consider exiting early right now to minimize any losses. The only reason we're not closing the play is that we suspect IACI could bounce tomorrow. Our target is the $31.40-31.50 range. We do not want to hold over the late October earnings report.
Picked on October 04 at $29.73
Intl. Game Tech. - IGT - close: 42.13 chg: -0.70 stop: 39.95
IGT suffered some profit taking today with a 1.6% decline. Our more conservative readers may want to take some money off the table too. Or consider raising your stop loss toward the $41 level. We're not suggesting new positions. Our target is the $44.00-45.00 range. We do not want to hold over the early November earnings report.
Picked on September 17 at $40.26
Ingersoll-Rand - IR - close: 40.20 chg: -0.26 stop: 37.99
The upward momentum in IR stalled today. The stock reversed its recent gains in spite of CNBC broadcasting two different analysts offering positive comments on the stock. We remain optimistic but traders might want to wait for a dip/bounce near $39.00-39.50 as the next entry point. We do not want to hold over the October 27th earnings report so our short-term target is the $43.00-43.50 range. We'll raise our stop loss once we see IR push past potential overhead resistance at its 200-dma near 40.75.
Picked on October 08 at $40.20
Kinetic Concepts - KCI - cls: 32.26 chg: -1.19 stop: 30.99
KCI pulled back sharply, losing 3.5% on below average volume. The weakness definitely makes us cautious but KCI found support near its 10-dma and the $32.00 region. A bounce from here can be used as a new entry point. More conservative traders might want to consider tightening their stops. Our target is the $37.50-38.00 range. Be advised that the $35.00 mark might offer some resistance as well at least on the initial test of that level. We do not want to hold over the late October earnings report.
Picked on October 08 at $33.35
Acc. Home Lenders - LEND - cls: 35.05 chg: -1.44 stop: 34.95
We are still sitting on the sidelines with LEND. It is our suggested strategy to go long on a breakout over resistance near $37.00. That's why we're suggesting a trigger to go long at $37.16. If triggered our target is the $42.00-42.50 range. Please note that there is potential resistance at the bottom of its gap down at $38.71, and potential resistance at $40.00. The P&F chart is positive with a $50 target. We do not want to hold over the late October earnings report.
Picked on October xx at $xx.xx <-- see TRIGGER
PDL BioPharma - PDLI - close: 20.13 chg: -0.21 stop: 18.69
Biotech giant DNA reported earnings last night that were better than Wall Street expected but digging deeper into the details some analysts found areas of concern. DNA lost 1.69% and the BTK biotech index slipped -0.12%. PDLI also felt some selling pressure with a 1% decline back toward the $20 level. Broken resistance at $20.00 should act as new support so traders could use this pull back as a new entry point. However, we'd probably wait for signs of a bounce first before initiating new positions. More conservative traders may want to tighten their stops. Our target is the $22.25-22.50 range. We do not want to hold over the early November earnings report.
Picked on October 05 at $20.11
Titanium Metals - TIE - close: 27.21 change: +0.76 stop: 25.49
Our new play in TIE is open. Last night we added TIE to the play list with a trigger to go long at $27.01. The stock continued to rally on Wednesday and broke out past technical resistance at its 200-dma and the $27 level. Volume on the session was above average, which is a positive sign. Our target is the $29.90-30.00 range. We don't want to hold over the October 23rd earnings report (still an unconfirmed date).
on October 11 at $27.01
Short Play Updates
Closed Long Plays
TD Ameritrade - AMTD - close: 16.82 change: -2.28 stop: 18.23
Ouch! We have been stopped out of AMTD. Our stop was set at $18.23 but AMTD gapped open lower at $17.37 this morning. The discount brokers AMTD (-11.9%) and E*Trade (-8.7%) in addition to Schwab (-4.6%) were all down sharply following the unexpected news that Bank of America (BAC) would offer free online trades through its retail trading unit. This looks like pretty stiff competition in an already very competitive industry and investors panicked.
Picked on October 04 at $19.26
McAfee - MFE - close: 26.64 chg: +0.85 stop: 23.99
Target achieved. Wednesday was an interesting session for MFE. The stock gapped open higher and spiked to $27.40 after the company announced that both its CEO and its President had resigned over the widening corporate back-dating options scandal. Normally one might expect a downward reaction in the stock price when two major executives leave a company. Our target was the $27.25-27.50 range.
Picked on October 05 at $25.20
Closed Short Plays
Today's Newsletter Notes: Market Wrap by Linda Piazza and all other plays and content by the Option Investor staff.
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