New Long Plays
New Short Plays
Long Play Updates
Continental Air. - CAL - close: 49.36 chg: +1.91 stop: 42.85
CAL turned in a strong session rising more than 4%, which out performed the XAL airline index's 3.1% gain. Boosting shares of CAL was a raised price target from Lehman Brothers. Volume behind CAL's rally today came in above average, which tends to be a positive sign. Don't be surprised to see some profit taking as CAL nears the $50.00 level. At this time we don't see any changes from our previous comments. Our target is the $51.75-52.00 range. More conservative traders might want to try a tighter stop loss. Please note that this play might be considered more aggressive because of our one-week time frame. CAL is due to report earnings on January 18th and we do not want to hold over the report.
Picked on January 10 at $47.45
Hewlett Packard - HPQ - close: 42.64 change: +0.44 stop: 39.95
HPQ finally rejoined the rally in tech stocks today. The stock rose just over 1% to close at another new multi-year high. This might be considered a bullish entry point given rising, short-term support at the 10-dma. More conservative traders may want to tighten their stops toward $41.00. Our short-term target is the $46.00 level. We do not want to hold over the late February earnings report.
Picked on January 07 at $42.20
MedImmune - MEDI - close: 35.03 change: +0.25 stop: 31.90
Last night biotech titan Genentech (DNA) reported better than expected earnings and raised their guidance. This news lent a lot of strength to the biotech sector. Unfortunately, we think shares of MEDI could have done better today but the stock did close up 0.7%. We're not suggesting new positions at this time. Our target is the $36.50-37.00 range. We do not want to hold over the early February earnings report.
Picked on January 05 at $33.98 *gap open entry*
Piper Jaffray - PJC - close: 71.50 chg: +2.05 stop: 64.24
The broker-dealer stocks were a bright spot in the market on Thursday. The XBD broker-dealer index rose 1.65% and closed at another new high. Shares of PJC outpaced the move with a 2.9% rally and a breakout over the $70.00 level. Furthermore PJC's rally was fueled by strong volume, which tends to be a bullish clue. We do not see any changes from our previous comments. Our target is the $74.75-75.00 range. Chart readers will note that today's rally has moved the bullish P&F chart target from $78 to $87. Please note that we do not want to hold over the January 24th earnings report.
Picked on January 10 at $69.45
Bankrate Inc. - RATE - close: 38.04 chg: +0.72 stop: 34.90
Our new play in RATE is now open. The stock turned in a volatile session but the intraday high was $38.70. Yesterday we suggested readers go long the stock at $38.25. The afternoon bounce is a good sign and the stock could still be in the process of a short-squeeze. Our target is the $41.90-42.00 range. More aggressive traders may want to aim higher. FYI: The most recent (December) data put short interest at more than 35% of RATE's 11.2 million-share float.
Picked on January 11 at $38.25
Sina Corp. - SINA - close: 32.76 change: +0.44 stop: 29.75*new*
SINA continues to rally and the stock is hitting new one-year highs. Shares rose 1.3% on Thursday but we noticed that volume has begun to taper off. SINA is looking a little short-term overbought so it may be time for a rest. We're not suggesting new positions at this time. Please note that we're inching up our stop loss to $29.75. Currently our target is the $34.50-35.00 range but we're thinking about adjusting it lower. The P&F chart has just broken through resistance and now points to a $52 target. It might be worth noting that the latest (December) data put short interest at just over 9% of SINA's 37.5 million-share float. That could be enough to substantially raise the risk of a short squeeze, which is good news if you're long the stock. We do not want to hold over the early February earnings report.
Picked on January 04 at $31.06
Short Play Updates
The Andersons Inc. - ANDE - cls: 38.85 chg: +0.66 stop: 40.25
It's Thursday and we do not see any changes from our previous updates on ANDE. We're still waiting for a breakdown under support at the $37.00 mark. Our suggested trigger to short ANDE is at $36.99. If triggered at $36.99 our target is the $33.00-30.00 range. FYI: Traders should note that ANDE can be a volatile stock at times and the latest (December) data put short interest at 7.2% of ANDE's 14.7 million-share float. That's not a very big float and the relatively high short interest raises the risk of a short squeeze.
Picked on January xx at $xx.xx <-- see TRIGGER
Guitar Center - GTRC - close: 43.22 change: +0.64 stop: 44.55
After yesterday's earnings warning from GTRC we don't see why the stock should be bouncing. This morning shares were downgraded, which is another reason we're surprised by GTRC's strength today. Watch for a failed rally under $44.00 as a potential entry point for new shorts. We do not want to hold over the February 8th earnings report. We have two targets on GTRC. Our conservative target is the $40.10 mark. Our aggressive target is the $37.50 level. FYI: Be advised that the latest (December) data put short interest at almost 18% of GTRC's 29.2 million-share float. That is a high amount of short interest and a small float and combined they raise the risk of a short squeeze, which is another reason why we are labeling this a high-risk play.
Picked on January 08 at $42.45
Safety Ins. Group - SAFT - cls: 49.68 chg: +0.46 stop: 51.51
We remain very cautious here with SAFT. It was our plan to catch a breakdown under support at the 200-dma and its two-year trendline of support. Unfortunately, we were triggered on an intraday spike lower and there has not been any follow through either direction thus far. More conservative traders may want to tighten their stop toward $50.55. We'd wait for a new relative low (under $48.40) before considering new shorts. We have two targets. Our conservative target is $45.10. Our aggressive target will be the $42.50 level. FYI: The latest (December) data put short interest at 7% of SAFT's 13.1 million-share float. That does raise the risk of a short squeeze.
Picked on January 08 at $ 48.49
Closed Long Plays
Closed Short Plays