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New Plays
Long Plays
Short Plays
None GPC
  KMB
  MRK
  ROK

New Long Plays

None today.
 

New Short Plays

Genuine Parts - GPC - cls: 42.42 chg: -0.50 stop: 44.01

Company Description:
Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada and Mexico. The Company also distributes industrial replacement parts in the U.S. and Canada through its Motion Industries subsidiary. S.P. Richards Company, the Office Products Group, distributes business products nationwide in the U.S. and in Canada. The Electrical/Electronic Group, EIS, Inc., distributes electrical and electronic components throughout the U.S., Canada and Mexico. Genuine Parts Company had 2007 revenues of $10.8 billion. (source: company press release or website)

Why We Like It:
The six-week trend in GPC has been up but the rally has failed several times now at its long-term trendline of resistance, near its simple 200-dma. Technicals have begun to roll over and GPC has just produced a new lower high with Friday's failed rally at its 200-dma. It looks like the next move will be lower. We're suggesting shorts now. If you want to see more momentum then wait for a drop under $41.50 or $41.00. We're suggesting a stop loss at $44.01. More conservative traders could try a stop near $43.50 or $43.00 instead. Our target is the $38.50 mark. More aggressive traders may want to aim lower. The P&F chart is bearish with a $28 target. We don't see any significant levels of short interest. Note: If we see GPC close over its 200-dma and we don't get stopped out we'll exit.

Picked on August 31 at $42.42
Change since picked: + 0.00
Earnings Date 10/17/08 (unconfirmed)
Average Daily Volume: 1.1 million

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Kimberly-Clark - KMB - cls: 61.68 chg: -1.04 stop: 63.51

Company Description:
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people -- nearly a quarter of the world's population -- trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80 countries. (source: company press release or website)

Why We Like It:
It looks like the rally in KMB has run out of steam. Shares were charging higher for the last few weeks but hit a wall at its trendline of resistance (see chart). Now this past week has seen KMB produce a new lower high and technical indicators have rolled over. We are suggesting a trigger to short KMB at $60.75. More conservative traders may want to use a stop loss above last Thursday's high of 62.84. If we are triggered at $60.75 our target is the $56.00 mark. We do not see any significant short interest. The Point & Figure chart is bearish with a $54 target.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 2.6 million

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Merck - MRK - close: 35.67 change: -0.73 stop: 36.85

Company Description:
Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. (source: company press release or website)

Why We Like It:
Drug giant MRK has seen its shares stuck in a bearish down trend for months. This past week just saw MRK produce another failed rally in what appears to be a bearish double-top pattern. We are suggesting short positions now. More conservative traders may want to wait for a new decline under $35.00 to open up plays. We're suggesting a stop loss a $36.85. More aggressive traders may want to use a stop loss above the 100-dma near $37.00. Our target is the $32.00 level. More aggressive traders may want to aim for $30.00. The P&F chart is bearish and points to a $23 target. We don't see any significant amounts of short interest.

Picked on August 31 at $35.67
Change since picked: + 0.00
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 17.8 million

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Rockwell Autom. - ROK - close: 47.21 chg: -0.65 stop: 50.05

Company Description:
Rockwell Automation, Inc., is a leading global provider of industrial automation power, control and information solutions that help manufacturers achieve a competitive advantage for their businesses. (source: company press release or website)

Why We Like It:
The late summer rally in ROK failed at resistance near $50.00 and now shares are trending lower. The MACD has produced a new sell signal. The current trend of lower highs and Friday's performance looks like a new entry point for shorts. We're suggesting a stop loss above resistance at $50.00. More conservative traders could try and reduce their risk with a stop near $48.50 but it increases your chances of being stopped out on an intraday spike. We are suggesting shorts now. More conservative traders may want to wait for a breakdown under short-term support near $46.00. If we don't see a break under $46.00 soon we'll abandon the play early. Our target is $43.00. More aggressive traders may want to aim lower ($41-40). The P&F chart is actually still bullish from the summer rebound. Short interest is at 2.2% of the float.

Picked on August 31 at $47.21
Change since picked: + 0.00
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 1.7 million
 

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