Play Editor's Note: We are still keeping an eye on SPF. Today's move in SPF looks bullish but stop loss placement is going to be a challenge. Bear in mind that SPF is a huge short squeeze candidate with short interest near 63% of the float. Right now we'd be watching for a dip in the $5.20-5.00 zone as a potential entry point.
New Long Plays
DuPont - DD - close: 48.84 chg: +1.09 stop: 45.95
Why We Like It:
Picked on April 02 at $48.84
Nintendo Co - NTDOY - close: 66.75 chg: -0.34 stop: 63.95
Why We Like It:
Picked on April xx at $xx.xx <-- see TRIGGER
New Short Plays
Long Play Updates
Corning Inc. - GLW - close: 25.00 chg: +0.05 stop: 23.45
GLW spiked to a new three-month high before paring its gains on Wednesday. Overall we remain bullish on GLW. Another dip near $24.50 or its 10-dma can be used as a bullish entry point. More conservative traders might want to consider a tighter stop near $23.65 instead of our suggested stop at $23.45. We're listing two targets. Our first target is the $27.00 level. Our second target is the $29.00 level. We do not want to hold over the late April earnings report.
Picked on March 25 at $25.14
Honeywell - HON - close: 57.63 chg: -0.16 stop: 54.49
With the market trading sideways HON struggled to breakout over its 200-dma. The short-term trend is bullish but shares look tired and could dip back toward $57.00-56.50. Our target is the $59.90-60.00 zone. More aggressive traders could aim for the top of the larger range near $62.00. Keep in mind that we do not want to hold over the earnings report in about three weeks.
Picked on March 25 at $56.00
Hormel Foods - HRL - close: 42.36 change: +0.18 stop: 39.85
HRL posted another gain but failed to breakout past resistance near $42.50. We don't see any changes from our previous comments. Any dips near $41.75-41.50 are probably entry points. More conservative traders might want to wait for a new high over $42.50 before initiating positions. We anticipate holding this stock on the newsletter for about six to eight weeks. The Point & Figure chart is bullish with a $64 target. FYI: HRL declared a quarterly cash dividend of 18.5 cents per share payable on May 15, 2008 to shareholders of record on April 19th. HRL has been paying quarterly dividends for almost 80 years.
Picked on March 31 at $41.83 *triggered/gap open
iShares Telecom - IYZ - close: 23.95 chg: -0.24 stop: 22.49
It was a quiet session for the IYZ. The ETF traded sideways under technical resistance at its 50-dma. If you're looking for a new bullish entry point wait for a dip near the $23.50 region. We have two targets. Our 1st target is the $25.85-26.00 range. Our second target is the $27.85-28.00 zone.
Picked on March 25 at $23.50 *triggered
JA Solar - JASO - close: 20.20 change: +1.33 stop: 17.75 *new*
Target exceeded! Positive press from a solar-energy conference in Germany today along with an eight-year deal announced by Train Solar (TSL +15%) fueled another day of gains for solar stocks. JASO rallied more than 7% and hit an intraday high of $20.54. Our initial target was the $19.95 mark. The rally in JASO could continue but we're not suggesting new positions. Readers should consider taking a large chunk of their position off the table and cashing in. Our second, more aggressive target is the $22.25-22.50 zone. We are raising our stop loss to $17.75.
Picked on March 25 at $17.13 /1st target exceeded 19.95
Meritage Homes - MTH - close: 21.96 chg: +0.81 stop: 17.75 *new*
The short covering in MTH continued into Wednesday. The stock added another 3.8% on top of its recent gains. Shares closed at a new multi-month high. Volume was almost twice the daily norm, which is bullish. We would strongly consider taking some profits right here but our target remains the $25.00-27.00 zone. We are raising our stop loss to $17.75.
Picked on March 24 at $18.60 *triggered
Short Play Updates
Cognizant Tech - CTSH - cls: 29.69 chg: -0.48 stop: 30.75 *new*
As expected shares of CTSH produced a bearish failed rally pattern under its 100-dma. This looks like a new entry point for shorts. We are adjusting our stop loss to $30.75, which is 10 cents above today's high. Our first target is the 26.25-26.00 zone. Our second, more aggressive target is the $24.25-24.00 range. The P&F chart is bearish with an $18 target.
Picked on March 30 at $29.18
Longs Drug Stores - LDG - cls: 41.71 chg: -1.49 stop: 43.55
Retail stocks posted another gain today but the rebound in LDG suffered a setback. Shares of LDG lost 3.4% and are flirting with a breakdown under its trendline of higher lows. The move under $42.00 looks like a new entry point for shorts. Our first target is the $38.25-38.00 zone. Our second target is the $35.25-35.00 zone. The P&F chart is bearish with a $29.00 target.
Picked on March 30 at $41.30
Closed Long Plays
Excel Maritime - EXM - close: 28.05 change: -1.95 stop: 28.39
We can't find any news to explain EXM's relative weakness today. Most of the shippers were trading lower but EXM under performed with a 6.5% sell-off and on above average volume. The stock broke down under some short-term technical support levels and hit our stop loss at $28.39 closing the play. Many of the technical indicators are suggesting further weakness ahead.
Picked on March 31 at $30.30 *triggered /stopped 28.39
Closed Short Plays
Today's Newsletter Notes: Market Wrap by James Brown and all other plays and content by the Option Investor staff.
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