Long Play Updates
Arch Coal - ACI
ACI added another 3.58 percent on Tuesday following a short, two-day consolidation of last week's breakout over resistance at $36.00. Shares are within striking distance of our target in the $39-40 range. Short-term traders may want to consider exiting now for a profit. We are raising our stop loss to $34.75.
BP Prudhoe Bay - BPT
Once again BPT is testing resistance at the $54.00 level. A breakout could easily send shares to our target at the $55.00 mark. Readers can prepare to exit. We are raising our stop loss to $49.49. Short-term traders may want to consider exiting here for a profit. Investors may want to strongly consider making BPT a long-term holding with its 11.6 percent dividend yield.
Cyberonics - CYBX
Traders bought the dip to $24.20 this morning and the ensuing rebound ended with a 3.29 percent gain for CYBX. The stock looks poised to breakout over the $26 level tomorrow.
Encore Acquisition - EAC
EAC soared to a another new all-time high with a 2.35 percent gain despite receiving a downgrade from "buy" to a "hold" this morning. Volume was way above average on today's rally suggesting more upside ahead. Our target is the $40 level but short-term traders may want to plan an exit anywhere north of $39.00. We are raising our stop loss to $35.39 right at Friday's low.
LSI Logic - LSI
Actually we would classify this as a high-risk, speculative long play. LSI witnessed some follow through on yesterday's breakout early this morning but it reversed course to pull back and test the $6.00 level. This looks like a failed rally and we would be very careful here. Look for signs of a bounce before considering new positions.
Closed Long Plays
Nuveen Investments - JNC - cls: 41.15 chg: +4.05 stop: 39.01
This is really frustrating. JNC had been consolidating nicely along its 50-dma and looked ready to breakdown considering the lack of participation in the market rally yesterday. Unfortunately, a news item last night about 6:00 PM Eastern surfaced that sent shares of JNC soaring today. St. Paul Travelers, who owns about 79 percent of JNC, said it was looking into alternatives (a.k.a. planning to sell) their stake in the company. The markets responded positively and sent JNC to a new all-time high. We were stopped out shortly after the open at $39.01. We qualified this as a high risk play but an unexpected event like this can frustrate even disciplined traders.
Picked on January 24 at $36.90