Long Play Updates
Arch Coal - ACI
Exit alert! ACI added another 1.55 percent on Wednesday with volume coming in above average. The stock hit a high of $38.89 almost enough to tag our target range of $39.00-40.00. Readers may want to exit here for a profit. We will close the play on a move at or above $39.00. We're going to raise our stop loss to $35.95.
American Medical - AMMD
The market rally on Wednesday helped push shares of AMMD up through resistance at the $40.00 level and hit our trigger to go long at $40.55. Volume has been rising on the rally, which is normally a bullish sign and its MACD indicator has produced a new buy signal.
El Paso - PE
Shares of EP surged toward the $11.36 mark this morning and while it closed off its highs of the session EP added 2.47 percent to breakout over resistance near the $11.00 level. Volume was above average on the breakout, which is normally considered bullish. We are raising our stop loss to $10.60.
Frontier Oil - FTO
Exit alert! FTO continues to out perform and shares added another 2.4 percent on Wednesday. The stock is within striking distance of our target at the $30.00 level. Short-term traders may want to strongly consider exiting now or anywhere north of $29.50. We are going to adjust our target to $29.85 and will exit if FTO trades at or above this level. We're also raising our stop loss to $27.25 just under the simple 10-dma.
LSI Logic - LSI
Our speculative play in LSI is not doing so hot. Yesterday we suggested that traders be careful given that Tuesday's performance looked like a failed rally. Now LSI has broken down to close under the $6.00 level and its exponential 200-dma but remains above the simple 200-dma. We would not suggest new bullish plays at this time.
Short Play Update
Silver Standard - SSRI
Traders need to be careful here. SSRI bounced higher with the market and while it closed off its best levels of the session the close back over the $12.00 mark is not a good sign for the bears. Conservative traders may want to use the $12.25 level as a mental stop and/or early warning system. A breakout there would suggest SSRI is nearing a larger breakout from its descending channel. We are going to leave our trading stop at $12.55.
Closed Long Plays
BP Prudhoe Bay - BPT - close: 55.43 chg: +1.60 stop: 49.49
Target achieved! Another positive day in the markets and another green day for oil stocks helped fuel a 2.97 percent rally in BPT. Shares crossed our target at the $55.00 level to close at another new all-time high. We are closing the play per our game plan at $55.00. Shares do look a little short-term overbought so investors still in the stock can look for a dip.
Picked on January 24 at $50.51
Cyberonics - CYBX - close: 27.48 chg: +1.48 stop: 22.99
Yesterday we noted the strong rebound from the $24 level and suggested that CYBX was poised for a breakout. The stock performed well today with a 5.69 percent gain breaking out over the $26.00-26.25 region. Shares actually hit a high of $28.12, which was enough to tag the bottom of our target in the $28-30 range. We are closing the play at our target (28.00). More aggressive traders may want to consider holding on to CYBX a little longer given the bullish performance.
Picked on January 26 at $25.91
Closed Short Plays