Long Play Updates
El Paso - EP
After yesterday's breakout over the $11.00 level it didn't take traders long to buy the dip back to the $11.00 region this morning. This looks like another bullish entry point in EP.
Encore Acquisition - EAC
Traders bought the dip in EAC too and shares closed at a new high. Readers can prepare to exit. Our target is at the $40.00 level but anywhere over $39.50 will work.
Closed Long Plays
LSI Logic - LSI - close: 5.81 change: -0.10 stop: 5.74
We alerted readers on Tuesday that LSI appeared to produce a failed rally and to be careful. Looks like we should have taken our own suggestion. Shares of LSI dipped under its simple 200-dma on Thursday and hit our stop loss at $5.74.
Picked on January 31 at $ 6.11
Closed Short Plays
Advanced Neuromodulation - ANSI - cls: 38.56 chg: +1.18 stop: 39.01
Our bearish play in ANSI is over before it even got a chance to begin. We added ANSI last night given the bearish reversal and breakdown. Unfortunately, ANSI gapped open higher on Thursday above our stop loss. Given the timing issue no one would have had a chance to enter before ANSI traded above our stop thus aborting the play but we'll list it as a loss anyway. The reason for the gap higher? ANSI owns about 15 percent or 2.5 million shares of Cyberonics (CYBX) from a previous buyout attempt. Shares of CYBX gapped higher and closed for a 41.95 percent gain after a FDA approval for its depression treatment.
Picked on February 2 at $37.38