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Long Play Updates

Dow Chemical - DOW - close: 53.54 change: +1.24 stop: 49.99 *new*

Wow! DOW added another 2.37 percent on Tuesday with volume coming in way above average. Technically this is a bullish follow through to Monday's breakout over resistance at the $52 level. Given the current rate of climb DOW will hit our target at $56 a lot sooner than planned. Just keep an eye on the Industrial average as the technical indicators on the major averages are not looking too healthy and a market drop could turn shares of DOW into a target for profit taking. We are raising our stop loss to $49.99 even though the $52 level should now act as the first level of support.


 

Picked on February 11 at $52.01
Gain since picked: + 1.53
Earnings Date 01/27/05 (confirmed)
Average Daily Volume: 3.5 million

Short Play Updates

Infocrossing - IFOX - close: 19.26 chg: +0.54 stop: 19.51

Uh-oh! It may be time to admit that we were too aggressive in shorting IFOX even though it gave us all the right signals. We did note that there was no follow through on the February 9th bearish reversal signal and now shares are trading back above the $19.00 level. Conservative traders may want to exit early. Right now we're not suggesting new bearish positions and expected to be stopped out with a loss.


 

Picked on February 09 at $18.39
Change since picked: + 0.87
Earnings Date 03/14/05 (unconfirmed)
Average Daily Volume: 277 thousand

Closed Long PLays

El Paso Corp - EP - close: 11.77 change: +0.40 stop: 10.99

Target achieved! EP soared to $11.89 on Tuesday and closed at $11.77 for another 3.5 percent gain on volume way above average. We can't see any specific news for today's relative strength but we're not complaining. Our exit range was the $11.50-11.85 range but we had a specific exit point at $11.70 and we're closing the play per our plan with a 10.9 percent move. Currently EP now has to deal with tougher resistance in the 11.85-12.00 range. If you like the natural gas sector check out WMB as a potential bullish candidate once it breaks out over the $18 level.


 

Picked on January 13 at $10.61
Gain since picked: + 1.16
Earnings Date 03/20/05 (unconfirmed)
Average Daily Volume: 3.9 million

Closed Short Plays

None today

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