Long Play Updates
Amer. Egl Outftr - AEOS - cls: 29.81 chg: +0.04 stop: 27.65 *new*
AEOS is holding up pretty well given the weakness in the broader markets. The stock hit our short-term target at $30.00 a few days ago but it hasn't seen much follow through since then. Right now we would not suggest new bullish positions. If AEOS dips back toward the $28.00 level we might consider buying a bounce. Alternatively more conservative readers, if you haven't taken any profits yet, you might want to consider exiting here and then just looking for a dip again to re-enter. Our secondary target remains the $31.50-32.00 range. We are raising the stop to $27.65, just under the 50-dma.
Picked on March 28 at $28.19
Fresh Del Monte - FDP - close: 31.71 chg: +1.13 stop: 29.99
We cannot find any news to account for the strong session on Friday but we're not complaining. Shares added 3.69 percent with volume rising as FDP broke through the $31.50 level. Friday's gain is a technical breakout to a new five-week high. Its RSI technical oscillator also shows a new bullish breakout. We would buy dips back to the $31.50 level if you don't feel like chasing it here. Our short-term target remains the $33.00 level.
Picked on March 22 at $30.82
Forest Oil - FST - close: 41.70 chg: -0.35 stop: 38.49
We have been expecting a pull back to the $40.00-41.00 levels and with crude oil prices slipping we could see FST pull back to support this coming week. We would not suggest new bullish entries at this time. Readers can choose to wait for a dip and bounce from the $40.00 level and its rising 40-dma. Or readers can wait for a new relative high over the $43.00 mark.
Picked on April 03 at $42.00
Global Imaging - GISX - close: 36.02 chg: -0.35 stop: 34.95*new*
GISX is still struggling to produce any kind of follow through on its bullish breakout four days ago. This lack of strength makes us cautious, especially in the current market. Right now we'd expect GISX to pull back and retest the $35.50 level. More aggressive traders may want to consider buying a bounce from $35.50. We would suggest that most investors wait for a move back over $36.50. We are going to raise the stop loss to $34.95.
Picked on April 05 at $36.50
OSI Pharma - OSIP - close: 45.30 chg: +0.15 stop: 42.49
OSIP is a new play from the Thursday night newsletter. We had a trigger to go long if OSIP traded at $45.51 or better. The stock hit our trigger early on Friday morning so the play is now open. We are a little bit concerned that OSIP was unable to maintain most of its gains and it would not surprise us to see OSIP fall back toward the $44.00-43.50 levels before bouncing higher again. A reprint of the original play description follows:
OSIP is on the verge of a trend change. The stock has been stuck in a narrow, descending channel since the reversal back on January 3rd, 2005. After three months of declines the stock is very oversold and way overdue for a bounce. Now that the BTK biotech index has broken through its 200-dma and its short-term trendline of resistance we believe OSIP has a chance to really move higher. Currently, it looks like OSIP has already broken through the top of its descending channel. However, we want to see some confirmation. That's why we are suggesting a TRIGGER at $45.51 to open the play. If OSIP trades at or above our entry price of $45.51 we'll target a move to round-number, psychological resistance at the $50.00 level.
Picked on April
08 at $45.51
Short Play Updates
Anheuser Busch - BUD - close: 46.00 chg: -0.10 stop: 47.01
Good news! It looks like the oversold bounce in BUD is already failing. For those who missed the news earlier this week BUD guided earnings to at or under analyst estimates. Plus, BUD reported worse than expected sales numbers. Shares gapped down as at least one analyst downgraded the stock to a "sell". We continue to target a drop into the $44.00-43.00 range but that may be overly optimistic. We will exit the play before its late April earnings report.
Picked on February 7 at $48.32
Flextronics - FLEX - close: 12.14 chg: +0.15 stop: 12.55
FLEX continues to vacillate in no man's land under resistance at $12.50 but above the $11.80-11.90 support level. The P&F chart remains bearish with a $9.50 target but there's been no follow through lower. Which way FLEX eventually breaks is probably up to the SOX index. Another challenge is the upcoming earnings season. FLEX doesn't report until late April but any big earnings news in the semiconductor sector is likely to spark a reaction in FLEX. Conservative traders may want to consider just exiting now to avoid any surprises. We may consider an early exit if FLEX trades over $12.40.
Picked on March 16 at $11.95
Westlake Chem. - WLK - close: 29.32 chg: -1.08 stop: 32.01
Shares of WLK trended lower through most of the session. The stock dipped under Wednesday's low and hit $29.10 about midday. This was more than enough to open the play. Our trigger to go short was $29.19. The close under the $30.00 level is encouraging and we would open new bearish positions at current levels.
Picked on April 08 at $29.19
West Marine - WMAR - close: 20.82 chg: -0.21 stop: 22.01
We remain bearish on WMAR and the stock's recent bounce appears to have failed under the descending 21-dma. The technical indicators are mixed but the trend is still bearish. The next test will be at the $20.00 level again. Our target remains the $19.00 level near the 200-week moving average.
Picked on March 17 at $21.20
Closed Long Plays
Closed Short Plays