Long Play Updates
Idex Corp - IEX - close: 44.61 change: -0.23 stop: 41.99
Once again traders were there to buy the dip toward support at the $44.00 level. This looks like a new bullish entry point in IEX but investors may want to take a step back. Readers might want to wait and see if the broader indices continue lower tomorrow and how they react to the FOMC decision on interest rates before considering new bullish positions.
Picked on September
11 at $44.43
Mckesson - MCK - close: 46.16 chg: -0.31 stop: 44.85
MCK is looking stronger than the numbers might imply. Shares dipped to $45.64 this morning but quickly rebounded to erase most of its losses. Volume came in very low suggesting a lack of real sellers. While this might be another bullish entry point our readers may want to wait and watch for a new relative high over $46.60 before initiating new long positions. Our target is the $49.75-50.00 range.
Picked on September 18 at $46.47
Rowan Cos - RDC - close: 37.49 chg: +0.96 stop: 35.25 *new*
Wall Street is worried that tropical storm Rita, soon to be hurricane Rita, will cause more damage and shut-downs to the oil and natural gas industries in the Gulf of Mexico and along the Texas coastline. These fears sent crude oil and natural gas prices soaring, which in turn powered big gains for the energy stocks. RDC added 2.6% and challenged resistance near the $38.00 level. If there is no follow through higher in crude prices tomorrow we'd expect RDC to see some profit taking. Look for the $36.50-37.00 range to offer new support. Our target is the $39.50-40.00 range. We are raising the stop loss to $35.25.
Picked on September 14 at $36.31
Radian Group - RDN - close: 51.82 chg: -0.93 stop: 49.99
The technical signals have taken a turn for the worse following today's sell-off in shares of RDN. We would watch for support near its simple 50-dma (51.30). We would not suggest new plays at the moment.
Picked on September 07 at $51.10
Ryerson Tull - RT - close: 21.17 change: -0.15 stop: 19.49
We see no change from our previous update on RT. The stock continues to trade in its narrow trading range.
Picked on August 31 at $20.54
Steel Dynamics - STLD - close: 33.19 chg: -0.72 stop: 31.49
Shares of STLD erased about half of Friday's gain but seemed to find strength near the $33.00 level on Monday afternoon. We're not excited with today's close under the simple 200-dma and traders may want to wait for a bounce back above $34.00 before considering new long positions.
Picked on September 18 at $33.91
Short Play Updates
Anheuser Busch - BUD - cls: 44.97 chg: -0.23 stop: 46.25
We see no change from our weekend update on BUD.
Picked on July 28 at $44.77
Nautilus Inc. - NLS - close: 23.92 chg: +0.08 stop: 25.11*new*
Bingo! Over the weekend we told readers to watch for a failed rally under resistance at $25.00 to be a new bearish entry point. That's what we got today. NLS gapped higher and spiked to $24.85 after an analyst upgraded the stock to a "buy" rating. NLS was unable to hold its gains. We see this as a new entry point. We're going to lower the stop loss to $25.11. Our target is the $20.50-20.00 range.
on September 14 at $23.80
Wal-Mart - WMT - close: 44.01 change: +0.14 stop: 46.05
Retail stocks continue to get hammered as rising energy prices put pressure on consumers. Meanwhile WMT reiterated its 2%-4% same store sales guidance again. We think the stock managed to bounce only because shares were already so oversold. The $44.50 level is the nearest level of overhead resistance. We are not suggesting new plays here and continue to target the $42.50 mark.
Picked on August 24 at $45.95
YUM Brands - YUM - close: 49.87 change: -0.71 stop: 51.01
YUM is failing under its trendline of lower highs. The decline under $50.00 looks like a new bearish entry point. The next level of support is the 200-dma near $49.45. Our target is the $48.00 level.
Picked on September 13 at $49.98
Closed Long Plays
Forest Labs - FRX - close: 42.25 chg: -1.29 stop: 42.49
Monday's market weakness was too much for shares of FRX. The stock under performed its peers in the biotech index and lost almost three percent. Shares fell below the bottom edge of its three-week trading range at the $43.00 level and stopped us out at $42.49. Currently FRX is testing the next level of support near $42 and its simple 50-dma and exponential 200-dma. It's possible that our stop loss was too tight and we should have kept it under the exponential 200-dma (near 41.85 at the moment), which is also near the bottom of FRX's rising channel. More aggressive traders can keep an eye on FRX for a bounce from here as a new bullish entry point.
Picked on September 14 at $45.11
Closed Short Plays
Intl Game Tech. - IGT - cls: 28.02 chg: +0.62 stop: 28.01
It would seem that our caution on IGT was warranted. The stock displayed some unusual strength on Monday bucking the weakness in the overall market. Shares opened at $27.60 and quickly ran to $28.55 before paring its gains. Volume was well above normal suggesting more strength ahead. We've been stopped out at $28.01.
July 21 at $27.21