Long Play Updates
Mckesson - MCK - close: 45.60 chg: -0.83 stop: 44.85
The action in MCK on Friday was interesting. The stock continued to sell-off despite the fact the major averages we trying to bounce. Shares of MCK did rebound from their lows of the session near $45.00 but the relative weakness is a warning and it produced a new MACD sell signal. If MCK breaks down under the $45.00 level traders may want to reverse positions and short the stock since such a move would make the peak in August and the new one last week look like a double-top pattern. We are not suggesting new plays at this time.
Picked on September 18 at $46.47
Short Play Updates
Career Educ. - CECO - close: 34.36 chg: +0.76 stop: 36.51
CECO produced a strong oversold bounce on Friday with a 2.2% gain but volume came in relatively light. We remain bearish on the stock but there is a chance the bounce isn't over yet. Readers can watch for a failed rally under the $35.00-35.50 region as a new bearish entry point. Our target is the $31.00 level compared to the Point & Figure chart which points to a $25 target.
Picked on October 04 at $34.99
Cost Plus - CPWM - close: 17.32 change: +0.37 stop: 19.01 *new*
CPWM is very oversold after setting a string new four-year lows this past week so we are not surprised by Friday's oversold bounce. Shares almost hit our target in the $16.50-16.00 range and this close to our target we've been suggesting that more conservative traders seriously consider exiting here for a profit. That suggestion still stands today. We're not suggesting new plays. Our new stop loss is $19.01.
Picked on September 20 at $19.78
Enzo Biochem - ENZ - close: 13.77 chg: -0.03 stop: 15.01*new*
Time is running out for our play in ENZ. The company is due to report earnings on Friday, October 14th. We do not know if they report before the bell or after the close so we plan to exit on Thursday afternoon at the closing bell for that session. There are too many unknown variables during an earnings report and it normally it's too risky to hold a directional position. Shares of ENZ failed to really participate with any market bounce on Friday and the stock produced one of its least volatile sessions we've seen in several days. Our target is the $12.25-12.00 range. We are lowering the stop loss to $15.01.
Picked on October 03 at $14.36
99c Only Stores - NDN - close: 9.18 chg: -0.10 stop: 10.01
NDN tried to bounce higher on Friday with the rest of the retail sector but it could not hold its early morning gains. This is probably due to the press release put out by the company on Friday morning. NDN pre-announced its Q3 sales figures that came in below analysts' estimates. NDN also said that same-store sales fell 0.7% for the quarter. The company blamed higher gasoline prices for the downturn. We remain bearish on the stock and continue to target the $8.60-8.50 range.
Picked on September 27 at $ 9.40
Toll Brothers - TOL - close: 39.91 chg: +0.65 stop: 44.55
Homebuilders produced an oversold bounce on Friday after a very tough week. The DJUSHB home construction index broke down under significant support at the 900 level and its simple and exponential 200-dma's. Shares of TOL were already under their 200-dma's and broke down from a bear-flag type pattern. Inflation fears are not going to go away any time soon and the homebuilders will probably continue to see more selling pressure. Readers can watch for a failed rally under the $42 level as a new bearish entry point to short the stock. Our target is the $36.50-36.00 range.
Picked on October 05 at $40.95
Closed Long Plays
Closed Short Plays