Long Play Updates
Burlington Coat - BCF - close: 40.51 chg: -1.03 stop: 38.90 *new*
Excitement over retail sales on Friday turned to doubt on Monday and retail stocks turned lower as a result. BCF lost 2.47% and pulled back toward round-number support at the $40 level. A bounce from here could be used as a new bullish entry point. We're raising our stop loss to breakeven at $38.90. Our target is the $43.50-44.00 range.
Picked on October 24 at $38.90
Csk Auto - CAO - close: 15.48 change: -0.34 stop: 15.19 *new*
CAO was also affected by the market's wide spread pull back and shares of CAO lost more than two percent and closed under its 10 and 21-dma's. We don't have much time left before CAO reports earnings and we don't like the short-term weakness so we're raising our stop loss to $15.19. More conservative traders may want to exit right here at $15.48!
Picked on November 02 at $15.58
CE Frankline Ltd - CFK - cls: 11.80 chg: -0.30 stop: 10.49 *new*
Oil stocks lead the market's declines today after a sharp pull back in crude oil prices. CFK followed suit and fell 2.47%. We suggested that CFK could dip to the $11.50 level and that's what CFK provided. Right now we would hesitate to launch new bullish positions although a move over $12.00 or $12.20 would look like a new bullish entry point. Our target is going to be the $14.75-15.00 range over the next seven weeks. We are raising our stop loss to $10.49 but more conservative traders may want to put their stops closer to $11.00.
Picked on November 16 at $11.98
Cree Inc. - CREE - close: 26.97 change: -0.48 stop: 24.89
CREE's decline today doesn't look out of the ordinary, just a normal consolidation inside its current up trend. A bounce from the 10-dma near 26.65 could be used as a new bullish entry point. Our target will be the $30.00-31.00 range.
Picked on November 20 at $26.89
D.R.Horton - DHI - close: 35.57 chg: -1.05 stop: 32.45
Investors used the existing home sales report as an excuse to do some profit taking in the homebuilders today. The report did come in under analysts' expectations and the media certainly took the opportunity to rehash the whole "bubble bursting" story. We would watch for a dip back toward the $35.00 level, which should be short-term support, underpinned by its simple 10-dma. A bounce from $35 can be used as a new bullish entry point. Our target for DHI is the $39.75-40.00 range.
Picked on November 21 at $35.85
eBay Inc. - EBAY - close: 45.37 change: -1.34 stop: 42.45
Internet stocks lead the technology stocks lower on Monday after Yahoo (YHOO) received a downgrade this morning. Shares of EBAY pulled back toward the $45 level as we expected it would. A bounce from the $45 level can be used as a new bullish entry point. Our target is the $49.90-50.00 range.
Picked on November 21 at $45.10
Corning Inc. - GLW - close: 20.37 chg: -0.56 stop: 19.89
GLW was not immune to the market weakness on Monday and lost 2.67%. The stock closed under its simple 10-dma and its short-term technicals have grown even more bearish. We are not suggesting new bullish positions but we'll certainly watch for a potential entry point in a bounce from the $20 level. Meanwhile we're going to try and reduce our risk by raising the stop loss to $19.89. Our target is the $21.90-22.00 range.
Picked on November 13 at $20.11
Kraft Foods - KFT - close: 29.77 chg: -0.34 stop: 28.89
We don't think the pull back in KFT is done yet. Friday's trading looked like a short-term top and we believe the stock will dip to the $29.50 level before attempting to rebound higher again. Wait for the bounce before considering new long positions. We plan on riding KFT into January up to its mid-month earnings report. The P&F chart for KFT points to a $48 target. Our target is the $32.50 mark.
Picked on November 23 at $30.06
VCA Antech - WOOF - close: 28.06 chg: -0.36 stop: 25.90
WOOF is doing a relatively good job of holding on to its gains. The stock dipped to $27.81 but was rebounding higher into the closing bell. The stock does look a bit overbought here so we're not suggesting new bullish positions. A bounce from the $27.00 or $27.50 level would look like a more attractive entry point. Our target is the $29.90-30.00 range.
Picked on November 09 at $26.74
Short Play Updates
Closed Long Plays
Mentor Graphics - MENT - close: 8.83 chg: -0.28 stop: 8.64
It's time to go! We need to exit early in MENT. We wait for days for the stock to breakout over major resistance at the $9.00 level, which was the top of its four-month trading range. The breakout finally happed last week but broken resistance failed to hold up as new support today. We're exiting now to avoid further losses. MENT could easily fall back into its previous range-bound pattern.
Picked on November 23 at $ 9.05
Closed Short Plays