Long Play Updates
Burlington Coat - BCF - close: 41.42 chg: +0.72 stop: 38.90
BCF continued to rally on Friday and added another 1.76% following Thursday's rebound. The stock is now set to test recent resistance near 41.50-41.60. We are not suggesting new plays at this time. Our year-end target is the $43.50 level.
Picked on October 24 at $38.90
CE Frankline Ltd - CFK - cls: 12.25 chg: -0.03 stop: 10.99
Friday proved to be another quiet session for CFK. The stock traded sideways and closed with a fractional loss. The next test for the stock is resistance in the $12.55-12.75 range. We would not suggest new positions right here. Our target is the $14.75-15.00 range over the next several weeks. More conservative traders may want to adjust their stops toward the $11.45 region.
Picked on November 16 at $11.98
Cree Inc. - CREE - close: 27.77 change: +0.28 stop: 25.49 *new*
The semiconductor stocks continued to be strong on Friday and CREE hit a new multi-week high. The move over $27.25 looks like a new bullish entry point. We're going to raise our stop loss to $25.49. Our six-week target is the $30.00-31.00 range.
Picked on November 20 at $26.89
D.R.Horton - DHI - close: 36.52 chg: +0.51 stop: 33.75 *new*
The DJUSHB home construction index is bouncing from technical support at its simple 200-dma. Meanwhile DHI is bounce from its 10-dma and appearing to breakout over its one-week trend of lower highs. This looks like a new bullish entry point to go long the stock. Our target for DHI is the $39.75-40.00 range. We are raising the stop loss to $33.75.
Picked on November 21 at $35.85
eBay Inc. - EBAY - close: 45.19 change: +0.23 stop: 42.45
Friday's bounce from short-term support near $44.25 and its rebound back above the $45 level looks like a new bullish entry point for EBAY. However, conservative traders should note that the stock does have short-term resistance at the $46 mark so it may be prudent to wait for more confirmation, especially with the MACD in a new sell signal. Our six-week target is the $49.90-50.00 range.
Picked on November 21 at $45.10
Forest Oil - FST - close: 46.15 change: -0.15 stop: 42.75
FST has been triggered. The rally in energy stocks continued on Friday and Friday morning FST spiked to $47.28 before paring its gains. Our trigger to go long was at $47.01. FST is a new bullish candidate from the Thursday night newsletter and we don't see any changes from our play description so we're reposting it here:
The energy sector looks poised to breakout from its two-month consolidation while the oil service stocks have already done so and are trading near all-time highs. It also helps that natural gas futures have rebounded off their recent lows. FST is a natural gas play and its daily chart shows a bullish or inverted head-and-shoulders pattern. We also like how FST has rebounded from the 200-dma a few days ago and how today's rally pushed the stock above technical resistance at its simple 50-dma. The P&F chart for FST is improving and a move over $47.00 would produce a new buy signal. We are going to use a trigger at $47.01 to open the play. More aggressive traders might want to try and jump in early if FST trades over today's high (46.61). If triggered we'll target the $52.50-53.00 range since the H&S pattern points to a $52-53 target. We do not want to hold over FST's February earnings report.
Picked on December 02 at $47.01
Corning Inc. - GLW - close: 20.85 chg: +0.46 stop: 19.99 *new*
It looks like the rally in GLW is not dead yet. The stock surged higher on Friday morning but was unable to breakout over resistance near $21.00. This bullish reversal looks like a new entry point but we hesitate to launch new plays right here under resistance. Our target remains the $21.90-22.00 range. We're also going to inch our stop loss up to $19.99.
Picked on November 13 at $20.11
Grant Prideco - GRP - close: 41.92 chg: +0.72 stop: 38.49
GRP has been triggered. The stock continued to rally on Friday and broke out over resistance at the $41.50 level with volume coming in very strong for the third session in a row. GRP actually gapped open at $41.80, which was above our trigger at $41.65 so we have adjusted our entry point. We see no changes from our play description on Thursday night so we're reposting it here:
The oil service stocks have returned as one of the strongest sectors in the market. The OSX index closed near its all-time high today. GRP followed suit with a strong, high-volume rally back toward its own highs. Normally we don't like to chase a move this big (+7.3% today) but GRP looks poised to breakout from its two-month consolidation. The stock has resistance at $41.50. We're going to suggest a trigger at $41.65 to open the play. If triggered we'll target a rally into the $46-47 range over the next seven weeks. We do not want to hold over GRP's earnings report in January.
Picked on December 02 at $41.80
JAMDAT Mobile - JMDT - close: 23.51 chg: -0.19 stop: 22.49
JMDT remains untriggered. The stock is a new bullish candidate from the Thursday night newsletter. We see no changes from our original play description so we're reposting it here:
This is an aggressive play in the wireless sector. JMDT exploded higher last month before Thanksgiving after announcing it had renewed a game deal with Activision. The news sparked a short-squeeze and JMDT soared from under $20 and is 50-dma to over $25 and its 200-dma in just two days. Since then the stock has slowly consolidated back down to support near the 200-dma (22.50). Today's bounce produced a bullish engulfing candlestick pattern, which is usually a one-day reversal pattern. However, these patterns need to be confirmed. Therefore we're going to suggest a trigger to go long at $24.01. If triggered we'll target a rally to the top of the August gap in the $26.95-27.00 range. We do not want to hold over the early February earnings report. FYI: the latest data put short interest at 22.8% of the 24.8 million share float.
Picked on December xx at $xx.xx <-- see TRIGGER
K-Swiss - KSWS - close: 32.46 chg: +0.34 stop: 30.89
We don't have much new to report on for KSWS. The stock continues to creep higher and it remains above technical resistance at its 200-dma. The MACD's nascent buy signal is getting stronger. More conservative traders may want to wait for a move over yesterday's high (32.60) to avoid another head fake before initiating new longs. Our target is the $34.85-35.00 level.
Picked on November 29 at $32.09
Levitt - LEV - close: 22.44 chg: +0.17 stop: 20.95
LEV is a new bullish candidate from our Thursday newsletter. We don't see any changes from our original play description so we're reposting it here:
LEV is a builder that appears to have seen its stock price bottom over the last couple of months. The recent breakout on November 23rd pushed the stock over multiple levels of resistance and technicals on the daily and weekly chart have turned bullish. Shares did pull back from the Thanksgiving week spike and the recent bounce from the $21.00 level looks like a new bullish entry point. We would suggest long positions with LEV above $21.50 and target a run up into the $24.90-25.00 range. We do not want to hold over the February earnings report.
Picked on December 01 at $22.27
VCA Antech - WOOF - close: 28.00 chg: -0.09 stop: 25.90
WOOF continues to consolidate sideways around the $27.00 level. The stock has not violated its bullish up trend but the slow down in its momentum has produced some sell signals in the technical oscillators. We are not suggesting new plays here. More conservative traders might want to tighten their stops. Our target is the $29.90-30.00 range.
Picked on November 09 at $26.74
Short Play Updates
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