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Long Play Updates

Amer.Phys.Cap. - ACAP - close: 48.86 change: -0.07 stop: 46.75

ACAP continues to trade sideways in the $48.50-50.00 range. We are still on the sidelines waiting for a breakout. We're suggesting a trigger to go long the stock at $50.61. If we are triggered our target will be the $54.85-55.00 range. If ACAP trades under $48.00 we'll probably drop the stock as a bullish candidate.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/16/06 (unconfirmed)
Average Daily Volume: 53 thousand

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Arrow Elect. - ARW - close: 34.59 change: -0.24 stop: 33.90

ARW is still drifting sideways after Thursday's pull back. We would not be surprised to see ARW consolidate lower toward the 50-dma and the $34.00 level. A bounce from $34.00 could be used as a new bullish entry point although more conservative readers might want to wait for a rebound above the $35.00 level again before considering new longs. Early this week ARW is expected to present at a semiconductor conference. Maybe they'll announce some news that will refuel the current up trend. Our target is the $39.00-40.00 range.

Picked on February 26 at $35.89
Change since picked: - 1.30
Earnings Date 02/22/06 (confirmed)
Average Daily Volume: 587 thousand

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Claires Store - CLE - close: 32.39 change: +0.33 stop: 31.49*new*

CLE out performed the broader market indices and its peers in the retail sector on Friday. The relative strength is certainly bullish but we hesitate to suggest new positions here. This play is running out of time. CLE is due to report earnings on Thursday, March 9th and we do not want to hold over the report. Therefore we plan to exit on Wednesday near the closing bell. We're inching up our stop loss to $31.49. Our target is the $33.90-34.00 range. The P&F chart points to a $42 target.

Picked on February 14 at $32.00
Change since picked: + 0.39
Earnings Date 03/09/06 (confirmed)
Average Daily Volume: 697 thousand

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LM Ericsson - ERICY - close: 34.92 chg: -0.02 stop: 33.93

Watch out! On Thursday we suggested that readers watch for a move over the 50-dma near $35.00 as a new bullish entry point. On Friday ERICY delivered with a move over the 50-dma but it failed to hold its gains. This failed rally suggests that ERICY will probably retest the $34.50 level again and maybe even its 200-dma near 34.20. More aggressive traders can use a bounce from either level as a new entry point. We would wait for a new relative high. Our target is the $36.75-37.00 range.

Picked on February 14 at $34.61
Change since picked: + 0.31
Earnings Date 01/31/06 (confirmed)
Average Daily Volume: 2.2 million

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Hewlett Packard - HPQ - cls: 33.26 chg: -0.93 stop: 31.75

Traders were locking in profits on Friday. Shares of HPQ lost 2.7% after trading near its highs on Thursday. We would watch for a bounce in the $32.75-33.00 region as a new bullish entry point. However, we would hesitate to open new long positions if the major averages are weak. Our target is the $35.00-35.50 range.

Picked on February 22 at $32.94
Change since picked: + 0.32
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 13.5 million

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IAC/InterActive - IACI - close: 29.99 chg: +0.00 stop: 28.75

Uh-oh! This doesn't look good. IACI broke out over resistance in the $30.00-30.25 region on Friday but failed to hold its gains. We were suggesting a trigger to go long the stock at $30.31. (We also mentioned a higher trigger at $31.01 for more conservative traders.) The stock's failed rally on Friday could be a bull trap. We would now expect shares to pull back further probably toward the $29.00 level and its simple 10-dma. More aggressive traders could use a bounce from $29.00 as a new bullish entry point. We are not suggesting new plays at this time. Our target is the $32.90-33.00 range.

Picked on March 03 at $30.31
Change since picked: - 0.32
Earnings Date 02/08/06 (confirmed)
Average Daily Volume: 2.1 million

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Microchip - MCHP - close: 36.62 chg: +0.10 stop: 34.99

MCHP is a new bullish play from our Thursday night newsletter. The intraday reversal on Friday suggests the stock might pull back toward the $36.00 level again. A bounce from $36 could be used as a new entry point. We don't see any other changes from our original play description so we're reposting it here:

MCHP's rally on Thursday is a follow through on Wednesday's rebound from support. The stock has been climbing in a wide, rising channel and Wednesday's bounce was from support near $35.00 and its simple 50-dma (also near the bottom of its rising channel). Thursday's move over $36.50 is also a bullish breakout over its month-long consolidation and trendline of lower highs. The MACD is nearing a new buy signal and short-term oscillators already look positive. We are going to target a rally into the $39.50-40.00 range. More conservative traders may want to plan an early exit near $38.00, which looks like the next level of significant resistance.

Picked on March 02 at $36.52
Change since picked: + 0.10
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 1.6 million

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Network Appl. - NTAP - close: 33.86 chg: -0.35 stop: 31.90

NTAP could not breakout past the $35.00 level this past week thanks in part to a market that was churning sideways. This failed rally at $35.00 suggests to us that shares will probably consolidate lower. We're watching the $33.00 level to act as short-term support. A bounce from $33.00 could be used as a new bullish entry point. If the markets really start to weaken then NTAP will likely dip toward support at the $32.00 level again. Our nine-week target is the $39.00-40.00 range. The Point & Figure chart points to a $49.00 target.

Picked on February 27 at $33.50
Change since picked: + 0.36
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 4.5 million

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OptionsXpress - OXPS - close: 31.60 change: +0.53 stop: 29.95

Shares of online broker OXPS are rebounding again after Thursday's test of support near the $30.00 level. The move over $31.00 looks like a new bullish entry point and Friday's gain over the $31.50 level appears to confirm it. Our target is the $34.75-35.00 range.

Picked on February 26 at $31.95
Change since picked: - 0.35
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 1.0 million

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SCS Transportation - SCST - cls: 27.42 chg: +0.00 stop: 25.99

SCST experienced some initial weakness on Friday but rebounded to close at the unchanged level. Relative strength in the transportation sector did not hurt. The overall pattern for SCST looks bullish but we would be cautious if the major averages start to weaken much further. Watch for a move over $27.80 as another potential entry point to go long. Our target is the $29.90-30.00 range. SCST's P&F chart points to a $36.50 target.

Picked on March 01 at $27.55
Change since picked: - 0.13
Earnings Date 04/25/06 (unconfirmed)
Average Daily Volume: 139 thousand

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Synopsys - SNPS - close: 22.10 change: -0.39 stop: 21.48

After two strong days of gains shares of SNPS hit some profit taking on Friday ahead of the weekend. Readers can use the pull back as a new entry point but we'd wait for a bounce from the $22.00 level first. Should SNPS continue to sink then watch for a rebound from support near the 50-dma currently at $21.55. The 50-dma also coincides with the bottom (support) of SNPS' rising channel. Our target is the $24.40-24.50 range. The P&F chart is much more bullish with a $38.50 price target.

Picked on March 02 at $22.49
Change since picked: - 0.39
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 1.4 million

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Unisys - UIS - close: 6.88 change: +0.12 stop: 6.34

We finally have some good news to report on for UIS. The stock is showing relative strength and out performed the market and the tech sectors on Friday with a 1.77% gain. The stock has been bouncing along its exponential 200-dma. Friday's rally in UIS is also a bullish breakout over its weeklong trendline of lower highs. UIS still has resistance at the $7.00 mark but this looks like a new bullish entry point. Our target is a move into the $7.40-7.50 range.

Picked on February 16 at $ 6.81
Change since picked: + 0.07
Earnings Date 01/26/06 (confirmed)
Average Daily Volume: 2.1 million
 

Short Play Updates

Bed Bath & Beyond - BBBY - cls: 36.01 chg: -0.34 stop: 37.01

BBBY produced yet another failed rally under the simple 50-dma on Friday. Aggressive traders might want to use the move on Friday as a new entry point to short the stock but be sure to use a tight stop loss. We are waiting for a breakdown to a new relative low. We're suggesting that readers use a trigger at $34.80 to open bearish positions. If triggered our target is the $30.50-30.00 range.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/29/06 (unconfirmed)
Average Daily Volume: 3.5 million

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Hilton Hotels - HLT - close: 23.51 change: -0.45 stop: 24.51*new*

Friday's session produced a nice follow through on HLT's breakdown from Thursday. The stock lost 1.8% on above average volume. Shares did bounce intraday from technical support at their 200-dma but the bounce was faltering by the closing bell. We are not suggesting new bearish positions at this time but readers can watch for any sort of failed rally under $24.00 or its 10-dma as a new entry point. We're aiming for a decline into the $22.25-22.00 range. Please note that we're lowering our stop loss to $24.51.

Picked on March 02 at $23.98
Change since picked: - 0.47
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume: 2.9 million
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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