Long Play Updates
Health Net. - HNT - close: 41.63 chg: +0.04 stop: 39.49
HNT is trying to rally but it's still struggling under the $42.00 level. We remain bullish but more conservative traders may want to wait for a move over $42.00 before initiating new positions. Our target remains the $44.50-45.00 range for now but we'll adjust it lower as potential overhead resistance at the 50-dma (44.92) continues to descend.
Picked on May 16 at $41.12
Universal Health - UHS - close: 52.37 chg: -0.24 stop: 51.45
We would be a bit careful here. UHS displayed relative strength by weathering last week's storm in the markets. Yet now the stock's momentum is beginning to waver and its technical oscillators are starting to suggest a correction. Shares are currently above short-term support at $52.00 and its 10-dma but any breakdown would probably stop us out at $51.45. We are not suggesting new positions at this time. Our target is the $56.00-57.00 range. The P&F chart points to a $64 target.
Picked on May 10 at $52.15
Short Play Updates
Coach Inc. - COH - close: 30.03 chg -0.48 stop: 32.01 *new*
COH is certainly cooperating with us. The stock produced its second failed rally near the descending 10-dma for the second time in a row. We continue to target the $28.25-27.50 range but shares look oversold so we're not suggesting new positions. We will adjust our stop loss to $32.01. More aggressive traders may want to aim lower since the P&F chart points to a $22 target (it was $24).
Picked on May 11 at $31.45
K-Swiss - KSWS - close: 27.30 chg: -0.17 stop: 29.01
KSWS managed to hit a new 52-week low on Friday and volume came in above average. The stock produced a double-top under its 200-dma in March and April. The oversold bounce from $28.30 in May failed at the 50-dma and now shares are sinking to new yearly lows. Taking everything into account we remain bearish and would continue to suggest shorts. Our target is the $25.15-25.00 range. More aggressive traders may want to aim lower. The P&F chart has seen its bearish target drop from $21 to $19. Short interest is at 5.8% of its 27-million share float.
on May 12 at $27.45
Ryan's Restaurant - RYAN - cls: 12.61 chg: +0.04 stop: 13.01
RYAN is a new short candidate from our Thursday night newsletter. We do not see any changes from our new play description so we're reposting it here:
Shares of RYAN have produced a classic (bearish) head-and-shoulders pattern. Shares are currently flirting with support at the neckline of the pattern and technical support at its simple 200-dma. The technical indicators are bearish on the daily chart and the weekly chart's MACD has recently produced a new sell signal. The P&F chart for RYAN points to a $9.00 target. We suspect that investors are worried how high fuel costs will impact family dining chains like RYAN. We are going to suggest a trigger to short the stock at 12.29, which is under last Wednesday's low. If triggered our target will be the $11.35-11.25 range. Traders should note that the most recent data puts short interest at 5% of RYAN's 42 million-share float.
Picked on May xx at $xx.xx <-- see TRIGGER
Yahoo! - YHOO - close: 29.53 chg: +0.53 stop: 31.31
Shares of YHOO, like many of the Internet stocks, produced a decent oversold bounce on Friday. YHOO added 1.8% on strong volume and we don't think the bounce is over yet. The stock could challenge round-number, psychological resistance at $30.00 or rally toward short-term technical resistance at its 10-dma near $31.00. We would wait for a failed rally before considering new positions. Our target remains the $27.00 level. The P&F chart for YHOO points to a $16.00 target.
Picked on May 14 at $30.81
Closed Long Plays
Closed Short Plays
Juniper Networks - JNPR - cls: 15.06 chg: -1.04 stop: 17.55
Target achieved. Friday was a rough day for JNPR. The stock lost 6.45% on very strong volume and the stock closed near its lows for the session, which is bearish for Monday's open. Fueling the sell-off were worries over some timing for stock-option pricing for company executives. Our target on JNPR was the $15.10-15.00 range.
Picked on May 12 at $16.89