Long Play Updates
Arch Coal - ACI - close: 48.36 change: +1.95 stop: 44.74 *new*
The action in ACI today is very encouraging. Yesterday's bearish reversal candlestick pattern looked pretty ominous but there was no follow through lower today. The stock added 4.2% on above average volume and its MACD indicator on the daily chart is nearing a new buy signal. We would consider new long positions here. We're adjusting our stop loss to $44.74, which is under the rising 50-dma. Our target is the $54.00-55.00 range.
Picked on May 28 at $47.50
Amer. Std. Co. - ASD - close: 42.49 change: +0.23 stop: 41.49
We narrowly escaped being stopped out today. This morning before the opening bell ASD was downgraded to a "hold" and this prompted shares to gap open lower at $42.00 and drop to $41.65 before bouncing. Bulls stepped in to buy the dip near its simple and exponential 200-dma (and last week's lows). The bounce today looks like a new bullish entry point to go long. Our target is the $46.00-47.00 range.
on May 28 at $43.30
Brookfield Asset Mgt - BAM - cls: 41.06 chg: -0.05 stop: 38.49
We do not see any changes from our previous updates. BAM did not participate in the market-wide bounce today so shares may still need to consolidate toward the $40 region before rallying higher again. The MACD on the daily chart is nearing a new buy signal. More conservative traders may want to tighten their stops.
Picked on May 25 at $40.83
Drew Industry - DW - close: 31.70 chg: +0.21 stop: 30.19
We don't see any changes from yesterday's update where we suggested that readers wait for a move over $31.75 or $32.00 before considering new long positions. More conservative traders may want to tighten their stops toward $31.00. We are leaving our stop under last week's low.
Picked on May 25 at $31.62
Health Net. - HNT - close: 43.02 chg: +0.92 stop: 40.99*new*
It was a bullish session for HNT, which bounced from its rising 10-dma and broke out over short-term resistance in the $42.50-42.65 region. The 50-dma has fallen to $44.04 so we are going to adjust our target to $43.75-44.00. More aggressive traders may want to aim higher. We're also adjusting our stop loss to $40.99.
Picked on May 16 at $41.12
ImClone Sys. - IMCL - close: 40.00 chg: +0.53 stop: 38.74
Biotech stocks produced a strong bounce today with the BTK index adding 2.39%. Shares of IMCL hit $40.49 before paring its gains. Our trigger to go long is at $40.55 above the bottom edge of its gap down from two weeks ago. More conservative traders may want to set their trigger to go long at $41.00. Readers should note that the ASCO conference is due to begin on June 1st and last through June 6th. This is a huge biotech/drug conference where companies present and it has the potential to produce a lot of news and volatility for stocks in the sector. In the past biotechs tended to rally higher into the ASCO conference only to sell-off afterwards.
Picked on May xx at $xx.xx <-- see TRIGGER
Murphy Oil - MUR - close: 52.73 chg: +1.88 stop: 48.75
The bulls returned to the oil stocks in spite of some bearish volatility in crude oil today. Many suspect that the market strength today was partly fueled by end-of-month fund rebalancing and it looks like money managers decided to buy some oil stocks with strong gains for the OIX and OSX indices. Shares of MUR added 3.69% on above average volume. This is a bullish breakout over its trendline of resistance and a move through our trigger to go long at $52.55. Now that the play is open our target is the $57.50-60.00 range.
Picked on May 31 at $52.55
Short Play Updates
Akamai - AKAM - close: 31.29 chg: +0.59 stop: 33.01
Watch out! AKAM added 1.9% as it continues to bounce from the $30.00 level. Volume on today's move was more than double the daily average, which is a danger sign for the bears. Short-term technical indicators are starting to hint at a bullish move higher. We are keeping AKAM on the list as a bearish candidate because shares remain inside their three-week bearish trend of lower highs and the NWX networking index under performed the rest of the market today. However, if you're feeling nervous then we strongly suggest that you consider exiting right now to minimize any losses. AKAM could easily bounce back to the $32.50-33.00 range and still be in a bearish trend albeit a trend on the verge of reversing.
Picked on May 23 at $31.15
K-Swiss - KSWS - close: 26.38 chg: -0.29 stop: 27.65 *new*
Good news! KSWS failed to participate in the market-wide rally on Wednesday. Instead the stock lost over 1% on strong volume. We are adjusting our stop loss to $27.65. Our target is the $26.00 level. More aggressive traders may want to aim lower. The P&F chart points to a $19 target.
Picked on May 12 at $27.45
Starbucks - SBUX - close: 35.65 chg: +0.72 stop: 36.65
SBUX bounced back toward its simple 10-dma today with a 2% gain. Don't forget that tomorrow the stock could see some volatility. SBUX is due to announce its May sales numbers. Double check your stop loss placement. Our target is the $33.15-33.00 range.
Picked on May 23 at $35.59
Closed Long Plays
SLM Corp. - SLM - close: 53.76 chg: +0.35 stop: 53.45
SLM continued lower this morning before eventually turning around to close in the green. We have been stopped out at $53.45 for a loss just as the MACD on the daily chart nears a new sell signal.
Picked on May 22 at $55.21*gap higher*
Closed Short Plays