Long Play Updates
Arch Coal - ACI - close: 47.00 change: -2.63 stop: 44.95*new*
Uh-oh! This could be bad news. ACI has been struggling to breakout over the $50.00 level for the last couple of days. Shares produced another failed rally at $50.00 this morning before closing with a 5.2% loss. Odds look good that ACI will retreat to its 50-dma (near 45.44) or the $45.00 level. Considering today's bearish reversal traders may just want to exit early right now to protect their capital. We are raising our stop loss to $44.95.
Picked on May 28 at $47.50
Anadarko Petrol. - APC - close: 49.09 chg: -1.34 stop: 47.95
Crude oil traded higher today on rising concerns about Iran and its threat to play their "oil card". Yet this strength in crude did nothing to stop the bloodshed in the oil sector. Oil stocks were some of the hardest hit during today's market sell-off. Shares of APC traded higher this morning only to reverse course and close with a bearish engulfing candlestick pattern. Today's bearish reversal looks pretty negative and if you opened positions this morning we'd consider exiting early just to protect your capital.
Picked on June 04 at $50.43
Archstone - ASN - close: 49.77 chg: +0.03 stop: 47.35
Warning! Failed rally alert. REITs and related stocks were one of the few pockets of strength today but the rally in ASN failed at the $51.00 level. Shares reversed course and closed back under resistance at the $50.00 level. We were triggered at $50.21 so the play is open for us but we are not suggesting new plays at this time. ASN looks poised to consolidate back toward the $48.00 level.
Picked on June 05 at $50.21
Brookfield Asset Mgt - BAM - cls: 41.72 chg: -1.51 stop: 40.83
This doesn't look good. BAM has reversed course with a 3.49% decline on Monday. More conservative traders may want to exit immediately to preserve any kind of gain. Odds look good that we'll be stopped out tomorrow at $40.83.
Picked on May 25 at $40.83
Drew Industry - DW - close: 30.66 chg: -1.39 stop: 30.19
DW has produced a bearish reversal with Friday's failed rally and today's 4.3% decline. The stock was hit pretty hard even though volume came in below average. The selling stalled right at the 200-dma so there is a chance for a bounce tomorrow but more conservative traders may just want to exit now to minimize any losses.
Picked on May 25 at $31.62
Ensco Intl. - ESV - close: 49.60 chg: -2.11 stop: 47.35
Oil stocks were hit hard by relatively strong selling pressure. A lot of stocks in the sector produced bearish engulfing candlestick patterns and ESV is one of them. We are not suggesting new positions and if you did open longs on the early morning strength you may want to exit early to minimize any losses.
Picked on June 04 at $51.71
ImClone Sys. - IMCL - close: 40.06 chg: -0.11 stop: 39.40
Biotech stocks, which had seen some decent gains over the last couple of weeks gave a lot back today. The BTK index had produced a failed rally at its 50 and 200-dma's on Friday and the index confirmed that reversal with a 3.5% decline today. IMCL actually out performed its peers with a 0.27% decline as it clings to the $40.00 level. We are not suggesting new plays and more conservative traders may want to exit early to preserve their capital.
Picked on June 01 at $40.55
Murphy Oil - MUR - close: 52.53 chg: -2.05 stop: 49.99
MUR has erased all of our potential gains in one session. The stock has produced a failed rally near $55.00 and a bearish engulfing candlestick pattern with shares closing near their lows for the session. MUR looks pretty bearish right here and we expect a dip toward $51.00 and its 200-dma. More conservative traders may want to protect their capital and exit early right now. You can always re-enter later. We're not suggesting new plays.
Picked on May 31 at $52.55
Potlatch - PCH - close: 38.51 chg: -0.88 stop: 36.99
PCH spiked to $40.18 and then promptly reversed course. The close under $39.00 and its 50-dma is bearish and we expect a dip toward $38.00-37.50. We are not suggesting new positions at this time. If you opened positions this morning you may want to exit early right here.
Picked on June 04 at $39.39
RPC Inc. - RES - close: 24.79 change: -0.25 stop: 22.45
RES out performed most of its peers by limiting its losses to just one percent on Monday. The results still look bearish and we'd expect a dip toward $24.00. Watch for a bounce from $24.00 as a potential entry point.
Picked on June 04 at $25.04
Short Play Updates
K-Swiss - KSWS - close: 26.45 chg: -0.59 stop: 27.25 *new*
KSWS continues to consolidate lower in a narrow channel. We are lowering our stop loss to $27.25. Our target is the $26.00 mark. We see no other changes from our previous updates.
Picked on May 12 at $27.45
Starbucks - SBUX - close: 35.38 chg: -0.61 stop: 36.65
Our bearish play in SBUX is still alive. The stock lost 1.69% and closed back under its 100-dma. Traders can use today's loss as a new entry point to short the stock. More conservative traders may want to use a tighter stop loss or wait for a move under $35.00 as an entry point to short SBUX. Our target is the $33.15 mark.
Picked on May 23 at $35.59
Closed Long Plays
Amer. Std. Co. - ASD - close: 40.86 change: -1.49 stop: 41.49
We have been growing worried over ASD's performance lately and today's market-wide sell-off was the last straw. The stock caved in under support near $41.50 and its simple and exponential 200-dma's. We have been stopped out at $41.49. This actually looks like a bearish entry point to short the stock.
Picked on May 28 at $43.30
Closed Short Plays