Long Play Updates
Archstone - ASN - close: 49.72 chg: -0.06 stop: 47.75
ASN is still consolidating sideways under resistance at the $50.00 level. The markets look like they'll continue higher given Thursday's afternoon rebound and a market follow through may be the oomph ASN needs to breakout over $50.00 again. We would use a move over $50.10 as a new bullish entry point. Our target is the $53.85-54.00 range.
on June 05 at $50.21
Potlatch - PCH - close: 37.92 chg: +0.40 stop: 36.99
The bounce from PCH's lows today, near support around the $37.00 level, looks like a new bullish entry point to go long the stock. More conservative traders may want to wait for a move over $40.00 or the June 5th high of $40.18. Keep a wary eye on the descending 100-dma (40.91) since it might act as resistance.
Picked on June 04 at $39.39
Short Play Updates
Autodesk - ADSK - close: 34.40 change: -0.78 stop: 36.65
ADSK hit a new relative low today but pared its losses with an afternoon rebound. If the markets continue higher tomorrow then ADSK is likely to bounce back toward the $35.50-36.00 range. Watch for a failed rally under $36.00 as a potential entry point for shorts. Our exit strategy is to sell part of your position in the $32.60-32.50 range and the rest in the $30.75-30.50 range. The P&F chart currently points to a $26.00 target.
Picked on June 06 at $34.89
Drew Industry - DW - close: 30.03 chg: +0.36 stop: 30.75
Uh-oh! The rebound today doesn't look good for the shorts. We would be careful here. If the markets move higher tomorrow, and they look like they will, then DW will probably challenge resistance at its 200-dma near $30.70. More aggressive traders might want to use a wider stop loss (around 31.75). We are not suggesting new bearish positions at this time.
Picked on June 07 at $29.67
Blue Nile - NILE - close: 29.50 chg: -1.09 stop: 32.01
Our short play with NILE is now open. The stock continued lower following yesterday's failed rally and shares dropped under the $30.00 level to hit new lows. The low today was $29.27. Our trigger to short the stock was $29.45. What we find interesting is that NILE spent most of the session churning sideways in a tight range following the morning sell-off. The stock did not participate in the market's widespread afternoon rebound. Here's our dilemma. The lack of a bounce is relative weakness and bearish. Yet the markets look poised to rally tomorrow following today's strong afternoon bounce. If the markets do bounce tomorrow then shorts might panic in NILE and the stock could see a short squeeze do to its high short interest. We are going to cautiously suggest short positions but monitor your stops closing. We'd hesitate to open new plays if the major market averages are showing a lot of strength. Our target is the $25.50-25.00 range.
Picked on June 08 at $29.45
Closed Long Plays
Closed Short PlaysCore Labs - CLB - close: 55.59 change: -0.11 stop: 60.01
Target achieved. We honestly did not expect CLB to hit our target so quickly. The stock opened at $55.20 and oscillated around the $55.00 level for a while before plunging to $51.25. Our target was $51.50. The bounce back in the markets and the oil sector pulled CLB almost back into the green. This looks like a big bullish reversal and we would not be short. CLB looks ready to run towards $58-60.
Picked on June 07 at $55.70
Fording Coal - FDG - close: 31.25 change: -1.48 stop: 36.01
Target achieved. Actually both of our targets have been hit. FDG was hammered today. The stock gapped open lower at $32.00, plunged to $29.57, and then rebounded back above $31.00 by the closing bell. Our suggested strategy was to sell half your position in the $31.85-31.75 range and then sell the rest in the $30.25-30.00 range. If you did not exit be very careful here. FDG is rebounding from what looks like the bottom edge of its descending channel. A bounce back to the top of the channel could put it in the $34-35 region.
Picked on June 05 at $34.08
K-Swiss - KSWS - close: 26.52 chg: -0.15 stop: 27.05
We are giving up on KSWS. The stock just doesn't move fast enough for us. Shares dipped to $26.10 before bouncing. Our target was the $26.00 level. We're going to exit early right here before shares breakout from its bearish consolidation.
Picked on May 12 at $27.45
Starbucks - SBUX - close: 36.24 chg: +0.53 stop: 36.15
We have been stopped out at $36.15. The stock's afternoon rally pushed past the $36.00 level, the 100-dma and the 21-dma. Volume was pretty strong on the move. If SBUX can breakout past its 50-dma we might consider bullish plays.
Picked on May 23 at $35.59