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Long Play Updates

E*Trade - ET - close: 23.31 change: +0.06 stop: 21.90

The rally in the broker-dealers stalled a bit on Monday. ET displayed some relative strength with a close in the green but shares failed to breakout past the $23.50 level. We don't see any changes from our new play description this past weekend. We're suggesting a trigger to go long at $23.55. More conservative traders may want to see more confirmation and wait for a move over $23.75. There is potential resistance at its 100-dma near $24 but our target is the $25.90-26.00 range. Technical traders will note that ET's P&F chart is still bearish and will remain bearish for a while.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (confirmed)
Average Daily Volume: 5.3 million

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China Petro & Chem. - SNP - cls: 57.52 chg: +0.57 stop: 54.75

Uh-oh! Be careful here. SNP spiked higher this morning and traded to $58.90 before reversing course. Yes, the stock did close with a 1% gain but the move today looks like a bearish, failed rally under its 100-dma. We would not be surprised to see a dip towards the $56.50 region. However, patient traders can use a dip or bounce near $56.50 as a new entry point to go long the stock. Our target is the $62.00-63.00 range. We don't want to hold over the late August earnings report.

Picked on July 30 at $56.95
Change since picked: + 0.57
Earnings Date 08/23/06 (unconfirmed)
Average Daily Volume: 295 thousand

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St. Jude Medical - STJ - cls: 36.90 chg: -0.51 stop: 33.99

The rally in STJ took a breather today. Shares traded in a relatively narrow range almost the entire session. Meanwhile in the news STJ and Boston Scientific settled their patent dispute. If STJ does pull back more watch for a bounce from the $36 region as a new entry point. Our target is the $39.00-40.00 range. Our time frame is about four to six weeks. FYI: The P&F chart points to a $48 target.

Picked on July 25 at $35.94
Change since picked: + 0.96
Earnings Date 07/19/06 (confirmed)
Average Daily Volume: 3.8 million

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USA Truck - USAK - close: 19.15 change: -0.83 stop: 18.99

Transportation stocks were weak on Monday as crude oil futures added 1%. The action in USAK was bearish. The stock completely erased Friday's gains and shares are testing the $19.00 level and its rising 10-dma. We're going to keep USAK as a bullish candidate for now but if shares close under $19 we'll drop it. Currently we're suggesting that traders wait for the stock to trade at or above $20.35 before going long. If triggered our target is the $22.50-23.00 range. Our time frame is about six weeks.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 124 thousand
 

Short Play Updates

Juniper Networks - JNPR - cls: 13.45 chg: -0.22 stop: 14.61

The NWX networking index posted a minor gain today but shares of JNPR displayed relative weakness with a 1.6% loss. Traders might want to consider new positions given today's decline but consider using a tighter stop. Our target for JNPR is the $12.00-10.00 range. Conservative traders can exit near $12 with us and more aggressive traders can aim lower. The P&F chart is still very bearish with an $8.50 target.

Picked on July 21 at $13.75
Change since picked: - 0.30
Earnings Date 07/19/06 (confirmed)
Average Daily Volume: 13.1 million

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NCI Bldg - NCS - close: 46.74 chg: -1.13 stop: 50.15

The attempted bounce in NCS has already failed. Shares displayed relative weakness today with a 2.3% loss and a new six-month low. We suspect that NCS may be able to trade towards $40. There does appear to be some support near $45.00 but we're going to target a decline into the $42.50-40.00 range. Be ready for a bounce when shares near $45. We do not want to hold over the late August earnings report.

Picked on July 27 at $47.65
Change since picked: - 0.91
Earnings Date 08/31/06 (unconfirmed)
Average Daily Volume: 383 thousand

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Meridian Biosci. - VIVO - cls: 21.00 chg: +0.05 stop: 22.05

We do not see any changes from our weekend update on VIVO. Traders can wait for a failed rally under the 10-dma or a new decline under $20.40 or $20.00 before opening short positions.
Our target is the $18.15-18.00 range since the $18.00 level was support last year. FYI: the P&F chart shows a triple-bottom breakdown sell signal with a $16 target.

Picked on July 23 at $20.94
Change since picked: + 0.06
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 175 thousand


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Watson Wyatt Wld - WW - close: 32.96 chg: -0.13 stop: 34.01

We don't see any big changes from our weekend update. WW is consolidating sideways inside its two-month bearish trend. Unfortunately this is turning some of the technical indicators bullish. For example, the MACD on the daily chart is nearing a new buy signal. More conservative traders may want to tighten their stops toward $33.50 or even $33.25. We are not suggesting new plays at this time. Our target is the $31.10-31.00 range. We do not want to hold over the early August earnings report. FYI: the most recent data put short interest at 6.9% of WW's 41 million-share float.

Picked on July 16 at $33.19
Change since picked: - 0.23
Earnings Date 08/10/06 (confirmed)
Average Daily Volume: 216 thousand
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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