Long Play Updates
E*Trade - ET - close: 22.93 change: +0.09 stop: 21.90
Shares of ET under performed the rest of the broker-dealer sector. The XBD index added 1.4% but shares of ET only added 0.39%. We remain on the sidelines. 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
China Petro & Chem. - SNP - cls: 55.97 chg: -0.16 stop: 54.75
There is no change from our previous updates on SNP. The stock spent Thursday's session churning sideways in a 70-cent range. The technical indicators are mixed at this point. We're not suggesting new positions. 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
Short Play Updates
Juniper Networks - JNPR - cls: 13.20 chg: -0.03 stop: 14.26
JNPR continues to show relative weakness. The NWX networking index managed to post a minor gain while JNPR posted a minor loss. Shares of JNPR look oversold and the market's reaction to the jobs report tomorrow, if positive, could spark some short covering in JNPR. More conservative traders may want to tighten their stops. We're not suggesting new positions. 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
NCI Bldg - NCS - close: 47.63 chg: +0.67 stop: 50.15
NCS produced an oversold bounce (+1.4%) on below average volume on Thursday. The stock's momentum stalled under the simple 10-dma. While the pattern remains bearish the market's reaction to the jobs report tomorrow could produce some volatility in NCS. We would hesitate to open new positions unless the markets turned negative tomorrow. Our target is the $42.50-40.00 range. We do not want to hold over the late August earnings report.
Picked on July 27 at $47.65
UAL Corp. - UAUA - close: 25.37 chg: +1.12 stop: 27.01
The airlines sector produced a big rally today. A pull back in oil prices and some strong July traffic numbers in addition to speculation that the industry may be able to increase fares all added to the rally. The overall pattern in UAUA remains bearish but the stock did appear to produce a bullish reversal with today's 4.6% gain and close back above the $25 mark. We're not suggesting new short positions and more conservative traders may want to adjust their stop loss toward $26.00, which as broken support should be new resistance. Our target is the $22.00-20.00 range.
Picked on August 01 at $25.70
Meridian Biosci. - VIVO - cls: 21.00 chg: +0.49 stop: 22.05
Traders need to make a decision with their VIVO positions today. The continued bounce from the $20 level and today's breakout over the 10-dma is bullish. Short-term technical indicators are turning positive. We suspect that VIVO is going to rally to the $22 level soon. Overall the pattern remains bearish and broken support near $22.00 should be overhead resistance. Traders have to decide if they want to endure a rally to $22 and a potential breakout before being stopped out? Or consider exiting now and limiting any losses/gains. We strongly considered an early exit but we don't know how the market will react to tomorrow's jobs report or next week's FOMC meeting. 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
Watson Wyatt Wld - WW - close: 32.45 chg: +0.11 stop: 33.51*new*
Be careful here with WW. The stock dipped to $31.87 before traders started buying the dip. Volume started rising as the stock continued to rebound. That sort of action is bullish. The rebound did stall at technical resistance at its 10-dma but short-term technicals are improving. We are not suggesting new positions and more conservative traders may want to tighten their stops toward $33.00. We're lowering our stop to $33.51. The simple 200-dma has risen to $31.15 so we're adjusting our target to $31.50-31.00. We do not want to hold over the early August earnings report.
Picked on July 16 at $33.19
Closed Long Plays
Closed Short Plays
Longs Drug Store - LDG - cls: 41.57 chg: +1.73 stop: 41.51
We have been stopped out of LDG at $41.51. Today's move in LDG (+4.3%) looks like another over-reaction. The company reported that July's revenues came in better than analyst estimates but same-store sales growth was a bit less than estimated. Shorts must have panicked and sparked some covering.
Picked on August 01 at $39.31