Long Play Updates
Short Play Updates
Eagle Materials - EXP - close: 35.53 chg: -0.65 stop: 39.26
Construction and material stocks continued to trend lower on Wednesday and shares of EXP lost 1.79% on average volume. Shares are nearing last week's lows near $35.25 and EXP might see a bit of a bounce but traders can use a failed rally near the 10-dma as a new entry point for shorts. We don't see any changes from our new play description on Tuesday. Our target is the $31.00-30.00 range.
Picked on August 08 at $36.18
FMC Corp. - FMC - close: 57.53 chg: +0.33 stop: 60.78
FMC displayed some unexpected relative strength on Wednesday but the rally failed at $58.25 and readers can use the move today as a better entry point to open short positions. We don't see any changes from our new play description from Tuesday night. Our target is the $52.00-51.75 range since the $51.75 area was support last winter.
Picked on August 08 at $57.20
Juniper Networks - JNPR - cls: 13.41 chg: +0.49 stop: 14.01
We warned readers to expect a gap higher on JNPR today following CSCO's better than expected earnings results last night. JNPR opened at $13.40 and traded to $13.73 before fading. More conservative traders, if not already stopped out, may want to adjust their stops toward today's high. We're not suggesting new positions at this time. Our target remains the $12.00-10.00 range.
Picked on July 21 at $13.75
Steel Dynamics - STLD - close: 53.79 chg: -0.86 stop: 56.51
Our new bearish play in STLD is now open. The stock broke down under support at the $54.00 level and hit our trigger to short the stock at $53.95. Volume on the breakdown was pretty strong. The move today produced a new triple-bottom breakdown sell signal on the P&F chart, which already pointed to a $42 target. We would still consider new positions right here. Our target is the $50.00-49.00 range.
Picked on August 09 at $53.95
UAL Corp. - UAUA - close: 23.83 chg: -0.95 stop: 26.55*new*
Airline stocks were weak again today. The XAL index lost over 4% as investors reacted to news that some airlines are cutting leisure fares for autumn after several fare hikes. Shares of UAUA lost 3.83% and closed at a new low. We are going to lower our stop loss to $26.55. Our target is the $22.00-20.00 range.
Picked on August 01 at $25.70
Meridian Biosci. - VIVO - cls: 19.89 chg: -0.38 stop: 22.05
Good news! This looks like a new entry point for shorts in VIVO. The stock produced a failed rally under $21.00 and closed under round-number support at the $20.00 mark today. Volume on the session was pretty strong. The move was a reaction to the company's guidance out today. VIVO reaffirmed its 2006 guidance that was just under analyst estimates. 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
Closed Long Plays
E*Trade - ET - close: 22.35 change: -0.91 stop: 22.34
We have been stopped out at $22.34. Our update yesterday warned readers that the action in ET did not look healthy. The sell-off was relatively sharp with a 3.9% decline and a breakdown below its 200-dma. The technical indicators have definitely taken a turn for the worse.
Picked on August 04 at $23.61 *gap higher*
Highland Hospitality - HIH - cls: 13.50 chg: -0.13 stop: 13.25
We are throwing in the towel early on HIH. The stock is consolidating lower and looks like it could dip toward the 50-dma near $13.30. While that would not stop us out our market bias is bearish and there's no guarantee that HIH won't keep falling. We'll keep an eye on the stock for another breakout attempt over $14.00.
Picked on August 04 at $13.85
Closed Short Plays
Watson Wyatt Wld - WW - close: 31.84 chg: -0.31 stop: 33.19
WW is due to report earnings tomorrow so it was our plan to close the play tonight at the market's closing bell to avoid holding over the report. Wall Street is expecting WW to report 42-cents a share.
Picked on July 16 at $33.19