Long Play Updates
Brookfield Asset Mgt. - BAM - cls: 44.04 chg: +0.98 stop: 41.95
Volume came in relatively light but shares of BAM still managed a decent 2.2% bounce on Monday. The rebound almost erased Friday's sell-off. This is encouraging so we're suggesting a move over $44.25 or $44.50 as potential entry points to consider going long again. Our target is the $49.00-50.00 range. Our time frame is four to six weeks.
Picked on August 22 at $44.82
eBay Inc. - EBAY - close: 25.79 chg: +0.49 stop: 24.49
EBAY made headlines on Monday by partnering up with Google (GOOG). The company signed a multi-year agreement to let GOOG supply all the text ads on all of its non-U.S. websites. The move fueled a rebound in EBAY to $26.15 but shares pared their gains by the closing bell and were unable to breakout (again) over its 50-dma. Traders can choose to buy this bounce or wait for a rise past the 50-dma near $26.43 before initiating positions. Our target is the $29.85-30.00 range.
Picked on August 24 at $26.25
Elk Corp. - ELK - close: 27.03 change: +0.32 stop: 25.80
Shares of ELK displayed some strength on Monday with a 1.19% rally from its rising 10-dma. The stock is still trading under what appears to be resistance in the $27.15-27.30 region but we remain bullish and see today's rally as a new entry point to go long. Conservative traders might want for a new relative high before opening plays. Our target is the $29.75-30.00 range but we are somewhat concerned about potential resistance at its descending 100-dma, currently nearing the $28 level.
Picked on August 22 at $27.10
Goodyear Tire - GT - close: 12.60 chg: +0.44 stop: 11.64
Our new bullish play in GT is now open. The rally that began on Friday continued today and shares broke out over resistance at its 100-dma and hit new three-month highs. Our trigger to go long the stock was at $12.35. Our target is the $13.75-14.00 range. Our time frame is about six weeks.
Picked on August 28 at $12.35
JDS Uniphase - JDSU - close: 2.65 change: +0.07 stop: 2.48*new*
JDSU is still inching higher but shares are struggling to breakout over its exponential 200-dma near $2.66. We only have two days left. JDSU is due to report earnings on Wednesday after the closing bell and we're planning to exit on Wednesday afternoon right at the close to avoid holding over the announcement. We're going to try and reduce our risk by raising the stop loss to $2.48. Our target remains the $2.85 level.
on August 16 at $ 2.50
Lucent Tech. - LU - close: 2.26 change: +0.03 stop: 2.17
LU seems like it's trying to rally but the stock gave back most of its gains today. The stock failed to breakout over the $2.29 level multiple times. More conservative traders may want to use a tighter stop loss. Don't forget that Alcatel (ALA) members are set to vote on the LU-ALA merger on September 7th. Traders should definitely keep an eye on shares of ALA since weakness in ALA will affect LU. Our target for LU is the $2.50-2.60 range.
Picked on August 20 at $ 2.31
Maxim Integrated - MXIM - close: 28.78 chg: +0.21 stop: 27.95
There is no change from our weekend update on MXIM. Currently we have a suggested trigger to go long the stock at $30.15. If triggered at $30.15 our target is the $33-34 range. However, if MXIM trades under short-term support at the $28.00 mark we're going to consider switching to short positions and playing the current and unbroken bearish channel.
Picked on August xx at $xx.xx <-- see TRIGGER
Knight Cap. Grp - NITE - cls: 17.16 chg: +0.71 stop: 15.45
Traders decided to buy the dip in NITE and the stock produced a 4.3% rally on Monday. Volume came in above average, which is both bullish and impressive given the weak volume across the markets today. This rebound looks like a new entry point to go long the stock but more conservative traders may want to wait for a new high before initiating positions. Our target is the $19.85-20.00 range.
Picked on August 22 at $17.36
Novellus - NVLS - close: 27.29 change: +0.48 stop: 25.75
NVLS out performed its peers in the semiconductor sector with a 1.79% rally on Monday. Volume came in relatively strong and the stock continues to climb with its trend of higher lows. We need to remind readers that the situation could get riskier in just a couple of days. NVLS is due to report its mid-quarter update on Wednesday, August 30th. The conference call begins after the closing bell. Traders might want to exit early to eliminate risk or tighten their stop losses before the update. Our target is the $29.50-30.00 range. Our time frame is four to six weeks.
Picked on August 16 at $26.65
Stereotaxis - STXS - cls: 10.70 change: -0.25 stop: 9.99
The profit taking in STXS continues. The stock lost another 2.2% and posted its third loss in a row after last week's big spike higher. We are not suggesting new plays at this time. Watch to see if STXS can bounce from its simple 200-dma near $10.40. Our target in the $11.85-12.00 range. FYI: The short interest is around 14% of the float but that reading was taken before the big squeeze in August.
Picked on August 21 at $10.31
Teradyne - TER - close: 13.62 change: +0.14 stop: 12.89
We were expecting more of a dip in TER. Monday's relative strength is a positive sign and traders might want to consider opening new plays right here. Bear in mind that TER still has some overhead resistance near $14.00. Our target is the $14.75-15.00 range.
Picked on August 16 at $13.53
XTO Energy - XTO - close: 47.11 chg: -0.77 stop: 45.49
Oil and gas stocks traded lower on Monday. Over the weekend the weather service downgraded hurricane Ernesto into a tropical storm and said the path of the storm would curve north and miss the oil-producing platforms in the Gulf. This sent crude oil futures and natural gas futures lower and the stocks followed. XTO dropped 1.6% and appeared to fill the gap from last week. We're not suggesting new positions at this time. Our target is the $49.75-50.00 range although more conservative types might want to exit near $49.20 (currently the August high).
Picked on August 22 at $46.70
Short Play Updates
Black Box - BBOX - close: 38.30 change: +0.05 stop: 40.26
We do not see any changes from our weekend new play description on BBOX. Shares continue to under perform the market and its peers. Technicals are bearish and its Point & Figure chart points to a $17 target. We are suggesting shorts with BBOX under $39.00 and our target is the $35.25-35.00 range. More conservative traders might want to consider an early exit near the June lows around $36.65.
Picked on August 27 at $38.25
Brookefield Homes- BHS - close: 23.86 chg: +0.63 stop: 24.55
Homebuilders produced a bounce on Monday. The DJUSHB home construction index added 1.8%. Shares of BHS out performed its peers and produced a 2.7% rebound albeit on very low volume. We are not suggesting new plays at this time. Wait for a new decline under $23.00. Our target is the $20.10-20.00 range. Please note that the latest (July) data puts short interest at 20% of BHS' 26.2 million-share float. That is a high degree of short interest and increases the risk of a short-squeeze!
Picked on August 25 at $22.99
Portfol.Recov.Assoc. - PRAA - cls: 39.54 chg: +1.17 stop: 41.65
PRAA erased all of our unrealized gains with Monday's 3% oversold bounce. Watch for a failed rally near $40 or its simple 10-dma (near $40.38) as a potential entry point for new shorts. Our target is the $36.00-35.00 range.
Picked on August 24 at $39.49
Closed Long Plays
Closed Short Plays
Steel Dynamics - STLD - close: 50.04 chg: -0.54 stop: 53.95
Target achieved. A downgrade for U.S.Steel (X) impacted the whole sector. Shares of STLD dipped to $49.47 before bouncing back to round-number support at $50 and technical support at its 200-dma. Our target was the $50.25-50.00 range.
Picked on August 09 at $53.95