Long Play Updates
Akamai Tech. - AKAM - close: 43.39 chg: +2.24 stop: 38.44
The rally in AKAM really began to pick up steam today. Shares spent a little time under resistance at the $42.00 level and then broke out higher. We suggested that readers use a trigger at $42.05 to open positions so the play is now open. Volume on today's bullish breakout was very strong, which is another positive sign. The buy signal on the MACD looks a lot stronger today. Our target is the $47.50-50.00 range. Please note that AKAM is due to hold an analyst meeting this week on Wednesday, September 13th from 8:00 a.m. to 2:00 p.m. ET. Reaction to the meeting could produce volatility so protect yourself.
Picked on September 11 at $42.05
Brookfield Asset Mgt. - BAM - cls: 44.03 chg: +0.10 stop: 42.95
BAM showed some weakness on Monday morning but traders bought the dip near $43.00 and the stock managed to rebound back into the green by the closing bell. This sharp intraday rebound looks like a bullish reversal worth considering as a new entry point to go long the stock however more conservative traders might want to wait for a move past the 10-dma (near 44.74) before opening positions.
Picked on August 22 at $44.82
eBay Inc. - EBAY - close: 28.08 chg: -0.43 stop: 26.95 *new*
Hmm... EBAY failed to join the NASDAQ in closing in the green on Monday. The relative weakness today should make traders cautious. We're going to raise our stop loss to $26.95. Our target is the $28.95-29.25 range. More aggressive traders may want to aim higher. We're not suggesting new positions at this time.
Picked on August 24 at $26.25
Elk Corp. - ELK - close: 27.75 change: -0.23 stop: 26.90 *new*
ELK's upward momentum is still struggling. This is the second time in three days that ELK's morning rebound has stalled midday. We're going to raise our stop loss to $26.90. We're not suggesting new positions at this time.
Picked on August 22 at $27.10
Knight Cap. Grp - NITE - cls: 17.10 chg: +0.11 stop: 15.95
NITE tried to bounce but shares failed to push past the 10-dma, directly overhead. The overall trend looks bullish but short-term some of the technical indicators have turned bearish. We're going to try and reduce our risk by raising the stop loss to $16.39. We'd probably wait for a move over $17.50 before considering new bullish positions. Our target is the $19.85-20.00 range.
Picked on August 22 at $17.36
United Tech. - UTX - close: 62.91 chg: -0.43 stop: 61.99
UTX failed to bounce Monday afternoon with the rest of the Dow components. The relative weakness is a caution sign but the stock did hold at the simple 10-dma. A bounce from here can be used as a new bullish entry point. Our target is the $66 level. More aggressive traders may want to aim higher. Be aware that some of UTX's management will be speaking at a conference on September 15th.
on September 10 at $63.34
Short Play Updates
Black Box - BBOX - close: 37.03 change: -0.01 stop: 40.06
We do not see any changes from our weekend update. BBOX continues to under perform the NASDAQ. We are not suggesting new plays at this time but a failed rally under $38.50 could be used as a new entry point. Our target is the $35.25-35.00 range. The Point & Figure chart has produced a bearish triangle breakdown pattern with a $17 target. These patterns are some of the most successful P&F patterns we can trade.
Picked on August 27 at $38.25
Hormel Foods - HRL - close: 36.16 chg: -0.06 stop: 37.05
There is no change from our weekend update on HRL. The stock consolidated sideways on Monday and failed to bounce with most of the market on Monday afternoon. Our target is the $35.00-34.50 range, which is above potential support at the rising 200-dma.
Picked on August 31 at $36.65
Portfol.Recov.Assoc. - PRAA - cls: 39.30 chg: -0.02 stop: 41.05
PRAA continues to consolidate sideways and remains inside its bearish trend of lower highs. The sideways consolidation and the very low volume over the last couple of days suggests a move is coming. More conservative traders may want to tighten their stops. Our target remains the $36.00 level. The P&F chart points to a $32 target.
Picked on August 24 at $39.49
Patterson-UTI - PTEN - cls: 24.43 change: -0.85 stop: 27.01
The sell-off in oil stocks picked speed on Monday after crude oil futures slipped for their sixth loss in a row. Shares of PTEN fell another 3.3% on strong volume following Friday's bearish breakdown. Our target is the $22.75-22.50 range. Meanwhile the P&F chart points to a $20 target. Remember, our biggest risk is probably any escalation between the West and Iran but currently that conflict is in a lull.
Picked on September 10 at $25.28
Closed Long Plays
Mittal Steel - MT - close: 32.25 chg: -1.38 stop: 32.49
We are dropping MT as a bullish candidate. Commodity stocks and material-related stocks were real under performers on Monday. The steel industry was hit with some heavy selling and MT fell 4.1% and broke down under a cloud of significant moving averages. We had been waiting for a breakout over resistance at $35.00 but it never occurred. Our suggested trigger was at $35.25.
Picked on September xx at $xx.xx <-- see TRIGGER
Closed Short Plays
BCE Inc. - BCE - close: 24.45 change: -0.18 stop: 25.26
We have been stopped out of BCE at $25.42. The stock displayed a lot of volatility today with a gap open higher at $25.42 and then a spike toward the $27.00 region. The only news we could find that might explain the move was a press release from Telesat, which is a subsidiary of BCE. The Telesat news was that its President and CEO would retire after 34 years of service. We don't know about you but it would be pretty depressing to see the stock soar 8% on news of your retirement. The breakout over resistance near $25.25 is very bullish and probably sparked a lot of short covering.
Picked on September 03 at $24.73