Long Play Updates
BJ Services - BJS - close: 32.36 change: +0.81 stop: 29.90*new*
BJS posted a strong 2.5% gain on rising, above-average volume today. The move was fueled by a surge in crude oil futures thanks to a lower than expected inventory report this morning. The rally in BJS today broke out past resistance at the 50-dma and the $32.00 level. The high was $33.13. Our target has been the $33.50-34.00 range but we're going to adjust that to $33.30-34.00. We're lowering the bottom edge of our target range due to potential resistance at the 100-dma and exponential 200-dma near $33.40. We're not suggesting new positions at this time. Please note that we're raising the stop loss to $29.90. We do not want to hold over the October 31st earnings report.
Picked on October 19 at $30.55
Chipotle Mex.Grill - CMG - close: 56.95 chg: -0.75 stop: 53.74
Warning! Today's trading in CMG looks like a short-term bearish reversal (failed rally). The stock hit $58.70 and promptly turned lower. Volume was a little bit above average. The relative weakness in CMG today might be an issue but then again the stock has been up three days in a row and due for a rest. We would watch for a bounce near $56 or $55 as a new bullish entry point to go long. Our short-term target is the $59.90-60.00 range. More aggressive traders may want to aim higher but we plan to exit ahead of the October 31st earnings report.
Picked on October 23 at $56.40
D.R.Horton - DHI - close: 23.97 change: +0.39 stop: 22.99
There is no change from our previous updates on DHI. Aggressive traders might want to consider long positions now with the bounce near support around the $23.00 level. We're waiting for a breakout over resistance near $25.50. We're suggesting a trigger to go long at $25.51.
Picked on October xx at $xx.xx <-- see TRIGGER
Denbury Resources - DNR - cls: 29.99 chg: +0.66 stop: 28.45*new*
A surge in crude oil futures lifted the energy stocks and DNR rallied 2.25%. The rally stalled just under resistance at its 100-dma and 200-dma near $30.30. The bounce looks like a new entry point to go long DNR but more conservative traders may want to wait for a new relative high over $30.30 before initiating plays. Our target is the $33.00-34.00 range. We do not want to hold over the early November earnings report. Please note that we're raising the stop loss to $28.45.
Picked on October 16 at $30.26
Kinetic Concepts - KCI - cls: 33.80 chg: +0.23 stop: 32.89*new*
Time is almost up. We're planning to exit tomorrow at the closing bell to avoid holding over KCI's earnings report on Friday. We're raising our stop loss to $32.89, which is just a few cents under today's low. If KCI surprises us tomorrow with a new show of strength readers may want to exit early near the $35.00 level if given the chance. Odds are slim that KCI will hit our target at $36.00.
Picked on October 08 at $33.35
PDL BioPharma - PDLI - close: 20.22 chg: -0.23 stop: 19.94
Upward momentum in PDLI is really struggling. The stock has been churning sideways above the $20.00 level for three weeks now. Technical indicators are starting to look bearish. Readers can still open long positions on a bounce from the $20.00 level but we're suggesting a new sense of caution. The market trend may be bullish but the rally is looking tired, especially in the biotech index, which has traded sideways the last few sessions. We do not want to hold over the early November earnings report. Our target is the $22.25-22.50 range.
Picked on October 05 at $20.11
W&T Offshore - WTI - close: 33.33 chg: -0.03 stop: 30.21
The trading in WTI set off our warning buzzer today. Shares rallied to $33.87 before giving back all of its gains. Our target is the $34.00-35.00 range. Unfortunately, today's trading shows indecision on the part of traders. The stock could go either way tomorrow but considering the stock's relative weakness compared to its peers today the next move might be lower. More conservative traders may want to think seriously about exiting early right here to log a gain. We're not suggesting new positions.
Picked on October 13 at $30.21
Short Play Updates
Texas Instruments - TXN - close: 30.73 change: +0.21 stop: 32.05
A strong earnings report from KLAC turned the semiconductor sector around on Wednesday. The group looked poised to breakdown under support but the KLAC news produced a 2.59% rally in the SOX. Shares of TXN dipped to $30.01 before bouncing higher in spite of a downgrade this morning. We're still on the sidelines. We suspected the $30 level might offer support so we suggested a trigger to short the stock at $29.90. If triggered our target is the $27.50 level. Once the play is open we'll probably adjust the stop loss toward the $31.50 or $31.00 levels since broken support at $31.00 should act as new resistance.
Picked on October xx at $xx.xx <-- see TRIGGER
Closed Long Plays
Zale Corp. - ZLC - close: 27.72 chg: -0.25 stop: 27.49
We are jumping out of ZLC. The bullish trend is still in place but it appears to be in serious jeopardy. The stock has not bounced higher from the bottom of its rising channel as expected. Instead the stock has struggled for three days in a row to breakout past the 10-dma near $28.30. A breakdown seems imminent. Thus we're suggesting an early exit immediately to cut our losses.
Picked on October 23 at $28.26
Closed Short Plays