Long Play Updates
Cascade - CAE - close: 55.04 change: -0.44 stop: 52.95
CAE continued to pull back after yesterday's failed rally and what looks like a bull trap. We planned to drop the stock from the newsletter and cut our losses tonight after CAE's failure to bounce. However, news out after the closing bell has changed our mind. Standard & Poors announced that CAE will replace ElkCorp (ELK) in the S&P Smallcap 600 index on February 21st. This is positive news for the stock and index funds will need to buy shares of CAE to replace their position in ELK. Shares of CAE were trading up, near $57.50, in afterhours markets tonight. Our short-term target is still the $59.75-60.00 range but traders might want to aim higher after tonight's news! FYI: The P&F chart has been revised and points to a $65 target with a fresh quadruple (actually quintuple) top breakout buy signal.
Picked on February 14 at $55.75
EchoStar - DISH - close: 42.00 chg: -0.04 stop: 39.75
DISH traded sideways, which is somewhat bullish, since we were expecting a slide back toward the 10-dma or more. While the trend in DISH is positive we're not suggesting new positions at this time. Our target is the $43.50-44.00 range.
Picked on February 04 at $40.38
Ross Stores - ROST - close: 34.79 change: +0.16 stop: 31.45
ROST continues to rally on strong volume. If you are looking for a new positions consider waiting for a dip near $34.00 or $33.75. Our target is the $36.50-37.00 range. FYI: The P&F chart points to a $54 target.
Picked on February 14 at $33.75
Titanium Metals - TIE - cls: 35.23 change: -0.01 stop: 32.75
Shares of TIE traded sideways in an 80-cent range in spite of strength for many steel and metal-related stocks today. We do not see any changes from our new play description from Wednesday night. The P&F chart shows a triple-top breakout buy signal with a $54 target. We are suggesting long positions now with a $39.50-40.00 target. Patient traders may want to wait and see if TIE tries to fill the gap from Wednesday morning, which would provide an entry point near $34.00-34.25 region.
Picked on February 14 at $35.24
Short Play Updates
Avid Tech. - AVID - close: 33.16 chg: +0.62 stop: 36.05
It looks like investors did some bargain shopping in AVID and bought the bounce near support around $32.00 following the company's analyst conference today. The intraday chart shows a surge higher on volume late this afternoon. The breakout over $33.00 and its 10-dma should put bears on the alert although so far this is nothing more than an oversold bounce. More conservative traders might want to tighten their stops toward $35.00. The P&F chart points to a $29.00 target. Our target is the $30.50-30.00 range. FYI: Readers should note that the most recent (January) data puts short interest at 12.2% of AVID's 40.9 million-share float, which is relatively high and raises the risk of a short squeeze.
Picked on February 05 at $34.65
Comptr.Prog.&Sys - CPSI - cls: 28.64 chg: +0.01 stop: 31.26
CPSI barely moved and continues to look bearish under its 10-dma and the $30.00 level. We do not see any changes from our previous comments. Our target is the $25.50-25.00 range. The P&F chart points to an $18 target. The most recent (January) data puts short interest at 10.3% of the company's 9.3 million-share float. That is a high amount of short interest and with such a small float it really increases the risk of a short squeeze so trade cautiously!!
Picked on February 06 at $29.52
Cash Amer. - CSH - close: 43.01 chg: -0.65 stop: 44.75
CSH pulled back with a 1.48% loss following yesterday's failed rally under the 50-dma. This continues to look like a new entry point for short positions although more conservative traders may want to wait for a new drop under $42.50 before opening positions. Our target is the $39.00-38.50 range, which is where we expect CSH to meet up with its 200-ema again. We'll put our stop loss just above the 50-dma. The P&F chart points to a $33.00 target.
Picked on February 11 at $42.51
Teledyne Tech - TDY - close: 37.14 change: -0.02 stop: 40.01
It looks like the path of least resistance for TDY is still down. Shares did not move much today but volume came in pretty strong. There was a flurry of activity midday as TDY hit a new six-month low. We do not see any changes from our previous updates. Currently our target is the $34.25-34.00 range. The P&F chart has a triple-bottom breakdown sell signal with a $33 target. FYI: The latest (January) data has short interest at 3.7% of the company's 31.3 million-share float.
Picked on January 28 at $37.80
Closed Long Plays
Closed Short Plays