Long Play Updates
Aetna - AET - close: 44.28 change: -1.58 stop: 42.95
Healthcare-related stocks are usually seen as safe havens during market volatility (a.k.a. weakness). Yet AET still lost 3.4% on Tuesday. If the markets bounce tomorrow then a new rebound over $45.00 could be used as a new entry point but we would be very careful about entering new long positions. More conservative traders might want to consider tighter stops. Our target is the $49.00-50.00 range. FYI: The P&F chart points to a $65 target.
Picked on February 18 at $45.61
Intl. Speedway - ISCA - cls: 53.19 chg: -1.18 stop: 52.64
ISCA weathered the market sell-off reasonably well. Shares closed down 2.17% and managed a bounce off its lows. We hesitate to suggest new bullish positions at this time. More conservative traders may want to wait for a new high before opening plays. Our target is the $58.50-60.00 range. The P&F chart looks pretty bullish with a breakout over resistance and a buy signal that points to a $75 target.
Picked on February 21 at $54.51
Ross Stores - ROST - close: 32.92 change: -0.97 stop: 31.45
The RLX retail index sank 3.58% following a mixed earnings report from FD and a generally bullish report from TGT. Shares of ROST responded with a 2.8% sell-off and a breakdown under what should have been short-term support near $33.00. More conservative traders may want to exit immediately to cut their losses. We suspect that the markets might bounce tomorrow so we're not abandoning ship just yet. We are not suggesting new positions in ROST at this time. Our target for ROST is the $36.50-37.00 range. FYI: The P&F chart points to a $54 target.
Picked on February 14 at $33.75
Short Play Updates
Avid Tech. - AVID - close: 32.42 chg: -1.19 stop: 35.16
Shares of AVID lost 3.5% and closed back under its simple 10-dma in what appears to be another bearish reversal. We would not suggest new positions with shares this close to support near $32.00. 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: 28.09 chg: -0.90 stop: 31.26
We are a little surprised that CPSI did not lose more ground today. The stock gapped open lower at $28.83 and closed down 3.1% but was trying to hold above the $28 level late this afternoon. 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: 40.18 chg: -1.53 stop: 44.55
The widespread market weakness helped push CSH to a 3.6% decline. The stock dipped toward potential round-number support at the $40.00 level. More conservative traders might want to think about an early exit. Our target has been the exponential 200-dma, which is where CSH bounced back in January. The 200-ema has been rising so we need to adjust our target to the 39.25-39.00 range. The P&F chart points to a $33.00 target.
Picked on February 11 at $42.51
Closed Long Plays
Adobe Systems - ADBE - close: 38.92 change: -1.95 stop: 38.65
The global market weakness fueled a 4.7% sell-off in shares of ADBE. The stock broke down under short-term support near $40.00 and its 50 and 100-dma. Any intraday bounce quickly failed and the stock looks poised for more weakness tomorrow. The intraday low was $38.64, which was enough to hit our stop loss.
Picked on February 18 at $40.27
EchoStar - DISH - close: 40.90 chg: -1.57 stop: 40.95
We have been stopped out of DISH at $40.95. The stock was trading at multi-year highs just a few days ago so today's market sell-off made DISH a target for profit taking. Honestly we are surprised that the selling was not worse!
Picked on February 04 at $40.38
eBay Inc. - EBAY - close: 32.00 change: -1.42 stop: 32.45
We have been stopped out of EBAY at $32.45. Positive comments from Cramer on Monday night were not enough to stem the flood on Tuesday. Tech stocks were crushed in the global sell-off and EBAY lost 4.2% but managed to close just above its 50-dma.
Picked on February 22 at $34.15
Graco Inc. - GGG - close: 40.60 chg: -1.62 stop: 40.95
We are dropping GGG as a bullish candidate. Our suggested strategy called for a trigger to go long the stock at $42.55. The trigger has not yet been hit and after today's 3.8% sell-off it may be awhile before GGG is poised to move higher again.
Picked on February xx at $xx.xx <-- see TRIGGER
Steel Dynamics - STLD - close: 37.21 chg: -2.93 stop: 38.49
STLD suffered a rough day right from the start. Shares gapped open lower at $38.11 and tried to bounce before rolling over again and closing with a 7.29% decline. Our stop loss was at $38.49, which would have been triggered at the open.
February 21 at $40.60
Superior Well Serv. - SWSI - cls: 22.53 chg: -1.52 stop: 22.95
We would have been stopped out of SWSI at $22.95. Oil services stocks were no safe haven from the market carnage on Tuesday. The stock gapped open lower at $23.90 and plunged to an intraday low of $22.35.
Picked on February 26 at $24.55
Titanium Metals - TIE - cls: 34.55 change: -3.20 stop: 33.95
Metal and steel-related stocks were hit exceptionally hard on Tuesday. Shares of TIE gapped open lower at $35.55 and then slid to an intraday low of $33.20 before bouncing back. Our stop loss was at $33.95.
Picked on February 14 at $35.24
Closed Short Plays