Long Play Updates
eBay Inc. - EBAY - close: 31.34 chg: +0.98 stop: 29.49
Right on cue, shares of EBAY have produced a bounce for us. Fueling the move was an upgrade and some positive comments from Yahoo's management that the Internet sector should see strong growth for the next couple of years. With regard to the upgrade, shares of EBAY were initiated with a "buy" rating before the opening bell. Readers can choose to buy this bounce if you missed yesterday's entry point. However, bear in mind that the markets may not be out of the woods yet and there's still a chance that EBAY will retest support near $30 and its 200-dma first before moving much higher. We have two targets. Our first, more conservative target, will be the $33.85-34.00 range. Our second, more aggressive target, will be the $37.00-38.00 zone.
Picked on March 05 at $30.49
Level 3 Comm. - LVLT - cls: 6.24 chg: +0.14 stop: 6.46
We do not see any changes from our previous updates on LVLT. More aggressive traders might be interested in buying this bounce. At the moment our plan is to buy a breakout over resistance near $6.80. We're suggesting a trigger to buy the stock at $6.81. If triggered our target is the $7.35-7.40 range as LVLT has long-term resistance near $7.40. More aggressive traders may want to aim higher near $8.00. The P&F chart is very bullish with a $12.75 target.
Picked on February xx at $xx.xx <-- see TRIGGER
Short Play Updates
Agilent Tech. - A - close: 30.83 chg: +0.14 stop: 32.55
The market's bounce on Tuesday didn't have a very big impact on A. The stock's rebound struggled near the $31.00 level, which held as resistance all day. The move today might be used as a new entry point for shorts. We don't see any changes from our weekend comments. Traders have a choice to either watch for an oversold bounce and failed rally under $32.00 or wait for a new decline under potential support near $30.00. The H&S pattern projects a $26.50 target. We are aiming for the $28.50-27.50 range since A might have additional support near its September 2006 lows around $28.50. The P&F chart points to a $14 target. There doesn't not appear to be any significant amount of short interest in the stock. FYI: A announced an upcoming investor webcast for March 8th, 2007 8:30-12:00 ET.
Picked on March 04 at $30.72
Avid Tech. - AVID - close: 33.79 chg: +1.01 stop: 34.25
Warning! AVID displayed a lot of relative strength on Tuesday. Shares rose more than 3% outpacing the market rebound. The rally stalled near old resistance near $34.00 but if the market continues to bounce tomorrow we wouldn't be surprised to see AVID breakout higher. More conservative traders may want to exit early to preserve any sort of gain or avoid any losses. We're not suggesting new positions at this time. 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
Cons Energy - CNX - close: 35.10 chg: +0.83 stop: 36.86
CNX is still bouncing and shares rose 2.4% on Tuesday. Volume came in above average, which is generally considered bullish on an up day. The stock has short-term resistance near $36.00. More conservative traders may want to tighten their stops while more nimble traders may want to watch for a failed rally under $36 as a new entry point. Our target is the $30.50-30.00 range.
Picked on March 05 at $33.95
Comptr.Prog.&Sys - CPSI - cls: 27.05 chg: +0.05 stop: 30.05
The lack of participation in today's market-wide rebound is very bearish for CPSI. Shares rose a mere five cents on above average volume and closed off its best levels of the session. We remain bearish but we're not suggesting new positions at this time. Our target is the $25.50-25.00 range. The P&F chart's bearish target has fallen from $18 to $16. 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
Federated Dept. - FD - close: 43.89 chg: -0.28 stop: 45.05
The trading in FD on Tuesday is very interesting. Shares spiked higher this morning but quickly failed under resistance near $45.00. Instead of bouncing higher with the rest of the market shares of FD were slipping lower into what now looks like a bearish reversal. Aggressive traders might want to jump in early right here. We'll stick to our plan and use a trigger at $43.43 as our suggested entry point. If triggered our target is the $40.50-40.00 range.
Picked on March xx at $xx.xx <-- see TRIGGER
Closed Long Plays
Closed Short Plays