Long Play Updates
Bristow Group - BRS - close: 35.57 chg: -0.49 stop: 34.59
BRS lost 1.3% during the market-wide sell-off on Tuesday. However, it might be noteworthy that shares managed a bounce near its simple 100-dma and 200-dma. The worst may not be over yet. Watch for a bounce near $35.00 as a new entry point. Our target is the February highs in the $38.40-38.50 range. This is an oil services company so keep an eye on the OSX index and the price of crude. FYI: The P&F chart is bullish and points to a $47 target.
Picked on March 11 at $35.88
Boardwalk Pipeline - BWP - cls: 37.86 chg: +0.00 stop: 35.35
BWP displayed relative strength on Tuesday by closing unchanged. Lack of a selling off following yesterday's intraday bearish reversal is good news. However, now that the major market averages are headed lower we'd look for BWP to dip toward $37.00, which should be support. Our target is the $39.85-40.00 range. Our stop will be $35.35. FYI: Average daily volume is a little low so stay more cautious than normal.
Picked on March 08 at $37.10
Canadan Nat.Res. - CNQ - cls: 51.15 chg: -0.92 stop: 48.95
CNQ produced another failed rally. This is the second failed rally in three days under the $53.00 level. The bears may have a stronger grip on CNQ than we previously thought. We want to see a breakout over $53.00 so we're suggesting a trigger to go long the stock at $53.05. If triggered our target is the $58.00-60.00 range. We do expect some resistance near $56.50. FYI: A rally past $53.00 would created a new P&F buy signal. This is another oil-related play so keep an eye on the price of crude. Our time frame is eight to ten weeks.
Picked on March xx at $xx.xx <-- see TRIGGER
eBay Inc. - EBAY - close: 30.41 chg: -0.59 stop: 29.49
News that Viacom was suing Google (GOOG) for $1 billion in damages over copyright infringement undermined any strength in the Internet sector. Shares of EBAY followed the tech sector lower with a 1.9% loss. We have been warning readers to watch for a pull back toward support near $30.00 and its 200-dma. Wait for a bounce before considering new long positions. More conservative traders may want to use a tighter stop loss. 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. FYI: Believe it or not but in spite of the big decline two weeks ago the P&F chart is still bullish.
Picked on March 05 at $30.49
Level 3 Comm. - LVLT - cls: 6.16 chg: -0.18 stop: 6.46
The situation doesn't look very good for LVLT. The bounce is rolling over and shares have closed under the 50-dma again. Currently we're still on the sidelines and remain spectators. 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.
Picked on February xx at $xx.xx <--
TEPPCO Part. - TPP - close: 43.70 chg: +0.80 stop: 41.95
TPP displayed plenty of relative strength on Tuesday. The stock broke out from its recent consolidation pattern and rallied to a new high on strong volume. If you don't want to chase the stock, then wait and watch for a pull back toward the $43.00 region, which should now act as support. Our target is the $44.90-45.00 range.
Picked on March 06 at $42.88
Short Play Updates
Agilent Tech. - A - close: 31.67 chg: -0.47 stop: 32.55
Tuesday's market-wide weakness may have saved the bears in A. The stock reversed lower and closed with a 1.4% loss. We're not suggesting new positions at this time but a new decline under $31.00 could be used as an entry point.
Picked on March 04 at $30.72
Avid Tech. - AVID - close: 32.89 chg: -0.45 stop: 34.25
We don't see any big changes with AVID. The stock lost 1.3% but remains inside its trading range. We're not suggesting new positions at this time and more conservative traders may want to exit early or tighten their stops toward resistance near $34.00. 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
Consol Energy - CNX - close: 34.91 chg: -0.72 stop: 36.86
CNX is still retreating following last week's failed rally. Traders can choose to open shorts now or wait for a breakdown under support near $34.00. Our target is the $30.50-30.00 range.
Picked on March 05 at $33.95
Comptr.Prog.&Sys - CPSI - cls: 26.06 chg: -0.62 stop: 29.52
CPSI continues to sink. Shares hit another relative low today with a 2.3% loss. We're not suggesting new positions at this time. More conservative traders may want to exit early now and lock in a gain. 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
Closed Long Plays
Barrick Gold - ABX - cls: 27.42 chg: -1.03 stop: 27.75
Gold stocks were no safe haven for investors on Tuesday. The GOX index lost 3.6% while the XAU index plunged 3.9%. Shares of ABX reversed yesterday's gains and broke down through the bottom of its trading range and broke down under significant support near $28.00. We would have been stopped out at $27.75.
Picked on March 12 at $28.45
Redwood Tr. - RWT - close: 51.65 chg: -3.42 stop: 53.39
The implosion in the sub-prime lenders has begun to spread. Financial stocks in general were down sharply today. We warned readers that RWT was not just a REIT and had exposure to the lending industry. That exposure came back to haunt the stock today with a 6.2% sell-off on big volume. We would have been stopped out at $53.39.
Picked on March 08 at $55.36 *gap higher*
Closed Short Plays