Long Play Updates
Amphenol - APH - cls: 36.44 change: +0.69 stop: 34.69
APH continues to rally and the stock is now challenging resistance near $36.50. A breakout from here would be very bullish. The trading over the last eight weeks looks like an inverse head-and-shoulders pattern, which would point to a $39-40 target. Don't be surprised to see a dip back toward $36.00-35.75 from here. Our target is the $39.75-40.00 range.
Picked on June 10 at $35.74
Aracruz Celulose - ARA - cls: 64.32 chg: +0.80 stop: 59.90*new*
The Brazilian markets were up again. The Bovespa index rose 719 points or +1.3% to 53,712. This provided some additional lift for ARA, which broke out to new all-time highs. Unfortunately, the move today's looks like a doji candlestick, which usually suggests indecision on the part of traders or the market for this stock. We are raising our stop loss to $59.90. More conservative traders might want to tighten their stops even more! Our target is the $68.00-70.00 range.
Picked on June 03 at $62.00
EMC Corp. - EMC - close: 17.01 change: +0.42 stop: 15.99
EMC turned in a very bullish session with a 2.5% gain on strong volume. The move today broke the short-term trend of lower highs yet the bulls couldn't push past the early June high. If you're thinking about new positions you may want to raise your stop toward $16.50. Our target is the $18.50-20.00 range.
Picked on May 27 at $16.46
Fomento Economico - FMX - cls: 39.26 chg: +0.16 stop: 37.99
FMX is reluctantly inching higher. We remain very wary here and we're not suggesting new positions with shares under $40.00. Our target is the $44.00-45.00 range.
Picked on June 03 at $40.44
Raytheon - RTN - close: 56.41 chg: +0.23 stop: 53.95
Today's move in RTN looks like a new bullish entry point to buy the stock. However, readers might want to wait 30 minutes to an hour tomorrow before considering new plays. Something happened after hours that had RTN trading near $56.00. We didn't see any significant news but there was some after hours weakness. We're still suggesting that readers consider a tighter stop loss. Our target is the $59.75-60.00 range.
Picked on June 03 at $56.17
St. Mary Land - SM - cls: 38.65 chg: +0.57 stop: 36.95
Our play in SM has turned positive again. Shares rallied 1.49% on improving volume. A 2% rally in crude oil helped lift the energy sector. The next challenge for SM is the recent highs near $39.00. Our target is the $43.50-44.00 range.
Picked on June 04 at $38.51
Encore Wire Corp. - WIRE - cls: 29.69 chg: -0.11 stop: 28.49 *new*
We don't see anything new with WIRE. The stock produced another failed rally near $30.00 again. We are going to adjust our stop loss higher to $28.49. We're suggesting readers wait for a new breakout over $30.00 or over $30.45 before considering new positions. The Point & Figure chart suggests a $46 price target. We are targeting the $32.50-33.00 range.
Picked on May 27 at $29.26
Short Play Updates
AMB Properties - AMB - cls: 55.92 change: -0.31 stop: 58.26
AMB's lack of follow through higher after yesterday's bounce is good news for the bears. This might be a new entry point for shorts. However, we would be hesitant to open new bearish positions if the major market indices continue to rally. Our target is the $52.00-50.00 range.
Picked on June 11 at $ 56.21
Bolt Tech. - BTJ - cls: 39.80 chg: +1.78 stop: 42.01
Oil service stock BTJ continues to rebound. A 2% rally in oil spurred some heavy buying in the energy-related stocks. BTJ is now challenging round-number resistance near $40.00. More conservative traders may want to exit here right now to limit any losses or tighten their stops toward the $40 level. We're not suggesting new positions at this time. Our target is the $35.50-35.00 range.
Picked on June 11 at $ 39.16
Broadcom - BRCM - cls: 30.47 change: +0.01 stop: 31.65
We don't see any changes from our previous comments on BRCM. At this time we're waiting for a new breakdown. We want to see a new low under the late May lows. Therefore we're suggesting a trigger to short BRCM at $29.75. If triggered our target is the $27.00-26.00 range. We do not want to hold over the mid July earnings report. FYI: One of the larger risks with shorting BRCM will be any sort of headline-making news events in the legal battle between BRCM and QCOM.
Picked on June xx at $xx.xx <-- see TRIGGER
Continental Airlines - CAL - cls: 33.91 chg: +0.43 stop: 36.26
We were very surprised to see the XAL airline index up 1.7% in the face of a 2% rally for crude oil. Fuel is a major cost for the airlines and every dollar that oil rises is very painful for the industry. Shares of CAL managed a 1.2% bounce but remains under resistance/broken support near $35.00. Watch for a failed rally under $35.00 (or even under $35.75) as a new entry point for shorts but we would start to worry if CAL traded back above $35 again. Our target is the $30.50-30.00 range. We do not want to hold over the mid July earnings report.
Picked on June 12 at $34.10
CIT Group - CIT - cls: 58.17 chg: -0.37 stop: 60.05
CIT under performed the market on Thursday with a 0.6% decline. We're back where we started on Tuesday. This looks like a failed rally under $59.00 and a new entry point for shorts. Our target is the $55.25-55.00 range. We'll suggest a stop loss at $60.05 but more conservative traders might want to use $59.65.
Picked on June 12 at $58.17
Healthcare REIT - HCN - cls: 41.07 chg: -0.40 stop: 43.01
HCN under performed the markets with a 0.9% decline. The lack of follow through after yesterday's bounce is good news for the bears. Our target is the $38.50-38.00 range. More conservative traders may want to use a tighter stop loss.
Picked on June 11 at $ 41.73
IAC/InterActive - IACI - cls: 33.76 chg: +0.15 stop: 34.35
IACI tried to rally today and made it to $34.10 before paring its gains. This is a new lower high on a short-term time frame and a positive for the bears but shorts are still in danger. If the major market indices continue to rally we would expect to be stopped out tomorrow. At this time we'd wait for a new decline under $33.00 before considering new shorts.
Picked on June 12 at $32.96
Monster Worldwide - MNST - cls: 44.81 chg: -0.44 stop: 46.26
The action in MNST on Thursday was good news for the bears. The stock failed to see any follow through on yesterday's bullish engulfing (reversal) candlestick pattern. Aggressive traders may want to consider new shorts right here. We would wait for a new relative low under $44.25 or under $44.00. Our target is the $40.50-40.00 range.
Picked on June 12 at $44.41
Staples Inc. - SPLS - cls: 24.58 chg: +0.27 stop: 25.76
Management declared a new $1.5 billion stock buyback program and shares rose 1.1%. The overall trend continues to look bearish but given the broader market's resilience our readers may want to wait for a new relative low before opening new shorts. More conservative traders may want to lower their stop losses.
Picked on May 27 at $24.40
U S T Inc. - UST - close: 52.61 chg: -0.62 stop: 55.11
UST is still under performing the market. However, we have to warn you that UST might bounce after it "fills the gap" from June 11th. The $51.50 level could be short-term support. UST has already hit our target in the $52.60-52.50 range. Now we're aiming for the $50.50-50.00 zone.
Picked on May 23 at $54.96
Closed Long Plays
Closed Short Plays