Long Play Updates
Cal-Maine Foods - CALM - cls: 15.81 chg: +0.39 stop: 13.90
CALM displayed some relative strength and closed with a 2.5% gain. It looks like traders are buying the dip near its rising 10-dma. Shares are nearing resistance at the $16.00 level. If you're feeling cautious you could raise your stop further toward $15.00 and the 10-dma. Our target is the $17.40-17.50 range but more conservative traders may want to exit near $16.50.
Picked on June 17 at $14.80
China Netcom - CN - cls: 56.00 chg: -0.93 stop: 53.95
Chinese stocks rallied sharply with the Shanghai index up 2.6% yet shares of CN lost 1.6% today. The close under its 10-dma is technically bearish but the $55 level and the $54.00 level offer additional support. The P&F chart points to a $73 target. We're aiming for the $59.50-60.00 range. More aggressive traders could aim for the highs near $62.50.
Picked on June 17 at $55.60
Columbia Sportswear - COLM - cls: 68.80 chg: +1.28 stop: 65.95
There were a lot of bullish engulfing candlestick patterns today. COLM was one of them. Today's rebound (+1.8%) looks like a new entry point to go long the stock. However, there is short-term resistance near $69.00. Our target is the $73.50-75.00 range. The P&F chart is very bullish with an $89 target.
Picked on June 17 at $68.54
EMC Corp. - EMC - close: 17.93 change: +0.41 stop: 16.46
EMC also produced a bullish engulfing candlestick pattern and shares closed up 2.3% on above average volume. More conservative traders may want to think about exiting early now to lock in a gain. We're not suggesting new positions. Our target is the $18.50-20.00 range.
Picked on May 27 at $16.46
Group 1 Auto - GPI - cls: 41.29 chg: +0.34 stop: 39.95
GPI recovered from its trip under the $41.00 level after traders bought the dip near $40.75. The rebound could be used as a new entry point but we are suggesting readers wait to see a little bit more strength here.
Picked on June 17 at $41.96
Verasun Energy - VSE - cls: 13.30 chg: +0.05 stop: 12.89
We don't see any changes from yesterday's comments on VSE. VSE is trying to bounce near support in the $12.90-13.00 area. The low today was $12.95. More aggressive traders might want consider trying to buy a bounce here. We'll wait for our trigger at $14.55. More conservative traders may even want to wait for a rise past $15.00 before buying the stock. We are going to use a wide (aggressive) stop loss under the recent low. Our target is the $17.75-18.00 range, just under the simple 200-dma. We'll be watching the 50-dma and 100-dma as potential resistance. FYI: The P&F chart is still bearish.
Picked on June xx at $xx.xx <-- see TRIGGER
Encore Wire Corp. - WIRE - cls: 30.20 chg: +0.20 stop: 29.26
Traders bought the dip in WIRE at $29.51 and the rebound back above $30.00 is bullish. However, while this looks like a new entry point to go long the stock, we are suggesting caution and patience to see if the broader market has any follow through on today's bounce. We are targeting the $32.50-33.00 range. Aggressive traders could aim higher.
Picked on May 27 at $29.26
Short Play Updates
Broadcom - BRCM - cls: 30.36 change: +0.63 stop: 31.65
Caution! Remember our comments from yesterday about getting caught in a bear trap? Well today's sharp rebound in BRCM back above the $30.00 level certainly look like a bear trap and a bullish reversal. We're not suggesting new positions at this time. 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 25 at $29.75
Continental Airlines - CAL - cls: 33.20 chg: +0.57 stop: 35.26
CAL produced a strong 1.7% bounce in spite of a rebound for crude oil today. We're not suggesting new positions at the moment. 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
Healthcare REIT - HCN - cls: 40.27 chg: +1.06 stop: 42.01
REIT stocks produced some big bounces today. HCN rose 2.7% and the close back above $40.00 is bad news for the bears. We're not suggesting new positions at this time. More conservative types may want to tighten their stops toward $41.00 or at last to breakeven. Our target is the $38.50-38.00 range.
Picked on June 11 at $ 41.73
Staples Inc. - SPLS - cls: 23.95 chg: -0.01 stop: 25.15 *new*
SPLS displayed relative weakness by failing to bounce with the rest of the market. Actually SPLS did bounce from its intraday low at $23.59 but the rebound failed to push the stock into positive territory. We are adjusting our stop loss to $25.15. Our target is the $22.00 mark.
Picked on May 27 at $24.40
U S T Inc. - UST - close: 53.14 chg: +0.48 stop: 54.51
Uh-oh! The bears may be in trouble. UST's rebound today pushed the stock past its two-month trendline of resistance (lower highs). We're not suggesting new positions. More conservative traders may want to exit early. 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
Amphenol - APH - cls: 35.30 change: +0.17 stop: 34.69
APH hit our stop loss at $34.69 this morning. Unfortunately, shares quickly reversed higher and eventually closed in the green. The longer-term trend is still bullish but we'd watch for a bounce near $34.00 and/or its 200-dma or a new relative high before considering new positions.
Picked on June 10 at $35.74
JA Solar - JASO - cls: 34.25 change: +2.85 stop: 27.45
Target exceeded! Solar-power companies turned in a decent session with investors getting more excited that congress might pass an energy bill with more money aimed at alternative energy. Shares of JASO soared over 9% today and hit an intraday high of $34.68. Our was the $33.0-33.50 zone.
Picked on June 24 at $29.73
Closed Short Plays