Long Play Updates
Cal-Maine Foods - CALM - cls: 16.10 chg: +0.29 stop: 14.90 *new*
CALM continues to look strong. Shares spike to a new multi-year high at $16.78. For the last few days we've been suggesting that more conservative traders exit near $16.50. We are a little bit cautious here given the big pull back from its intraday high, which looks like a failed rally pattern. We're adjusting the stop loss $14.90 to reduce our risk. Our target is the $17.40-17.50 range.
Picked on June 17 at $14.80
China Netcom - CN - cls: 55.71 chg: -0.29 stop: 53.95
CN continues to slip lower but so far the $55.00 level is holding as support for the U.S. traded ADR shares of CN. The sharp pull back has put a bearish crimp in many of the technical indicators. A bounce from here could be used as a new entry point but readers may want to tighten their stops. 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: 68.85 chg: +0.05 stop: 65.95
Lack of real follow through after COLM's big rebound yesterday is disappointing at best and potentially bearish at worse. Look for a dip back toward $68. Readers may want to wait for a new rise past $69.50 before opening positions. 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: 17.83 change: -0.10 stop: 16.46
We don't see any changes from our previous comments. EMC produced another failed rally near $18.00 today. 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
Verasun Energy - VSE - cls: 13.74 chg: +0.44 stop: 12.89
VSE is showing some relative strength as investors buy the dip near $13.00. The stock rose 3.3% on big volume after the company announced its first retail location in Washington D.C. to pump VE85, which is VSE's brand of E85 ethanol. More aggressive traders might want consider trying to buy a bounce here. We are adjusting our suggested entry point. Our new trigger to buy the stock is at $14.21, which is just above the June 22nd high. 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
Short Play Updates
Broadcom - BRCM - cls: 29.60 change: -0.76 stop: 31.65
BRCM is showing a lot of volatility. Yesterday is bounced higher in what looked like a bullish reversal. Now the stock has reversed again with today's 2.5% decline and close back under $30.00 again. Contributing to the weakness was an analyst downgrade and news that QCOM had rejected BRCM's patent-dispute settlement offer. This looks like a new entry point for shorts. If you're feeling cautious then consider a stop above yesterday's high. Our target is the $27.00-26.00 range. 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: 34.09 chg: +0.89 stop: 35.26
It was a big day for the airline stocks. The XAL index rose just over 2% making it the best performing sector on Thursday. Fueling the big move was an analyst at J.P.Morgan who upgraded six airline stocks. CAL was upgraded to an "overweight" and shares jumped 2.6%. Resistance at the $35.00 level is holding for now. We would hesitate to open new positions at this time. 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: 40.17 chg: -0.10 stop: 42.01
HCN big bounce has stalled, which is good news for the bears, but we're not convinced the rebound is over. 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: 24.18 chg: +0.23 stop: 25.15
The overall trend still looks bearish for SPLS but short-term it's trying to bounce. Look for another decline under $23.85 before opening new shorts. Readers may want to tighten their stops. Our target is the $22.00 mark.
Picked on May 27 at $24.40
U S T Inc. - UST - close: 53.10 chg: -0.04 stop: 54.51
Lack of follow through on yesterday's rally is good news for the bears. However, the company reaffirmed its earnings guidance after the closing bell. We didn't see any big after hours moves in the stock so we'll have to wait until tomorrow to see if investors react to the earnings guidance. 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
Group 1 Auto - GPI - cls: 40.96 chg: -0.33 stop: 39.95
We are giving up on GPI. The stock has been consolidating above short-term support near $41 for days but the consolidation has turned bearish with a short-term trend of lower highs. Today's high at $42.66 is actually a bad tick. We're suggesting an early exit now to cut our losses. However, we'll keep an eye on GPI for a bounce near $40.00 as a potentially bullish entry point or a drop under $39.00 as a potential bearish entry point.
Picked on June 17 at $41.96
Encore Wire Corp. - WIRE - cls: 29.60 chg: -0.60 stop: 29.26
We are throwing in the towel on WIRE. The stock can't seem to maintain any sort of direction and now the momentum is starting to stall. Today's session looks like a bearish failed rally and the close under $30.00 is not a good sign for the bulls. We're suggesting an early exit now to avoid or limit any losses.
Picked on May 27 at $29.26
Closed Short Plays