Long Play Updates
Columbia Sportswear - COLM - cls: 69.46 chg: +0.67 stop: 65.95
COLM continues to bounce around the $68-70 range. Today's rebound looks like a new bullish entry point but more conservative traders may want to wait for a new rise over $70.00 before initiating new 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
Verasun Energy - VSE - cls: 15.25 chg: +0.31 stop: 12.89
VSE has turned in a strong week. Shares rallied to an intraday high of $15.91 this morning before paring their gains. Volume came in pretty strong today and VSE closed up 2%. There was some talk that the recent strength in VSE (including today) might be due to takeover rumors. Rumored bidders were larger ethanol companies or even a large oil/gasoline producer. What we noticed today was the failed rally under $16.00 and its 50-dma. VSE looks due for a dip back towards the $14.75-14.50 zone. More conservative traders may want to tighten their stops. 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 29 at $14.21
Short Play Updates
Broadcom - BRCM - cls: 30.09 change: +0.51 stop: 31.05
Warning! Today's 1.7% rally in BRCM pushed the stock back above what should have been round-number resistance at the $30.00 mark. We are not suggesting new bearish plays at this time. More conservative traders may want to tighten their stops toward the $30.50 level. We're going to adjust our stop to $31.05. Our target is the $27.00-26.00 range. The P&F chart has turned bearish with a $24 target. 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
Staples Inc. - SPLS - cls: 24.62 chg: +0.27 stop: 25.15
Shares of SPLS have managed a decent rebound this past week thanks to some positive analyst comments on Monday. The stock is still trading under a bearish trend of lower highs and technical resistance at the 50-dma but we're not suggesting new positions at this time. Readers may want to tighten their stops. Our target is the $22.00 mark.
Picked on May 27 at $24.40
Closed Long Plays
Cal-Maine Foods - CALM - cls: 18.33 chg: +0.56 stop: 14.90
Target achieved. The rally continues in CALM. The stock has surged on big volume the last few days. The stock actually hit our target in the $17.40-17.50 range on Tuesday, July 3rd. If you didn't exit on Tuesday then today's move looks like a good spot to exit. Shares hit an intraday high of $18.95 and then turned lower producing what looks like a failed rally and something similar to a blow-off top, especially with the big spike in volume. However, it's hard to pick a blow-off top until shares see a sharp decline.
Picked on June 17 at $14.80
China Netcom - CN - cls: 55.47 chg: +0.97 stop: 54.90
CN hit our stop loss on Tuesday, July 3rd. Actually the stock gapped open lower at $54.45, which was under our stop at $54.90, so we would have been taken out at the opening bell on Tuesday. It looks like we may have been too cautious with the raised stop loss. We have mentioned in the past that the $54.00 level was support and traders bought the dip in the $54.25-54.40 range. More aggressive traders might want to buy this bounce with a stop under $54.00 but do so cautiously. The MACD on the daily chart has turned bearish.
Picked on June 17 at $55.60
EMC Corp. - EMC - close: 18.40 change: +0.01 stop: 17.19
Target achieved. EMC hit our $18.50-20.00 target zone on Monday with a breakout to a new high. Shares hit $18.55 on Monday, July 2nd. The stock continued higher on Tuesday with an intraday high of $18.86. If you're still long the stock you may want to tighten your stop loss.
Picked on May 27 at $16.46
Closed Short Plays
Continental Airlines - CAL - cls: 37.29 chg: -0.33 stop: 35.26
Shares of CAL hit our stop loss on Tuesday, July 3rd. Late Monday night after the closing bell CAL reported better than expected traffic and revenue numbers. The very low (pre-holiday) volume on Tuesday helped exacerbate the reaction and CALL soared to almost $38. The stock actually gapped open higher on Tuesday at $35.29, which was above our stop loss at $35.26, so we would have been stopped out at the open.
Picked on June 12 at $34.10
Healthcare REIT - HCN - cls: 41.83 chg: +0.25 stop: 42.01
Shares of HCN continued to bounce this week and shares hit our stop loss at $42.01 on Tuesday, July 3rd. The stock produced an unexpected pop on Monday and managed to breach resistance at the $42.00 level on Tuesday and Thursday. The overall trend remains bearish but we're not suggesting new positions at this time. HCN came within 14 cents of our target on the June 26th low (38.64).
Picked on June 11 at $ 41.73