Long Play Updates
Helmerich Payne - HP - cls: 30.37 chg: -1.38 stop: 28.85
Oil service stocks continued to struggle even though crude oil was ticking higher. News that tropical storm Dean, currently in the Caribbean, might turn into a hurricane and head into the Gulf of Mexico was pushing oil higher. Sadly that didn't spark any buying in oil stocks. Shares of HP lost 4.3%. The move today looks very bearish, especially following yesterday's failed rally pattern. We warned readers to expect a dip into the $31.00-30.00 zone. The question now is where will HP bounce? Will it bounce at the $30.00 mark or will it bounce at the 200-dma near $29.60? Or will it keep falling? Wait for signs of a bounce before considering new positions. We have two targets. Our first target is the $34.50-35.00 range, which looks like resistance. Our second, more aggressive target is the $36.00-36.50 zone near its highs. FYI: We did not see anything specific to account for HP's relative weakness today.
Picked on August 12 at $31.55
Patterson-UTI - PTEN - cls: 22.45 change: -0.22 stop: 20.74
PTEN slipped just less than 1% but that was better than most of the oil service stocks. The OSX index lost 1.7%. Traders bought the initial dip in PTEN near its 10-dma. We would watch for a bounce near $22.00 as a new entry point for longs. Our first target is the $24.85-25.00 range.
Picked on August 12 at $22.36
Starbucks - SBUX - cls: 27.15 chg: -0.66 stop: 26.75
Market weakness pulled SBUX lower and the stock dropped to its next level of short-term support near $27.00. The stock did manage a minor bounce from technical support at its 50-dma near $27.00. We're still waiting for a breakout to a new relative high and we're suggesting a trigger to buy the stock at $28.81. However, we'll be keeping a close eye on SBUX for any alternative entry points. Right now we'd be watching for SBUX to bounce near $26.50-26.25 as potential (and aggressive) entry point (probably with a stop loss around $25.99).
Picked on August xx at $xx.xx <-- see TRIGGER
Teva Pharma - TEVA - cls: 42.89 change: -0.25 stop: 41.45
The market sell-off was very broad-based today and drug stocks were not seen as safe haven plays. The DRG drug index lost 1.3%. Shares of TEVA managed to out perform with a minor 25-cent decline. We still expect another pull back toward the $42.00 level and its rising 50-dma. Wait and watch for a bounce before considering new positions. More conservative traders may want to wait for a rise past $44.50 before initiating new positions. Our conservative target is the $45.85-46.00 range due to the old all-time high. Our secondary target is the $47.50-50.00 range.
Picked on August 12 at $43.33
Short Play Updates
Dell Inc. - DELL - cls: 26.46 change: -0.24 stop: 28.05
DELL is still inching its way lower. The stock produced another failed rally at its 10-dma today. DELL is currently trading inside a narrow, bearish channel. The bottom of the channel looks like the $25.50-25.00 zone, which lines up perfectly with our target in the $25.75-25.50 range. More aggressive traders may want to aim toward the $24.75 region.
Picked on August 06 at $26.95
Motorola - MOT - cls: 16.51 change: -0.34 stop: 17.55
The action in MOT today was bearish. The stock produced a bearish reversal in the form of a bearish engulfing candlestick pattern. The move (-2%) looks like a new entry point for shorts. However, after the closing bell tonight it was announced that billionaire investor Carl Icahn and his company had boosted their stake in MOT to around 69 million shares, which is about 3% of the company. This news pushed MOT shares up toward $16.85 in after hours trading. The stock could open higher tomorrow morning. Wait and watch for another failed rally near $17.00 as a new entry point for shorts. If you're feeling conservative you could tighten your stop loss toward Thursday's high (17.23). Our target is the $15.10-14.50 range.
Picked on July 29 at $16.95
NTELOS - NTLS - cls: 25.08 change: -0.16 stop: 26.55
Volume in NTLS is evaporating. The stock traded sideways, which is neither bullish nor bearish. However, when you take into account the market's weakness then today's action in NTLS almost looks bullish. More conservative traders may want to tighten their stops toward $26.00. We're not suggesting new positions at this time. Our target is the $22.25-22.00 range.
Picked on August 05 at $25.76
Riverbed Tech. - RVBD - cls: 41.53 change: -0.69 stop: 45.51
RVBD is drifting lower again toward support near the $40.50-40.00 zone. If we take into account the sliding volume figures then we suspect that RVBD will bounce again near $40.00. Wait for a new failed rally near $44.00 or a new breakdown under $40.00 before considering new shorts. We are somewhat concerned about the 100-dma near $38.50 as potential support. Our target is the $36.00-35.00 range. The P&F chart points to a $35 target.
Picked on August 05 at $41.79
UnitedHealth - UNH - cls: 48.51 change: -0.53 stop: 50.01
UNH experienced some profit taking follow its two-day bounce. We're still concerned the bounce isn't over yet, especially with the bullish turn in the short-term technicals. We are not suggesting new bearish positions at this time. Our target is the $45.25-45.00 range.
Picked on July 26 at $49.95
Energy Sector SPDR - XLE - cls: 67.35 chg: -0.45 stop: 70.10
The XLE is still sinking. However, we are warning readers now. There was news today that tropical storm Dean might turn into a hurricane and head into the Gulf of Mexico. If this occurs it will push crude oil higher, which should strengthen the oil stocks. We're not suggesting new short positions at this time. The XLE has already hit our first target in the $65.25-65.00 range. Our secondary, aggressive target is the $62.50 level.
Picked on July 26 at $69.75
Closed Long Plays
Closed Short Plays