Long Play Updates
L.B.Foster Co. - FSTR - cls: 36.01 change: -0.84 stop: 33.90
We have been warning readers to expect a dip toward $35.00 and FSTR overshot with an intraday low of $34.60. The bounce back above $35 and its 10-dma looks like a new bullish entry point. However, we want to warn you that the recent weakness has turned the technical picture bearish. Due to the market's volatility and FSTR's own volatility we are using a wide (aggressive) stop loss. We have two targets. Our first target is the $39.90-40.00 range. Our second target is the $42.00-42.50 zone.
Picked on August 14 at $37.33
Patterson-UTI - PTEN - cls: 21.94 change: +0.01 stop: 20.74
Today's afternoon bounce in PTEN looks like a new bullish entry point to buy the stock. We would consider new positions now. However, you might feel more comfortable waiting for some confirmation. Watch for a new move over $22.50 as a potential entry point. Our first target is the $24.85-25.00 range.
Picked on August 12 at $22.36
Starbucks - SBUX - cls: 26.61 chg: +0.04 stop: 25.95
Bingo! We've been suggesting that readers watch for a rebound near $26.00 and SBUX provided one today. Even at the market's worst levels today SBUX held support at the $26.00 level. We're switching gears and suggesting a bullish entry point now. We'll try and limit our risk with a relatively tight stop loss at $25.95. Our new target will be the $28.35-28.50 range. More aggressive traders may want to aim higher.
Picked on August 16 at $26.61
Short Play Updates
Akamai - AKAM - close: 28.70 change: -3.05 stop: 33.05 *new*
The first thing you may notice in AKAM today was that shares failed to participate in the market's huge afternoon rebound. That's right. There was almost no oversold bounce in AKAM. The stock plunged through support near $30.00 and closed with a 9.6% loss. Now that doesn't mean that if the market continues to bounce tomorrow that AKAM won't join in but today's move was very bearish. More conservative traders may want to exit early and lock in a gain now. We're adjusting our stop loss to $33.05. Our target is the $28.00-27.50 zone. The intraday low today was $28.43. We're not suggesting new positions at this time. FYI: Traders should be aware that the latest (July) data put short interest at 6.5% of the 159 million-share float. That's a relatively high amount of short interest and increases the risk of a short squeeze.
Picked on August 14 at $32.35
Motorola - MOT - cls: 16.06 change: -0.15 stop: 17.26 *new*
MOT hit an intraday low of $15.61 before bouncing back sharply late this afternoon. This rebound this afternoon, seen across the market, looks like a short-term bullish reversal. More conservative traders may want to exit early now to try and lock in a gain. We would expect MOT to bounce from here. We'll try and limit our risk by adjusting the stop loss to $17.26. Our target is the $15.10-14.50 range.
Picked on July 29 at $16.95
NTELOS - NTLS - cls: 24.82 change: -0.01 stop: 26.05 *new*
Be careful here with NTLS. The stock is showing a little too much strength. Yes the stock did hit a new relative low this morning but the afternoon rebound almost pushed the stock into the green. This might be the beginning of a short-term bullish double-bottom pattern. The overall trend is still bearish with lower lows and lower highs over the past few weeks. We're going to try and limit our risk by adjusting the stop loss to $26.05. However, if the market sees any sort of significant follow through on today's afternoon rebound then we would expect NTLS to stop us out. Our target is the $22.25-22.00 range.
Picked on August 05 at $25.76
Riverbed Tech. - RVBD - cls: 39.01 change: -1.97 stop: 43.05*new*
RVBD came close to hitting our target today. We've been aiming for the $36.00-35.00 zone. The early morning weakness pushed RVBD to an intraday low of $36.62. The afternoon bounce in the market and in RVBD does have us worried and we'd expect a bounce back toward the 10-dma near $42.00 even though broken support near $40-41 should now be overhead resistance. We're adjusting our stop loss to $43.05. We're not suggesting new positions at this time.
Picked on August 05 at $41.79
Closed Long Plays
Teva Pharma - TEVA - cls: 40.84 change: -1.65 stop: 41.69
Market volatility shot drastically higher today with big intraday moves. Word on the street was that a number of hedge funds, desperate for cash, were selling their winners. TEVA could have been a target for profit taking. The stock hit our stop loss at $41.69 as it broke down under support and broke its bullish pattern of higher lows.
Picked on August 12 at $43.33
Closed Short Plays
Dell Inc. - DELL - cls: 25.93 change: -0.37 stop: 27.55
Target achieved and exceeded. DELL plunged past technical support at the 200-dma and dipped toward round-number support near $25.00. This also happens to coincide with what looks like the bottom of its narrow, bearish channel. The actual intraday low was $24.96. Our target was the $25.75-25.50 range.
Picked on August 06 at $26.95
Energy Sector SPDR - XLE - cls: 65.10 chg: -0.40 stop: 70.10
Close enough? The market weakness today pulled the XLE down to an intraday low of $62.73. We have been aiming for the $62.50 level, which we suspected would be support along with its rising 200-dma also at $62.50. More importantly we think bears need to exit immediately. The bounce from support could have legs to it. We would not be surprised to see the XLE rebound back toward $67.50 to $68.00. If tropical storm Dean turns into a hurricane and heads into the Gulf then we'd really expect oil and oil stocks to head higher. The XLE already hit our first target at $65.25 days ago but we are not claiming another target hit with today's dip.
Picked on July 26 at $69.75