Long Play Updates
L.B.Foster Co. - FSTR - cls: 37.31 change: +1.30 stop: 33.90
FSTR is still showing relative strength. The stock hit another new all-time high on the Friday morning market spike higher. Shares closed up 3.6% in spite of giving back a good chunk of its gains. We remain bullish here. However, readers have a real choice on where to enter new positions. You could wait for a new rally past $38.00 again or look for another dip near its 10-dma around $36.00. 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: 22.18 change: +0.24 stop: 20.74
PTEN did not perform quite as well as we were expecting. The OIX oil index rose 3% and the OSX oil services index rose 3.8%. PTEN only gained 1%. This still looks like a bullish entry point given Thursday's bounce near support. However, more conservative traders might want to see a new rally past $22.60 before initiating positions. Keep an eye on crude oil and hurricane Dean. If Dean moves north into the Gulf of Mexico it will probably push oil and oil stocks higher. Our first target is the $24.85-25.00 range.
Picked on August 12 at $22.36
Starbucks - SBUX - cls: 26.70 chg: +0.09 stop: 25.95
We were surprised by the midday weakness in SBUX on Friday. However, traders once again stepped in to buy the dip near support around $26.00. Friday's afternoon rebound looks like another bullish entry point to buy the stock. 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: 30.51 change: +1.81 stop: 33.05
AKAM managed a rebound on Friday and its 6.3% gain left shares back above round-number support at the $30.00 level. If the markets continue to bounce then AKAM will likely rally toward resistance near $32.50 and its 10-dma. More conservative traders may want to exit early now to try and lock in some sort of gains. We're not suggesting new positions at this time but we will be watching for any sort of failed rally under $32.50 as a potential entry. Our target is the $28.00-27.50 zone. 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: 16.31 change: +0.25 stop: 17.26
The oversold bounce in MOT continued on Friday but shares under performed the broader market by only rising 1.5%. Shares remain under their 10-dma and the stock struggled to make it past short-term resistance near $16.50 on Friday. The recent action still looks like a bullish reversal so we're not suggesting new positions at this time. If you're feeling really conservative you could tighten your stop toward $17.00 or breakeven at $16.95. If MOT can trade over $16.50 on Monday then a rally to $16.80-17.00 is a very good bet. Our target is the $15.10-14.50 range.
Picked on July 29 at $16.95
NTELOS - NTLS - cls: 25.49 change: +0.67 stop: 26.05
As expected NTLS rallied with the market o Friday. The stock rose 2.6% but was unable to break resistance at the $26.00 level - at least for now. Short-term technicals are definitely improving and the recent action suggests a short-term bullish double-bottom pattern. More conservative traders may want to exit early now, especially seeing the bounce near its longer-term trendline of support. We're going to stick with it since resistance at $26.00 held on Friday. More aggressive traders may want to give NTLS more room to maneuver so you may want to put your stop loss above technical resistance at the 50-dma near $26.51. We are not suggesting new positions. Our target is the $22.25-22.00 range.
Picked on August 05 at $25.76
Riverbed Tech. - RVBD - cls: 40.14 change: +1.13 stop: 43.05
New analyst coverage at a "buy" rating on Friday was not enough to push RVBD past resistance near $41.00. The oversold bounce may not be over yet and we wouldn't be surprised to see RVBD challenge technical resistance at its 10-dma (near $42) soon. Watch for a failed rally under $42.00 as a potential entry point for new shorts. More conservative traders may want to tighten their stops toward $42.65. Our target is the $36.00-35.00 zone.
Picked on August 05 at $41.79
Closed Long Plays
Closed Short Plays