Long Play Updates
LM Ericsson - ERIC - cls: 36.60 change: +0.28 stop: 33.95
ERIC continues to bounce higher and the MACD on the daily chart is very close to a new buy signal. One item to be aware of is that ERIC is now up four out of the last five days. The stock will eventually need to rest. Broken resistance near $36.00 should now act as short-term support. Our target is the $37.90-38.00 range. More aggressive traders may want to aim higher like the 200-dma or the $40 zone.
Picked on August 19 at $35.53
L.B.Foster Co. - FSTR - cls: 37.90 change: +0.93 stop: 34.59
FSTR displayed some impressive relative strength with a 2.5% gain. The lack of follow through on Tuesday's bearish reversal is still a good sign. We're not suggesting new positions at this time. More conservative traders may want to tighten their stops even further. 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
Pediatrix - PDX - cls: 59.00 change: -0.14 stop: 55.90
The market-wide profit taking on Thursday stalled the rebound in shares of PDX. The stock has been trading sideways all week. We remain bullish with the breakout over $59.00 and the recent retest of support near $58.00. Our target is the $64.50-65.00 range. More conservative traders may still want to wait for a rally past the April 2007 high at $60.35 as an entry point to avoid potential resistance at $60.00.
Picked on August 20 at $59.15
Patterson-UTI - PTEN - cls: 21.18 change: +0.11 stop: 20.74
PTEN continues to test support near $21.00. A bounce from here would be a technical buy signal. Readers may want to wait for a rise over today's (and yesterday's) high at $21.36 or a rise over $21.50 before considering new bullish positions. Investors should still keep an eye on the oil futures, which are likely to be weak short-term. This will continue to weigh on the energy stocks. Our first target is the $24.85-25.00 range.
Picked on August 12 at $22.36
Starbucks - SBUX - cls: 27.52 chg: +0.02 stop: 25.95
Bulls bought the midday dip in SBUX and given a little bit more time it looks like shares would have closed in the green today. We're not suggesting new positions at this time. There is minor resistance at $27.50 and $28.00 before the stock hits our target in the $28.35-28.50 range. More aggressive traders may want to aim higher.
Picked on August 16 at $26.61
Tellabs - TLAB - cls: 10.31 change: +0.11 stop: 9.39
Today's trading in TLAB was encouraging. As of yesterday we were expecting another dip toward $10.00. Instead the stock rose 1% after traders bought the dip near its 10-dma this morning. More conservative traders may want to tighten their stops. Our target is the $10.90-11.00 range. This means we don't have a great risk/reward ratio so more conservative traders may want to pass on this one. Really aggressive traders may want to aim higher (maybe around $11.50).
Picked on August 19 at $10.00
Vertex Pharma - VRTX - cls: 36.38 change: -0.58 stop: 33.99
We warned readers to look for a dip near $36.00 in VRTX. The low today was $36.13. Unfortunately, we are not sure the dip is over yet. Furthermore the short-term technical indicators for VRTX are turning bearish on us. The stock may be setting up for a pull back toward the $35.00-35.50 range. More conservative traders may want to tighten their stops toward $35.00. The P&F chart is bullish with a $66 target. Our target is the $39.80-40.00 range.
Picked on August 19 at $36.87
XOMA Ltd. - XOMA - cls: 2.27 change: +0.025 stop: 1.99
The consolidation in XOMA continues to narrow. A bounce near $2.15 or $2.20 could still be used as a new entry point but we're starting to think the better entry may be on a rise past $2.35. We want to remind readers that this is an aggressive, higher-risk play. We're using a wide stop and when trading a biotech there is always headline risk or some unexpected news event sending shares the opposite direction. Our target is the $2.70-2.75 under the 200-dma. Be aware that the 50-dma is falling fast and could be overhead resistance. FYI: The latest data shows that short interest is about 9% of the 95 million-share float. That's a high amount of short interest and raises the risk of a short squeeze, which of course would be good news for us!
Picked on August 19 at $ 2.25
Yahoo - YHOO - close: 23.13 change: -0.10 stop: 22.45
We do not see any changes from our previous comments on YHOO. As expected the stock is consolidating lower. The question is where will it find support - at $23.00 or near $22.50? At this point it might pay off to just wait and watch for a bounce near $22.50 before considering new bullish positions. We are aiming for the $25.85-26.00 range but keep a wary eye on the falling 50-dma, which could be trouble for us. You can also see on the weekly chart that the $25.00 level may be tough resistance so we're setting a conservative target at the $24.95-25.00 range.
Picked on August 19 at $23.54
Short Play Updates
Akamai - AKAM - close: 30.83 change: -1.06 stop: 33.05
AKAM spiked lower at the open but we couldn't find any specific news to account for the weakness. Traders bought the initial dip near $30.00 but the bounce was failing into the close. The stock looks poised to trade lower again tomorrow. More conservative traders may want to tighten their stop toward the $32.65 region. AKAM appears to have short-term resistance in the $32.50-32.60 zone. We're not suggesting new positions at this time. 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: 16.60 change: +0.06 stop: 17.26
Unfortunately, we have nothing new to report on for MOT. The stock traded inside an 18-cent range all day. A failed rally under $17.00 or $16.50 could be used as a new entry point for shorts but at this time we would not open new positions. If you're feeling really conservative you could tighten your stop toward $17.00 or breakeven at $16.95. Our target is the $15.10-14.50 range.
Picked on July 29 at $16.95
Closed Long Plays
Closed Short Plays