Long Play Updates
Cameco Corp. - CCJ - cls: 40.38 chg: +2.15 stop: 37.40
It looks like investors were doing a lot of bargain shopping on Friday. Sentiment was positive on Friday and CCJ gapped open at $39.13 and rallied to a 5.6% gain to close over round-number resistance at the $40.00 mark. Last week's double-bottom near $37.50 is also bullish. While we would consider new positions now we would be more tempted to wait and see if there was any profit taking on Tuesday following Friday's strong move. A dip into the $39.60-39.00 zone would be an attractive entry point. Our target is the $44.50-45.00 range. Readers should note that the 50-dma and the 200-dma could be serious overhead resistance.
Picked on August 27 at $40.26
EON AG - EON - cls: 55.98 change: +1.52 stop: 52.99 *new*
Friday turned out to be much stronger than expected in shares of EON. Shares of EON gapped open higher and closed up 2.79%, albeit on below average volume. The move appears to be fueled by news that the world's largest steel producer, ArcelorMittal, assuming their merger is completed, is buying a 76% stake in a German gas distributor. EON happens to own a 20% stake in the gas company being purchased. Please note that we're adjusting the stop loss to $52.99. Our target is the $57.40-59.85 range. More aggressive traders may want to aim higher.
Picked on August 26 at $54.55
Global Ind. - GLBL - cls: 24.18 chg: +0.31 stop: 22.39
We want to remind readers that this is an aggressive play! GLBL has great fundamentals and the company seems to have more business than it can handle for the foreseeable future. However, we're concerned that if crude oil futures turn weak again in the first half of September it could take GLBL down with it. We're trying to trade the stock not invest in it long-term. Currently GLBL has been developing a bullish trend of higher lows after its early August test of the 200-dma near $19.00. Friday's breakout over $24.00 and its 100-dma looks like a new bullish entry point. Yet it is worth noting that volume was very low on Friday's gain and the stock has not yet hit our trigger to buy it at $24.65. Technically we're still just spectators sitting on the sidelines watching and waiting. Conservative readers may just want to pass on this one. More aggressive traders may want to jump in now. We're also thinking that readers may want to tighten the stop loss to last Wednesday's low near $22.95. Our target is the $28.00-29.00 range. FYI: In the news on Thursday GLBL announced it was presenting at the Energy conference in New York on September 5th.
Picked on August xx at $xx.xx <-- see TRIGGER
Starbucks - SBUX - cls: 27.55 chg: +0.20 stop: 26.61*new*
SBUX jumped higher at the open on Friday and rallied again near the close but twice the stock struggled near $27.80. This might be a warning signal since we were not expecting any resistance between $27.50 and $28.00. Last week we pointed out that the declining 100-dma could be technical resistance so we lowered our target to $28.00-28.25. We're not suggesting new bullish positions at this time although a rally past $28.50 would be a bullish sign. Please note that we're adjusting the stop loss to breakeven at $26.61.
Picked on August 16 at $26.61
Synalloy - SYNL - cls: 20.05 change: +0.43 stop: 18.95
We are urging a new sense of caution on SYNL. The stock did post a 2.1% gain on Friday but the move looks more like a continuation of the sideways consolidation. The good news is that this sideways consolidation has narrowed or coiled so tightly that a breakout should be imminent. The bad news is that the breakout could go either way. More conservative traders might want to try and reduce their risk by inching up their stop toward the $19.50 level. We are suggesting that readers wait for a new rally past $20.55 or $20.75 or $21.00 before considering new bullish positions. Our target is the $24.75-25.00 range.
Picked on August 26 at $20.79
Vertex Pharma - VRTX - cls: 38.96 change: +0.84 stop: 35.85 *new*
VRTX continued to show relative strength on Friday with a 2.2% gain and a new three-week high. Traders bought the dip near $38.00 on Friday morning, which is another good sign. Shares look poised to make a run at our target in the $39.80-40.00 range. More aggressive traders may want to aim higher. The P&F chart points to a $66 target. We are going to adjust our stop loss to $35.85.
Picked on August 19 at $36.87
Short Play Updates
Closed Long Plays
Closed Short Plays
Motorola - MOT - cls: 16.95 change: +0.20 stop: 17.05
Early Friday afternoon shares of MOT found new strength and rallied to $17.08 hitting our stop loss at $17.05 and closing the play. The stock has been trying to form a bottom over the last few weeks and it might have done so but MOT has significant resistance in the $17.00-17.50-18.00 range.
Picked on July 29 at $16.95