Long Play Updates
Boyd Gaming - BYD - cls: 40.34 chg: -0.19 stop: 39.49
Monday proved to be an interesting day for BYD. The stock actually gapped down around 10:30 a.m. and we can't find any news to explain why. The gap wasn't very big and traders bought the dip near support around $39.50-39.60. The bounce back actually looks like a potential entry point for bullish positions. However, given the market's bearish tone the last couple of days we would hesitate to open new plays. Our target is the $44.90-46.00 range. Keep a wary eye on the simple 50-dma for potential overhead resistance. The Point & Figure chart is still very bearish following the late summer sell-off.
Picked on September 04 at $41.55
Cameco Corp. - CCJ - cls: 39.40 chg: -1.17 stop: 37.95
Uh-oh! We have to issue a bearish reversal alert for CCJ. The stock broke down under the $40.00 level and produced a bearish engulfing candlestick pattern. Shares closed with a 2.8% decline. More conservative traders might want to abandon ship right here. We would expect a test of short-term support near $38.00 and odds are good that CCJ will actually dip toward $37.50. More aggressive traders will want to consider adjusting their stop loss to under $37.50. 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
Brinker Intl. - EAT - cls: 28.68 change: -0.04 stop: 27.99
We don't see any changes from our weekend comments on EAT. The company is due to present at an analyst conference tomorrow morning around 10:00 a.m. ET. EAT is near the bottom of its rising bullish channel so a bounce from here could be used as a new bullish entry point. If you don't want to buy the dip then wait for a new rise over $29.00 again. EAT does not move super fast so this could take a few weeks but our target is the $31.75-32.00 range. We do expect to see EAT find temporary resistance near $30 and again at the 100-dma and 200-dma both overhead. FYI: The P&F chart is still bearish from the June-July sell-off. Meanwhile it just happens to be dividend season for EAT and they are paying a 9-cent quarterly dividend on September 26th to shareholders on record as of September 14th.
Picked on September 02 at $28.84
Global Ind. - GLBL - cls: 23.99 chg: -0.46 stop: 22.89
GLBL suffered some profit taking after one analyst downgraded some stocks in the oil services field. GLBL itself was not downgraded. We would hesitate to buy the dip here but a clear bounce from the $23.50 level might be an attractive entry point. Or as an alternative look for a rise past $24.20 as a potential entry point. Shares do have potential resistance at the 50-dma overhead. Our target is the $28.00-29.00 range.
Picked on September 06 at $24.65
Starbucks - SBUX - cls: 27.04 chg: -0.12 stop: 26.61
SBUX is looking more and more vulnerable to profit taking. The stock closed right at its 50-dma this afternoon. We're not suggesting new positions and given the market's new bearish tone readers may want to just exit early right here.
Picked on August 16 at $26.61
Wyndham Worldwide - WYN - cls: 30.07 change: -0.12 stop: 29.90
We do not see any changes from our weekend comments on WYN. At the moment we're still on the sidelines. It has been our plan to buy a breakout over $32.00 with a trigger at $32.15. So far that hasn't happened yet. Aggressive traders might want to consider buying a bounce from $30.00. We would keep an eye on the $29.70. A breakdown under $29.70 could be used as an entry point for bearish positions.
Picked on September xx at $xx.xx <-- see TRIGGER
Short Play Updates
Cintas - CTAS - cls: 35.74 change: +0.09 stop: 37.01
The early morning rally and afternoon rally attempt in CTAS both failed. This looks like another entry point for bearish positions. The Point & Figure chart is already bearish with a $29 target. We are suggesting shorts with CTAS under $36.00. There is some support in the $34.75 region but if the major averages continue lower we expect CTAS to breakdown to new lows. Our target is the $33.50-33.00 range.
Picked on September 09 at $35.65
Fastenal Co. - FAST - cls: 43.06 change: -0.42 stop: 46.01
FAST continues to dip on above average volume. Readers can choose to short it here or look for another failed rally in the $44-45 zone. We are targeting a decline into the $40.25-40.00 range. The $40.00 level and its rising 200-dma near $40 should be support. FYI: The P&F chart is still bullish, for now. FYI: The latest (August) data puts short interest at 9% of the 105.8 million-share float. That is an above average amount of short interest, which raises the risk level on this play.
Picked on September 09 at $43.48
Monster Worldwide - MNST - cls: 32.53 chg: -0.97 stop: 35.05
MNST lost 2.89% and closed near its lows for the session, which is a good sign for the bears. However, while today's action is encouraging, the stock is now close to what has been support near $32.50. If the stock bounces watch for resistance in the $34-35 region. A new decline under $32.50 could be used as another entry point. Our first target is the $30.25-30.00 range.
Picked on September 09 at $33.50
Network Appl. - NTAP - cls: 27.14 change: +0.02 stop: 28.85
The trading in NTAP continues to look bearish. We don't see any changes from our weekend comments. We're suggesting short positions now although readers could wait and look for another bounce and failed rally near $28.00 as a new entry point. We have two targets. Our first target is the $25.15-25.00 range. Our second target is the $24.00-23.50 zone.
Picked on September 09 at $27.12
Closed Long Plays
EON AG - EON - cls: 55.02 change: +0.69 stop: 53.49
EON performed a disappearing act today. The stock symbol changed from EON to EONGY.PK. Unfortunately, we missed the story on August 21st, 2007 where EON announced plans to delist from the NYSE. The company's shares will continue to trade on the German XETRA exchange in Frankfurt. We're choosing to drop EON as a play since shares have been moving so slowly and now tracking it will be an extra chore. You can find more about the company's plans to delist from the NSYE on the www.eon.com home page.
Picked on August 26 at $54.55
Closed Short Plays