Long Play Updates
Boyd Gaming - BYD - cls: 41.45 chg: -0.18 stop: 39.49
BYD ignored the market's strength today. The stock is still struggling with resistance at the $42.00 level. If the major averages see any sort of consolidation then odds are good that BYD will retest the bottom of its trading range near $40.00. We would not suggest new positions at this time. 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
Global Ind. - GLBL - cls: 24.64 chg: -0.51 stop: 22.89
The OSX oil services index has been stuck under resistance near the 285 level for the last two weeks. Seeing crude oil rise to new all-time highs over $80 a barrel has not been enough of a catalyst to spark a breakout in the services sector. While GLBL has been out performing some of its peers the stock hit some profit taking today with a 2% decline. Our target is the $28.00-29.00 range.
Picked on September 06 at $24.65
Starbucks - SBUX - cls: 27.48 chg: +0.15 stop: 26.74 *new*
SBUX continues to bounce around its trading range but it did come within 20 cents of our target. Speaking of our target we need to adjust it. The 100-dma looks like technical resistance and it has fallen to $27.85. We are adjusting our target to $27.75-28.00. We're also inching up our stop loss to $26.74.
Picked on August 16 at $26.61
Wyndham Worldwide - WYN - cls: 30.05 change: +0.14 stop: 29.90
There is no change from our previous comments on WYN. If shares of WYN don't start to perk up soon we might drop it as a bullish candidate. 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: 36.05 change: -0.09 stop: 37.01
CTAS tried to rally again but it failed near $36.50. By the closing bell CTAS had produced a bearish engulfing (reversal) candlestick pattern. The low today was $35.90. Yesterday we suggested that readers wait for a new decline under $35.90 or lower as a potential entry point for new shorts. More conservative traders still in the play might want to tighten their stops toward the $36.50 region. Our target is the $33.50-33.00 range.
Picked on September 09 at $35.65
Fastenal Co. - FAST - cls: 42.97 change: -0.09 stop: 46.01
FAST was immune to the market's strength today. The stock continues to trade sideways and under short-term resistance near $44.00 and its 100-dma. More conservative traders may want to think about tightening their stops. 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
Jackson Hewitt - JTX - cls: 26.15 chg: +0.05 stop: 28.05
Be careful. This could be a bear trap! JTX broke down under very significant support at the $26.00 level and traded under this level for the first half of the day. Surprisingly the stock managed to bounce back late this afternoon. The move looks like a short-term bullish reversal pattern called a "hammer" candlestick. At the same time the move under $26.00 produced a new quadruple (actually a quintuple) bottom breakdown sell signal with a $21 target on its Point & Figure chart. We would look for a new decline under $26.00 or a failed rally under $26.50 as a new entry point for shorts. More conservative traders may want to use a tighter stop loss. Our target is the $22.50-22.00 range. FYI: The latest data puts short interest at more than 12% of the 30 million share float. That's a relatively high degree of short interest and does raise the risk of a short squeeze.
Picked on September 13 at $25.85 <-- see TRIGGER
Monster Worldwide - MNST - cls: 33.04 chg: +0.07 stop: 35.05
There is no change from our previous comments on MNST. MNST is still meandering sideways. 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: 27.29 change: +0.25 stop: 28.85
The NASDAQ composite and many of the tech sectors represented in that index under performed the market today. Shares of NTAP managed to out do its peers in the networking sector but the stock remains under resistance near $28.00 and its 50-dma. This could be a new entry point for shorts or readers can wait for a new decline under $26.75. 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
Cameco Corp. - CCJ - cls: 44.00 chg: +1.21 stop: 37.95
Target achieved. CCJ continued to rally and pushed through technical resistance at its 200-dma to close up 2.8%. Shares hit an intraday high of $44.69. Our target was the $44.50-45.00 range. The $45 level looks like resistance so look for some consolidation here. We remain bullish on CCJ and would keep an eye on it for another entry point down the road.
Picked on August 27 at $40.26
Closed Short Plays