Long Play Updates
Boyd Gaming - BYD - cls: 42.85 chg: -1.49 stop: 41.55
Ouch! BYD just erased about a week's worth of gains with Friday's 3.3% sell-off. Volume spiked to just above average levels as BYD dipped toward support near $42 and its 50-dma. There was no news specific to BYD that would account for the weakness, which suggests that investors just rushed to lock in profits following a big decline in gambling-stock leadership from WYNN. WYNN lost 3.7% after announcing a secondary offering on Friday. Technically a bounce from $42 in BYD could be used as a new bullish entry point but we're not very optimistic on the markets this week. More conservative traders may want to raise their stop losses toward the $42.00 level. Our target is the $44.90-46.00 range.
Picked on September 04 at $41.55
Coach Inc. - COH - cls: 47.27 change: -0.33 stop: 45.99
Retail stocks under performed the markets this week thanks to Target's sales warning on Monday night. The sector spiked lower on Tuesday morning. Shares of COH dipped toward support near $46.00 and its 50-dma. The technical indicators on COH are really giving a mixed picture of both buy and sell signals. The intermediate trend in COH is still upward although the stock has been struggling to really build on any sort of bounce near $46.00. More conservative traders may want to consider an early exit here since our market outlook for this week is flat to down. If COH does show any strength we'd use a move over $48.25 as a new entry point for long positions. Our target is the $51.85-52.00 range. More aggressive traders could aim for the April highs near $54.00. The P&F chart points to a $63 target. We do not want to hold over the late October earnings report.
Picked on September 19 at $48.70 *gap higher
Cisco Systems - CSCO - cls: 33.13 change: -0.10 stop: 30.90
CSCO hit another new multi-year high on Friday morning before paring its gains and closing in the red. Readers need to be prepared for potential profit taking next week if the fund managers decide to do any window "undressing" now that the third quarter is over. The trend in CSCO is very bullish and there were some very bullish analyst comments on the stock this weekend. One analyst predicted that CSCO will hit $70 again although that's probably a long-term multi-year target. Our target is the $34.75-35.00 range. Considering our outlook for this week we would watch for a dip back toward the $32.50-32.00 range as a potential entry point to jump in. FYI: CSCO is due to present at two different investor/analyst conferences this week on October 1st and the 2nd.
Picked on September 26 at $32.65
Global Ind. - GLBL - cls: 25.76 chg: +0.17 stop: 23.99
GLBL followed the intraday strength in oil service stocks but the sector and GLBL both pared their gains by the closing bell. GLBL has a very steady up trend but the stock is moving so slowly we're not suggesting new positions. We are very tempted to raise our stop loss to breakeven at $24.65 but we're choosing to hold the stop at $23.99 and give GLBL some room. More conservative traders will want to reconsider a tighter stop. After a six-week run up GLBL could be a target for profit taking this week. Our target is the $28.00-29.00 range.
Picked on September 06 at $24.65
NET Services - NETC - cls: 16.58 change: -0.08 stop: 14.80
NETC just delivered a very bullish week with a breakout over multiple levels of resistance. The stock experienced some profit taking on Friday morning but traders bought the dip near $16.00. We remain bullish but we're not suggesting new positions at this time. NETC may have some resistance near $17.00 and more conservative traders might want to consider an early exit in the $17.00-17.15 region. Our target is the $17.75-18.00 range. The P&F chart is bullish with a $21 target. FYI: We can't find a third quarter earnings date yet but the company has a history of reporting in late October or early November. We don't want to hold over the earnings report.
Picked on September 24 at $15.60
NVIDIA - NVDA - close: 36.24 change: -0.54 stop: 33.75
NVDA closed near all-time highs this week but shares began to slide as one analyst discussed their concerns that the stock's valuation might be getting too rich. The overall trend is still very bullish and technically the dip back toward $36.00, which as broken resistance should be support, looks like a new entry point to buy the stock. We're expecting the markets to be flat to down so readers might want to wait for a possible dip closer to $35.00 as a potential entry point. Better yet we'd wait for signs of a bounce first before jumping into new positions. Our target is the $39.00-40.00 range. We do not want to hold over the early November earnings report. FYI: The Point & Figure chart is bullish with a $55 target.
Picked on September 26 at $36.15
Westwood One - WON - cls: 2.75 chg: -0.21 stop: 2.24
Traders decided to do some profit taking in WON ahead of the quarter's end. The stock plunged 7% on Friday but shares have been volatile for weeks now so the big move isn't too surprising. If you're considering WON as a potential candidate we need to get ready. Our plan is to buy a dip into the $2.60-2.50 range. However, what we want to do is actually buy a rebound back out of this zone. So wait for WON to dip toward $2.50 and then we're suggesting readers buy it on a rebound back above $2.60. We're suggesting a stop under the recent lows but conservative traders might consider a stop under $2.50. If triggered we're going to target a rebound into the $3.25-3.50 range. FYI: more aggressive traders might want to be ready for a bounce from here since WON has dipped back toward its 10-dma, which could be short-term support.
Picked on September xx at $xx.xx <-- see TRIGGER
Wyndham Worldwide - WYN - cls: 32.76 change: +1.02 stop: 30.89*new*
WYN displayed relative strength on Friday with a breakout over resistance near $32.30 and its 50-dma after an analyst firm started coverage on the stock with a "buy". Shares closed up 3.2% and near two-month highs. We were suggesting that a move over $32.30 could be used as a new entry point to go long the stock. Our target is the $33.90-35.70 range. One concern is potential resistance at the 100-dma and 20-dma that are near the $34.00 level. Please note that we're adjusting the stop loss to $30.89. FYI: The P&F chart is still bearish from the summer sell-off.
Picked on September 19 at $32.15
Zoltek - ZOLT - cls: 43.63 change: -0.25 stop: 39.95
ZOLT managed to breakout over short-term resistance near $44 on an intraday basis but eventually gave back all its gains to close in the red. This looks like a bearish short-term reversal and considering our outlook on the markets this week don't be surprised if ZOLT dips toward $43.00 or $42.50. We would wait and watch for a bounce as a new bullish entry point. Our target is the $$49.00-50.00 range. The P&F chart is bullish with a $51 target.
Picked on September 24 at $43.06
Short Play Updates
Commscope - CTV - cls: 50.24 change: -1.43 stop: 54.26 *new*
CTV lost 2.7% on Friday with volume rising toward normal levels. This should be the beginning of a new leg lower following its recent breakdown under support near $52.00. There is potential round-number support near $50.00 so readers looking for a new position can wait for another failed rally under $52.00 or a new low under $50.00. Our target is the $47.00-45.00 range but we'll be watching for potential support at the rising 200-dma. The P&F chart points to a $43 target. Please note that we're adjusting our stop loss to $54.26. FYI: CTV announced that it will present at an investor conference in New York on October 1st.
Picked on September 24 at $51.75
Media General - MEG - cls: 27.51 change: -0.05 stop: 28.05 *new*
Our market outlook for this week is flat to down and that should play well for bears in MEG. The stock has a very consistent trend of lower highs and the action over the last couple of days looks like another failed rally under its 50-dma. We're waiting for a breakdown under support and suggesting a trigger to open short positions at $26.45. If triggered our target is the $22.50-22.00 range. The Point & Figure chart is very bearish with a $10 target. We do not want to hold over the mid October earnings report. Due to the stock's trend the bears have been piling on top of this stock. Short interest is pretty high at more than 17% of the stock's 20.8 million-share float. The combination of high short interest and a small float is a dangerous combination and raises the risk of a short squeeze. A stop loss will not always save us. More conservative traders may want to pass on this play.
Picked on September xx at $xx.xx <-- see TRIGGER
Closed Long Plays
Closed Short Plays