Long Play Updates
Adobe - ADBE - close: 45.49 change: -0.09 stop: 42.26
Readers will see a very similar pattern across the market today. Stocks were generally up this morning but then reversed lower as the market sold off around 2:00 p.m. ADBE was no exception and the move today looks like a short-term bearish reversal. We would expect a dip back toward $45.00 or its 10-dma around 44.60. Our target is the $49.50-50.00 range. The P&F chart is already bullish with a $51 target. Our time frame is about eight weeks.
Picked on October 09 at $45.05
Cisco Systems - CSCO - cls: 32.80 change: -0.47 stop: 31.45
Shares of CSCO tagged a new multi-year high before plunging lower with the rest of the NASDAQ. We are concerned that tech stocks will see more profit taking, especially after today's bearish engulfing (reversal) candlestick pattern on the NASDAQ composite index. We would expect CSCO to break short-term support near $32.50 and hit $32.00 or its 50-dma on any further sell-off. Our target on CSCO is the $34.75-35.00 range.
Picked on September 26 at $32.65
Juniper Networks - JNPR - cls: 36.34 change: -1.29 stop: 34.69
We have to issue a bearish reversal warning on JNPR. The stock under performed its peers in the tech sector. The NASDAQ lost 1.4%. The NWX networking index lost 1.2%. JNPR slipped more than 3.4%. Furthermore today's losses follow a third failed rally attempt at the $38.00 level. We would expect further declines toward support near $35.00. We're not suggesting new positions at this time. Our target is the $39.85-40.00 range. The Point & Figure chart is very bullish with a $67 target.
Picked on October 07 at $37.04
Lexmark - LXK - close: 42.33 change: -1.47 stop: 39.95
The profit taking in LXK happened early this morning. Shares slipped back toward the $42.00 level, which as broken resistance is now acting a short-term support. If the market continues to slip tomorrow we would not be surprised to see LXK dip toward $40.00 again or at least the $41.00 region. We would hesitate to open new positions at this time. Our short-term target is the $44.85-45.00 range.
Picked on October 09 at $41.06
NET Services - NETC - cls: 15.94 change: -0.77 stop: 15.60
Uh-oh! Tech stocks took the brunt of the selling pressure this afternoon and NETC got more than its fair share of profit taking. The stock had rallied to $17.27 intraday and the plunged to an intraday low of $15.65. To make matters worse the 4.6% decline was fueled by strong volume. Readers may want to abandon ship right here before NETC hits our stop loss. 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
Knight Capital - NITE - cls: 13.05 change: +0.07 stop: 12.45
NITE managed to rally early in the session but the rally ran out of steam at $13.62. Shares closed back under their 50-dma and the stock looks poised for further weakness toward the $12.75-12.50 region. We would suggest waiting and watching for a dip and bounce before considering long positions again. Our target is the $14.65-15.00 range. We would expect some resistance near $14.00. This is a short-term play and we plan to exit ahead of the mid October earnings.
Picked on October 10 at $13.25
NVIDIA - NVDA - close: 35.27 change: -1.64 stop: 33.75
Warning! The SOX semiconductor index really under performed and broke down under technical support at its 200-dma. This weighed on shares of NVDA, which sank 4.4%. It did not help that one analyst firm downgraded NVDA this morning. Technical indicators on NVDA have turned negative and readers will want to seriously consider exiting early right here to limit any further losses. We're not suggesting new positions. We do not want to hold over the early November earnings report.
Picked on September 26 at $36.15
Sirius Satellite Radio - SIRI- cls: 3.57 change: -0.12 stop: 3.29
SIRI spiked higher to $3.79 this morning but immediately ran into profit taking. The stock lost 3.2% by the closing bell. Shares have produced what appears to be a short-term bearish reversal. This is an aggressive, higher-risk play but readers may still want to consider a tighter stop loss to reduce their exposure. Our target is the $3.95-4.00 range.
Picked on September 30 at $ 3.49
Synalloy Corp. - SYNL - cls: 20.96 change: -1.06 stop: 19.99
SYNL was holding up pretty well until the afternoon market sell-off. The stock then broke down under short-term technical support at its 10-dma. If there is any sort of positive spin we can put on a 4.8% decline it would be the lack of volume behind the move. At this point we would expect SYNL to dip toward what should be support near $20.00. Wait for signs of a bounce before considering new bullish positions.
Picked on October 09 at $22.39
Westwood One - WON - cls: 2.63 chg: -0.09 stop: 2.59
WON continued the sell-off that began yesterday. The stock dipped toward short-term support near $2.60. Any further weakness will have WON hitting our stop loss at $2.59. Short-term technicals have turned bearish and readers may want to abandon ship anyway.
Picked on October 09 at $ 2.85
World Acceptance Corp. - WRLD - cls: 33.92 chg: -0.33 stop: 31.99
WRLD performed relatively well today in spite of the market-wide afternoon sell-off. We would expect a pull back toward $33.50 or the $33.00 level if the major indices continue lower tomorrow. Wait for signs of a bounce before considering new bullish positions. The P&F chart points to a $46 target. We're aiming for the $37.25-38.00 range. We only have two weeks and plan to exit ahead of the October 23rd earnings report.
Picked on October 09 at $33.93
Zoltek - ZOLT - cls: 45.97 change: -1.86 stop: 42.90
It was a volatile day for ZOLT, the second volatile day in a row. Our target is the $49.00-50.00 range. The stock hit an intraday high of $48.78 this morning. Unfortunately, it quickly turned south and eventually dipped to $44.13 before paring its losses. The stock closed down 3.8% by the closing bell. We are not suggesting new positions and readers may want to exit early to lock in a gain or tighten their stops.
Picked on September 24 at $43.06
Short Play Updates
Closed Long Plays
Wyndham Worldwide - WYN - cls: 32.55 change: -0.66 stop: 31.49
We are giving up on WYN. The stock has produced another failed rally and this time broken down under short-term support near $33.00 and its 10-dma. We're suggesting an early exit now to limit or avoid any further losses.
Picked on September 19 at $32.15
Closed Short Plays
Supervalu - SVU - cls: 35.27 change: -0.83 stop: 38.51
Target achieved. SVU sank to another new low for the year. The intraday low was $35.12. Our target was the $35.25-35.00 range. If you think SVU will break support at $35.00 you might want to stick with the play and just tighten your stop loss. The P&F chart points to a $28 target.
Picked on September 30 at $38.05 *gap down