Long Play Updates
Adobe - ADBE - close: 46.12 change: +0.63 stop: 42.85 *new*
ADBE continues to rally and shares hit another 52-week high on Friday afternoon. We remain bullish on ADBE but if you're looking for a new bullish entry point consider waiting for another dip back toward the rising 10-dma (currently near $44.80). We are adjusting the stop loss to $42.85 since ADBE should have short-term support near $45 and the $44 levels. 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 seven weeks.
Picked on October 09 at $45.05
Cisco Systems - CSCO - cls: 32.92 change: +0.12 stop: 31.45
CSCO seemed to lag the market on Friday but the afternoon bounce does look like a new bullish entry point to consider buying the stock. The lack of follow through on Thursday's bearish reversal is a good sign. If you're feeling conservative think about raising your stop toward the October low around $31.88. Currently our stop is just under the rising 50-dma. Our target on CSCO is the $34.75-35.00 range.
Picked on September 26 at $32.65
Juniper Networks - JNPR - cls: 37.12 change: +0.78 stop: 34.69
JNPR offered bulls some good news on Friday. There was no follow through on Thursday's ugly sell-off and failed rally pattern. Traders bought the dip and shares performed an inside day. We are suggesting new positions now but readers might want to wait for a new rise over $37.50 before initiating new positions. Conservative types might also want to consider raising their stop loss toward $36.00 to really reduce their exposure. Our target is the $39.85-40.00 range. The Point & Figure chart is very bullish with a $67 target. We do not want to hold over the October 23rd earnings report.
Picked on October 07 at $37.04
Lexmark - LXK - close: 42.95 change: +0.62 stop: 39.95
Traders defended LXK near $42.00 again and the afternoon rebound looks very positive. If you think LXK can breakout past resistance near $45.00 then this would be a new entry point. Our target is the $44.85-45.00 range so we're not suggesting new positions at this time. More conservative traders might want to raise their stops toward $42.00, which has been short-term support.
Picked on October 09 at $41.06
Knight Capital - NITE - cls: 13.58 change: +0.53 stop: 12.95*new*
NITE out performed the markets on Friday with a 4% gain. The stock got a boost on Friday morning after being upgraded. Shares are now challenging resistance near $14.00. We only have two days left. NITE is due to report earnings on Wednesday or Thursday this week. We're going to err on the side of caution and plan to exit at the closing bell this Tuesday. Please note that we are adjusting the stop loss to $12.95. Our target is the $14.65-15.00 range.
Picked on October 10 at $13.25
NVIDIA - NVDA - close: 36.13 change: +0.86 stop: 34.49 *new*
Looking at shares of NVDA the Friday rebound from $35 looks like a new bullish entry point. However, we remain concerned over the SOX semiconductor index. The SOX broke down under support on Thursday. The Friday bounce in the SOX looks like a failed rally and new entry point for shorts. This week will be crucial with earnings reports from Intel and AMD to shed some guidance on the semiconductor industry. If you buy the bounce in NVDA then consider raising your stop loss closer to $35.00. Readers may want to wait for a new breakout over the 10-dma near $36.65 before initiating positions. We are adjusting our stop loss to $34.49. Our target is the $39.00-40.00 range. FYI: INTC reports on Tuesday and AMD on Thursday.
Picked on September 26 at $36.15
Sirius Satellite Radio - SIRI- cls: 3.54 change: -0.03 stop: 3.29
SIRI continued to suffer some profit taking on Friday. The two-day Thursday-Friday move looks like a bearish reversal pattern. We're not suggesting new bullish positions at this time. Readers might want to consider a tighter stop loss. This remains a very speculative, higher-risk play. Our target is the $3.95-4.00 range.
Picked on September 30 at $ 3.49
Synalloy Corp. - SYNL - cls: 21.18 change: +0.22 stop: 19.99
Friday was a very quiet session for SYNL. For much of the session SYNL traded inside a 5-cent range. The afternoon bounce could be used as a new bullish entry point but we are somewhat concerned by the very low volume. We also want to reiterate our earlier warning that we can't find an earnings report date for SYNL. That means everyday is a potential landmine if SYNL reports earnings unexpectedly and the results are negative. At this point we'd probably wait for a rally past $21.75 or $22.00 before considering new bullish positions. Our target is the $27.00-28.00 range.
Picked on October 09 at $22.39
World Acceptance Corp. - WRLD - cls: 34.82 chg: +0.91 stop: 31.99
WRLD displayed relative strength on Friday. Shares hit an intraday high of $35.59 before paring their gains and closing with a 2.68% rally. We remain optimistic here and would continue to open new positions. However, readers should note that this week will bring a number of earnings reports from the financial sector. This flood of earnings news could produce some volatility in the sector and in shares of WRLD. Readers may want to adjust their stops closer to the $33 level. The P&F chart points to a $46 target. We're aiming for the $37.25-38.00 range. We only have one week and plan to exit ahead of the October 23rd earnings report.
Picked on October 09 at $33.93
Zoltek - ZOLT - cls: 46.91 change: +0.95 stop: 42.90
ZOLT posted a 2% gain on Friday but it all occurred Friday morning. The stock traded sideways the rest of the session. We remain bullish on the stock but we're not suggesting new positions at this time. Readers may want to consider taking some money off the table right here. You may also want to tighten your stop closer to the $44 level. Our target is the $49.00-50.00 range.
Picked on September 24 at $43.06
Short Play Updates
Closed Long Plays
NET Services - NETC - cls: 16.12 change: +0.18 stop: 15.60
We are giving up on NETC. Our target was the $17.75-18.00 range. The stock has gotten close to our target a couple of time but shares have taken a turn for the worse lately. The MACD on the daily chart has reversed into a new sell signal. It's possible that NETC is building a bull flag pattern or that shares will bounce near $15.50 but we don't want to risk it any further. We're suggesting an early exit now to avoid any losses.
Picked on September 24 at $15.60
Westwood One - WON - cls: 2.63 chg: -0.00 stop: 2.59
Our speculative, higher-risk play on WON did not pan out. The stock continued to sink and hit $2.56 intraday on Friday. Our stop loss was at $2.59. We would keep an eye on WON to see if shares consolidate back toward support near $2.25, which might be another bullish entry point.
Picked on October 09 at $ 2.85
Closed Short Plays