Long Play Updates
Adobe - ADBE - close: 45.71 change: -0.41 stop: 42.85
ADBE held up pretty well during Monday's market weakness. Traders were buying the dip this afternoon. It wasn't low enough to hit the rising 10-dma but readers may want to use the pull back as a new bullish entry point. 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
Computer Sciences - CSC - cls: 58.95 chg: -0.23 stop: 55.95
CSC tested short-term resistance at $60.00 this morning before turning lower. Fortunately for the bulls traders were buying the dip late this afternoon. We remain bullish on CSC and would still consider positions here. However, more conservative traders may want to wait for a breakout over $60.00. There is potential resistance near $62.00-62.50 but we're aiming for the $64.00-65.00 range. The P&F chart shows a new triple-top breakout buy signal and a breakout through resistance with a $70 target. We can't find an earnings report date yet but CSC has a history of reporting in early November.
Picked on October 14 at $59.18
Cisco Systems - CSCO - cls: 32.79 change: -0.13 stop: 31.45
We do not see any changes from our weekend comments on CSCO. Traders were buying the dip near $32.50 this afternoon. 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
Heidrick & Struggles - HSII - cls: 40.32 chg: +0.12 stop: 37.99
HSII displayed relative strength by holding support at the $40.00 level. We remain bullish and would continue to open new positions here. There is potential resistance at the 50-dma around $42.50. Our target is the $44.00-45.00 range. We do not want to hold over the end of October earnings report.
Picked on October 14 at $40.20
Marinemax Inc. - HZO - cls: 15.50 chg: -0.35 stop: 15.24
We do not see any changes from our weekend comments. Our suggested trigger to go long the stock is at $16.26, which would be a new relative high. If triggered at $16.26 or target is the $17.90-18.00 range. Watch for potential resistance at the 50-dma. FYI: The latest data puts short interest at more than 33% of the small 17 million-share float. That's a very high amount of short interest and it wouldn't take much for the shorts to get squeezed! Remember, this is an aggressive play since we're fighting the bearish trend of lower highs.
Picked on October xx at $xx.xx <-- see TRIGGER
Juniper Networks - JNPR - cls: 36.67 change: -0.45 stop: 34.69
We do not see any changes from our weekend comments. 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: 42.27 change: -0.68 stop: 39.95
LXK encountered some profit taking this morning but this is the third day in a row that the stock has found support near $42.00. 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 (actually around $41.90).
Picked on October 09 at $41.06
Knight Capital - NITE - cls: 13.25 change: -0.33 stop: 12.99 *new*
There is still no resolution yet on an earnings report date. One source says October 17th another says the 18th. We plan to close this play tomorrow (Tuesday) at the closing bell to avoid holding over earnings. With just one day left we're inching up the stop loss to $12.99. Our target is the $14.65-15.00 range.
Picked on October 10 at $13.25
NVIDIA - NVDA - close: 36.39 change: +0.26 stop: 34.49
NVDA is trying to bounce and shares are challenging the 10-dma. This looks like a new bullish entry point but readers may want to wait until after Intel (INTC) reports earnings on Tuesday night. Reaction to INTC's news could set the direction for the whole sector. Our target is the $39.00-40.00 range. FYI: AMD reports on Thursday.
Picked on September 26 at $36.15
Plexus - PLXS - close: 28.27 change: -0.36 stop: 27.49
There is no change from our weekend comments on PLXS. We are suggesting a trigger to buy the stock at $29.05. If triggered our target is the $32.00-32.50 range. We do not want to hold over the October 31st earnings report. FYI: The P&F chart points to a $49 target.
Picked on October xx at $xx.xx <-- see TRIGGER
Rowan Companies - RDC - cls: 40.38 change: +0.20 stop: 37.99
Oil stocks continued to rally as crude oil futures rose past $86 a barrel. RDC hit $41.30 this morning before paring its gains. We remain bullish on the stock here. Our biggest concern would be a correction sell-off in crude oil, which is long overdue. Our target in RDC is the $44.00-44.50 range.
Picked on October 14 at $40.18
Sirius Satellite Radio - SIRI- cls: 3.63 change: +0.09 stop: 3.29
SIRI displayed relative strength with a 2.5% gain and a new rally past resistance near $3.60. This looks like a new bullish entry point to go long the stock although readers opening new positions now may want to tighten their stops! 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: 21.05 change: -0.13 stop: 19.99
SYNL continues to trade sideways and we don't see any changes from our weekend comments. 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: 34.30 chg: -0.52 stop: 31.99
We are somewhat surprised that the weakness in financial stocks did not have a bigger impact on shares of WRLD. The stock lost 1.49% but was on the rebound heading into the closing bell. This may prove to be a new bullish entry point. 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: 45.15 change: -1.76 stop: 42.90
Ouch! ZOLT lost 3.7% and closed back near round-number support at the $45.00 level. We did not see anything specific to account for the relative weakness. We're not suggesting new positions at this time. You may 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
Apria Healthcare - AHG - cls: 24.82 change: -0.49 stop: 26.75
AHG continued to sell-off on Monday. Shares slipped 1.9% on above average volume. Contributing to the move may have been news that AHG just announced a deal to buy Coram Inc. for $350 million in cash. Our AHG target is the $22.50-22.00 range. We do not want to hold over the October 30th earnings report. FYI: AHG has relatively high short interest. The latest data puts short interest at more than 15% of the 43.3 million-share float. This raises the risk of a short squeeze.
Picked on October 14 at $25.31
Pacific Ethanol - PEIX - cls: 8.99 change: -0.04 stop: 9.75
We do not see any changes from our weekend comments on PEIX. The stock is in a long-term downtrend. The current consolidation looks like it's about to roll over into a new leg lower. Shares have resistance near $9.70 and short-term support near $8.50. We are suggesting shorts now although some readers may want to wait for a new decline under $9.00. Our target is the $7.75-7.50 range. Readers should note that the most recent data puts short interest at more than 16% of PEIX's 34.2 million-share float, which would raise the risk of a short squeeze.
Picked on October 14 at $ 9.03
Closed Long Plays
CompuCredit - CCRT - close: 23.51 change: -1.47 stop: 23.45
Our bullish play on CCRT did not last long. Citigroup's negative comments about the consumer credit markets yanked the carpet out from under CCRT. Shares of CCRT slid 5.88% and broke down under short-term support at its 10-dma and the $24.00 level. Our stop loss was hit at $23.45. We were aggressive with our suggested entry point and should have stuck to a trigger over $25.50 to open positions.
Picked on October 14 at $24.98
Closed Short Plays