Long Play Updates
Adobe - ADBE - close: 45.67 change: -0.04 stop: 42.85
It was a quiet day for ADBE. The stock traded sideways and closed almost unchanged on the session. We remain bullish on the stock. 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
We have to issue a warning on CSC. The stock just produced a three-day candlestick bearish reversal pattern with today's 1.5% decline. More conservative traders may want to exit this stock immediately. We're going to watch it and if CSC trades under $57.50 we'll consider an early exit for the newsletter. We're not suggesting new positions at this time. 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: 32.29 change: -0.50 stop: 31.65 *new*
CSCO sold off this morning but traders bought the dip at $31.85 close to the early October low. We are inching up our stop loss to $31.65, which is just under the rising 50-dma. More conservative traders could place their stops just under today's low instead. A rebound back above $32.50 could be used as a new entry point for bullish positions. Our target on CSCO is the $34.75-35.00 range.
Picked on September 26 at $32.65
Heidrick & Struggles - HSII - cls: 40.76 chg: +0.44 stop: 37.99
HSII displayed another session of relative strength with a 1% gain. 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: 15.39 chg: -0.11 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: 36.63 change: -0.04 stop: 34.69
Shares of JNPR felt the same morning sell-off that CSCO did. JNPR managed to rebound and almost closed in the green. We do want to point out to our readers that JNPR is developing a short-term pattern of lower highs and lower lows. Normally this is bearish but the current multi-day pattern looks more like a bull flag. A move over today's high near $37.06 could be used as a new bullish entry point to buy the stock. 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: 41.65 change: -0.62 stop: 39.95
LXK was also afflicted with the same morning sickness that hit shares of CSCO and JNPR. The stock spiked lower and then slowly began to recover. The rebound looks like a new bullish entry point but we're running low on time and plan to exit ahead of next Tuesday's earnings report. More conservative traders could raise their stop toward today's low near $40.75. Our target is the $44.85-45.00 range so we're not suggesting new positions at this time.
Picked on October 09 at $41.06
NVIDIA - NVDA - close: 36.72 change: +0.33 stop: 34.49
NVDA displayed some relative strength today although the intraday high at $37.37 is a bad tick. Shares spent the whole session trading sideways between $37.00 and $36.60. If investors react positively to Intel's earnings that came out tonight then a rally in the semis could lift NVDA higher tomorrow. Our target is the $39.00-40.00 range. FYI: AMD reports on Thursday.
Picked on September 26 at $36.15
Plexus - PLXS - close: 28.45 change: +0.18 stop: 27.49
PLXS rallied this morning and actually pierced resistance at the $29.00 mark. The intraday high was $29.04. We are suggesting readers use a trigger at $29.05 to open positions so technically we're still sitting on the sidelines here. More nimble readers might want to try and buy a dip or a bounce near $28.00. 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: 39.39 change: -0.99 stop: 37.99
Oil stocks were higher thanks to a new all-time high in crude oil again. Yet oddly enough the oil service stocks did not participate in the rally. Shares of RDC really under performed with a 2.45% decline and a breakdown back below the $40.00 mark. The recent action in the stock actually looks like a three-day bearish reversal candlestick pattern. We would turn defensive. Wait and watch for a bounce near $39.00 or its 10-dma or back above $40.00 as potential entry points. 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: 3.60 change: -0.03 stop: 3.29
We have nothing new to report on for SIRI. Shares hit an intraday high of $3.72 and then gave back all of its gains. 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: 20.29 change: -0.76 stop: 19.99
Trading in SYNL has taken a turn for the worse. Shares lost 3.6% on light volume and look poised to test support near $20.00 soon. We are not suggesting new positions at this time although technically a bounce from $20 would look like a new bullish entry point. Consider waiting for a new rally past the 10-dma near $21.28 before opening new 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: -0.00 stop: 31.99
WRLD out performed the financials by closing unchanged on the session. Traders bought the dip at $33.65 this morning and WRLD currently looks set to make another run at the $35 zone soon. 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: 44.89 change: -0.26 stop: 42.90
ZOLT suffered another day of profit taking but shares pared their losses by the closing bell. However, the close under $45.00 is a negative. We reiterate our previous suggestions that readers may want to tighten their stops. We're not suggesting new positions at this time. Our target is the $49.00-50.00 range.
Picked on September 24 at $43.06
Short Play Updates
Apria Healthcare - AHG - cls: 23.32 change: -1.50 stop: 26.05*new*
AHG sold off sharply again. The stock lost just over 6% and did so on volume almost four times the daily average. We are adjusting our stop loss to $26.05. We're not suggesting new positions at this time. 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: 8.96 change: -0.03 stop: 9.75
PEIX is still not seeing any movement. The stock has traded sideways in a narrow range for two days in a row. Overall the pattern continues to look bearish. 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 $8.86. 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
Knight Capital - NITE - cls: 13.37 change: +0.12 stop: 12.99
Weakness in the financials this morning pulled NITE to an intraday low of $12.95, thus hitting our stop loss at $12.99 closing the play. We were already planning to close the play today to avoid tomorrow's earnings report.
Picked on October 10 at $13.25
Closed Short Plays