Long Play Updates
Adobe - ADBE - close: 45.97 change: +0.30 stop: 42.85
The rally in tech stocks helped lift ADBE to a 0.6% gain. Volume actually picked up toward normal levels for ADBE. We remain bullish and would consider new positions here. More conservative traders might want to tighten their stops. 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: 57.66 chg: -0.38 stop: 55.95
Yesterday we warned readers about a bearish reversal pattern in CSC. Today the stock dipped to $56.84 before bouncing back. We remain defensive here but a new move over $58.50 may look like a new bullish entry point. Conservative traders could raise their stops toward today's lows. 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: 32.46 change: +0.17 stop: 31.65
There was nothing noteworthy in CSCO's trading today. The stock merely tracked the action in the NASDAQ. The afternoon bounce does look like a potential entry point but consider waiting for a move over today's high (32.74) before entering new positions. Our target on CSCO is the $34.75-35.00 range.
Picked on September 26 at $32.65
Heidrick & Struggles - HSII - cls: 41.01 chg: +0.25 stop: 37.99
HSII posted another gain, its fourth in a row. However, we want to point out that the rally stalled at its 50-dma this morning. We are considering a higher stop loss maybe somewhere in the $39 region. 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: 15.22 chg: -0.17 stop: 15.24
HZO is still under performing. If we don't see a bullish breakout soon we might want to consider switching to bearish positions, especially if shares close under $15.00 again. 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: 36.90 change: +0.27 stop: 34.69
JNPR is still trading sideways within its bull flag pattern. Readers can choose to go long positions now or on a breakout from the flag pattern around $37.30. However, keep in mind that we plan to exit ahead of the October 23rd earnings report that comes out after the market's close. That only gives us four more trading days. 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: 42.28 change: +0.63 stop: 40.74 *new*
Traders continue to buy the dip in LXK and this looks like another bullish entry point to buy the stock. We're getting conservative with our stop loss and raising it to $40.74, just under yesterday's low. We only have three trading days left. If LXK does not hit our target in the $44.85-45.00 range we will plan to exit at the closing bell on Monday, Oct. 22nd.
Picked on October 09 at $41.06
Plexus - PLXS - close: 28.59 change: +0.14 stop: 27.49
PLXS rallied again this morning and this time shares hit $29.55. Our suggested trigger to buy the stock was at $29.05 so the play is now open. Unfortunately, PLXS gave back a good portion of its gains and today's move almost looks like a failed rally pattern. Readers may want to get conservative and tighten their stops toward $28. 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 17 at $29.05
Rowan Companies - RDC - cls: 39.33 change: -0.06 stop: 37.99
Oil stocks under performed even though crude oil hit another new high. Shares of RDC managed to bounce near $39 again. The larger pattern with the October breakout still looks bullish but we would be defensive here. 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: 3.66 change: +0.06 stop: 3.29
The trading in SIRI is really starting to look a lot more optimistic with a bullish pattern of higher lows. 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: 20.26 change: -0.03 stop: 19.99
The daily chart for SYNL is just about screaming that the stock will breakdown under support at $20.00 soon. We're going to let our stop loss do the work. If it breaks we'll be stopped out. If the market continues to bounce tomorrow then maybe SYNL will participate. We would hesitate on new positions at this time. Our target is the $27.00-28.00 range.
Picked on October 09 at $22.39
World Acceptance Corp. - WRLD - cls: 33.68 chg: -0.62 stop: 31.99
Uh-oh! WRLD's recent relative strength is now being called into question. The stock has produced a bearish engulfing candlestick pattern. Tomorrow will be important to see if there is any follow through on today's one-day reversal pattern. The P&F chart points to a $46 target. We're aiming for the $37.25-38.00 range. We plan to exit ahead of the October 23rd earnings report.
Picked on October 09 at $33.93
Zoltek - ZOLT - cls: 45.01 change: +0.12 stop: 42.90
Volume was a little light but traders defended ZOLT near $45.00. If you feel like buying the rebound then consider raising your stop loss closer to $44. 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: 23.91 change: +0.59 stop: 26.05
After three big down days AHG has produced an oversold bounce. The question is where will the bounce roll over? 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: 8.88 change: -0.08 stop: 9.75
PEIX is starting to fade lower. We would still consider new shorts at this time. Shares have resistance near $9.70 and short-term support near $8.50. 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
NVIDIA - NVDA - close: 39.54 change: +2.82 stop: 34.49
Target achieved. Market reaction to Intel's earnings report was positive. The SOX semiconductor index rose 1.8%. Shares of NVDA out performed its peers with a 7.6% gain. The stock hit an intraday high of $39.65. Our target was the $39.00-40.00 range. More aggressive traders may want to aim higher.
Picked on September 26 at $36.15
Closed Short Plays