Long Play Updates
Adobe - ADBE - close: 48.00 change: +0.25 stop: 44.45
ADBE appears nigh unstoppable. The stock recovered from its midday lows and hit another high. Readers may want to consider taking some money off the table. We are raising our stop loss to $44.95. 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 four weeks.
Picked on October 09 at $45.05
Heidrick & Struggles - HSII - cls: 39.72 chg: -0.72 stop: 38.95
The bullish trend in HSII is in jeopardy. The stock broke down under support near $40.00 and failed to recover. Volume was above average on the decline and the technicals, which were already looking weak, are definitely getting closer to bearish signals. We're not suggesting new positions at this time. 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
Sirius Satellite Radio - SIRI- cls: 3.63 change: -0.02 stop: 3.34
Merger partner XMSR was downgraded this morning but the news didn't seem to affect SIRI that much. The stock rebounded from its midday weakness to close almost unchanged. More conservative traders may want to tighten their stops. We are not suggesting new positions in SIRI at this time. This remains a very speculative, higher-risk play. Our target is the $3.95-4.00 range.
Picked on September 30 at $ 3.49
Short Play Updates
Avon Products - AVP - cls: 37.40 chg: +0.33 stop: 38.01
The trading in AVP today should be interpreted as a warning signal if you're bearish. Traders bought the dip and the rebound in AVP began significantly earlier than the broader market. Furthermore shares closed over technical resistance at its 10-dma and 200-dma. More conservative traders may want to exit now to cut their losses early. We're not suggesting new positions. We have two targets. Our first target is the $34.10-34.00 range. Our second target is the $32.50-32.00 zone. We do not want to hold over the October 30th earnings report.
Picked on October 21 at $36.19
Gap Inc. - GPS - cls: 18.07 change: +0.09 stop: 19.05
GPS, like shares of AVP, bounced back much earlier than the rest of the market. The stock's display of relative strength is a warning signal for the bears. Wait and watch for another failed rally under $18.50 before considering new shorts. Our target is the $16.00-15.50 range.
Picked on October 21 at $17.49 *gap down
Interpublic Group - IPG - cls: 10.05 change: -0.01 stop: 10.31
There is nothing new to report on for IPG. Even during the market's weakest moments today IPG did not breakdown under $9.90. We are suggesting a trigger to short IPG at $9.80. If triggered our target is the $8.10-8.00 range but that is probably too aggressive given our time frame. We do not want to hold over the November 1st earnings report. FYI: The latest data puts short interest for IPG at 8.4% of its 438 million-share float.
Picked on October xx at $xx.xx <-- see TRIGGER
JDS Uniphase - JDSU - cls: 14.99 change: -0.29 stop: 16.01
The early morning weakness pushed JDSU under its 200-dma and 50-dma but the stock managed a sharp comeback. Shares still closed down 1.89% and did so on above average volume. We would watch for a failed rally in the $15.25-15.50 zone as a new bearish entry point for shorts. Our target is the $13.75-13.50 zone. We do not want to hold over the October 31st earnings report.
Picked on October 21 at $15.23
NVE Corp. - NVEC - cls: 29.43 change: -0.49 stop: 31.51
NVEC produced what appears to be another failed rally under $30.00. We remain bearish on the stock and would consider new positions here. Our target is the $25.50-25.00 range. FYI: We would consider this an aggressive play simply for the fact that NVEC's average daily volume is very low! However, the real risk is a short squeeze. The latest data puts short interest at more than 30% of NVEC's very, very small 4.2-million share float. That represents a big risk for a short squeeze.
Picked on October 22 at $29.30 *gap down entry
Closed Long Plays
Intel - INTC - close: 26.01 change: -0.79 stop: 25.49
Our new bullish play on INTC did not last very long. The market's sell-off this morning pulled INTC to $25.46. Our stop loss was $25.49. While the play has been closed for us we would seriously consider jumping back in right here. The big afternoon bounce from $25.50 and its 50-dma looks like a new bullish entry point.
Picked on October 23 at $26.80
Closed Short Plays
Pacific Ethanol - PEIX - cls: 7.70 change: -0.25 stop: 9.26
Target achieved. PEIX continues to sell-off and the stock lost just over 3% today. The intraday low was $7.67. Our target was the $7.75-7.50 zone. More aggressive traders may want to aim lower and just adjust your stops as needed.
Picked on October 14 at $ 9.03