Long Play Updates
Adobe - ADBE - close: 47.20 change: -0.80 stop: 44.45
ADBE hit another new high at $48.47 this morning before succumbing to some profit taking. The 10-dma near $46.70 and the $46.00 level should both offer some support for the stock. We're not suggesting new positions at this time. 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: 39.65 chg: -0.07 stop: 38.95
We remain defensive on HSII. The stock bounced sideways and traders stepped in to buy the dip near $39.10 for the second day in a row. Technical indicators continue to deteriorate. Readers may want to cut their losses now and exit early. 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: 3.59 change: -0.04 stop: 3.39*new*
SIRI's merger partner XMSR reported earnings today. XMSR announced earnings that missed Wall Street estimates by 2 cents a share in spite of its subscriber growth. Neither stock moved much on the news. We would keep an eye on XMSR's stock price and its support near $14.90 a share. Please note that we're adjusting our stop loss on SIRI from $3.34 to $3.39. 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. Note: SIRI is expected to report earnings on October 30th. We plan to exit ahead of the report.
Picked on September 30 at $ 3.49
Short Play Updates
Gap Inc. - GPS - cls: 18.30 change: +0.23 stop: 19.05
GPS bounced sideways between $18.00 and overhead resistance near $18.50. The failure at $18.50 is a good sign but we're suggesting readers wait for a new decline under $18.00 before considering new shorts. More conservative traders may want to tighten their stops toward $18.50-18.60. Our target is the $16.00-15.50 range.
Picked on October 21 at $17.49 *gap down
Interpublic Group - IPG - cls: 9.96 change: -0.09 stop: 10.31
We only have a few days left for this play to open, progress and close prior to IPG's earnings report. Odds are rising that the stock may just churn sideways near $10.00 as investors wait for the earnings announcement. If IPG doesn't hit our trigger soon we'll probably drop it as a candidate. 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: 14.60 change: -0.39 stop: 15.55*new*
JDSU lost another 2.6% and closed under its 200-dma and 50-dma, which is another bearish move. We are adjusting our stop loss to $15.55. 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: 28.90 change: -0.53 stop: 31.51
NVEC under performed the market with a 1.8% decline and a close under the $29.00 level. Our only concern is the very light volume on the move. 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
Closed Short Plays
Avon Products - AVP - cls: 38.03 chg: +0.63 stop: 38.01
Wachovia slapped an "out perform" rating on AVP and the shorts panicked. Shares of AVP spiked to $38.45 this morning hitting our stop loss at $38.01. The rally did not have enough steam to push past resistance in the $38.50 region. If AVP could breakout over $38.50 it would be a bullish buy signal.
Picked on October 21 at $36.19