Long Play Updates
Adobe - ADBE - close: 47.00 change: -0.20 stop: 44.85 *new*
The huge rally in Microsoft (MSFT) failed to inspire any buying in ADBE. Shares of ADBE continued to consolidate and dipped toward short-term support at its rising 10-dma. The trend is still bullish although we hesitate to open new positions at this time. We are going to tighten our stop loss to $44.85. 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: 40.43 chg: +0.81 stop: 39.74*new*
A generally bullish market on Friday helped lift HSII back above the $40.00 mark but the rally still can't make it past resistance at the 50-dma. Monday is our last day for HSII. The company reports earnings on Tuesday morning so we're planning to exit on Monday at the closing bell. Please note that we're raising our stop loss to $39.74 and more conservative traders may just want to exit the play early on Monday morning. We're not suggesting new positions at this time. Our target is the $44.00-45.00 range.
Picked on October 14 at $40.20
Sirius Satellite Radio - SIRI- cls: 3.58 change: -0.01 stop: 3.49*new*
Monday is our last day for SIRI. The company is due to report earnings on Tuesday morning so we plan to exit on Monday at the closing bell. Don't be surprised if SIRI just trades sideways on Monday as investors wait for the report. Please note that we're adjusting our stop loss to $3.49 (breakeven). 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
Gap Inc. - GPS - cls: 18.61 change: +0.31 stop: 19.05
The situation is growing more dangerous for the bears. Both the RLX retail index and GPS have produced what is starting to look like a short-term bottom. The RLX is poised to run higher and GPS just broke through a cloud of moving averages, which should have been resistance. Shares of GPS still appear to have additional resistance at $19.00 but more conservative traders will want to think twice about just exiting early right here and cutting your losses. We are not suggesting new bearish positions at this time. Our target is the $16.00-15.50 range.
Picked on October 21 at $17.49 *gap down
JDS Uniphase - JDSU - cls: 14.73 change: +0.13 stop: 15.55
JDSU did manage a bounce on Friday but the stock continues to look bearish following Thursday's breakdown under its 200-dma. We only have three days left before JDSU reports earnings so we're not suggesting new positions at this time. We will plan to exit on Wednesday at the closing bell to avoid the earnings announcement. More conservative traders may want to consider a tighter stop loss near $15.25. Our target is the $13.75-13.50 zone.
Picked on October 21 at $15.23
NVE Corp. - NVEC - cls: 29.01 change: +0.11 stop: 31.51
NVEC continues to trade with a bearish pattern of lower highs. The breakdown under $30.00 and its 200-dma a week ago was a sell signal. Last week's market rebound probably stalled the sell-off in NVEC. We remain bearish and would continue to open bearish positions here. More conservative traders might want to tighten their stops a bit. Our target is the $25.50-25.00 range. The bearish head-and-shoulders pattern in the charts is forecasting a $20-18 target. 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
Interpublic Group - IPG - cls: 10.09 change: +0.13 stop: 10.31
IPG continues to bounce from the $9.90 region. We've been waiting for a breakdown but the stock has not hit our trigger yet at $9.80. There isn't much time left before IPG reports earnings so we're dropping the stock as a candidate.
Picked on October xx at $xx.xx <-- see TRIGGER