Long Play Updates
Alcoa - AA - cls: 39.59 change: +0.39 stop: 36.95
The intraday rebound in AA looks like a new bullish entry point. However, more conservative traders may want to wait for a new rise past the $40.00 mark. Our target is the $44.50-45.00 range. Our time frame is six to eight weeks. FYI: The Point & Figure chart for AA is bullish and points to a $53 target.
Picked on October 29 at $40.10
Adobe - ADBE - close: 47.90 change: +0.35 stop: 44.85
ADBE continues to advance inside its rising channel. Traders bought the dip again and the stock looks ready to rally past the $48.00 level. We're tempted to raise the stop loss toward the $46 region. More conservative traders may want to take a little money off the table. 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
Bristow Group - BRS - cls: 49.89 chg: +1.48 stop: 47.90
Yesterday crude oil sold off on comments from Goldman Sachs that it was time to take profits. Today, the unexpected drop in crude oil inventories erased yesterday's decline and crude oil soared to a new high above $94 a barrel. The oil service stocks followed the commodity higher. Shares of BRS rose 3% and currently looks poised to rally past the $50 level again. A rise past $50.30 or $50.35 could be used as a new bullish entry point. BRS is due to report earnings on Monday, November 5th after the market's close. We do not want to hold over the report.
Picked on October 29 at $50.71
C S X Corp. - CSX - close: 44.77 change: +0.39 stop: 42.99
It was another day of indecision in CSX. Yet on the positive side there was no follow through on yesterday's bearish reversal pattern. At this time we'd wait for a new rally past $45.25 before considering new positions. Our target is the $49.50-50.00 range. Our time frame is six to eight weeks. FYI: The P&F chart points to a $61 target.
Picked on October 30 at $45.21 *gap higher entry
Gerdau Sa ADS - GGB - close: 31.10 change: +0.45 stop: 27.90
GGB gapped open higher this morning and then spent the session trading sideways. Readers have a choice to either buy GGB now or wait for a possible dip back toward $30. Broken resistance near $30 should be new support so a pull back could be used as a new bullish entry point. Our target is the $33.50-35.00 range.
Picked on October 28 at $30.37
MIVA Inc. - MIVA - close: 3.18 change: +0.01 stop: 2.99
MIVA spent most of the session in a 5-cent range. That changed as the markets reacted to the FOMC news. We'd probably wait for a new rally past $3.20 or $3.25 before considering new positions. We want to remind readers that this is a high-risk, speculative play. We suspect that the bad news is already out so we're going to make an exception to our rule about holding over earnings. This time we plan to hold over the report in early to mid November. Our target is the $3.95-40.00 range.
Picked on October 28 at $ 3.34
Systemax - SYX - close: 23.40 change: +0.57 stop: 21.59
The 2.49% rebound in SYX may have saved the stock's upward trend. The last couple of days have not been very encouraging. We would consider new bullish positions here. We believe the stock can breakout past the $25 level. Our target is the $27.00-27.50 range. Our time frame is six to eight weeks. FYI: the P&F chart is very bullish with a $40 target.
Picked on October 28 at $23.39
Short Play Updates
Basic Energy - BAS - cls: 19.79 change: +0.49 stop: 20.85
A huge rebound in crude oil today lifted shares of BAS to a 2.5% gain. The stock is now challenging broken support and what should be resistance at the $20.00 mark. A failed rally here could be used as a new entry point. However, keep a close eye on oil prices, which sparked the rally in the oil services today. Our target is the $18.50-18.00 range. More conservative types could exit near the August lows around $18.60. The P&F chart is very bearish with a $9.00 target. We do not want to hold over the November 8th earnings report.
Picked on October 29 at $19.75
Gap Inc. - GPS - cls: 18.90 change: +0.12 stop: 19.05
Retail stocks generally under performed the market on Wednesday. This helped keep a lid on shares of GPS, which are testing resistance at the $19.00 mark. We suspect that if there is any bullish follow through on the market's rally today that GPS will breakout and hit our stop loss at $19.05. We're not suggesting new positions at this time but a new decline under $18.50 or $18.25 would definitely look like a new entry point for shorts. Our target is the $16.00-15.50 range.
Picked on October 21 at $17.49 *gap down
NVE Corp. - NVEC - cls: 28.87 change: +0.26 stop: 31.05
NVEC's bearish trend of lower highs is still intact. The stock rallied higher on the FOMC news but the rally failed at its descending 10-dma. More conservative traders might want to tighten their stops closer to the $30 level. 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
JDS Uniphase - JDSU - cls: 15.26 change: +0.07 stop: 15.55
Our time has run out on the JDSU play. It was our plan to exit today at the closing bell to avoid holding over the company's earnings report tonight. The stock didn't move much as investors waited on the announcement. JDSU beat Wall Street estimates by 2 cents a share but appears to be trading lower in after hours around $14.90.
Picked on October 21 at $15.23