Long Play Updates
Allstate Corp. - ALL - close: 54.66 chg: +1.48 stop: 51.75*new*
We are encouraged by the relative strength in shares of ALL but it's not cooperating with our entry-point plans. The stock rose another 2.78% and crossed potential resistance near $54.00. Unfortunately, we're still sitting on the sidelines. It was our plan to catch a dip back into the $52.50-52.00 zone. That has yet to occur. We are going to adjust our stop loss to $51.75. That way if ALL does turn south we will have a much smaller level of risk. Looking at the daily chart we do see some resistance near $56.75-57.00. Our target will be the $57.50-58.00 range or its 200-dma, whichever comes first.
Picked on November xx at $xx.xx <-- see TRIGGER
CVS Caremark - CVS - cls: 42.25 change: +0.82 stop: 39.85
CVS rallied to a 1.9% gain and broke through short-term resistance near $42.00. Traders continued to buy dips near $42.00 for the rest of the day. This looks like a new bullish entry point to buy CVS. However, readers might want to stick to our previous suggestion and wait for a rise past $42.40 (or $42.50) before initiating plays. Our target is the $45.85-46.00 range. Our time frame is year-end.
Picked on November 07 at $42.15
WMS Ind. - WMS - close: 34.98 chg: +0.54 stop: 32.39
WMS ended the session with a 1.5% gain but the trading was far from inspiring. The early morning rally failed near resistance at the $36.00 level. The larger trend is still bullish but today's action concerns us. Readers can still choose to buy bounces near $34.00 or wait for a new relative high over $36.00. Waiting for the breakout seems like the better plan right now. Readers might want to tighten their stops maybe toward $33.00 or $33.50. Our target is the $39.75-40.00 range. The P&F chart is very bullish with a $59 target.
Picked on November 08 at $36.11
Short Play Updates
Amgen - AMGN - close: 54.44 change: -0.06 stop: 57.76
AMGN continues to under perform but shares did rebound sharply from their midday lows. We would expect the bounce to continue tomorrow but watch for resistance in the $55.00-56.00 region. A failed rally under the 50-dma could be used as a new bearish entry point. Our target is the $50.15-50.00 mark. More aggressive traders could aim for the August lows. Our stop is a little bit wide, which makes this higher risk. Furthermore any time you play a biotech company there is a higher level of risk. You never know when there will be a positive or negative press release about some drug, some clinical trial or some news from the FDA or a rival that could send shares of a biotech stock gapping either direction.
Picked on November 11 at $54.28
Microchip Tech. - MCHP - cls: 30.90 change: +0.25 stop: 33.05
MCHP hit a new three-week low before paring its losses. The stock under performed both the major market indices and its peers in the semiconductor sector, which is good news for the bears. However, we would expect the bounce to continue. Watch for a failed rally in the $31.50-32.00 area as a new bearish entry point for shorts. More conservative traders might be tempted to tighten their stops. There is obvious support near $30 but our target is the $28.50-28.00 level. The P&F chart is bearish with a $19 target.
Picked on November 11 at $31.51
NVIDIA - NVDA - cls: 32.68 change: +2.65 stop: 35.05
Technology stocks bounced sharply on Tuesday and NVDA was no exception. We warned readers to look for a bounce near $30.00. Shares rebounded right back toward broken support near the $32.50-32.75 region and its 100-dma. A failed rally under $34.00 could be used as a new bearish entry point for shorts. Our target remains the 200-dma, currently near $27.50.
Picked on November 12 at $32.45
Closed Long Plays
Closed Short Plays