Long Play Updates
Arch Coal - ACI - close: 37.45 change: +0.10 stop: 34.95
ACI has been somewhat resistant to profit taking. Shares dipped to $36.93 this morning but rebounded into the green. We are looking for a dip toward $36.00. Our suggested entry point to buy ACI is the $36.50-36.00 range. We'll use a stop loss at $34.95. Conservative traders could adjust their stops closer to $36. Our target is the $41.50-42.00 range. The Point & Figure chart is bullish with a $68 target.
Picked on November xx at $xx.xx <-- see TRIGGER
Canadian Natl.Railway - CNI - cls: 48.22 chg: +0.09 stop: 45.99
CNI also suffered some profit taking this morning but traders bought the dip near $47.00. The big rebound is encouraging. We would still consider new positions here but more conservative traders might want to wait for a new rally over $48.50 to confirm the rebound. Our target is the $51.85-52.00 range. Readers might want to watch the DJUSRR railroad index to see if the sector can breakout over its trend of lower highs. FYI: The P&F chart is still bearish following the November sell-off.
Picked on December 03 at $48.00 *triggered
Fresh Del Monte - FDP - close: 32.10 chg: +0.94 stop: 28.39
We may have missed the boat with FDP. We wanted to buy a dip following Friday's bullish breakout but shares have continued to rally instead. We would not chase it here. Currently we're suggesting a trigger to buy FDP in the $30.15-29.00 range. We would seriously consider adjusting that entry zone to $29.50-29.00 but we'll keep our original plan for now. Look for signs of a bounce before opening positions. Aggressive traders will want to put their stop loss under $27.50. We're suggesting a stop at $28.39. We have two targets. Our first target is the $32.50 mark, which was resistance back in October. Our second target is the $34.00-35.00 range. FYI: The P&F chart is still bearish from the early November sell-off.
Picked on December xx at $xx.xx <-- see TRIGGER
Coca-Cola - KO - close: 62.75 change: +0.55 stop: 59.59
KO displayed some relative strength. Traders bought the dip near $61.50 and the stock is now challenging short-term resistance near $63.00. Our end of year target is the $66.00-67.00 range. The bullish P&F chart suggests a $69 target.
Picked on November 15 at $61.95
PC Mall - MALL - close: 10.59 change: -0.27 stop: 9.49
Perfect! MALL dipped toward $10.00 (hitting $10.10) and bulls bought the dip producing what looks like a short-term bullish reversal. Our suggested entry point was $10.25-10.00. Now that the play is open we have two targets. Our first target is the $12.25-12.50 zone near its 200-dma. Our second, more aggressive target is the $13.75-14.00 region. FYI: The P&F chart is still bearish following the sharp sell-off. We would consider this an aggressive play given the stock's volatility and our wide stop loss.
Picked on December 04 at $10.25 *triggered
Children's Place - PLCE - cls: 28.75 chg: -0.14 stop: 24.90
Retail stocks bucked the down trend on Tuesday. The RLX index rose 1.2%. Shares of PLCE dipped to $27.50 before bouncing back. The stock has the right idea but we're looking for a deeper dip. We are suggesting that readers buy a dip in the $26.50-26.00 zone. If triggered our target is the $29.85-30.00 range. We might consider a more aggressive target near $32.50 but the $30 level looks like it could be tough resistance. The P&F chart is actually bullish with a $36 target. FYI: PLCE will announce its November sales numbers on December 6th ahead of the opening bell.
Picked on November xx at $xx.xx <-- see TRIGGER
Short Play Updates
Amgen - AMGN - close: 54.91 change: -0.18 stop: 56.26
Volume was below average on today's session for AMGN so it's hard to draw any hard conclusions. However, intraday the stock produced a mini-double-top pattern near $55.50, which is a good sign for the bears. Our target is the $50.15-50.00 mark. More aggressive traders could aim for the August lows. We want to point out again that the weekly chart shows the potential for an inverse head-and-shoulders pattern. The Point & Figure chart is bearish with a $39 target. 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
Cousins Properties - CUZ - close: 23.11 change: -0.66 stop: 25.05
CUZ has turned negative again for us with today's breakdown under the 10-dma. Volume was above average on today's 2.7% decline, which is a good sign for the bears. The stock looks poised for further weakness. More conservative traders might want to tighten their stops toward Friday's highs. Our target is the $20.25-20.00 range. The latest data puts short interest at over 10% of the 36.8 million-share float, which raises the risk of a short squeeze, especially with the stock near support.
Picked on November 19 at $23.65
Monster Worldwide - MNST - cls: 32.15 change: +0.02 stop: 35.05
MNST managed to hit a new multi-year low at $31.07 before bouncing back into the green. Unfortunately, this looks like a very short-term bullish reversal. We would expect a bounce back toward the $33 or $34 levels. More conservative traders might want to consider a tighter stop loss near $34.00. We have two targets. Our first target is the $30.15-30.00 range. Our second target is the $28.50-27.50 zone. The bearish P&F chart points to a $26 target.
Picked on November 26 at $32.35 *triggered
Medicis Pharma - MRX - close: 26.87 change: -0.05 stop: 28.05
Nothing has changed in MRX. We remain on the defensive here and we're not suggesting new positions at this time. The stock is quickly approaching its trendline of lower highs and if the stock continues higher it should hit the trendline (of resistance) in the $27.25-27.50 zone. Our target is the $23.00-22.50 zone. The P&F chart is bearish with a $19 target. FYI: Any time we play a biotech stock we're dealing with a high-risk situation. MRX seems to be more of a drug company but we're still at risk that some FDA decision or some clinical trial news could send the stock gapping one direction or the other. Furthermore the most recent data puts short interest at more than 23% of MRX's 49.2 million-share float. That is a high-degree of short interest and raises the risk for a short squeeze.
Picked on November 18 at $26.08
Patterson-UTI Energy - PTEN - cls: 19.06 chg: +0.17 stop: 20.05
Oh-oh! PTEN is showing some unexpected relative strength. The stock spiked higher near the closing bell and closed above the $19.00 level. Shares managed to close above its 10-dma. At this time we would expect the bounce to continue into the $19.50-19.75 zone. A failed rally near either level could be used as a new bearish entry point. Our target is the $17.50-17.00 zone. FYI: The most recent data puts short interest at 10% of the stock's 152 million-share float. That is a relatively high amount of short interest and raises the risk of a short squeeze.
Picked on November 26 at $18.95 *triggered
Trimble Navigation - TRMB - cls: 36.80 chg: -0.55 stop: 38.26
TRMB has produced yet another failed rally under $38.00 and its 100-dma. This could be used as a new entry point for shorts or you could use our suggestion from yesterday and wait for a drop under $36.75 again. More conservative traders might want to inch their stop loss down toward $38.00. Our target is the 200-dma and we're suggesting an exit in the $33.50-33.00 zone for now. The P&F chart is bearish with a $30.00 target. FYI: Short interest looks pretty low, which is surprising and may be out of date.
Picked on November 19 at $37.25
Closed Long Plays
Closed Short Plays