Long Play Updates
Salesforece.com - CRM - close: 57.32 change: -0.38 stop: 54.95
Hmm.. we may be the victim of poor timing here. CRM displayed relative strength this morning and rallied to $59.83 hitting our suggested trigger to buy the stock at $59.25. Unfortunately, shares reversed under $60.00 and thanks to the post-FOMC sell-off the stock eventually closed in the red. At this time we would expect a dip toward $56.00. Wait and watch for signs of a bounce before considering new bullish positions. More conservative traders may want to wait for a rally over $60.00. The Point & Figure chart is bullish with a $74 target. Our target is the $64.00-65.00 range.
Picked on December 11 at $59.25 *triggered
Coca-Cola - KO - close: 62.97 change: -0.30 stop: 59.59
KO fared better than most of the market but then it's normally seen as a safe-haven stock. If the market continues lower we would expect a dip near $62. A bounce near $62 can be used as a new bullish entry point. 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: 11.31 change: -0.33 stop: 9.90
Target achieved. MALL continued to rally and managed to hit our target in the $12.25-12.50 zone just before the Fed's announcement. The stock gave back all of its intraday gains and closed with a 2.8% loss. This move looks like a short-term bearish reversal on the daily chart but MALL should find some short-term support near its 10-dma (near $11.11) and potential support near the $11.00 mark. We're not suggesting new positions at this time. 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. FYI: MALL will present at an investor conference on Wednesday, December 12th.
Picked on December 04 at $10.25 *triggered
Short Play Updates
Monster Worldwide - MNST - cls: 34.31 change: +0.41 stop: 35.05
Warning! MNST displayed way too much relative strength today. Prior to the Fed meeting MNST broke out over resistance near $34.00. Post-Fed the stock's sell-off found support near $34.00. This is a big negative for the bears and more conservative traders may want to exit early now. We're not suggesting new positions at this time. 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: 26.31 change: -0.71 stop: 28.05
MRX's bearish reversal under $28 continued and the stock lost 2.6%. The breakdown under the 10-dma and $26.60 level was a new entry point for shorts. I wouldn't be surprised to see a minor bounce near $26.00 but the overall trend is still bearish. Our target is the $23.00-22.50 zone. The P&F chart is bearish with a $19 target. We do want to note that MRX made an announcement after the closing bell that it was in a "strategic collaboration" with Revance Therapeutics. MRX is making an equity investment in Revance with an option to buy the company. We didn't see any after market action in MRX on the news. 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
Closed Long Plays
Canadian Natl.Railway - CNI - cls: 50.25 chg: -0.85 stop: 46.90
Target exceeded. CNI eventually lost 1.6% today but not before hitting our target in the $51.85-52.00 zone. The stock actually gapped open higher and rallied to an intraday high of $52.17 before plunging lower with the market's sell-off. Volume was very big during today's session yet we can't find any specific news on the company.
Picked on December 03 at $48.00 *triggered
Diana Shipping - DSX - close: 32.02 change: -1.99 stop: 31.75
DSX spent most of the session trading between $33.55 and $34.00. Unfortunately, the post-Fed news market decline pushed DSX to a 5.8% loss. Shares hit an intraday low of $31.71, which is enough to hit our stop loss and close the play.
Picked on December 09 at $34.655