Long Play Updates
Salesforece.com - CRM - close: 58.21 change: +0.89 stop: 54.95
We do not see any changes from our previous comments. CRM essentially followed the market moves today but remains inside its current consolidation pattern. 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: 63.77 change: +0.80 stop: 59.59
KO continues to creep higher. This is a new multi-year closing high. Volume came in above average, which is positive. We don't see any changes from our previous comments. 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: 10.72 change: -0.67 stop: 9.90
Whoa! MALL experienced some big volatility today. The stock traded between $12.11 and $10.13 (16% range) before finally bouncing from its lows. MALL still closed with a 5.88% loss. We did not see any news to account for the big swings so it looks like profit taking. We're not suggesting new positions at this time although technically the afternoon bounce near $10 does look like a new entry point. MALL has already hit our initial target at $12.25. 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: It's possible that investors were reacting to news from MALL's investor conference today but we didn't see anything.
Picked on December 04 at $10.25 *triggered
Short Play Updates
DELL Inc. - DELL - close: 24.00 change: -0.36 stop: 25.51
DELL is off to a good start. The stock lost another 1.47% and did so on rising volume. We do not see any changes from our new play description. Our target is the $22.10-22.00 zone above the March lows. The P&F chart is very bearish with a $17.00 target.
Picked on December 11 at $24.36
IAC Interactive - IACI - cls: 27.73 chg: +0.13 stop: 28.81
IACI managed a minor bounce but the situation continues to look bearish. We do not see any changes from yesterday's new play description. We are suggesting shorts with IACI under $28.00. There will probably be some support near $26.50. We have two targets. Our first target is the $25.50-25.00 range. The H&S pattern, if it follows through, is forecasting a target in the $22 region. Our second, more aggressive target will be the $22.50 level. The P&F chart is still bullish for now but is on the verge of a breakdown. FYI: The latest data puts short interest at about 4% of the 120 million-share float.
Picked on December 11 at $27.60
Medicis Pharma - MRX - close: 26.04 change: -0.27 stop: 28.05
The morning rally failed at the $27.00 level and MRX continued to run lower. We would not be surprised to see a little bit of a bounce near $26.00 but today's action was definitely bearish. 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
Paychex - PAYX - close: 39.53 change: -0.09 stop: 40.76
It was a volatile session for PAYX but the morning rally failed near its 50-dma and the afternoon low bounce near $39 so the battle lines for the bulls and bears may have been drawn. We remain bearish with the stock under the $40.00 level. Our target is the $37.25-37.00 range. More aggressive traders could aim for the $36 level and its April lows. Unfortunately, we don't have a lot of time with earnings coming up on December 19th. We do not want to hold over the report.
Picked on December 11 at $39.62
Closed Long Plays
Closed Short Plays
Monster Worldwide - MNST - cls: 34.90 change: +0.59 stop: 35.05
The market's gap higher this morning powered a pop in MNST. Shares opened at $35.05, which just happens to be our stop loss. We've been growing more concerned the last few days and a breakout over $36 might forecast a rally toward resistance near $40.00.
Picked on November 26 at $32.35 *triggered