Long Play Updates
Salesforece.com - CRM - close: 59.29 change: +1.08 stop: 54.95
CRM bucked the trend and posted a decent gain. Shares added 1.8% and are now challenging round-number resistance at the $60.00 level. Readers can choose to wait for a breakout over $60.00 or look for another dip near $58.00. 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: 64.09 change: +0.32 stop: 59.59
A 32-cent move in KO doesn't sound very impressive but the stock is still showing leadership. Shares broke through short-term resistance near $64.00 and closed at its high for the day. Our only complaint would be the below average volume. 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: 10.55 change: -0.17 stop: 9.90
MALL is struggling to rebound again but traders are still defending it near $10.00. Nimble, more aggressive traders might want to consider trying to time another entry anywhere in the $10.40-10.20 range. We would still hesitate to open new plays at this time. 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.
Picked on December 04 at $10.25 *triggered
Short Play Updates
DELL Inc. - DELL - close: 23.60 change: -0.40 stop: 25.51
DELL continues to show relative weakness. The stock lost another 1.6% and did so on rising volume, which is bearish. We don't see any changes from our previous comments although nimble traders may want to try and pick a new entry on failed rallies near its descending 10-dma (currently $24.35). 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: 27.36 chg: -0.37 stop: 28.81
IACI also under performed the market today with a 1.3% decline. Overall we don't see any changes from our previous comments. A failed rally near $28.00 would also make an attractive entry point. 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: 26.31 change: +0.27 stop: 28.05
MRX erased yesterday's minor loss and looks like it could bounce back toward the $27 level again. We remain bearish on the stock. Readers might want to consider adjusting their stop loss toward the 50-dma near $27.55. 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: 39.35 change: -0.18 stop: 40.76
PAYX produced an early morning pop but it quickly reversed under the $40.00 level. This looks like another entry point for shorts. 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
Tempur-Pedic Intl. - TPX - cls: 29.19 chg: -1.48 stop: 32.11
While our bias on TPX is bearish we were a little surprised by the spike lower this morning. After last night's news about the dismissed lawsuit and news this morning that the stock was upgraded we would have expected a bounce back toward resistance near $32.00. Instead the stock plunged and hit an intraday low of $27.37 before bouncing back. That was almost enough to hit our first target. Look for a failed rally near $30 as a new entry point. The P&F chart is bearish with a $22.00 target. We have two targets. Our first target is the $27.25-27.00 zone. Our second target is the $25.25-25.00 range. FYI: It's important to note that the most recent data puts short interest at almost 19% of the 68-million share float. That is a high degree of short interest and raises the risk of a short squeeze.
Picked on December 12 at $30.67
Closed Long Plays
Closed Short Plays