Long Play Updates
Salesforece.com - CRM - close: 59.55 change: +0.26 stop: 55.95*new*
CRM continues to show relative strength. The stock hit a new multi-year high on Friday at $60.30. The move over $60 looked like a new bullish entry point. Our biggest concern is how strong will CRM really be if the major indices keep sinking. We remain bullish on CRM above $58.00 but would hesitate to open new positions based on market conditions. The Point & Figure chart is bullish with a $74 target. Our target is the $64.00-65.00 range. Please note that we're raising our stop loss to $55.95.
Picked on December 11 at $59.25 *triggered
Coca-Cola - KO - close: 63.81 change: -0.28 stop: 61.45 *new*
Slow and steady is KO's march higher. The stock hit another new multi-year high on Friday before turning lower at the end of the day. We are not suggesting new positions but a dip or bounce near $63.00 could be used as a new entry point. We are adjusting our stop loss to $61.45. 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: 10.50 change: -0.05 stop: 9.90
There is no change from our comments on Thursday regarding MALL. Trades continue to buy dips near support at $10.00. However, given the market's bearish tone we would hesitate to start new bullish plays here. 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: 23.57 change: -0.03 stop: 25.05 *new*
On Friday DELL produced three failed rallies under the $24.00 level and this looks like a new bearish entry point to consider shorts. We are adjusting our stop loss down to $25.05. In addition to having resistance near $24.00 the 10-dma has also been consistent resistance lately. 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: 26.87 chg: -0.49 stop: 28.81
IACI continues to drift lower. The stock's bearish head-and-shoulders pattern is almost complete. All the bears need now is a breakdown under the neckline. However, odds are good that IACI will bounce first at the initial attempt. A failed rally under $28.00 can be used as a new entry point for shorts. 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: 25.78 change: -0.53 stop: 28.05
Friday's close under $26.00 is good news for the bears. Now both the short-term and long-term trend for MRX is bearish. The stock continues to have potential support near $25.50 so don't be surprised to see another bounce there. A failed rally in the $26.50-27.00 zone could be used as a new entry point for shorts. 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: 38.36 change: -0.99 stop: 40.76
PAYX is doing well for the bears. Shares have continued lower following last week's failed rally near its 200-dma. Friday saw PAYX drop another 2.5%. We're running low on time. PAYX is due to report earnings on Wednesday, December 20th after the closing bell. That only gives us three more trading days. Given this time issue we're not suggesting new positions. Our target is the $37.25-37.00 range. More aggressive traders could aim for the $36 level and its April lows.
Picked on December 11 at $39.62
Tempur-Pedic Intl. - TPX - cls: 27.66 chg: -1.53 stop: 30.67*new*
Shares of TPX lost another 5.2% on Friday and the stock is quickly approaching our first target in the $27.25-27.00 range. Readers should be prepared for another oversold bounce near $27.00 again but TPX has plenty of resistance near $30.00. We are adjusting our stop loss to $30.67 (breakeven). We would only consider new positions on another failed rally under $30.00. 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