Long Play Updates
Salesforece.com - CRM - close: 59.95 change: +1.45 stop: 55.95
CRM sprinted higher this morning and the stock traded above resistance at the $60.00 mark for a good portion of the day. Shares closed up with a 2.4% gain on above average volume, which is normally a good sign. This could be used as a new bullish entry point. 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
Evergreen Solar - ESLR - cls: 15.73 chg: +0.03 stop: 14.65
It was another volatile day for ESLR. The stock hit $16.20 at its high and $15.30 at the low. Overall we don't see any changes from our previous comments. Due to the big intraday swings we're labeling this an aggressive, high-risk play. Bulls have been buying dips near ESLR's rising 10-dma so we're suggesting a stop just under the 10-dma. The stock appears to have significant resistance in the $17.50-18.00 range. We're suggesting long positions now and we'll target a move to $17.45. That should be good for an 11% gain. The P&F chart is much more bullish with a $36 target.
Picked on December 18 at $15.70
Coca-Cola - KO - close: 62.85 change: +0.63 stop: 61.45
As expected traders are buying the dip near $62 and KO looks poised to rally again. We've been targeting the $66-67 range with a year-end time frame. With only two weeks left in the year that probably won't happen. KO might be able to do it by the middle of January. The bullish P&F chart suggests a $69 target.
Picked on November 15 at $61.95
PC Mall - MALL - close: 10.46 change: -0.46 stop: 9.90
MALL suffered some profit taking after yesterday's big bounce. Traders continue to buy dips near $10.00. Lack of follow through on yesterday's rebound is a little concerning. You could use this as another entry point but this remains an aggressive, higher risk play. 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
Bob Evans Farms - BOBE - cls: 27.09 chg: -1.36 stop: 30.11 *new*
Good news! There was no follow through on yesterday's intraday bounce. The stock turned lower again and BOBE plunged to a 4.7% loss on strong volume. We are adjusting our stop loss to $30.11. We're aiming for the $25.25-25.00 zone. FYI: The most recent data puts short interest at 11.6% of the 32.74 million-share float. That is a relatively high amount of short interest and raises the risk of a short squeeze.
Picked on December 16 at $29.01
Mack-Cali Realty - CLI - cls: 32.53 chg: +1.15 stop: 34.51 *new*
It's time for bears to turn defensive. We warned readers yesterday that CLI was setting up for a bullish reversal. Today's bit bounce confirms it. We would expect a rebound toward $34.00, which should be overhead resistance. We are adjusting our stop loss to $34.51. More conservative traders may want to use a stop loss closer to $34.00. Our target is the $30.25-30.00 range. The P&F chart is bearish with a $27 target.
Picked on December 16 at $32.74
C.H.Robinson - CHRW - cls: 51.68 chg: -0.26 stop: 54.55
This is the fourth day in a row that CHRW has churned sideways. Most of the technical indicators continue to look bearish and if you look at the intraday chart CHRW has a bearish trend of lower highs. More conservative traders may want to wait for a drop under $51 before starting new plays. Our target is the $46.00 level. More conservative traders may want to get out near $47.50 while aggressive traders could aim for real support near $45.00. The P&F chart points to a $34 target. FYI: The most recent data puts short interest at 5.2% of the stock's 166.8 million-share float. That is a relatively high amount and raises the risk of a short squeeze.
Picked on December 16 at $51.52
DELL Inc. - DELL - close: 24.36 change: +0.34 stop: 25.05
Intraday strength in DELL may have given bears a fright. The stock broke out over its 10-dma but the oversold bounce rolled over under $25.00 (actually 24.86). This could be used as a new entry point for shorts. 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
Granite Constr. - GVA - close: 37.55 change: +0.04 stop: 42.15
GVA, like many stocks today, traded sideways. We don't see any changes from our previous comments. We would watch for a failed rally in the $39.00-40.00 zone as a new bearish entry point for shorts. Our target is the $34-33 range near its lows for the year. FYI: The most recent date puts short interest at 7.8% of the 34.4 million-share float.
Picked on December 16 at $38.73
IAC Interactive - IACI - cls: 26.83 chg: +0.06 stop: 28.81
IACI also spent the session moving sideways. IACI is trying to rebound near support at the neckline to its bearish head-and-shoulders pattern. A bounce back toward $28 would not be out of line here. Wait for another failed rally or a new drop under $26.00 as an entry point (although if you're shorting it under $26 we suggest aiming for our second target). 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: 25.71 change: -0.01 stop: 28.05
Same story, different stock. MRX spent the session moving sideways. We don't see any changes from our previous comments. MRX is also trying to find support near its November lows. We would not be surprised to see an oversold bounce here and a failed rally near $26.50 could be used as a new entry point for shorts (or a new relative low under $25.35). 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
Tempur-Pedic Intl. - TPX - cls: 26.99 chg: -0.33 stop: 30.67
We have good news. There was no follow through on TPX's bullish reversal from yesterday. The stock reversed lower again under $28.00. We're not suggesting new positions at this time and more conservative traders may want to take some profits right now. The stock has already exceeded our first target in the $27.25-27.00 range. 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
Emergency Med.Svs. - EMS - cls: 31.97 change: +2.01 stop: 32.05
We've been caught in a bear trap! Monday's breakdown under support was a fake sell signal. The stock rallied sharply today (+6.7%) and hit an intraday high of $32.08. Volume was very strong on the rebound. Our stop loss was $32.05 so the play has been closed.
Picked on December 17 at $29.30
Paychex - PAYX - close: 38.49 change: +0.38 stop: 40.01
We have run out of time with PAYX. It was our plan to exit today at the closing bell to avoid holding over the company's earnings report. PAYX reported after the bell and beat estimates by 1 cent. The stock was trading down about 1.5% in after hours markets.
Picked on December 11 at $39.62