Long Play Updates
ArthroCare - ARTC - close: 52.29 change: -1.14 stop: 48.49
ARTC is starting to see some profit taking. Shares lost 2.7% today and look poised to dip toward what should be support near $50.00. Our suggested entry point to buy ARTC is the $50.50-49.50 zone. We will place our stop loss at $48.49 to start. Our short-term target is the $54.50-55.00 range, which looks like resistance with the 50-dma and 100-dma hovering nearby.
Picked on January xx at $xx.xx <-- see TRIGGER
Invest.Tech.Group - ITG - cls: 49.21 chg: -0.24 stop: 45.90
ITG managed to hit another new high at $50.35 before succumbing to market weakness. The stock looks poised to dip back toward the $48.50-48.00 zone. Wait for a bounce before considering new bullish positions. Our target is the $52.00-52.50 range. We do not want to hold over the late January earnings report. FYI: The P&F chart is bullish with a $65 target.
Picked on January 06 at $47.99
Move Inc. - MOVE - cls: 2.21 change: -0.08 stop: 2.14
Buckle your seat belt and double-check your stop loss placement. The situation in MOVE is not looking healthy. Today marked the second day in a row that shares failed at $2.35. Given the market's performance we would be very defensive on a bullish play like MOVE where we are trying to buy a bottom. More conservative traders may want to exit early now to limit their losses or raise their stop loss closer to $2.20. We're not suggesting new positions at this time. The only reason we don't exit right here is due to our expectation that the market is very oversold and way overdue for a bounce. Our target is the $2.65-2.75 range.
Picked on January 07 at $ 2.32 *triggered
Ryland Group - RYL - cls: 21.11 chg: -1.09 stop: 19.49
Shares of RYL lost another 4.9% as the stock followed in the wake of rival KBH's earnings report. KBH reported a fourth quarter loss of $772 million. The company said they foresee another "tough year" for homebuilders. We are betting that RYL will bounce from the bottom of its trading range near $20.00. We're suggesting readers buy the dip in the $20.25-20.00 zone. We'll try and reduce our risk with a stop loss under the November low at $19.49. If we are triggered at $20.25 our short-term target is the $23.90-24.00 range. We won't have a lot of time since we plan to exit ahead of the late January earnings report.
Picked on January xx at $xx.xx <-- see TRIGGER
XTO Energy - XTO - close: 53.11 chg: -0.87 stop: 51.79
Shares of XTO rallied to a new all-time high at $54.57 and then performed an about face and retreated to a 1.6% loss. The stock "should" have some short-term support near $52 but given this market environment we would hesitate to bet on it. We're not suggesting new positions at this time. Technically we are seeing a bearish divergence between price and the MACD indicator. Our target is the $59.00-60.00 range.
Picked on January 03 at $54.15 *triggered
Short Play Updates
Fist Community Bancorp - FCBP - cls: 35.72 chg: -2.27 stop: 40.05 *new*
Financials continue to lead the market lower. The BKX and BIX banking indices lost 4% and 4.7% respectively. Shares of FCBP lost 5.79% and hit new multi-year lows. We are adjusting our target from $35.25-35.00 to $35.50-35.00. The stock is already down more than 12% and readers should consider doing some profit taking right here. We are adjusting our stop loss to $40.05. We still maintain a second, more aggressive target in the $32.00-30.00 zone. This could take a couple of more weeks to hit and FCBP will probably see a sharp bounce near $35. Be ready for it. FYI: We do not want to hold over the late January earnings report.
Picked on December 30 at $40.80
Corning Inc. - GLW - cls: 21.68 change: -0.48 stop: 23.75 *new*
GLW is still moving lower but the stock is very short-term oversold and due for an up day or two. We are adjusting our stop loss to $23.75. Our target is the $21.25-21.00 range. We do not want to hold over the late January earnings report. FYI: The P&F chart is bearish with a $15.00 target. There was virtually zero short interest listed for GLW.
Picked on January 04 at $22.91 *triggered/gap down entry
IAC Interactive - IACI - cls: 24.58 chg: -0.89 stop: 26.55 *new*
Internet powerhouse IACI saw shares hit new lows of $23.86 intraday. Late this afternoon there was an intraday spike of almost $1.00 but IACI managed to repair some of its losses. The trend continues to look very bearish. We are adjusting our stop loss to $26.55. The stock has already hit our initial target in the $25.50-25.00 range. We are not suggesting new positions at this time. The Head & Shoulders 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: 26.25 change: +0.24 stop: 26.81
The tug-of-war in MRX continues. MRX made a run for it higher today but the bears managed to hold the line and keep MRX in a trend of lower highs. That doesn't mean the bulls are giving up and if the market sees any sort of bounce we would not be surprised to see MRX hit our stop loss at $26.81. More conservative traders may want to exit early now to avoid further losses. MRX was due to present at the big healthcare conference today. We didn't see any news surface from the event. 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
Zoll Medical - ZOLL - close: 25.52 chg: -0.37 stop: 27.01
ZOLL tried to bounce again but struggled to make it past the $26 level and its 10-dma. Shares continue to look bearish under resistance near $27.00. We suggest taking profits at $24.10 and then again at $22.25. FYI: The P&F chart is bearish with a $17 target. The most recent short interest is at 8% of the stock's small 20 million-share float. That does raise the risk of a short squeeze, especially if ZOLL trades over $27.00.
Picked on January 03 at $25.86
Closed Long Plays
Intel Corp. - INTC - cls: 22.26 change: -0.62 stop: 22.29
Our speculative, buy the dead-cat bounce in INTC play is a complete bust. The stock tried to rebound and hit $23.13 late in the session just before reversing and plunging to new relative lows. The stock hit our stop loss at $22.29 - breaking past the two-day low at $22.36. We would still keep an eye on INTC for a bounce near $22.00 but we would be super careful about trying to buy the stock. At this point traders would still be trying to catch that "falling knife".
Picked on January 07 at $22.88
Closed Short Plays