Long Play Updates
Blackstone - BX - close: 20.06 chg: +0.22 stop: 18.45
Our entry points has been chosen for us. Shares of BX continued to rally and the stock broke through its 10-dma and hit one of our suggested entry points at $20.61. Unfortunately, market weakness on Friday pulled the stock back down toward the $20 level. Broken resistance at $20.00 should actually be support now. However, it would not surprise me to see BX dip toward $19.00 again. We assigned a stop loss at $18.45 if we got hit on our $20.61 entry point. More aggressive traders may want to use a stop under last week's low. This is an aggressive, higher-risk play. Look for a bounce if you're in the market for a new entry point. Our target is the $24.00-25.00 range. We do not want to hold over the February earnings report.
Picked on January 11 at $20.61
Fresh Del Monte - FDP - cls: 33.28 change: -1.44 stop: 31.75
FDP was unable to avoid the market-induced profit taking on Friday. We remain bullish but readers may want to wait for another dip and bounce near $33.00 or $32.50 before considering new positions. Our target is the $37.90-38.00 range.
Picked on January 09 at $32.82
Gilead Sciences - GILD - cls: 48.68 chg: +0.46 stop: 45.45
Shares of GILD continue to show relative strength. The stock posted another gain and was testing short-term resistance at $49.00 most of the day. The BTK biotech index has rallied right to its trendline of resistance. If Genentech (DNA), who reports earnings on Monday, can deliver good news then it could launch the biotech sector into a new up leg. That would be great for GILD, which is already out performing its peers. On the contrary if DNA disappoints then the whole group could roll over. We remain bullish on GILD with shares above $48.00 but you might want to wait until after DNA's Monday-night earnings report before considering new positions. Our GILD target is the $53.00-55.00 range. We would be tempted to aim higher but we do not want to hold over the end of January earnings report. FYI: I will admit that GILD is facing resistance at the top of its long-term channel (see chart) but a breakout there could really see a strong follow through.
Picked on January 09 at $48.50
Parexel Intl. - PRXL - cls: 53.87 chg: +0.57 stop: 47.90
PRXL continues to show relative strength. The stock traded near its all-time highs on Friday. Shares are also trading near the top of its six-week rising channel. We're expecting a correction lower. We have adjusting our suggested entry point to $50.25-49.50. Our target is the $54.00-55.00 range. FYI: We don't have a lot of time. PRXL is due to report earnings on January 23rd and we do not want to hold over the report.
Picked on January xx at $xx.xx <-- see TRIGGER
Steel Dynamics - STLD - cls: 53.19 chg: -1.10 stop: 49.99
STLD is out performing most of its peers and shares are still trading near support on the bottom edge of its rising channel. Friday's pull back looks like a new entry point to go long although if you look at the intraday chart and technicals STLD looks like it wants to dip toward $52. Be patient on Monday morning and see if STLD bounces! Our target is the $57.50-60.00 range.
Picked on January 09 at $52.85
XTO Energy - XTO - close: 54.81 chg: -0.60 stop: 51.79
Shares of XTO are still holding up pretty well in spite of the Friday market downturn and weakness in oil and oil stocks. We would suggest buying a dip (or better a bounce) in the $54.00-53.50 zone if XTO provides one. More conservative traders may want to tighten their stops. Our target is the $59.00-60.00 range.
Picked on January 03 at $54.15 *triggered
Short Play Updates
Corning Inc. - GLW - cls: 22.59 change: -0.35 stop: 23.75
GLW's oversold bounce failed right where it was supposed to near its 10-dma. This looks like a new bearish entry point for shorts. More conservative traders might want to tighten their stops toward $23.50 or $23.25. 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, which reduces the risk of a short squeeze.
Picked on January 04 at $22.91 *triggered/gap down entry
Zoll Medical - ZOLL - close: 25.63 chg: -0.15 stop: 27.01
We are still in wait-mode with ZOLL. The stock continues to churn sideways in the $25-26 range. The pattern looks bearish following the failed rally at resistance near $27.00. We are basically playing ZOLL's sideways channel. We have two targets. Our first target is $24.10. Our second target is $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
Juniper Networks - JNPR - cls: 26.60 chg: -4.07 stop: 29.34
We reported on the news that JNPR's COO left for Microsoft in our Thursday night newsletter. However, we weren't expecting such a big reaction in the stock price. On Thursday we suggested that readers buy the bounce in JNPR but use a trigger to open positions at $31.25. On Friday morning the stock gapped down at $26.95. We are dropping JNPR as a bullish candidate at this time.
Picked on January ** at $xx.xx <-- see trigger
Move Inc. - MOVE - cls: 2.29 change: +0.10 stop: 2.14
Another big down day in the markets was too much for MOVE. The stock was showing weakness right from the open but it wasn't until the very last minute and very last trade of the day that MOVE hit our stop loss at $2.14. Our aggressive, buy-the-bottom plan in MOVE did not pay off this time.
Picked on January 07 at $ 2.32 *triggered
Closed Short Plays
IAC Interactive - IACI - cls: 23.59 chg: -0.43 stop: 26.26
Exit alert! We are adjusting our strategy with IACI. The stock has been a great performer for us with a prolonged period of relative weakness. Everyone has heard how you're supposed to let your winners run. However, we're suggesting that readers exit now and lock in some profit. IACI has already hit our early target in the $25.50-25.00 zone. Our second target was based on the bearish head-and-shoulders pattern that forecasted a $22.50 target. Instead of waiting for IACI to hit $22.50 we're suggesting an exit now. Part of the reason was a deeper study of the weekly chart. Look at these figures: The low on March 20, 2005 was $23.32. The low on May 1, 2005 was 23.25. The low on June 11, 2006 was 23.54. The low on July 30, 2006 was 23.62. The low today was $23.44. IACI is right in the middle of what should be support. That does not mean the stock is going to bounce or that it has to bounce but shares are oversold and way overdue for a bounce. We would rather exit now and look for a new entry point for another position down the road. Another secondary reason was news that Liberty Media (LINTA) announced after the closing bell on Friday that it had purchased 14 million shares of IACI claiming the recent weakness looked like a buying opportunity. There was a very brief after hours pop toward $23.85 but it faded away.
Picked on December 11 at $27.60