Long Play Updates
Aon Corp. - AOC - cls: 44.98 change: -0.19 stop: 43.95
AOC's lack of a bounce today, especially with the DJIA up 171 points, is not a healthy sign. Fortunately, we're still on the sidelines. Aggressive traders might be tempted to buy today's intraday rebound but we're waiting for a breakout over resistance at $46.00. We're suggesting a trigger to buy the stock at $46.15, which is above technical resistance at its 10-dma and 100-dma near $46.00. If triggered our target is the $49.75-50.00 range.
Picked on January xx at $xx.xx <-- see TRIGGER
Blackstone - BX - close: 20.39 chg: +0.33 stop: 18.45
It is encouraging to see BX bounce from the $20.00 level. The stock found round-number, psychological support right where it was supposed to. 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: 33.63 change: +0.35 stop: 31.75
FDP managed a 1% bounce today. Shares struggled with prior resistance at the $34.00 level. In the news FDP announced that its CFO, a veteran of 32 years at FDP, would retire soon. The stock did not see a reaction on the news. Our target is the $37.90-38.00 range.
Picked on January 09 at $32.82
Gilead Sciences - GILD - cls: 48.16 chg: -0.52 stop: 45.45
GILD stumbled out of the gate this morning but traders bought the dip near its rising 10-dma. The afternoon bounce back above the $48.00 mark looks like a new bullish entry point. More conservative traders may want to wait and see how the market reacts to DNA's earnings report tomorrow morning. DNA reported tonight and DNA's stock was all over the place. 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: 53.00 chg: -0.87 stop: 47.90
PRXL is finally starting to see some profit taking. We have been expecting a correction lower. We have adjusting our suggested entry point to buy the stock to the $50.25-49.50 zone. 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: 55.69 chg: +2.50 stop: 49.99
Positive analyst comments about the steel sector helped fuel a rally in the group today. Shares of STLD rose 4.7%. The stock is now facing potential resistance at $56.00 but we're expecting it to continue rallying higher. Our target is the $57.50-60.00 range.
Picked on January 09 at $52.85
XTO Energy - XTO - close: 56.73 chg: +1.92 stop: 51.79
XTO rallies again! The stock added 3.5% and hit new all-time highs today. We heard some positive comments on XTO today as a way to play a rise in natural gas. Our target is the $59.00-60.00 range.
Picked on January 03 at $54.15 *triggered
Short Play Updates
Avery Dennison - AVY - close: 49.25 change: +0.75 stop: 50.85
AVY spent almost the whole session trading sideways until finally crossing the $49.00 level very late in the day. Look for a new failed rally near $50.00 as a potential entry point for shorts. There could be some support near $46.25 but we're setting our first target for $45.15-45.00. Our second, more aggressive target is the $42.50 mark. Unfortunately, AVY probably won't reach our second target before its end of January earnings report. The P&F chart is bearish with a triple-bottom breakdown sell signal and a $40 target. We're starting with a stop loss at $50.85. More conservative traders may want to consider a tighter stop loss like $50.05. FYI: The most recent short interest was listed at 3.2% of the 97.3 million-share float.
Picked on January 13 at $48.50
Clear Channel Comm. - CCU - cls: 34.69 chg: +0.22 stop: 35.31
We do not see any changes from our weekend comments on CCU so we're reposting them here:
If the market is worried about a recession then sales could be slowing for CCU. The stock has developed a bearish pattern of lower lows and lower highs as investors continue to sell the rally attempts. Lately CCU has found resistance at its 50-dma. We are suggesting shorts here under $35.00. Our short-term target is the $32.15-32.00 range. The November 19, 2007 low was $32.02. The P&F chart is bearish with a $28 target. FYI: The most recent short interest data was 3.2% of the 429 million-share float.
Picked on January 13 at $34.47
Corning Inc. - GLW - cls: 23.25 change: +0.66 stop: 23.75
GLW produced a pretty decent bounce with a 2.2% gain. The close over resistance at $23.00 is bullish but the rally stalled under its 50-dma. Volume was light on the rebound, which is not very bullish. Shares of GLW are now testing resistance at the top of its bearish channel (trend of lower highs). We would use a new decline under $23.00 or $22.90 as a entry point for shorts. 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
The Hershey Co. - HSY - cls: 37.37 chg: -0.09 stop: 39.25
HSY continues to drift lower. We don't see any changes from our weekend comments. We're going to aim for the $35.15-35.00 range because we don't have much time. HSY is due to report earnings at the end of January. We're suggesting a stop loss at $39.25 but more conservative traders might try to get away with a tighter stop above $38.25. FYI: The latest short interest data was about 3.8% of the 226 million-share float.
Picked on January 13 at $37.46
Pitney Bowes - PBI - cls: 36.42 chg: +0.48 stop: 38.05
PBI experienced an oversold bounce but it already looks like it is rolling over. A new decline from here or a failed rally under its 10-dma near $37.00 can be used as a new entry point for shorts. Our target is the $32.25-32.00 zone. FYI: The most recent data listed short interest at 2.2% of the 216 million-share float.
Picked on January 13 at $35.94
Zoll Medical - ZOLL - close: 25.37 chg: -0.26 stop: 27.01
ZOLL performed yet another failed rally near short-term resistance at $26.00 and its 10-dma. This looks like another entry point for shorts. 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
Closed Short Plays