Long Play Updates
Aon Corp. - AOC - cls: 44.06 change: -0.92 stop: 43.95
AOC followed the market low and shares dropped 2%. The stock is now testing support near $44.00 and its simple and exponential 200-dma. Aggressive traders might want to consider buying a bounce from here. On the other hand nimble traders may want to consider shorts if AOC breaks support in the $44.00-43.75 region. 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: 19.70 chg: -0.69 stop: 18.45
BX cracked support at the $20.00 mark, which is a warning flag for the bulls. If shares continue to slip the stock "should" find support again near $19.00. Wait for a bounce near $19.00 or a new rally over $20.00 before considering new bullish positions. Remember, this is an aggressive play due to the stock's volatility. 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: 32.95 change: -0.68 stop: 31.75
We don't have anything new to report on for FDP. Shares cut 2% off the stock price thanks to the market sell-off. Watch for a bounce in the $32.50-32.00 zone as a potential entry point for bullish positions or wait for a new rally past $34.00. Our target is the $37.90-38.00 range.
Picked on January 09 at $32.82
Gilead Sciences - GILD - cls: 47.22 chg: -0.94 stop: 45.45
Shares of Genentech (DNA) gapped down this morning in reaction to the company's earnings report last night. However, traders actually bought the dip and the stock pared its losses. Meanwhile GILD fell close to 2%, which was a little bit worse than the BTK index's performance. A bounce from here near $47 or the 50-dma near $46 could be used as a new bullish entry point for GILD. 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: 53.05 chg: +0.05 stop: 47.90
PRXL continues to show impressive relative strength. Traders bought the dip at $52.22 and the stock managed to post a gain today. We're actually run low on time. The company is due to report earnings on January 23rd and we do not want to hold over the event. Currently we're waiting for a dip. 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.
Picked on January xx at $xx.xx <-- see TRIGGER
Steel Dynamics - STLD - cls: 53.08 chg: -2.61 stop: 49.99
Ouch! STLD completely erased yesterday's gains. The stock fell more than 4.6% and is trading back near its 50-dma. The overall, larger trend is still bullish but be careful about launching new positions at this time. Our target is the $57.50-60.00 range.
Picked on January 09 at $52.85
XTO Energy - XTO - close: 54.29 chg: -2.44 stop: 51.79
XTO also hit some heavy profit taking today. The stock has deleted most of our unrealized gains with a 4.3% decline. Shares are back to what should be support near $54.00. Wait for signs of a bounce before opening new positions. More conservative traders might 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
Avery Dennison - AVY - close: 48.35 change: -0.90 stop: 50.85
AVY lost 1.8% and is poised to breakdown past last week's lows. 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: 34.67 chg: -0.02 stop: 35.11*new*
Hmmm.... traders need to make a decision here. Today's big market sell-off would have been the perfect today to really dump shares of CCU. Yet that did not happen. Lack of any real weakness in CCU is bullish. Yet the pattern continues to look very bearish. CCU has a very steady pattern of lower highs and just can't seem to breakout past its 50-dma. If you're feeling iffy about this play here then jump out. We're going to tighten the stop loss down to $35.11. 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: 23.14 change: -0.11 stop: 23.75
We narrowly escaped being stopped out today. GLW rallied to $23.72 before turning tail and falling back to the $23 region. Today's action looks like another failed rally inside its bearish channel and thus a new entry point for shorts. If you prefer more momentum then wait for a new decline under $22.90 to open 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: 36.30 chg: -1.07 stop: 39.25
HSY is seeing some follow through lower on its bearish trend. The stock lost 2.8% and closed at new multi-year lows. More conservative traders might try to get away with a tighter stop above $38.25. Our target is the $35.15-35.00 range. 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: 35.43 chg: -0.99 stop: 38.05
PBI continues lower. The stock lost 2.7% and closed at new relative lows. More conservative traders can start thinking about adjusting their stops. 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: 25.81 chg: +0.44 stop: 27.01
Warning! ZOLL is not cooperating. Today's market meltdown appeared to have little impact on the stock. Shares of ZOLL rebounded sharply from the bottom of its short-term trading range. Today's move actually looks like a bullish engulfing (reversal) pattern. ZOLL has resistance near $26.00 and again near $27.00. More conservative traders may wan to tighten their stops closer to the $26.15 region to really reduce their risk. If ZOLL closed above $26.15 we would seriously consider exiting the play. 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