Long Play Updates
Gilead Sciences - GILD - cls: 47.23 chg: -0.39 stop: 45.45
Biotech stock GILD is hanging in there. Shares are essentially consolidating sideways. If the market continues lower then we would expect GILD to test support at its 50-dma near $45.80. Wait for a new rally past $48.00 before considering new long 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: 53.22 chg: +0.17 stop: 47.90
Nothing has changed with PRXL. The stock continues to display amazing strength. Shares hit another new near $55 before pulling back. It would be tempting to try and buy a dip near short-term support at $52.00 but we holding out for a pull back near $50.00. Please note we're adjusting our suggested entry range from $50.25-49.50 to $50.50-50.00. Our target is the $54.00-55.00 range.
Picked on January xx at $xx.xx <-- see TRIGGER
Short Play Updates
Avery Dennison - AVY - close: 46.17 change: -1.44 stop: 50.85
AVY is off the races with a 3% decline today. The stock closed at its lows for the session, which normally suggests more weakness for the next day. AVY has now surpassed the April 2003 low of $46.25. Our first target is the $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: 34.15 chg: -0.64 stop: 35.05*new*
Lack of any real movement in CCU continues to make us wary and we would not suggest new bearish positions at this time. We're acting inching down our stop loss to $35.05. 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: 22.17 change: -0.09 stop: 23.75
GLW continues to look like it's heading lower even though the stock out performed the major averages today. 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: 37.26 chg: +0.16 stop: 39.05 *new*
I am surprised to see HSY showing strength the last couple of days. Tuesday's breakdown had pushed the stock under any potential support from early 2004. The next level of support was near $35.00. A failed rally in the $38.00-38.50 region can be used as a new entry point for shorts. Please note we're adjusting our stop loss to $39.05. 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: 34.48 chg: -1.01 stop: 36.51 *new*
PBI lost another 2.8% and set another new multi-year low. We are moving our stop loss down to $36.51. 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
Closed Long Plays
Aon Corp. - AOC - cls: 43.33 change: -1.38 stop: 43.95
The bears have regained control of AOC. We were waiting for a breakout over resistance near $46.00 but that doesn't look like it will happen any time soon. Today's bearish breakdown under support near $44.00 and its 200-dma looks like a new entry point for shorts! We're dropping this play unopened.
Picked on January xx at $xx.xx
Blackstone - BX - close: 18.37 chg: -0.73 stop: 18.45
The market weakness has been too much for bulls to bear and shares of BX have reversed lower again. The stock produced two failed rallies under $20.00 in the last couple of days and shares hit our stop loss at $18.45 before noon today. While we have been stopped out we would keep an eye on BX for another bounce attempt near the January lows around $17.25.
Picked on January 11 at $20.61 stopped out $18.45
Fresh Del Monte - FDP - cls: 35.75 change: +1.81 stop: 31.75
FDP is looking pretty strong here. Shares are up almost 9% from our picked price and the stock has broken through potential resistance in the $34-35 zone. Sadly the stock plunged on Wednesday and hit our stop loss at $31.75 closing the play. Nimble traders may want to keep an eye on FDP for a dip near $35 again as a potential entry point. We would still target the October highs.
Picked on January 09 at $32.82 stopped at $31.75
Steel Dynamics - STLD - cls: 47.11 chg: -3.83 stop: 49.99
STLD just got pummeled today. The stock broke down under support near $50.00 and its 100-dma and the selling didn't stall until the stock hit its 200-dma. The recent breakdown has broken what appears to be the neckline of a bearish head-and-shoulder pattern formed over the last six weeks. The H&S pattern would suggest a bearish target of $40.00. STLD hit our stop loss at $49.99 this morning.
Picked on January 09 at $52.85 stopped at $49.99
XTO Energy - XTO - close: 50.90 chg: -2.73 stop: 51.79
Investors are starting to panic and they are selling their winners. XTO was at new all-time highs just three days ago. Now the stock has broken down through short-term support at $54.00 and again at $52.00 and its 50-dma. The stock hit our stop loss at $51.79 closing the play.
Picked on January 03 at $54.15 stopped out at $51.79
Closed Short Plays
Zoll Medical - ZOLL - close: 26.38 chg: +0.32 stop: 27.01
Exit alert! We are suggesting that readers cut their losses now. Yesterday ZOLL broke out from its two-week $25-26 trading range. Today's show of relative strength only confirms that ZOLL looks set to challenge resistance at $27.00. A breakout over the $27.00-27.50 zone could see some huge short covering. We'd rather exit now and watch to see what happens next. If ZOLL breaks out then we can consider new bullish positions. If the stock rolls over again we can consider new short positions.
Picked on January 03 at $25.86