Long Play Updates
Corning Inc. - GLW - close: 24.24 chg: -0.90 stop: 23.45
An earnings warning from Jabil (JBL) slammed the LCD glass makers and companies associated with the industry. Shares of JBL plunged 18%. Shares of AUO lost 7.5%. GLW closed down 3.5% but was recovering from its intraday lows near $23.80. We see today's weakness in GLW as a buying opportunity. If you're feeling conservative then ratchet up your stop loss toward today's low. We're suggesting two targets. Our first target is the $27.00 level. Our second target is the $29.00 level. We do not want to hold over the late April earnings report.
Picked on March 25 at $25.14
Honeywell - HON - close: 55.63 chg: -0.37 stop: 53.45
Today's dip in HON is just a better entry point to consider new positions. We don't see any changes from yesterday's comments. We are suggesting long positions now near $56.00 or on a dip near $55.00. We're suggesting a stop loss under the recent low. Our target is the $59.90-60.00 zone. More aggressive traders could aim for the top of the larger range near $62.00. Keep in mind that we do not want to hold over the earnings report in about three weeks.
Picked on March 25 at $56.00
IYZ experienced some more profit taking today but bulls are still buying the dips. We remain bullish with the IYZ above $23.00 and its 10-dma. We have two targets. Our 1st target is the $25.85-26.00 range. Our second target is the $27.85-28.00 zone.
Picked on March 25 at $23.50 *triggered
JA Solar - JASO - close: 17.67 change: +0.54 stop: 14.85
JASO out performed many of its peers today with a 3% gain thanks to some positive analyst comments. Today's move is a bullish breakout above its 50-dma. We would continue to buy the stock here or on a dip in the $16.50-16.00 zone. This should be considered an aggressive, higher-risk play because the stocks in this industry have been so volatile in the past and can see wide, intraday swings. We are playing with a wide stop loss at $14.85. We are setting two targets. Our first target is $19.95. Our second, more aggressive target is the $22.25-22.50 zone.
Picked on March 25 at $17.13
Coca-Cola - KO - close: 61.15 chg: -0.26 stop: 57.99
We are still waiting for a pull back in shares of KO. We're suggesting readers buy KO in the $60.05-59.50 range. We'll suggest a stop loss at $57.99. Our target is the $64.50-65.00 range. The Point & Figure chart is bullish with a $90 target.
Picked on March xx at $xx.xx <-- see TRIGGER
Microsoft - MSFT - close: 28.56 chg: -0.58 stop: 27.19
The relative weakness in MSFT is a little concerning. Shares lost about 2% and broke down under its 10-dma. However, we're not willing to give up on MSFT yet. This dip may prove to be a better entry point. If you're feeling conservative then just ratchet up your stop loss toward the $28.00 level. We don't see any changes from our prior comments regarding the potential YHOO merger. There is potential resistance with some significant moving averages overhead. However, we are aiming for the $32.00-33.00 zone.
Picked on March 23 at $29.18
Meritage Homes - MTH - close: 18.82 chg: -2.05 stop: 15.90
MTH just erased yesterday's gains. The entire homebuilding sector was crushed after this morning's data on new homes sales. The data was actually better than expected but it failed to inspire any new buying. MTH remains a huge short squeeze candidate but today the bears won. Look for prior resistance near $18.00 to be new support. We remain bullish on MTH but you might want to look for signs of a bounce before opening new bullish positions. This remains an aggressive play. Our target is the $25.00-27.00 zone. The P&F chart is bullish with a $28 target.
Picked on March 24 at $18.60 *triggered
99 Cents Only Stores - NDN - cls: 10.65 chg: -0.31 stop: 9.49
We are still patiently waiting for NDN to dip into our suggested entry zone of $10.30-10.00. We'll set the stop at $9.49 (more conservative traders could try one closer to $10.00 but that might be too tight). Our target is the $11.95-12.00 range.
Picked on March xx at $xx.xx <-- see TRIGGER
Short Play Updates
Starbucks - SBUX - close: 17.66 chg: -0.33 stop: 18.55
SBUX lost 1.8% but volume was pretty low on the session so it's hard to put any confidence in the move. Overall we don't see any changes from our previous comments. Our target on SBUX is the $15.05-15.00 zone. FYI: The most recent data puts short interest at 3.4% of the 703 million-share float, which is about 2 days worth of short interest.
Picked on March 07 at $17.49 *triggered
Safeway Inc. - SWY - close: 28.71 change: +0.01 stop: 30.26
Nothing new here with SWY. The stock continues to oscillate sideways. The overall trend is still bearish. There appears to be some support near $26.00 so we are suggesting a target in the $26.50-26.00 zone. The P&F chart is bearish with a $22.00 target. FYI: The latest data puts short interest at 3.9% of the 437 million-share float, which is about 4 days worth of short interest.
Picked on February 29 at $28.74
Closed Long Plays
Closed Short Plays