Long Play Updates
Corning Inc. - GLW - close: 24.17 chg: -0.07 stop: 23.45
GLW held up reasonably well during the day's trading. The current rally is under duress following yesterday's earnings warning from JBL. However, we are sticking to our plan. The dip near $24 looks like an entry point. More conservative traders could wait for a new move over $24.75 or $25.00 to open positions. If you're feeling conservative then ratchet up your stop loss toward Wednesday'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: 55.00 chg: -0.63 stop: 53.45
The bounce in HON is not seeing any confirmation. We may have been too early to suggest bullish positions. Given that HON's rebound has rolled over more conservative traders will want to exit immediately and cut their losses! HON looks poised to retest the $54 region soon and potentially dip toward the $52.50 zone, which would stop us out. We are not suggesting bullish plays at this time. 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
iShares Dow Jones Telecom - IYZ - close: 23.30 chg: -0.08 stop: 22.24
The bounce in the IYZ is struggling but overall the situation doesn't look much different from when we suggested this play a few days ago. 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: 17.91 change: +0.24 stop: 14.85
Solar energy stocks rallied in spite of the market weakness. This was due to an earnings report from Solarfun Power (SOLF). Shares of SOLF rose 16.5% after reporting earnings that missed analysts estimates but showed a 300% increase in revenues. Shares of JASO rallied to an intraday high of $18.99 but reversed under technical resistance at its 100-dma. JASO pared its gains and looks poised for more profit taking tomorrow. Look for a dip back toward $17 or 16.50. 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: 61.31 chg: +0.16 stop: 57.99
There is no change from our previous comments on KO. 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. 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: 28.05 chg: -0.51 stop: 27.19
MSFT was a major drag on the DJIA and the NASDAQ today. The stock lost 1.7% and we're starting to see some short-term sell signals emerge. We are reiterating yesterday's comments that more conservative traders may want to adjust their stop closer to the $28 level. However at this point any tech stock weakness tomorrow is likely to see MSFT trade under $28.00. The next level of support should be the $27.25-27.50 zone. 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: 18.83 chg: +0.01 stop: 15.90
Some of the homebuilders managed to close higher today. This show of relative strength in encouraging after yesterday's sell-off. We would still look for a dip near $18.00 as a new entry point to buy the stock. MTH remains a huge short squeeze candidate. This is 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: 10.23 chg: -0.42 stop: 9.49
The retail sector index, the RLX, dropped 1.7% on Thursday's market sell-off. Shares of NDN more than doubled that decline with a 3.9% plunge to its 200-dma. We were suggesting that readers buy a dip in the $10.30-10.00 zone. The play is now open. However, if you haven't opened positions yet wait for a dip closer to $10.00. It could happen on Friday morning. Our target is the $11.95-12.00 range.
Picked on March 27 at $10.30 *triggered
Short Play Updates
Starbucks - SBUX - close: 17.62 chg: -0.04 stop: 18.55
We have nothing new to report on for SBUX. The path of least resistance still appears to be down. Although we do want to point out that volume has been pretty low the last couple of days. 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: 28.56 change: -0.15 stop: 30.26
SWY continues to trade sideways like it has for the last few sessions but today's action suggests the next move is probably lower. 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