Long Play Updates
DuPont - DD - close: 48.99 chg: -0.51 stop: 46.95
Bearish reversal alert! Shares of DD did not perform well on Monday. The stock has produced a failed rally under round-number resistance at $50.00 and a bearish engulfing candlestick pattern. This is negative and we are expecting a pull back. There is going to be a tug of war between the bulls and the bears near $48.00 since broken resistance at $48.00 should be new support. We are going to suggest readers buy dips near $48.00 but you might want to raise your stop loss to reduce your risk. Our target is the $52.50-54.00 zone. We don't want to hold over the late April earnings report. FYI: The Point & Figure chart has a bullish triple-top breakout buy signal and a $63 target.
Picked on April 02 at $48.84
Energen - EGN - close: 65.67 chg: +1.81 stop: 61.69
Monday turned out to be a strong day for EGN. The stock broke out higher and ended the session with a 2.8% gain. We were suggesting readers buy the stock at $64.65 so the play is now open. Our short-term target is the $69.50-70.00 zone. If we have time we'll consider a secondary, more aggressive target above $70. The P&F chart is bullish and the upside target just jumped from $77 to $80. We do not want to hold over the late April earnings report.
Picked on April 07 at $64.65 *triggered
Corning Inc. - GLW - close: 25.83 chg: +0.27 stop: 23.65
GLW managed to out perform the wider market today but we suspect shares are poised to dip soon. Look for a pull back near $25.30-25.25 as a new entry point for bullish positions (or maybe a dip to $25.00-24.75). We're listing 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. FYI: A move over $26.00 should produce a new P&F chart buy signal.
Picked on March 25 at $25.14
Honeywell - HON - close: 58.11 chg: -0.16 stop: 54.49
We do not see any changes from our weekend comments on HON. 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.
Picked on March 25 at $56.00
Hormel Foods - HRL - close: 42.47 change: +0.02 stop: 39.85
It was a quiet session for HRL too. We don't see any changes from our weekend comments. We would either wait for a dip back toward the 10-dma (near 41.65) or a new high over $42.65 before considering new positions. More conservative traders may want to consider a stop closer to $41. Our target is the $45.75-46.00 range. We anticipate holding this stock on the newsletter for about six to eight weeks. The Point & Figure chart is bullish with a $64 target. FYI: This past week HRL declared a quarterly cash dividend of 18.5 cents per share payable on May 15, 2008 to shareholders of record on April 19th. HRL has been paying quarterly dividends for almost 80 years.
Picked on March 31 at $41.83 *triggered/gap open
iShares Telecom - IYZ - close: 24.36 chg: +0.23 stop: 22.89
The IYZ hit a new relative high midday but eventually pared its gains by the closing bell. Shares still look bullish and a dip or bounce near $23.50 could be used as a new bullish entry point. We are adjusting the stop loss to $22.89. 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
Coal ETF - KOL - close: 40.95 change: +0.06 stop: 37.95
Coal stocks made headlines today after ACI reaffirmed its earnings guidance. The problem was not with their guidance but with Wall Street's expectations that they might raise guidance. The news sucked the wind out of the commodity rally and coal stocks sank into the closing bell. The KOL ETF managed to post a gain and looking at the intraday chart is almost looks like an entry point right here. However, we are going to stick to our plan and wait for a dip into the $39.50-39.00 zone as a bullish entry point to buy KOL. If triggered our target is the $44.75-45.00 range.
Picked on April xx at $xx.xx <-- see TRIGGER
Agribusiness ETF - MOO - close: 57.73 chg: +0.59 stop: 53.95
Commodities were hot today although the ACI-coal news pared most of the gains in commodity related stocks. Our plan calls for investors to buy a dip in MOO in the $56.00-55.00 zone. If triggered our target is the $59.85-60.00 range. The Point & Figure chart is bullish with a $72 target.
Picked on April xx at $xx.xx <-- see TRIGGER
Meritage Homes - MTH - close: 21.84 chg: -0.25 stop: 19.49
We do not see any changes from our weekend comments on MTH. We continue to suggest that our readers lock in some gains right here. You might also want to consider a tighter stop loss near $20.00. We are not suggesting new positions although a dip or bounce near $20.00 could be used as an entry point. Our target is the $24.75 mark.
Picked on March 24 at $18.60 *triggered
Nintendo Co - NTDOY - close: 68.50 chg: +1.20 stop: 63.95
Our play in NTDOY is open. Unfortunately, I can't find an opening price anywhere. All I can find is the daily range of $68.35-69.05. We were suggesting readers buy NTDOY at $68.01 or higher. Since we can't find an opening price I'm going to take the average of today's trading at $68.70 and use that as the newsletter's "entry" point. Our target is the $74.00-75.00 zone. Keep in mind that NTDOY is traded as an ADR here in the United States and shares will gap open up or down every day as they adjust to trading overseas. FYI: Some quote services might ask you to use the symbol NTDOY.PK to pull up data on NTDOY.
Picked on April 07 at $68.70 *triggered/gap open
Pulte Homes - PHM - close: 15.86 chg: +0.05 stop: 14.95
Be careful here with PHM. We just added this stock over the weekend with a suggested entry point to go long at $16.65. The stock rallied to $16.81 and then reversed midday when the broader market turned lower. This is technically a short-term bearish reversal or failed rally even though the early morning move was a bullish breakout over resistance. The play is open for us but we would suggest readers look for a dip near $15.50 or another rally over $16.50 before considering new bullish positions. Our first target is the $19.90-20.00 zone. This should be considered an aggressive, higher risk play because the homebuilding stocks have become very volatile and subject to a lot of whipsaws. Plus, due to volatility, we're playing with a wide stop loss. We do not want to hold over PHM's earnings report in late April.
Picked on April 07 at $16.65 *triggered
Short Play Updates
Cognizant Tech - CTSH - cls: 28.97 chg: -0.42 stop: 30.75
Shares of CTSH are still wilting. The stock definitely looks poised for another move down. We would consider new positions here. Our first target is the 26.25-26.00 zone. Our second, more aggressive target is the $24.25-24.00 range. The P&F chart is bearish with an $18 target.
Picked on March 30 at $29.18
Longs Drug Stores - LDG - cls: 39.89 chg: -1.68 stop: 43.55
Retail stocks under performed the market and LDG really under performed with a 4% sell-off. Shares even broken round-number support at $40.00. Our first target is the $38.25-38.00 zone. Our second target is the $35.25-35.00 zone. The P&F chart is bearish with a $29.00 target.
Picked on March 30 at $41.30
Closed Long Plays
Closed Short Plays