Long Play Updates
DuPont - DD - close: 49.46 chg: +0.47 stop: 46.95
DD recouped most of yesterday's losses with a 0.9% gain today. Furthermore today's bounce should negate the bearish reversal pattern from Monday. Should DD turn lower we can expect support near $48.00. 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: 66.80 chg: +1.13 stop: 61.69
EGN, a natural gas play, displayed relative strength again with a 1.7% gain. We remain bullish on the stock but want to point out that EGN is very close to potential resistance near $66.80 found in January 2008. This would be the spot to look for a pull back. We suggest buying dips near $65.00 as a new entry point. 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: 26.11 chg: +0.28 stop: 23.65
GLW posted another gain after being upgraded to an "out perform" and given a $30 price target this morning. We still think the stock looks a little overbought and probably due for a dip. 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: Today's move over $26.00 has produced a brand new Point & Figure chart buy signal with a $39 target.
Picked on March 25 at $25.14
Honeywell - HON - close: 57.19 chg: -0.92 stop: 54.49
It was a rough open for HON as the stock gapped open lower and shares eventually closed with a 1.5% loss. Yet today's losses might be reversed tomorrow. After the closing bell HON announced that it had won a $23 billion jet engine deal with Brazilian jet-maker Embraer. 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: 42.05 change: -0.42 stop: 39.85
HRL also hit some profit taking this morning but spent the rest of the day consolidating sideways. The intraday low was very close to the rising 10-dma so this dip could be a new bullish entry point. Right now our stop loss is at $39.85 but we're thinking about raising it toward $41.00 or even $41.50ish. 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: 24.27 chg: -0.09 stop: 22.89
There is nothing new to report on for the IYZ. The ETF traded sideways. 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: 41.89 change: +0.94 stop: 38.45
Coal stocks were huge winners today. Many of them were up 4%, 5% even 8% today. The KOL rebounded with a 2.2% gain. Thus far we're still sitting on the sidelines. It was our expectation that the KOL would dip into the $39.50-39.00 zone. That hasn't happened yet. After today's rally in coal stocks we would expect some profit taking tomorrow and we're going to adjust our entry strategy for KOL. Instead of $39.50 we're suggesting readers buy a dip in the $40.00-39.50 zone. We'll raise our stop loss to $38.45. If triggered at $40.00 our target is the $44.75-45.00 range.
Picked on April xx at $xx.xx <-- see TRIGGER
Agribusiness ETF - MOO - close: 57.74 chg: +0.01 stop: 53.95
Commodities continue to show strength but we suspect the group is getting tired and near a correction. 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: 20.90 chg: -0.94 stop: 19.49
News that congress is working on legislation to help the homebuilders is not having much affect on the stock price for this group. MTH continued to see profit taking with a 4.3% loss. Investors did buy the dip near $20.00 this afternoon. We're still suggesting readers lock in a gain here but if you're going to keep a position open then more conservative traders might want to tighten their stop toward $20.00. Our target is the $24.75 mark.
Picked on March 24 at $18.60 *triggered
Nintendo Co - NTDOY - close: 67.10 chg: -1.40 stop: 63.95
NTDOY reversed a good portion of yesterday's gains with a 2% decline today. Shares are back to their 10-dma and 100-dma so we should expect a bounce tomorrow. On a bookkeeping note we did finally find an opening price for yesterday, which was $68.50 so we've adjusted our "entry" price for the newsletter. 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 $68.50 *triggered/gap open
Short Play Updates
Cognizant Tech - CTSH - cls: 28.52 chg: -0.45 stop: 30.75
CTSH continues to slip lower. The stock actually gapped open lower this morning and closed with a 1.5% loss. 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: 39.03 chg: -0.86 stop: 42.05*new*
LDG continues to sell-off. The stock lost more than 2% today and confirmed yesterday's breakdown under psychological support at $40.00. We are lowering the stop loss to $42.05. 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
Pulte Homes - PHM - close: 14.94 chg: -0.92 stop: 14.95
We warned readers that the homebuilders had become a volatile bunch. Shares of PHM spiked to $16.81 yesterday and then dropped to $14.54 intraday today. That is a 13.5% move and PHM traded under round-number support at $15.00 and technical support at its 200-dma today. Shares hit our stop loss at $14.95 closing the play. We would keep an eye on PHM and a new relative high (over $16.81) could be a new entry point for bullish positions. The sector is still heavily shorted and could see another short squeeze.
Picked on April 07 at $16.65 *triggered /stopped 14.95
Closed Short Plays