Long Play Updates
DuPont - DD - close: 49.64 chg: +0.60 stop: 47.45 *new*
DD turned in a decent day. The company raised their earnings guidance for the first quarter but lowered their overall earnings range for the fiscal year. The stock reacted as traders bought the dip near its 10-dma. Shares remain poised to breakout over resistance near $50.00. We are adjusting our stop loss to $47.45. 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: 67.27 chg: +0.53 stop: 62.90 *new*
Energy stocks continue to look strong and EGN posted a 0.8% gain after traders bought the dip near $65.60. We are adjusting our stop loss to $62.90. 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: 25.37 chg: +0.07 stop: 23.65
A day after the unexplained sell-off in GLW the stock traded sideways as bulls defended GLW near its rising 10-dma. This looks like a bullish entry point but a dip near $25.00 would be even more attractive. We did notice a couple of news articles today suggesting GLW could win from the tax rebate cycle as consumers buy more flat panel televisions. 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: 58.80 chg: +0.77 stop: 55.95 *new*
HON continues to show relative strength. The stock hit a new four-week high intraday at $59.31. Our target is the $59.90-60.00 range. If General Electric (GE), who reports earnings tomorrow morning, comes out with good news, then shares of HON are likely to hit our target soon. The reverse is also true, if GE disappoints then HON will see profit taking. We are adjusting our stop loss to $55.95. More aggressive traders could target the top of the larger trading range near $62.00. Keep in mind that we do not want to hold over the April 18th earnings report.
Picked on March 25 at $56.00
Hormel Foods - HRL - close: 41.84 change: -0.10 stop: 40.65 *new*
HRL is still trading sideways and honesty the momentum is fading. Wait for a dip or a bounce near $41.50 before considering new bullish positions. We are raising our stop loss to $40.65 even though $40.00 is the region where HRL should find true support. The 50-dma is near $40.70. 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: 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: 23.68 chg: -0.10 stop: 22.89
IYZ's failure to bounce today does not look good for the bulls. More conservative traders might want to inch up their stop loss toward $23.25 or $23.40ish. We would still consider a bounce near $23.50 as a potential entry point to get long. 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: 42.00 change: +0.83 stop: 38.45
We are still playing a waiting game with coal stocks. Coal stocks were strong again today. The relative strength is great but we're trying to buy a dip. Currently we're suggesting readers buy a dip in the $40.00-39.50 zone. 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: 58.87 chg: +1.67 stop: 53.95
Commodity stocks continue to look bullish and the MOO out performed the market with a strong 2.9% rally. We want to buy it but we don't want to chase it. 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
Nintendo Co - NTDOY - close: 68.50 chg: +1.65 stop: 63.95
Things are looking better for NTDOY. Shares of Nintendo rallied past technical resistance again and posted a 2.4% gain. Furthermore the rally was fueled by very strong volume. Volume was actually about 7.6 times the norm. This looks like another bullish entry point to buy NTDOY. 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: 27.99 chg: +0.16 stop: 30.26
After several days of declines CTSH finally produced a bounce. We don't see any changes from our previous comments. 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
Freddie Mac - FRE - close: 23.91 chg: -0.92 stop: 28.15 *new*
Financials were the big under performers today. FRE lost 3.7% and closed at new three-week lows. We are adjusting our stop loss to $28.15. This is still a very wide, aggressive stop. You may want to use a tighter stop. Our first target is the $20.50-20.00 zone.
Picked on April 09 at $24.90 *triggered
Longs Drug Stores - LDG - cls: 37.65 chg: -0.51 stop: 41.31
LDG continues to sink. What is surprising is that the RLX retail index was one of today's best performers in spite of generally horrid same-store sales figures. Yet LDG posted a gain for same-store sales and the stock closes lower. Shares hit an intraday low of $36.65. LDG has already hit our target at $38.25. 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 /1st target hit 38.25
Closed Long Plays
Closed Short Plays
Amgen - AMGN - close: 43.98 change: +2.39 stop: 42.55
Ouch! Biotech bears got the one-two punch today. AMGN gapped open higher at $43.46 and spiked to its 50-dma before closing with a 5.7% gain. Two things were moving biotech stocks higher. First was the acquisition news of Millenium Pharmaceuticals (MLNM +48%) by a Japanese company. Second, shares of AMGN soared on a legal win. The company scored in its patent litigation against Roche in their ongoing battle to sell anemia drugs in the U.S. We had listed a stop loss at $42.55 for AMGN but the stock gapped open higher - a risk we mentioned in our original write up and updates.
Picked on April 08 at $41.49