Long Play Updates
Credicorp - BAP - close: 80.36 change: +0.71 stop: 78.45
BAP is marching to the beat of its own drum. The stock consolidated sideways in a very narrow range and then suddenly shot higher at the end of the day. This looks like another entry point to buy the stock. We do not have a lot of time. BAP is due to report earnings on May 7th and we do not want to hold over the report. Our short-term target is the $84.75-85.00 range. We do think that down the road BAP will trade much higher and we'll probably revisit it after we see the earnings reaction. The Point & Figure chart points to a $95 target.
Picked on April 28 at $80.51 *triggered
Buckle - BKE - close: 48.58 chg: -0.44 stop: 46.75
BKE pegged another new all-time high at $50.50 before giving back all of its gains to close down 0.8%. Volume was very low but this sort of action is negative. If we don't see a bounce from $48.00 soon we might need to consider an early exit. We would use a bounce at $48.00 as a new entry point but consider a very tight stop. Our target is the $54.50-55.00 zone. The Point & Figure chart is bullish with a $65 target. We do not want to hold over the late May earnings report.
Picked on April 23 at $48.80
Citigroup - C - close: 25.27 change: -1.05 stop: 24.24 *new*
Citigroup grabbed a bunch of headlines last night and today after a surprise announcement following Tuesday's closing bell that it would raise another $3 billion in capital by selling stock (further diluting current shareholders). Citigroup's management had been heard just two weeks earlier saying that they had no need to raise additional capital. The surprises just kept on coming when Citi announced this morning that they raised the secondary offering to $4.5 billion in stock due to overwhelming investor demand. Citigroup has now raised about $40.5 billion in just the last five months and yet more than one analyst out there thought the company wasn't raising enough. The secondary offering of 178.1 million shares of stock was priced at $25.27 and no surprise here but shares closed at $25.27, down 4% on the session. Hopefully this is a short-term bottom for the stock but we would still consider buying bounces in the $25.00-24.50 zone. We are raising our stop loss to $24.24. We have two targets. Our first target is the $27.50-28.00 zone. Our second, more aggressive target is the $29.70-30.00 range.
Picked on April 21 at $24.50 *triggered
Citi Trends - CTRN - close: 21.14 change: -0.91 stop: 19.45
Shares of CTRN reversed with the market this afternoon. We're still waiting on a pull back toward support near $20.00. Our suggested entry point to buy the stock is the $20.25-19.75 zone. If triggered we will have two targets. Our first target is the $22.40-22.50 range. Our second target is the $24.00-25.00 range. We do not want to hold over the late May earnings report (still unconfirmed date). The P&F chart is bullish with a $29.00 target.
Picked on April xx at $xx.xx <-- see TRIGGER
Gerdau S.A. - GGB - close: 38.73 chg: +2.20 stop: 36.49 *new*
It was a big day for GGB and the Brazilian stock market. Standard & Poor's raised their rating on Brazil's credit to investment grade and the Bovespa index soared to new highs up 6%. Shares of GGB followed with a 6% gain of its own after hitting a new high at $39.44. We are almost out of time. While we can't confirm the earnings date we suspect that GGB will report on May 2nd. Therefore we plan to exit tomorrow, May 1st, at the closing bell. Our target remains the $39.75-40.00 zone but we're raising the stop loss to $36.49.
Picked on April 10 at $36.84
iShares Telecom - IYZ - close: 25.28 chg: +0.00 stop: 23.49
The IYT closed unchanged on the day, which is a lot better than most of the market. The telecom ETF is testing technical resistance at its 100-dma. We also think it looks short-term overbought given its three-week rebound. We are suggesting that readers take some money off the table right here. Sell it before we see a dip back toward $24.50, which should be short-term support. We're not suggesting new positions. Our new target is the $25.50-26.00 zone. Our second target is the $27.85-28.00 zone. This is not a very fast moving equity and it could take weeks to hit our second target.
Picked on March 25 at $23.50 *triggered
Lamar Advertising - LAMR - cls: 39.54 chg: -0.04 stop: 37.47*new*
LAMR rallied to overhead resistance at its 100-dma near $40.85 and reversed giving back all of its intraday gains. This is bearish and a clear failed rally pattern. We are expecting a pull back toward the $38.50 zone. We are raising our stop loss to $37.47. The stock has already hit our early target in the $39.90-40.00 zone. Our second, more aggressive target is the $42.50-45.00 zone. We do not want to hold over the May 7th earnings report. FYI: The Point & Figure chart is bullish with a $48 target.
Picked on April 23 at $37.47 *1st target hit
Lowe's Cos. - LOW - close: 25.19 change: -0.33 stop: 24.24
LOW continues to bounce around the $25-26 zone. Look for another bounce from $25.00 as a new entry point for bullish positions. More conservative traders might want to ratchet up their stop loss a bit. Our four-week target is the $27.90-28.00 range. We do not want to hold over the late May earnings report. The P&F chart is bullish with a $39 target but LOW is facing immediate resistance on its Point & Figure chart.
Picked on April 27 at $26.02
PowerShares India - PIN - close: 26.68 chg: +0.05 stop: 25.74
The PIN is still inching higher although I wouldn't be surprised to see some weakness tomorrow if the overseas markets turn lower on the U.S. market's afternoon reversal. If you're looking for a new entry point then wait for a dip near the 10-dma or the $26.00 level. We're trying to keep our stop loss tight at $25.74, under the recent dip. Our target is the $27.85-28.00 zone.
Picked on April 24 at $26.39
S&P SPDR Homebuilders - XHB - cls: 22.12 chg: -0.88 stop: 21.45
Homebuilders crashed following the fed decision. The HGX index lost 2.8%, the DJUSHB lost 5.6%, and the XHB fell 3.8%. We would expect the rising 50-dma near $21.60 to be support. Buy a dip or bounce in the $21.75-21.60 zone. We have two targets. Our first target is the $24.40-25.00 range. The $25.00 level will probably be resistance. Our second, much more aggressive target is the $27.00-27.50 range. The Point & Figure chart is very bullish with a $35.00 target.
Picked on April 24 at $22.67
Short Play Updates
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