Long Play Updates
Peabody Energy - BTU - close: 65.31 change: -0.50 stop: 61.49
Coal stocks did not escape the market-wide profit taking today but shares of BTU definitely out performed the broader market with smaller loss. We are suggesting investors buy a dip in the $63.50-63.00 range. Our target will be the $69.50-70.00 range.
Picked on May xx at $xx.xx <-- see TRIGGER
Citi Trends - CTRN - close: 20.36 change: -0.60 stop: 18.99
CTRN has been looking vulnerable the last couple of days. The stock lost 2.8% today and hit an intraday low of $20.16. We are suggesting readers buy a dip in the $20.05-19.50 range. 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. FYI: In the news today after the closing bell CTRN announced a 13.5% increase for its first-quarter sales but only a 0.3% rise in same-store sales. The retail sector could be volatile tomorrow as investors react to a parade of same-store sales figures and guidance.
Picked on April xx at $xx.xx <-- see TRIGGER
Excel Maritime - EXM - cls: 42.97 chg: -2.09 stop: 39.95
Caution! We're urging a lot of caution in EXM tonight. A number of the shipping stocks struggled today and we're seeing potential bearish reversals. EXM has produced what might be a bearish double-top pattern and a bearish engulfing candlestick pattern. The stock looks poised to retrace lower toward the $40.00 region. We are NOT suggesting new positions at this time. More conservative traders may want to exit early right now. You could always jump back in later. Our target is the $49.00-50.00 range. We do not want to hold over the May earnings report. Our challenge is that the report date us unconfirmed. One source suggests that EXM might report as early as May 15th. This could be a very quick play since we will try to avoid holding over earnings.
Picked on May 04 at $43.12
Kohl's - KSS - close: 48.72 change: -0.09 stop: 48.49
KSS continued to drift sideways under resistance near $50 and its 200-dma. We are waiting on a breakout higher. Right now our suggested entry point to buy KSS is at $51.05. This is going to be a short-term play as we don't want to hold over the May 15th earnings report. If triggered at $51.05 we have two targets. Our short-term target is the $54.90 mark. Our secondary target is the $58.00-60.00 zone. The P&F chart looks very bullish with a $67 target. FYI: The retail stocks could see a lot of volatility tomorrow as the market reacts to the latest same-store sales figures.
Picked on May xx at $xx.xx <-- see TRIGGER
Contango Oil - MCF - close: 81.25 change: -0.45 stop: 76.75
MCF pulled back to the $79.20 level but bulls bought the dip. The afternoon rebound back above $80.00 looks like another entry point to buy the stock. More conservative traders might want to tighten their stops toward $78.00. Our target is the $88.00-90.00 range. FYI: One risk is earnings. We can't find a good earnings report date for MCF and we would not want to hold over the announcement.
Picked on May 06 at $81.70
Terra Ind. - TRA - close: 40.78 change: -0.77 stop: 37.95
The popular fertilizer stocks could not maintain their gains and the group turned lower as the market headed south this afternoon. TRA lost 1.8%. A bounce at $40 or anywhere in the $40-38 zone can be used as a new entry point for bullish positions. This can be a volatile group so expect some big swings. Our target is the $47.00-48.00 range.
Picked on May 04 at $40.03
S&P SPDR Homebuilders - XHB - cls: 22.29 chg: -0.71 stop: 21.69
The homebuilders continue to bounce around their trading range. The XHB slid lower all session but held above the $22.00 level and its pattern of higher lows. More conservative traders might want to tighten their stops closer to the $22.00 mark. 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
Closed Long Plays
Credicorp - BAP - close: 83.19 change: +1.05 stop: 79.99
Oh so close! BAP soared to $84.64 this morning and then slowly faded into the closing bell. Our target has been the $84.75-85.00 range. It was our plan to exit tonight at the closing bell to avoid earnings. We will keep an eye on BAP for another entry point given the stock's strong bullish trend.
Picked on April 28 at $80.51 */exiting early
Citigroup - C - close: 24.48 change: -1.39 stop: 24.50
Financials were already weak but an afternoon press release from the SEC just poured fuel on the fire and the losses accelerated in the banking stocks. C had been drifting toward the $25.00 level and then just plunged through $24.50 hitting our stop loss. Evidently the banking stocks did not react kindly to a new SEC rule that requires financial institutions to disclose their capital and liquidity levels. Financials stocks plunged as investors feared another huge wave of losses and write downs would be needed. What's really frustrating for us is that C had hit a high of $27.35 several days ago. Our initial target was $27.50.
Picked on April 21 at $24.50 */stopped 24.50
Lowe's Cos. - LOW - close: 24.93 change: -0.48 stop: 24.99
Home improvement retailers like LOW and HD both turned lower today. LOW was holding above the $25.00 level until the market's sell-off picked up speed late this afternoon. Shares of LOW eventually hit our stop loss at $24.99. The intraday chart now shows a potential (bearish) H&S pattern over the last several days.
Picked on April 27 at $26.02 /stopped 24.99
PowerShares India - PIN - close: 25.60 chg: -1.08 stop: 25.95
After three weeks of steady gains it looks like traders panicked a little and sold off the PIN investments except that volume was low. That suggests there were some sellers coupled with a real absence of buyers. The PIN lost more than 4% and hit our stop loss at $25.95. Broken resistance at the $26.00 and $25.75 levels should have been support but it's possible there just isn't enough of a history yet for support and resistance to truly develop and influence this equity.
Picked on April 24 at $26.39 /stopped 25.95
Wachovia - WB - close: 28.71 change: -1.37 stop: 28.89
Yesterday when WB said that they would restate earnings and raise their first quarter losses by 80% it seemed the worst was behind them and investors bought the stock. The bounce failed today. Financials were weak all day and the sell-off in banks picked up speed this afternoon after a new SEC rule was announced requiring additional disclosure of capital and liquidity levels. WB broke down under short-term support near $29.00 and hit our stop loss at $28.89.
Picked on May 06 at $30.08 /stopped 28.89
Closed Short Plays