Long Play Updates
Celanese Corp. - CE - close: 48.40 change: +1.23 stop: 45.49*new*
Traders bought the dip in CE on Friday and the stock added 2.6% by the closing bell. Friday also marked yet another price increase by CE for some of its products, this time in the Asia region. The stock looks poised to hit our target in the $49.90-50.00 zone soon. We're raising our stop loss to $45.49 since the $46.00 level should be support. More conservative traders could probably use a tighter stop.
Picked on May 11 at $46.35
iShares DJ US Oil & Gas - IEO - cls: 82.84 chg: +2.29 stop: 77.99
Oil and energy stocks continued to show relative strength on Friday. The IEO rallied 2.8% to a new all-time high. Our only concern was the lack of volume. We're also a little bit concerned that crude oil might see a sell-off following expiration on Monday. We'd be tempted to exit early on Monday afternoon with a minor gain and step back for a couple of days to see what happens. At this time we're going to keep the play open but conservative traders may want to give it some thought. Our short-term target is $85.00. Our secondary, more aggressive target is $87.50. This should be considered a high-risk play.
Picked on May 13 at $81.06
iShares DJ Oil Serv. - IEZ - cls: 75.92 chg: +1.81 stop: 71.90*new*
Oil service stocks really out performed the market on Friday and the IEZ rallied 2.4% to a new high. We have the same concerns here as we do with the IEO. This sector is in rally mode but it could see some profit taking if crude oil sells off due to expiration after Monday's close. More conservative traders might want to exit early on Monday afternoon. We're going to keep the play open but we will raise our stop loss to $71.90. Our target is the $79.50-80.00 range. This should be considered a high-risk play.
Picked on May 13 at $73.74
Agribusiness ETF - MOO - close: 63.42 chg: +1.52 stop: 59.90 *new*
The MOO appears to be breaking out from its recent consolidation. This ETF rallied 2.4% on Friday and its MACD is nearing a new buy signal. We remain bullish here but readers might want to wait for a dip near $62.00 as a potential entry point. We have two targets. Our first target is the $65.50 level near its old highs. Our second target is the $68.00-70.00 range. Please note that we're inching up our stop loss to $59.90.
Picked on May 08 at $61.79
Oshkosh Corp. - OSK - close: 39.56 change: -0.11 stop: 38.75
OSK has under performed the last three or four days. In the larger scheme of things the stock is probably just digesting its previous gains. However, some of the short-term technicals are naturally decaying. We are going to keep the play open for now but if OSK doesn't deliver a close over $40.00 soon we'll probably exit early. More conservative traders might want to exit early now or raise their stop toward $39.00 or Friday's low near $39.19. Conservative traders could also wait for a rise past the 100-dma near $40.53 before initiating positions. Our eight-week target is the $44.50-45.00 range. We would expect some resistance near $42.00. The Point & Figure chart is bullish with a $57 target.
Picked on May 13 at $39.90
Perdigao - PDA - close: 61.75 change: +2.20 stop: 54.95 *new*
Volume improved on Friday but it was still below average. The rally continued in both PDA and the Brazilian markets. Shares of PDA soared almost 3.7% to a new multi-year high past potential resistance near $60.00. We would seriously consider taking some profits right here and then just jump in again on a dip near $59-58. We are raising the stop loss to $54.95. If you want a tighter stop consider something near $56 (or whatever suits your trading style). Please note we are adjusting the target to $64.00, down from $64.50. The P&F chart is bullish with a $69 target.
Picked on May 13 at $57.74
Short Play Updates
Closed Long Plays
IAC/Interactive Corp. - IACI - cls: 23.84 chg: +0.13 stop: 21.49
Target achieved. We recently adjusted our target to $24.00 and IACI complied by tagging the $24.00 level on Friday. The stock's rally looked a little overdone so we wanted to lock in a profit. Last week's breakout in IACI is very bullish and we'd keep an eye on it for another potential entry point on a dip near $22.00 or its 10-dma.
Picked on May 12 at $21.90 */target achieved 24.00
Terra Ind. - TRA - close: 45.97 change: -0.18 stop: 41.99
Target achieved. TRA spiked higher on Friday and traded to $47.21 before paring its gains. Our second target was the $47.00 level. We remain bullish on the fertilizer/agriculture stocks but this play is closed. We'll look elsewhere and keep TRA on our watch list.
Picked on May 04 at $40.03 /2nd target hit 47.00
Closed Short Plays