Long Play Updates
Avis Budget Group - CAR - close: 14.02 chg: -0.92 stop: 12.99
Shares of CAR crumpled under the market's sell-off today. The stock lost more than 6% with a dip to the $14.00 level. In light of the market's broad-based weakness today we're adjusting our suggested entry point in CAR. Instead of buying a dip in the $13.85-13.75 zone we're want to buy a dip in the $13.55-13.25 zone. Our stop loss will be adjusted to $12.99. If triggered our target is the $15.50-16.00 range or the 200-dma, which ever comes first. The Point & Figure chart is very bullish with a $22 target.
Picked on May xx at $xx.xx <-- see TRIGGER
Celanese Corp. - CE - close: 47.77 change: -0.96 stop: 45.95
CE gave back the majority of yesterday's gains. The stock is still trading with a bullish pattern of higher lows but that's not a guarantee it will move higher. More conservative traders may want to tighten their stops or exit early to lock in a minor gain. We're not suggesting new positions at this time. Our target is the $49.90-50.00 range. More aggressive traders may want to aim higher. The P&F chart is forecasting a long-term target of $74.
Picked on May 11 at $46.35
Agribusiness ETF - MOO - close: 61.70 chg: -1.29 stop: 60.75 *new*
Many of the fertilizer names were beat up today and the MOO followed them with a 2% decline. Trading today has produced a bearish engulfing candlestick pattern. We are raising our stop loss to $60.75. We'd rather get stopped out early to free us up to look for a new entry point down the road. We're not suggesting new positions at this time. 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.
Picked on May 08 at $61.79
Perdigao - PDA - close: 56.88 change: -2.20 stop: 54.95
The Brazilian stock market also suffered an afternoon sell-off thanks to the U.S. markets. Sao Paulo, Brazil is only one hour ahead of New York. The U.S. traded shares of PDA fell 3.7% and look poised to keep sliding. More conservative traders may want to give some thought to raising their stop loss near $56.00. We remain cautious here so we're not suggesting new positions at this time. Our target is $64.00.
Picked on May 13 at $57.74
Sterlite Ind. - SLT - close: 22.29 chg: -0.01 stop: 20.95
SLT displayed some relative strength by holding its previous gains. The question now is whether or not the Indian market will sell-off following today's weakness in the U.S. market. If the Indian market does move lower then shares of SLT might gap down tomorrow. We would use a dip in the $21.50-21.00 zone as a new entry point. Our target is the $25.75-26.00 zone. The Point & Figure chart is bullish with a $31 target.
Picked on May 19 at $22.25 *triggered
Short Play Updates
Closed Long Plays
iShares DJ US Oil & Gas - IEO - cls: 84.00 chg: -1.66 stop: 79.90
Surprise! The IEO actually closed lower today. The weekly oil inventory report delivered a surprising drop in oil inventories and this news sparked a fire under crude oil that soared to $133 a barrel. The USO rallied to a new high over $108. Yet the IEO actually reversed. That's because the IEO is following the oil stocks and not oil the commodity. The oil sector stocks were not immune to the widespread profit taking today. We're suggesting an early exit but we'll definitely keep the IEO on our watch list for another opportunity. The IEO had already surpassed our initial target at $85.00. Today's intraday high was $86.53.
Picked on May 13 at $81.06 /1st target exceeded 85.00
iShares DJ Oil Serv. - IEZ - cls: 75.94 chg: -1.04 stop: 71.90
It is the same story here with the IEZ. Instead of rallying with the price of crude oil today the IEZ sold off as investors sold oil service and equipment stocks. We are suggesting an early exit. The overall trend is still bullish so we'll keep the IEZ on our watch list for another opportunity. Today's intraday high was $78.47 - almost enough to hit our target at $79.00.
Picked on May 13 at $73.74
Lululemon Athletica - LULU - cls: 32.21 chg: -2.12 stop: 33.49
LULU may sell yoga gear but the stock looks a little bent out of shape today. The market's sell-off fueled a 6.1% decline in LULU. The stock has broken several short-term support levels and only bounced when it finally hit the 50-dma. LULU quickly traded through our stop loss at $33.49 closing the play. The stock is down over 12% in the last four sessions.
Picked on May 20 at $34.20 *stopped out 33.49
Oshkosh Corp. - OSK - close: 39.00 change: -0.91 stop: 38.99
OSK was bouncing along just fine until the afternoon sell-off and then shares just plunged. There was an intraday dip under $39.00, which was enough to hit our stop loss.
Picked on May 13 at $39.90
Timberland Co. - TBL - close: 17.32 chg: -0.65 stop: 17.35
Our bullish play on TBL didn't last long. Wednesday afternoon's sell-off left TBL stumbling to the tune of a 3.6% loss. The stock broke down under its 10-dma and came close to hitting the 200-dma. The intraday low was $17.20 so the play would have been stopped out at $17.35. Technical traders will note that TBL has produced a bearish engulfing candlestick pattern.
Picked on May 20 at $17.97
Wabash National - WNC - cls: 7.81 chg: -0.55 stop: 7.84
Sometimes the market just doesn't want to cooperate. It looks like we timed our new long on WNC perfectly to coincide with a bearish reversal and a 6.5% sell-off. The three-week consolidation where WNC had appeared to build a base of support has been completely erased with today's one-day decline. Our stop loss was at $7.84. More nimble traders may want to consider shorts under $7.75 and target the $7.00 region. However, be aware of the high short interest and the danger of a short squeeze.
Picked on May 20 at $ 8.36
Closed Short Plays