Long Play Updates
Adaptec - ADPT - close: 3.16 change: -0.07 stop: 2.99
We talked about buying a dip near $3.15 and we got one today. Shares of ADPT pulled back to their rising 10-dma. This does look like an entry point but readers may want to wait for signs of a bounce first, especially with the major averages looking vulnerable. More conservative traders may want to consider a stop loss closer to $3.05. More conservative traders might also want to wait for a rally over $3.30 as an entry point. Our target is the December 2007 highs. We'll try to exit in the $3.65-3.70 zone. The stock can be somewhat volatile so we do consider this a higher-risk play. Our time frame is several weeks. FYI: The most recent data listed short interest at more than 7% of the 118 million-share float. Based on ADPT's average daily volume that is a lot of short interest and the stock could see a short squeeze.
Picked on May 28 at $ 3.25
Axsys Tech. - AXYS - close: 61.54 change: +2.38 stop: 55.99*new*
There is no slow down in the rally for AXYS. The stock added another 3.8% and broke through potential round-number resistance at $60.00. Volume was slightly above average on the day, which is positive. If you don't want to chase it then consider waiting for a pull back into the $59-58 zone. We are upping our stop loss to $55.99. Our target is the top of the channel in the 64.00-65.00 range.
Picked on June 01 at $59.16
BJ Services - BJS - close: 30.15 change: -0.05 stop: 28.95
BJS displayed some strength this morning but gave it all back and closed fractionally lower. The trend is still positive and we would still consider new positions on a bounce from here or a bounce in the $29.50 zone. Our initial target is the $33.00-34.00 range. The P&F chart is bullish with a $52 target.
Picked on May 28 at $30.45
AM Castle & Co - CAS - close: 32.03 change: -0.80 stop: 30.69
CAS was not immune to the almost market-wide profit taking. The intraday bounce from the $31.50 zone looks like a new bullish entry point to buy the stock. Our target is the $36.50-37.00 zone, which is just under its all-time highs. We're suggesting a stop loss under last week's low but more conservative traders might be able to get away with a slightly tighter stop.
Picked on June 01 at $32.83
Celanese Corp. - CE - close: 48.33 change: -0.37 stop: 46.85
CE continues to trade sideways but it has a very clear bullish pattern of higher lows. We remain optimistic but we're not suggesting new positions at this time until we see a breakout over $49.30 (aim for the second target). Our first target is $49.90-50.00. Our secondary, more aggressive target is the $52.50 mark. The P&F chart is forecasting a long-term target of $74.
Picked on May 11 at $46.35
Copa Holdings - CPA - close: 33.03 change: -0.44 stop: 31.40
The airline sector ran into some turbulence. The XAL index plunged 3.1%. Shares of CPA out performed its peers with a 1.3% decline. The intraday bounce from $32.00 looks like a potential entry point but you might want to consider a tighter stop loss under today's low. Our target is the $34.50-35.00 zone. FYI: More aggressive traders may want to aim for $36.00 or its 200-dma near 38.45.
Picked on May 27 at $31.40
Corning Inc. - GLW - close: 26.87 chg: -0.47 stop: 26.45
GLW is about to test its rising trendline of support. The stock lost 1.7% today, which can probably be blamed on the general market weakness. A bounce from here or the $26.50 mark could be used as a new entry point. Our target is the 2006 high at $29.60. FYI: The P&F chart is bullish with a $45 target.
Picked on May 27 at $27.27
General Motors - GM - close: 17.44 chg: +0.34 stop: 16.84
GM garnered a lot of attention today after a positive Barron's article over the weekend. The stock rallied almost 2% by the closing bell. The bounce looks like a new entry point to buy the stock. However, we are going to try and reduce our risk by raising the stop loss to $16.95. I suspect that if the market drops again tomorrow GM will retest the $17.00 level. Actually tomorrow could be volatile as GM holds its annual shareholder meeting and business update. The meeting begins around 10:15 a.m. Eastern. Our target is the $19.50 mark. The most recent data listed short interest at more than 17% of the 530 million-share float.
Picked on May 27 at $17.42
Mercury General - MCY - close: 51.01 change: +0.15 stop: 49.65
Traders continue to buy the dips in MCY. Today's rebound looks like another entry point to go long the stock. Our short-term target is the $54.00-55.00 zone. The P&F chart is a lot more bullish with a $68 target.
Picked on May 28 at $50.92 *triggered/gap higher entry
Sonoco Products - SON - close: 34.25 change: -0.37 stop: 32.89
SON provided a minor pull back on Monday. We see it as another entry point for bullish positions. Our target is the $38.00 level. The P&F chart points to a $51 target. FYI: SON is due to present at a basics and industrials conference on June 4th.
Picked on June 01 at $34.62
United States Cellular - USM - cls: 62.25 chg: -0.38 stop: 59.95
Investors bought the dip near $60.00 again. The intraday bounce looks like another entry point to go long USM. Our target is the recent highs in the $67.00-67.50 zone. More aggressive traders could aim for $70 or its 200-ema. The P&F chart is bullish with an $85 target.
Picked on June 01 at $62.63
Williams Cos. - WMB - close: 37.88 change: -0.16 stop: 37.25
WMB is consolidating sideways and we would expect a big move soon. The stock is either going to rally from its trendline of support or break it. More conservative traders could try and tighten their stops a little bit more. Thursday's high was $38.60. We'd wait for a rise over $38.60 before considering new positions. Our target is the $42.00-42.50 zone. More aggressive traders may want to aim higher. The Point & Figure chart points to $56.
Picked on May 22 at $38.40
WMS Industries - WMS - close: 37.35 change: +0.31 stop: 34.25
WMS continues to show relative strength. The stock posted another gain although it was off its highs of the session. We remain bullish but if you're looking for a new entry point wait for a dip. A pull back around $36 might work. Our target is the $39.50-40.00 zone. Note that we are adjusting our stop loss to $34.25.
Picked on May 28 at $36.05
Wal-Mart - WMT - close: 57.20 change: -0.54 stop: 55.85
WMT is acting normally here. We expected a dip back toward $57.00 and shares hit $56.52 instead. Our short-term target is the $59.00 level near its recent highs. More aggressive traders may want to aim higher. The Point & Figure chart points to a $68 target. We are going to tentatively set a secondary, aggressive target at $62.00 but we suggest readers take some money off the table at $59.00.
Picked on May 22 at $56.05
Short Play Updates
Expeditor's Intl. - EXPD - close: 46.29 chg: -0.79 stop: 47.51
Today's pull back is a tempting entry point to begin new shorts but consider waiting for another drop below today's low (45.95). We have two targets. Our first, short-term target is $42.50. Our secondary target is the $40.25 mark. The P&F chart is bearish with a $38 target. FYI: The most recent data listed short interest at 6% of the 209 million-share float.
Picked on May 28 at $45.65 *triggered
McDonald's - MCD - close: 58.55 change: -0.77 stop: 60.01
Right on cue shares of MCD pulled back following Friday's failed rally. The stock did bounce near $58 and its rising 50-dma, which is right where we said to look for a bounce. We might get another chance at shorts near $59.50 soon. Our first target is the $56.30-56.00 zone. We are contemplating a secondary, more aggressive target. Currently the P&F chart is still bullish.
Picked on June 01 at $59.32
Paychex Inc. - PAYX - close: 33.79 change: -0.76 stop: 36.16
PAYX under performed the market on Monday. The stock spiked lowered and broke down under short-term support near $34.00 and its 100-dma. This is good news for the bears. Our target is the $31.00-30.00 zone. FYI: The most recent data listed short interest at 5% of the 320 million-share float. That's several days worth of short interest.
Picked on May 22 at $34.87
Closed Long Plays
Avis Budget Group - CAR - close: 13.25 chg: -0.67 stop: 13.35
Ouch! The car rental stocks were hit hard today. We didn't see any specific news to account for the relative weakness. HTZ lost 3.9% and shares of CAR fell 4.8%. The stock hit our stop loss at $13.35 closing the play.
Picked on May 27 at $13.55 *triggered
Closed Short Plays