Long Play Updates
Adaptec - ADPT - close: 3.30 change: +0.04 stop: 3.19
ADPT displayed some relative strength as traders bought the dip again. ADPT slipped to $3.20, just above its 200-dma, and rebounded. The trend remains positive but we remain on the defensive here. We're not suggesting new positions at this time. Our first target is $3.50. Our secondary, more aggressive target is $3.70. 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
BPZ Resources - BZP - close: 26.42 change: -0.94 stop: 24.45
It was a painful session for BZP. The stock gave up 3.4% and the profit taking may not be over yet. We're not suggesting new positions at this time. Wait and watch for a dip near its 10-dma (near $25.50) or a bounce near $25.00 before considering new bullish positions. BZP has already exceeded our first target at $27.50. Our secondary target is the $29.90 mark. The Point & Figure chart is bullish with a $40 target.
Picked on June 12 at $25.53 / 1st target hit $27.50
Crown Castle Intl. - CCI - close: 42.47 chg: +0.45 stop: 39.95
CCI continues to show relative strength as traders buy the dip. We don't see any changes from our previous comments and would still consider new positions here. The bull flag pattern is forecasting a $50 target. Coincidentally the Point & Figure chart is forecasting a $49 target. Our first target is $44.95, since the $45.00 level might be round-number resistance. Our second target is $47.25. We're putting our first stop at $39.95 but more conservative traders may want to consider a stop loss near $41.00 or even under today's low at $41.50.
Picked on June 18 at $42.02
Cognizant Tech. - CTSH - close: 36.71 change: +0.98 stop 33.90
CTSH hit a new relative high and traded above its early June peak before paring its gains near the closing bell. The intraday high was $37.10. We're not suggesting new bullish positions at this time. Our target is the $38.00 mark. The P&F chart is much more bullish with a $49 target. We do not want to hold over the late July earnings report.
Picked on June 12 at $34.57
SLM Corp. - SLM - close: 23.63 change: -0.19 stop: 21.75
SLM failed to make any progress on Thursday but investors did buy the dip again near $23.00. We would still consider bullish positions here but you may want to tighten your stops. Our target is the $28.00-29.00 range or the 200-dma, whichever one SLM hits first. We are adjusting the stop loss to $21.75.
Picked on June 16 at $24.25 *triggered
Steel Dynamics - STLD - close: 40.67 change: +1.51 stop: 36.49
Thursday proved to be a strong session for STLD. The stock reversed higher and added 3.7% by the closing bell. This is a new all-time high and a breakout over resistance near $40.00. We would use this as a new entry point. Patient traders may want to wait until Friday afternoon as STLD may gravitate toward the $40.00 mark since tomorrow is the last day before June option expiration. Our target is the $44.00-45.00 range. We do not want to hold over the July earnings report. The P&F chart is bullish with a $50 target.
Picked on June 17 at $40.17 *triggered/gap open entry
Short Play Updates
Amer.Capital Strat. - ACAS - cls: 27.95 chg: -0.03 stop: 31.05
We are reiterating yesterday's comments that readers may want to start doing some profit taking. ACAS dipped to $27.25 before bouncing back to almost unchanged. This move looks like a potential short-term bottom. Do some profit taking now before ACAS bounces back to its 10-dma. We are aiming for the January 2008 lows so our target is the $26.50-26.00 zone. The P&F chart is bearish with a $22 target. FYI: It is important for readers to note that ACAS has above average short interest. A lot of investors have seen the trend and they're piling on. The most recent data listed short interest at 15.5% of the 199-million share float. That is more than a week's worth of short interest and raises the risk of a short squeeze.
Picked on June 08 at $30.95
Allstate - ALL - close: 48.65 change: -0.15 stop: 51.51
ALL slipped to another relative low. It's probably time to expect another bounce toward the 10-dma again. ALL is not a very fast moving stock so it might test your patience. We're suggesting a stop loss at $51.51 but more conservative traders might want to put theirs near $51.00 instead. Our target is the $45.25-45.00 zone.
Picked on June 11 at $49.31
Darden Rest. - DRI - close: 32.14 change: +0.74 stop: 34.55
DRI got a bit of a pop today. Watch for another failed rally in the $32.70-32.85 zone as a potential entry point for new shorts. More conservative traders will want to consider lowering their stops. We have two targets. Our first target is $30.10. Our second target is $27.75.
Picked on June 13 at $32.50 *triggered
Kraft Inc. - KFT - close: 29.64 change: -0.36 stop: 31.25 *new*
Shares of KFT are just collapsing. The stock posted another loss in a string of losses. Eventually KFT will see an oversold bounce. We are adjusting our stop loss to $31.25. We're not suggesting new positions at this time. Our target is $29.00.
Picked on June 11 at $30.78
Paychex Inc. - PAYX - close: 33.26 change: +0.66 stop: 34.17 *new*
Hmm... it was not a great day for the bears in PAYX. The stock bounced from its lows, added 2%, and produced a bullish engulfing candlestick pattern. At this time we'd look for a rebound toward $33.85-34.00. In an effort to reduce our risk we're adjusting the stop loss to $34.17. We're not suggesting new positions. 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
Patterson Cos. - PDCO - close: 31.57 change: +0.39 stop: 33.25 *new*
After plunging to new four-month lows this week PDCO finally bounced. We're not suggesting new positions at this time. We are adjusting the stop loss to $33.25. Our target is the $30.50-30.00 zone. The P&F chart is bearish with a $28 target. FYI: The most recent data listed short interest at about 11% of the 98 million-share float. That is a relatively high degree of short interest for this stock.
Picked on June 03 at $33.42
PowerShares QQQ - QQQQ - close: 48.77 change: +0.75 stop: 49.26
Tomorrow could be a make or break day for our bearish play. The QQQQ's rebounded from their lows today and challenged resistance near $49.00. A breakout over $49.00 could forecast a rally back to the June highs. We're not suggesting new positions at this time. Our target is $46.10. The $46.00 level and its 100-dma might be support.
Picked on June 17 at $48.54
Closed Long Plays
BJ Services - BJS - close: 32.10 change: -0.67 stop: 30.45
Target achieved. Oil service stocks spiked higher this morning and BJS opened at $33.25. Unfortunately, the rally didn't last long thanks to a sell-off in crude oil. Our target was the $33.00-34.00 zone.
Picked on May 28 at $30.45 /target achieved 33.25 gap open
Closed Short Plays