Long Play Updates
Air Methods - AIRM - close: 29.65 change: +0.94 stop: 27.52*new*
Target exceeded. Some positive analyst comments and a new "buy" rating on AIRM helped the stock rallied to $30.32 on Friday. Our first target was the $29.95 mark. After a strong week it might be time for a correction before the rally continues. A dip back toward broken resistance around $28.00 should not be unexpected. We're raising our stop loss to $27.52 (breakeven). We do have a secondary, more aggressive target at $32.00. We do not want to hold over the early August earnings report. FYI: AIRM has a high amount of short interest, almost 20% of the float according to the latest data. This raises the risk of another short squeeze, which would be great for the bulls.
Picked on July 16 at $27.52 /first target exceeded 29.95
Garmin - GRMN - close: 45.04 chg: -1.59 stop: 43.85 *new*
Friday was not a good day for GRMN. Last week's breakout higher reversed and the stock produced a bearish engulfing candlestick. Shares closed right on the $45.00 level as market makers pinned the stock at a strike price for July option expiration. This week will be key. Will GRMN rally from what should be new support at $45.00? Or will it breakdown and trade back toward the bottom of its previous trading range. We are turning more cautious on GRMN and raising our stop loss to $43.85. Our target is the $49.50 mark. We do not want to hold over the July 30th earnings report. FYI: It's possible that GRMN could react to AAPL's earnings report on Monday night depending on what AAPL has to say about their iPhone sales. Although I doubt GRMN will move much on the AAPL news since a lot of the iPhone news is known.
Picked on July 08 at $44.10
Masimo Corp. - MASI - close: 36.45 chg: -0.13 stop: 34.45
MASI looks like it's still trying to bounce if you check out the intraday chart. Unfortunately, some of the short-term technical oscillators are actually growing more bearish. We're not suggesting new positions at this time. More conservative traders might want to tighten their stops closer to the $35 level. MASI announced that it would report earnings on August 4th, after the closing bell. The P&F chart is positive with a $56 target. Our target is the $39.95 mark. More aggressive traders could aim for the highs near $42.00 but we do not want to hold over the earnings report.
Picked on July 09 at $35.65 *triggered
Pacer Intl. - PACR - close: 24.44 change: +0.19 stop: 21.45 *new*
PACR rallied to another 52-week high on Friday. The stock did pare its gains by the closing bell. Shares do look a little overbought so don't be surprised if there is a correction toward $23 again. We are raising our stop loss to $21.45. Our target is the $25.85 mark. We do not want to hold over the early August earnings report. FYI: PACR also has a high amount of short interest around 19% of the float. We could be seeing a shorts squeeze.
Picked on July 16 at $22.71
Ultra Financials - UYG - close: 20.40 change: +0.84 stop: 17.30*new*
The short covering in financials seemed to run out of steam on Friday. The UYG is up significantly this week. Readers will want to seriously consider taking some money off the table right here! We're raising our stop loss to $17.30. Don't be surprised if the UYG corrects back to $18.50-18.00. This is a very aggressive play. Our target is the $22.50 mark.
Picked on July 16 at $17.30
Short Play Updates
Closed Long Plays
Broadcom - BRCM - close: 28.79 change: -0.28 stop: 27.49
We are dropping BRCM as a bullish candidate. The stock has failed to breakout over resistance near $30.00 and we're running out of time. The company is due to report earnings early next week. We had been suggesting a trigger to buy it at $30.05, which was never hit.
Picked on July xx at $xx.xx <-- see TRIGGER
FLIR Sys. - FLIR - close: 45.10 change: +0.74 stop: 40.85
Target exceeded! FLIR rallied again and the stock hit an intraday high of $45.35. Shares broke to a new high on strong volume, which can be a bullish sign. Our target to exit was $44.95. We suggested earlier that more aggressive traders may want to aim higher. FLIR looks strong here with the close over $45.00. If you haven't closed this position yet don't forget that FLIR is due to report on July 24th this week.
Picked on June 29 at $41.38 /target exceeded
Closed Short Plays
ICICI Bank - IBN - close: 30.00 chg: +0.98 stop: 30.15
It has been an amazing week for IBN. The stock has rallied more than 33% from last Tuesday's low (intraday low to Friday's intraday high). The stock hit our stop loss at $30.15 on Friday. The stock portion of our play is closed. We also had a call option, the August $30.00 call (IBN-HF), which hit $2.75 on Friday. Our loss on the stock was $3.54 but at the best levels on Friday the gain in the call was $1.55 (our cost on the call was estimated at $1.20). Our estimated loss for the entire position is $1.99. These numbers involve a little bit of guesswork and if you haven't sold the call yet IBN could continue to rally. When to sell the August $30 call is up to you. You could sell it now and reduce the loss on the stock. Or you could hang on to it and see if the financials continue to rally, in which case you could still turn a profit.
Picked on July 13 at $26.61 /stopped out 30.15
UBS Ag - UBS - close: 21.48 change: +0.96 stop: 20.75
UBS soared another 4.6% on Friday, which out performed the BIX and BKX indices and the XLF. Shares of UBS actually gapped open on Friday morning at $21.44, which was bad news since our stop loss was $20.75. This exaggerates our estimated loss on the stock. Of course we also suggested buying the August $22.50 call. Our estimated cost was $0.80 and currently it's trading around $1.15. Readers have to choose when they want to sell the call option. You could sell it now and reduce the loss on the stock or you could hang on to it. If UBS continues to rally the option could eventually erase all of our loss. It's going to be a tough decision. UBS could be due for a dip after such a big bounce. A pull back to $20.50-20.00 would not be out of the ordinary but that would do a lot of damage to the option value.
Picked on July 13 at $19.49 /stopped out 21.44 (gap higher)