Long Play Updates
Buckle Inc. - BKE - close: 49.98 change: -0.45 stop: 47.69
Shares of BKE are still out performing the retail sector but that job could get tougher this week. The bounce in the RLX retail index is failing and the group could be poised to retest its lows. This would be a drag on BKE. We would still consider buying dips in BKE near its 10-dma or the $48.50 level but maintain a tight stop. More conservative traders might want to inch up their stop loss toward $48.00. Be patient and wait for signs of a bounce to open positions. Our target is the $57.50-60.00 zone. FYI: The Point & Figure chart is bullish with a $66 target. BKE has a high amount of short interest about 21% of the 15.5 million-share float. If BKE can hit a new relative high it could see a short covering rally.
Picked on July 22 at $51.69
Pacer Intl. - PACR - close: 23.75 change: +0.00 stop: 22.95
PACR gapped higher on Friday morning but eventually faded back down to its rising 10-dma. The overall pattern remains bullish but the stock might be due for a dip back to the $23.00 region. If it dips too much we'll be stopped out at $22.95. Wait for signs of a bounce near $23.00 before considering new bullish positions. 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.
Picked on July 16 at $22.71
Pediatrix Medical - PDX - cls: 50.53 change: -0.89 stop: 49.40*new*
Uh-oh! Trading in PDX the last couple of days has turned bearish. Thursday saw a failed rally near its 50-dma. Friday endured another failed rally at the 50-dma and a bearish engulfing candlestick pattern. If PDX closes under $50 the bulls could be in trouble. We're raising our stop loss to $49.40, which is still under the bullish trend of higher lows (see chart). Remember, our stops are intraday stops. If PDX hits $49.40 we're out. Wait for a bounce near $49.50 or $50.00 before considering new bullish positions. We have two targets. Take some money off the table at $54.75. Then we'll exit completely at $57.00.
Picked on July 22 at $51.14
Sanofi-Aventis - SNY - cls: 36.81 change: +0.52 stop: 35.75 *new*
Shares of SNY rallied on news that it was buying the British drug company Acambis for $549.5 million. SNY gapped above its 100-dma and closed up 1.4%. If SNY fills the gap look for a pull back into the $36.40-36.20 zone as another entry point to buy the stock. Keep in mind that we only have three days left. SNY is due to report earnings on Thursday morning before the opening bell. We do not want to hold over the announcement. We're adjusting our stop loss to $35.75 near its 10-dma. Our short-term target is $39.50.
Picked on July 22 at $36.55 *triggered
Short Play Updates
iShares Brazil - EWZ - close: 77.40 change: -0.10 stop: 80.75
The EWZ tried to bounce on Friday but struggled to make it into the green. We would still consider new shorts right here but if you're patient we might get another opportunity on a failed rally under $80.00. Just wait for a bounce and look for the rebound to stall under the $80.00 level. The Brazilian Bovespa index broke down under very significant support this past week so the overall trend should remain lower. We are aiming for the $72.50 mark. We're suggesting a stop loss above Thursday's high. Our time frame is about six weeks.
Picked on July 24 at $77.50
Genoptix - GXDX - close: 29.17 change: -0.01 stop: 30.25 *new*
GXDX has been stuck trading sideways the last three sessions. We are adjusting the stop loss to $30.25. Look for a clear, failed rally under $30.00 or a new decline under $28.75 or $28.50 before initiating new short positions. You may not want to open new positions given our time frame. GXDX is due to report earnings after the closing bell on Thursday, July 31st. Unfortunately, that means the stock could continue to churn sideways as investors wait for the earnings news. We plan to exit ahead of the earnings announcement. This remains an aggressive, higher-risk play. Biotechs tend to be more aggressive plays in general. Investors are always at risk for a negative or positive headline about the latest clinical trial or FDA decision that could send the stock gapping open. We have two targets. Our first target is $25.50. Our second target is $22.75.
FYI: It has come to my attention that borrowing shares of GXDX to short may be a challenge!
Picked on July 20 at $28.06
Chem.& Mining Co. of Chile - SQM - cls: 38.43 chg: -0.24 stop: 40.55
SQM experienced some volatility on Friday with a bounce up to $40.48 before giving it all back and closing negative. Strength in the some of the fertilizer and potash stocks could have accounted for the early rally in SQM. Friday's intraday reversal looks like another entry point for shorts. We're going to leave our stop loss at $40.55 but more aggressive traders may want to up their stop to north of $41.00. If the North American fertilizer stocks rally on Monday SQM could try and follow them higher again. The $41.00 level and the 50-dma (41.75) look like overhead resistance for SQM. We have two targets. Our first target is $35.15. Our second target is $32.00. The Point & Figure chart is bearish with a $30 target.
Picked on July 24 at $38.67
Closed Long Plays
Closed Short Plays