Long Play Updates
Buckle Inc. - BKE - close: 51.47 change: +0.78 stop: 47.69
BKE continues to bounce but once again the stock pulled back from its intraday highs. The short-term trend remains bullish with the pattern of higher lows. We would consider new bullish positions on this bounce but readers might want to use a tighter stop loss in the $48.50-49.50 region. 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
Masimo Corp. - MASI - close: 37.39 change: +0.70 stop: 35.75
The broad-based market rally on Tuesday was strong enough to lift MASI through resistance near $37.75 Unfortunately, the stock was unable to maintain those gains. We remain cautiously bullish here but more conservative traders might want to use a tighter stop loss. Our target is $41.25. We do not want to hold over the August 4th earnings report.
Picked on July 27 at $37.57
Sanofi-Aventis - SNY - cls: 36.03 change: -0.39 stop: 35.75
The relative weakness in SNY is not a good sign. Shares spiked down midday but managed an anemic bounce from the $35.80 region. We are not suggesting new positions and more conservative traders will want to consider an early exit right here to cut their losses. We don't have much time left. SNY is due to report earnings on Thursday morning before the opening bell. We do not want to hold over the announcement so we plan to exit on Wednesday at the closing bell. Our short-term target is $39.50.
Picked on July 22 at $36.55 *triggered
Terra Industries - TRA - cls: 52.16 chg: +1.03 stop: 48.45
TRA added about 2% by the closing bell and shares continue to look poised for a run toward their highs. We would still consider new positions here. Yesterday we suggested readers buy a dip near $50.00 and the intraday low today was $49.75. Our first target is $56.00. Our second target is $59.85. We'll try and play with a stop loss at $48.45, which may be too tight given the recent volatility.
Picked on July 28 at $51.30
Short Play Updates
Big Lots - BIG - close: 29.70 change: +1.43 stop: 30.51
Don't forget that BIG is a more aggressive play because the stock has a high amount of short interest. Shares ran for cover this morning and the stock spiked to $30.19. The initial fear faded and shares spent the rest of the session floating under the $30.00 level. A failure from here would be a new bearish entry point. Our target is $23.25 just above the 200-dma.
Picked on July 27 at $27.79
iShares Brazil - EWZ - close: 78.55 change: +1.41 stop: 80.75
The EWZ Brazilian ETF rebounded to a 1.8% gain. At this point we would expect a bounce back to what should be resistance near $80.00. Wait for the rally to roll over before considering new shorts. 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
Nordstrom - JWN - close: 29.04 chg: +0.90 stop: 31.51
High-end leather goods retailer Coach (COH) reported earnings today that were only inline with expectations and then issued an earnings warning. This negative guidance did not slow the short covering in retailers. The RLX added 4%. Shares of JWN ended the day up 3%. Look for a failed rally near $30.00 in JWN as a new bearish entry point. Our short-term target is the $25.05 mark. More aggressive traders may want to aim lower. We do not want to hold over the mid August earnings report.
Picked on July 27 at $28.94
Chem.& Mining Co. of Chile - SQM - cls: 38.34 chg: +0.66 stop: 40.55
SQM sank to new three-week lows before bouncing back. I suspect the rebound is short covering as bears grew more concerned on the market's big rebound. Wait for another failed rally under $40.00 before considering new bearish positions. 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
Pediatrix Medical - PDX - cls: 49.69 change: -0.23 stop: 49.40
PDX displayed relative weakness on Tuesday. Instead of bouncing with the market shares slipped toward $49.00. Our stop loss was at $49.40. If PDX trades under $48.50 or $48.00 more nimble traders may want to consider bearish strategies.
Picked on July 22 at $51.14 /stopped out 49.40
Closed Short Plays