Long Play Updates
Buckle Inc. - BKE - close: 51.50 change: +0.03 stop: 48.45 *new*
The RLX retail index under performed the market today and the BKE followed suit. Shares did rebound from their intraday lows near $50. We are raising our stop loss to $48.45 since BKE has not traded under $49.50 for almost two weeks. 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: 37.50 change: +0.11 stop: 35.75
Bulls continue to buy the dips in MASI but the stock failed to make much headway today. Volume was very light. More conservative traders might want to inch up their stops toward $36.40ish. Our target is $41.25. We do not want to hold over the August 4th earnings report.
Picked on July 27 at $37.57
Terra Industries - TRA - cls: 55.72 chg: +3.56 stop: 49.95 *new*
Many of the fertilizer-related stocks did well today and TRA helped lead the pack with a 6.8% gain. The stock hit $55.84 intraday. Readers should prepare to take some money off the table or more conservative traders may want to do so now. Our first target is at the $56.00 mark. We do have a second target at $59.85 but traders should do some profit taking near $56.00 around its June 2008 highs. We are raising the stop loss to $49.95. More conservative traders may want to place their stop at $51.30 instead.
Picked on July 28 at $51.30
Short Play Updates
Nordstrom - JWN - close: 29.19 chg: +0.15 stop: 31.51
The early morning rally in JWN faded after shares hit $30.14. The stock continues to have a bearish trend of lower highs and this can be used as a new entry point for shorts. If you prefer more momentum then you may want to wait for a new low under $28.00 before initiating positions. 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
Closed Long Plays
Sanofi-Aventis - SNY - cls: 36.42 change: +0.39 stop: 35.75
We have run out of time with SNY. The company is due to report earnings tomorrow morning. It was out plan to exit today at the closing bell.
Picked on July 22 at $36.55 *triggered
Closed Short Plays
Big Lots - BIG - close: 30.49 change: +0.79 stop: 30.51
The short-covering in BIG continued into Wednesday and the stock shot to $30.75 early this morning. Our stop loss was set at $30.51. BIG still has a six-week trend of lower highs and resistance near its 50-dma so traders looking for a bullish entry point may want to wait for a move over $32.00 first.
Picked on July 27 at $27.79 /stopped out 30.51
iShares Brazil - EWZ - close: 78.55 change: +1.41 stop: 80.75
Strength in the Brazilian currency, the real, and a big bounce in crude oil prices helped fuel a huge 3.3% oversold rally in the Brazilian Bovespa index. This produced a pop in the EWZ and shares gapped open at $80.58 and eventually hit $82.60 before the day's end. Our stop loss was at $80.75. Today's move in the EWZ is bullish with the breakout over resistance near $80 and its trendline of lower highs.
Picked on July 24 at $77.50 /stopped out $80.75
Chem.& Mining Co. of Chile - SQM - cls: 42.02 chg: +3.68 stop: 40.55
Wednesday brought a big bounce for the fertilizer-related agriculture stocks and SQM out performed most of its peers with a 9.6% gain and a rocket-like move back above resistance near $40. Shares quickly hit our stop loss at $40.55 ending the play. When the rally broke through SQM's six-week trendline of lower highs the shorts ran for cover!
Picked on July 24 at $38.67 / stopped out 40.55