Long Play Updates
Cal-Maine Foods - CALM - close: 40.45 change: +1.26 stop: 37.95
The market strength may have saved us in CALM. Yesterday shares produced what appeared to be a failed rally. There was no follow through lower today. CALM actually closed over $40.00 for the first time ever (not accounting for stock splits). The MACD just produced a new buy signal. We would be willing to consider new bullish positions here but readers might want to cinch up their stop loss. Our first target is $44.90. Our second target is $49.00. The P&F chart is bullish with a $56 target. CALM has HUGE short interest. The most recent data listed short interest at almost 92% of the 14.2 million-share float. A new high could spark another short squeeze.
Picked on August 04 at $40.75 *triggered
Short Play Updates
Broadcom - BRCM - close: 25.33 change: +1.09 stop: 25.55
The bears may be in trouble. BRCM closed over resistance at the $25.00 level, over the 100-dma, over the 10-dma and over the 200-dma. This was supposed to be significant resistance but a 300-point move in the DJIA may have sparked some additional short covering. At this point we expect to be stopped out tomorrow morning at $25.55. We also have to consider that BRCM might gap open higher tomorrow since CSCO's positive news tonight could fuel a strong open for tech stocks. We are not suggesting new bearish positions at this time. The Point & Figure chart is bearish with a $16 target. We have two targets. Our first target is $20.50. Our second target is $17.50. Expect the $20.00 zone to offer some round-number, psychological support.
Picked on August 03 at $23.99
Capital Trust - CT - close: 14.85 change: +0.47 stop: 16.90
CT dipped to another new low today but the market's widespread strength was enough to lift CT to a 3.2% gain. The candlestick produced today looks like a potential bullish reversal pattern. We would expect a bounce back to CT's 10-dma near $16.75. More conservative traders may want to tighten their stop loss to limit their risk. We're not suggesting new positions at this time. A failed rally under the 10-dma would look like a new bearish entry point. We have two targets. Target one is $12.55. Target two is $10.25. The Point & Figure chart is bearish with an $8.00 target.
Picked on August 04 at $14.38
Nordstrom - JWN - close: 29.28 chg: +1.09 stop: 30.51
Retail stocks were big winners today. The RLX retail index, with its 5.4% gain, was one of the best performers. Shares of JWN added 3.8% and is edging closer to a bullish breakout from its consolidation pattern. Don't forget that we do have some risk of a short squeeze. The latest data put short interest at 17% of JWN's 160-million share float. That's close to five days worth of short interest. 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
Closed Short Plays