Long Play Updates
Cal-Maine Foods - CALM - close: 43.42 change: +2.97 stop: 39.24*new*
CALM displayed some very impressive relative strength today with a 7% gain on strong volume. The stock hit an intraday high of $44.10. That's within 80 cents of our first target. We're not suggesting new positions at this time but we are adjusting the stop loss to $39.24. 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
Oriental Fncl. - OFG - cls: 18.78 chg: -0.11 stop: 17.25
It was a quiet session for OFG. The stock traded sideways in a pretty narrow range. We are still waiting for a dip. Our plan is to buy a dip in the $18.25-18.00 zone. If triggered our short-term target is the $19.95 mark. More aggressive traders may want to aim higher. If OFG can trade over $19.00 it will produce a brand new triple-top breakout buy signal on the Point & Figure chart.
Picked on August xx at $xx.xx <-- see TRIGGER
Terra Industries - TRA - cls: 47.29 change: +0.77 stop: 43.35
TRA did indeed continue its bounce but the rally struggled midday. We would still consider new positions here or on a dip above $45.00. Our target is another rally to the $54.00-55.00 range. FYI: More conservative traders may want to play with a stop loss closer to $44.50 or $45.00 instead!
Picked on August 05 at $46.52
Olympic Steel - ZEUS - cls: 54.39 chg: +1.89 stop: 47.99
Shares of ZEUS are off to a good start with a 3.5% gain. Our only complaint would be the lackluster volume. The stock is nearing potential resistance at the $55.00 level. Our target is $58.50. We're suggesting a stop loss under today's low. More conservative traders may want to consider a stop loss closer to $50.00 instead.
Picked on August 05 at $52.50
Short Play Updates
Capital Trust - CT - close: 16.44 change: +1.59 stop: 16.90
Yesterday we cautioned readers that CT might bounce up to its simple 10-dma. That's exactly what happened today. The stock rallied more than 10% but stalled at its 10-dma. Shares have been very volatile and CT is already up about 25% from Tuesday's lows. Wait for a new decline under $16.00 to open positions. More conservative traders may want to tighten their stops! 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: 28.96 chg: -0.32 stop: 30.16 *new*
There was no follow through rally in the retailers today but many are arguing that a lack of any serious profit taking should be seen as relative strength. JWN continues to coil more tightly into the point of its pennant-shaped pattern. A breakout is imminent. The question is what direction will the breakout be? We are adjusting the stop loss to $30.16. We are not suggesting new positions at this time. 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
Broadcom - BRCM - close: 25.34 change: +0.01 stop: 25.55
We warned readers yesterday that BRCM would probably hit our stop loss at $25.55 today. It is very interesting that BRCM only managed a 1-cent gain and you could argue that today's session produced a mini, bearish-double top pattern around $25.75. We would keep an eye on BRCM and watch for a move under $24.00, which may be a new entry point for bearish strategies.
Picked on August 03 at $23.99 /stopped out 25.55