Long Play Updates
Cal-Maine Foods - CALM - close: 42.05 change: -1.37 stop: 39.75*new*
CALM stepped backwards with a 3% decline following yesterday's short covering rally. The trend is still up but CALM could easily dip back toward $40. We're not suggesting new positions at this time. Please note that we are adjusting our stop loss to $39.75. 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: +0.00 stop: 17.25
Our bullish play on OFG has been opened. Shares dipped to $18.04 this morning before bouncing back to close unchanged. We were suggesting readers buy OFG on a dip into the $18.25-18.00 zone. While the trend in OFG still looks bullish we're growing more cautious on the financials, especially after today's sector-wide weakness. More conservative traders will want to strongly consider a tighter stop loss on this play. 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 08 at $18.25 *triggered
Short Play Updates
Capital Trust - CT - close: 14.85 change: -1.59 stop: 16.60 *new*
CT erased yesterday's gains and the stock produced a failed rally at its 10-dma. This move looks like another entry point to short the stock. We're adjusting our stop loss to $16.60. 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: 27.98 chg: -0.98 stop: 30.16
The retailers under performed after some less than stellar same-store sales numbers. JWN's same-store sales figures were minus 6.1%. The stock looks poised to breakdown from here. We are suggesting new shorts now. More conservative traders may want to wait for a new drop under $27.85 or $27.75 before initiating positions. 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
Terra Industries - TRA - cls: 46.22 change: -1.07 stop: 43.35
We're hitting the eject button on TRA and suggesting readers exit early even though we just added this play on August 5th. The bounce is struggling too much. Shares have failed twice in two days and today's session produced a bearish engulfing candlestick pattern. More aggressive traders may want to keep the play alive since the general trend, while rocky, is still up. Plus TRA has not broken support at its 200-dma yet. We would rather exit right now and cut our losses. Readers can still keep an eye on TRA for a dip or bounce near its 200-dma around $43.35.
Picked on August 05 at $46.52 /exiting early 46.22
Olympic Steel - ZEUS - cls: 50.93 chg: -3.46 stop: 47.99
We want to exit early in ZEUS as well. The stock under performed the market today with a sharp 6.4% decline. Traders bought the initial dip to $50.00 but the bounce rolled over again this afternoon. We want to cut our losses early and step back. More nimble traders may want to go short under $49.50 and target the simple 200-dma near $44.
Picked on August 05 at $52.50 /exiting early 50.93
Closed Short Plays