Long Play Updates
Cal-Maine Foods - CALM - close: 42.67 change: +0.62 stop: 39.75
CALM's performance on Friday was a little disappointing. If the stock can't rally toward $45 with the DJIA up 300 and the S&P 500 up 2.4% then what is it going to take? What is it going to take to get more shorts to cover? The stock did post a 1.4% gain but we remain wary here. We're not suggesting new positions and readers may want to take some money off the table. 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: 19.28 chg: +0.50 stop: 17.85 *new*
Shares of OFG out performed the broader market and almost kept pace with the bounce in the financial sector indices. The stock did close at a new relative high, which is bullish. Unfortunately volume was below average, which is not bullish. Friday's move over $19.00 has produced a brand new triple-top breakout buy signal with a $26 target. We are raising our stop loss to $17.85, just under the rising 10-dma and potential support near $18.00. If you're looking for an entry point then wait for a dip into the $18.50-18.25 zone. Our short-term target is the $19.95 mark. More aggressive traders may want to aim higher.
Picked on August 08 at $18.25 *triggered
Short Play Updates
Capital Trust - CT - close: 15.54 change: +0.69 stop: 16.60
Shares of CT continue to be very volatile. Wait for a new decline under $15.00 before considering new bearish positions. If the financials continue to rally this week we would expect CT to stop us out. The P&F chart is still bearish with an $8.00 target but the stock seems prone to short squeezes. The most recent data listed short interest at almost 28% of the small 19 million-share float. That is a good recipe for a short squeeze. It is essential to play with stops and even then it's not a guarantee. We have two targets. Target one is $12.55. Target two is $10.25.
Picked on August 04 at $14.38
Nordstrom - JWN - close: 29.59 chg: +1.61 stop: 30.16
Retail stocks were a huge winner on Friday with the RLX soaring more than 6%. This is definitely short-term bullish even if it's all short covering. JWN briefly dipped under support near $28.00 and then soared toward the $30 level. This rise is a bullish breakout over JWN's trendline of lower highs. More conservative traders will want to STRONGLY consider an early exit right here. We are not suggesting new positions. We are going to keep the play open since JWN failed to rally past the $30.00 mark. 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.
Picked on July 27 at $28.94
Merrill Lynch - MER - close: 26.87 change: +0.77 stop: 28.55
MER produced a 3% bounce on Friday but the stock failed to keep up with its peers in the broker-dealer sector and it failed to keep pace with the rest of the financials. I still suspect that the next move will be lower. However, readers will want to consider waiting for a new decline under $25.50 before initiating new shorts. More conservative traders might also want to tighten their stops. We're listing a stop loss above Wednesday's high. We have two targets. Our first target is $22.50. Our second target is $20.25. The Point & Figure chart is bearish with a $7.00 target.
Picked on August 07 at $26.10
Closed Long Plays
Closed Short Plays
Corning Inc. - GLW - close: 20.68 change: +0.87 stop: 20.65
The market rally (a.k.a. short covering) on Friday fueled a 4% gain in GLW. Thursday's breakdown under $20 was a false start for the bears. Shares of GLW soared back toward the top of its trading range. Our stop loss was hit at $20.65 closing the play.
Picked on August 07 at $19.81 /stopped out 20.65