Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Long Play Updates

Monster Worldwide - MNST - cls: 19.88 chg: -0.09 stop: 19.11*new*

MNST continues to hold up. Traders are buying the dips and the stock is building a short-term bullish trend of higher lows. We are adjusting the stop loss to $19.11 (breakeven). We remain cautious so we're not suggesting new bullish positions at this time. Please note an adjustment to our exit strategy. We have two targets. Our first target is $20.80, just under the August resistance. Our second target is $21.50, under the 100-dma.

Picked on August 20 at $19.11
Change since picked: + 0.77
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 3.1 million
 

Short Play Updates

Expedia - EXPE - close: 17.46 change: -0.19 stop: 18.35

Our new bearish play on EXPE has been opened. The stock dipped to $17.18 intraday. Our suggested trigger to open positions was $17.25. We have two targets. Our first target is $15.10. Our second target is $13.50. Be sure to take some money off the table at our first target since the $15.00 level might be round-number support. The Point & Figure chart is bearish and forecasts a $9.00 target. FYI: The latest data listed short interest at 5% of the 205 million-share float. That is just under three days worth of short interest.

Picked on September 03 at $17.25 *triggered
Change since picked: + 0.21
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 4.2 million

---

Genuine Parts - GPC - cls: 42.24 chg: +0.01 stop: 44.01

Yesterday we were suggesting a decline under $42.00 as a new entry point. GPC complied with a dip to $41.97 but the stock bounced from its 100-dma. This time we're suggesting a breakdown under its 100-dma. Wait for a new decline under $41.85 before considering new bearish positions. Our target is the $38.50 mark. More aggressive traders may want to aim lower. The P&F chart is bearish with a $28 target. We don't see any significant levels of short interest.

Picked on August 31 at $42.42
Change since picked: + 0.21
Earnings Date 10/17/08 (unconfirmed)
Average Daily Volume: 1.1 million

---

Kimberly-Clark - KMB - cls: 62.19 chg: -0.11 stop: 63.51

It looks like KMB is still building its bearish double-top pattern. We're waiting for the breakdown. We are suggesting a trigger to short KMB at $60.75. More conservative traders may want to use a stop loss above last Thursday's high of 62.84. If we are triggered at $60.75 our target is the $56.00 mark. We do not see any significant short interest. The Point & Figure chart is bearish with a $54 target.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 2.6 million

---

Merck - MRK - close: 34.67 change: +0.22 stop: 36.85

MRK dipped toward the bottom of its recent trading range and bulls bought the dip at $34.06. The general trend remains bearish. If you are looking for another entry point, wait for another failed rally. Our target is the $32.00 level. More aggressive traders may want to aim for $30.00. The P&F chart is bearish and points to a $23 target. We don't see any significant amounts of short interest.

Picked on August 31 at $35.67
Change since picked: - 1.00
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 17.8 million

---

Rockwell Autom. - ROK - close: 46.19 chg: -0.95 stop: 50.05

After yesterday's bearish failed rally pattern the stock gave up about 2% today. We don't see any changes from our previous comments. More conservative traders might want to tighten their stops toward the $49.00 level. If we don't see a real break under $46.00 soon we'll abandon the play early. Our target is $43.00. More aggressive traders may want to aim lower ($41-40). The P&F chart is actually still bullish from the summer rebound. Short interest is at 2.2% of the float. In other news today ROK announced that it would present at the Morgan Stanley Global Industrials CEOs Unplugged Conference in Laguna Niguel, California, on Wednesday, September 10, 2008.

Picked on August 31 at $47.21
Change since picked: - 1.02
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 1.7 million
 

Closed Long Plays

Basic Energy Services - BAS - cls: 28.10 chg: -1.13 stop: 27.59

Energy stocks continued to collapse. Another new relative high for the U.S. dollar didn't help matters. Shares of BAS broke down under support near $28.00, support at its 50-dma and support at its 10 and 100-dma. Shares quickly hit our stop loss at $27.59 ending the play. The next level of support is the exponential 200-dma around $25.50 and then followed by the simple 200-dma around $24.00.

Picked on August 26 at $28.34 /stopped out 27.59
Change since picked: - 0.24
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 437 thousand

---

Kansas City South - KSU - close: 48.94 change: -2.08 stop: 49.95

The railroad sector continued to see profit taking after the DJUSRR railroad index hit a new all-time intraday high yesterday. KSU under performed its peers and the market with a 4% decline and a breakdown under the $50.00 mark. The stock hit our stop loss at $49.95.

Picked on August 28 at $51.41 /stopped out 49.95
Change since picked: - 2.47
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 1.4 million
 

Closed Short Plays

None
 

Premier Investor Play Update Archives