Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Long Play Updates

JB Hunt Transport - JBHT - close: 37.87 chg: -0.75 stop: 35.49

JBHT pulled back a bit but traders bought both dips today. We remain bullish on JBHT but shares could be volatile and we're giving the stock room to dip toward the $36.00 region. Our first target will be $39.95. Our second target is $42.50.

Picked on September 14 at $37.94
Change since picked: - 0.07
Earnings Date 10/13/08 (unconfirmed)
Average Daily Volume: 2.6 million
 

Short Play Updates

EMC Corp. - EMC - close: 13.37 change: +0.09 stop: 14.05 *new*

EMC gapped open lower and slipped to $12.61 before bouncing back. EMC could bounce higher but we'd expect resistance at the 10-dma near $13.95 and the $14.00 region. We're adjusting our stop loss to $14.05. We're not suggesting new positions at this time. The rise in the VIX may be signaling a short-term market bottom. Our target is the July lows at $12.15. The Point & Figure chart is bearish with a $6.00 target.

Picked on September 09 at $13.67
Change since picked: - 0.30
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 30.7 million

---

Expedia - EXPE - close: 16.05 change: +0.34 stop: 18.05

EXPE slipped to another new low before bouncing. The trend remains bearish and shares should find overhead resistance in the $17.00-17.50 zone. Yesterday we adjusted our stop loss to $18.05. More conservative traders may want to use a tighter stop. We are not suggesting new bearish positions with the VIX this high. We have two targets. Our first target is $15.00. Our second target is $13.50. The Point & Figure chart is bearish and forecasts a $9.00 target.

Picked on September 10 at $16.75 *triggered
Change since picked: - 0.70
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 4.2 million

---

Infosys Tech. - INFY - cls: 36.40 chg: +1.60 stop: 38.05 *new*

Shares of Indian technology stock INFY rebounded sharply on Tuesday. The stock actually hit a new multi-month low of $34.05 before bouncing higher. INFY should find new resistance in the $38.00 region. We're not suggesting new positions at this time. INFY has already hit our first target at $35.05. Our second target is $33.00.

Picked on September 09 at $38.45 /1st target hit 35.05 (34.19low)
Change since picked: - 2.05
Earnings Date 10/09/08 (unconfirmed)
Average Daily Volume: 3.0 million
 

Closed Long Plays

UltraShort Dow30 - DXD - cls: 65.37 chg: -1.20 stop: 61.20

I know it's starting to sound clich but these are very volatile days in the market. Investors have to be nimble if they really plan on actively trading. The DXD spiked to $69.33 this morning and then gave it all back. Our target was $69.75. It is entirely possible to see the DXD make new highs if things go poorly for the AIG rescue. However, the markets look poised for a bounce and with the VIX very high and above the key 30.00 level we're suggesting an early exit in DXD.

Picked on September 09 at $63.62 /early exit 65.37
Change since picked: + 1.75
Earnings Date 00/00/00
Average Daily Volume: 7.7 million

---

Kellogg - K - close: 56.12 change: +0.44 stop: 54.89

Hmm... it looks like our stop was a little too tight on K. We didn't want to have a lot of risk on K so we purposely set a tight stop and some intraday volatility this afternoon sent shares of K to $54.58 before bouncing back into the green. The afternoon dip was a surprise. Most stocks were weak first thing this morning. The general trend in K is still bullish and the stock is still showing relative strength. Readers may want to re-open bullish positions above $56.50.

Picked on September 14 at $56.21 /stopped out 54.89
Change since picked: - 0.09
Earnings Date 10/29/08 (unconfirmed)
Average Daily Volume: 2.1 million
 

Closed Short Plays

Axis Capital - AXS - close: 34.42 change: +2.94 stop: 33.11

Bears were blown out of the water in AXS as the stock produced a huge whipsaw. Shares opened down and spiked to $30.95 before rocketing up past technical resistance at its exponential 200-dma above $34.00. Our suggested entry point for shorts was $31.40 and our stop loss was $33.11. We have been triggered and stopped in the same day. There was no explanation for the 9% rally in AXS but there is no doubt that it is related to the ongoing financial crisis on Wall Street and maybe investors suddenly see less risk in AXS than other insurers.

Picked on September 16 at $31.04 *gap down entry/stopped 33.11
Change since picked: + 3.38
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume: 923 thousand

---

Endurance Specialty - ENH - cls: 32.29 chg: +1.29 stop: 32.55

ENH is another insurance stock we added over the weekend and suddenly it's showing way too much strength. Shares dipped to $30.37 and then rallied sharply. The move looks like a bullish engulfing candlestick pattern (bullish reversal). While the 10-dma and 100-dma might be short-term overhead resistance we're not going to bet on it. We're suggesting an early exit right now to cut our losses.

Picked on September 15 at $30.99 /early exit 32.29
Change since picked: + 1.30
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume: 589 thousand

---

Merck - MRK - close: 32.28 change: -0.44 stop: 35.67

Target achieved. The widespread market weakness this morning helped push MRK to $31.51 before trimming its losses. Our target was the $32.00 mark. The candlestick pattern created today can represent indecision or a potential turning point. If you are aiming for a deeper decline be careful.

Picked on August 31 at $35.67 /target hit 32.00 (31.51 low)
Change since picked: - 3.39
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 17.8 million
 

Premier Investor Play Update Archives