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Long Play Updates

Hovnanian - HOV - close: 8.59 change: -0.08 stop: 7.80

HOV dipped toward $8.00 on Friday morning but traders bought the dip. Shares are actually developing a short-term bullish trend of higher lows. Both the DJUSHB and HGX housing indices showed similar intraday dips and late day rebounds. If I was just looking at the chart this looks like another bullish entry point for HOV. However, Monday could be a volatile day. Housing stocks could see big moves either way depending on the latest update on the government's bailout package for Wall Street. We would take a wait and see approach to new entries here. We have two targets. Our first target is $9.95. Our second target is $11.25. The homebuilders have been a volatile group. Readers should consider this an aggressive play.

Picked on September 25 at $ 8.67
Change since picked: - 0.08
Earnings Date 12/18/08 (unconfirmed)
Average Daily Volume: 3.7 million

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Wal-Mart Stores - WMT - cls: 60.71 change: +0.59 stop: 57.99

WMT displayed some relative strength on Friday. Traders quickly bought the dip Friday morning and shares closed above all of its remaining moving averages. We would still consider bullish positions here but more conservative traders may want to wait for a move over $61.00 first. Although if you're trading conservatively you may want to use a tighter stop loss! Our first target is $63.25. Our second target is $64.90. WMT is not going to be a very fast moving stock but it should be a little less volatile than the rest of the market.

Annotated chart:

Picked on September 25 at $60.12
Change since picked: + 0.59
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume: 21.8 million
 

Short Play Updates

None
 

Closed Long Plays

Intl. Flavor & Fragrance - IFF - cls: 41.99 chg: -0.58 stop: 41.75

Widespread market weakness on Friday morning was too much for IFF. The stock broke down under the $42.00 level and hit our stop loss at $41.75. We would still keep an eye on it. A rebound over $43.00 might be another bullish entry point.

Picked on September 22 at $43.25 *triggered 9/22
Change since picked: - 1.26 *stopped out 41.75 on 9/26
Earnings Date 10/30/08 (confirmed)
Average Daily Volume: 693 thousand
 

Closed Short Plays

None
 

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