Option Investor
Play Updates

Shorts continue to perform but stocks are nearing potential support

HAVING TROUBLE PRINTING?
Printer friendly version

---------------------- BULLISH Play Updates ----------------------

Broadcom - BRCM - close: 16.39 change: +0.75 stop: 14.49

It was another day of relative strength for BRCM. The stock out performed the market with a 4.8% gain at the closing bell and that was after paring its gains from this afternoon. If you're looking for a new entry point I would watch for a pull back into the $15.90-15.40 zone. Our target is $19.50.

Picked on October 24 at $16.10 *triggered 10/24
Change since picked: + 0.29
Earnings Date 10/21/08 (confirmed)
Average Daily Volume: 14 million

---

Ingersoll-Rand - IR - close: 16.01 change: -1.06 stop: 14.45

Right on cue shares of IR continued to sell-off. The stock lost another 6% and closed near last week's lows. We don't see any changes from our weekend comments. We're suggesting that readers buy IR on a dip into the $15.50-15.00 zone with a stop loss at $14.45. If triggered our first target is $19.50. Our second target is $22.50.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/08 (confirmed)
Average Daily Volume: 4.8 million

---

Nucor - NUE - close: 31.64 change: -3.37 stop: 24.90

Friday's huge intraday bounce from $30.00 vanished in Monday's afternoon sell-off. The stock lost more than 9.6%. We suggested over the weekend that nimble traders could short NUE with a $28-26 target. Currently our plan is to buy NUE on a pull back into the $28.00-26.00 zone. We are going to list an alternative entry point just in case NUE rallies higher. That entry point is $38.05 and we'd use a stop loss at $35.75 if triggered at $38.05 with a $44.50 target.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/22/09 (unconfirmed)
Average Daily Volume: 9.7 million

---

Wal-Mart - WMT - close: 49.67 change: -1.73 stop: 41.95

WMT continues to see its stock price deteriorate. A retest of the October lows is becoming a much larger possibility. Right now we suspect WMT will surpass those lows. The concept here is that one of these days we may get another horrendous, panicked sell-off and WMT sees a huge intraday spike lower. That's when we want to be triggered.

Entry point #1 is to buy a dip in the $45.00-44.00 zone. If triggered at $45.00 we will have two targets. Our first target is $49.50. Our second target is $54.00. (Note this is an adjustment. Our previous entry price was 44.50.)

Entry points #2 is to buy a breakout at $56.25. If triggered at $56.25 our stop will be $52.35. Our first target will be $59.95. Our second target will be $63.00.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume: 25 million

---

---------------------- BEARISH Play Updates ----------------------

Expeditors Intl. - EXPD - cls: 27.46 change: -0.73 stop: 30.15

The intraday rally attempt didn't even get close to Friday's high. The short-term trend in EXPD remains lower. Our target is $25.00-24.00. The October low was $24.05. More aggressive traders may want to aim lower. Note: We do not want to hold over the November 4th earnings report.

Picked on October 26 at $28.19
Change since picked: - 0.73
Earnings Date 11/04/08 (confirmed)
Average Daily Volume: 3.0 million

---

Marvel Enter. - MVL - close: 28.60 chg: -0.47 stop: 30.25

MVL continued to drift lower. The early morning bounce failed under $30.00. We would still consider new short positions here. The stock is facing an interesting test. Will the long-term bullish trend remain intact or will the bearish double top with the June and September peaks herald a major reversal? More aggressive traders may want to aim lower. We're aiming for $26.25. We do not want to hold over the November 4th earnings report.

Picked on October 26 at $29.07
Change since picked: - 0.47
Earnings Date 11/04/08 (confirmed)
Average Daily Volume: 880 thousand

---

PetsMart - PETM - close: 17.52 change: -1.01 stop: 20.05

The early morning spike higher in PETM failed at short-term resistance (previous support) near $19.00. PETM quickly returned to its path of least resistance, which is down as the stock posted a 5.4% loss. Our target is the $15.05. mark. We're starting the play with a stop loss at $20.05. More conservative traders may want to use a stop loss near Monday's high of $19.04 instead.

Picked on October 26 at $18.53
Change since picked: - 1.01
Earnings Date 11/19/08 (confirmed)
Average Daily Volume: thousand

---

Wal-Mart - WMT - close: 49.67 change: -1.73 stop: 54.15 *new*

WMT is not immune to the market weakness and shares lost 3.3% and closed under the $50.00 mark for the first time in several months. More aggressive traders may want to take some money off the table at $48.00 but keep a small position open and aim for $45.00. We are adjusting the stop loss to $54.15. Our target is $48.00.

Picked on October 19 at $53.77
Change since picked: - 4.10
Earnings Date 11/13/08 (confirmed)
Average Daily Volume: 25.5 million

---

Premier Investor Play Update Archives