Option Investor
Play Updates

A Quiet Day on Wall Street

HAVING TROUBLE PRINTING?
Printer friendly version

Play Editor's Note: It was a quiet day on Wall Street as the world waits for the U.S. elections to take place tomorrow. I am expecting another sideways day as investors wait to see who wins the White House. I would be focused on finding candidates for "buy the dip" strategies.


BULLISH Play Updates

American Express - AXP - close: 28.32 change: +0.82 stop: 24.75

AXP continued to creep higher on Monday marking its fourth gain out of the last five sessions. Our plan is to buy a dip. I'm suggesting readers buy a dip in the $25.75-25.00 zone with a stop loss at $24.75. If triggered our target is $29.90.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/20/08 (confirmed)
Average Daily Volume: 19.4 million


BB&T Corp. - BBT - close: 35.50 change: -0.35 stop: 31.75

Shares of BBT traded in a tight range on Monday. It certainly looks like the stock wants to breakout higher. More aggressive traders might want to consider buying the stock on a move over $36.25. We are sticking to our plan to buy it on a dip. We're suggesting readers buy a dip in the $34.00-33.75 zone with a stop loss at $31.75. If triggered our target is $39.90. FYI: Readers should note that BBT has been rumored to be a merger candidate in recent weeks.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/16/08 (confirmed)
Average Daily Volume: 10.5 million


BHP Billiton - BHP - close: 39.28 change: +0.40 stop: 34.75

BHP is still struggling with resistance near $40.00. We think the stock will see a minor correction first before continuing higher. Our plan is to buy a dip in the $36.25-35.00 zone with a stop loss at $34.75. If triggered we want to take some money off the table at $39.95 but we're really aiming for $44.00. The Point & Figure chart is bullish with a $63 target.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume: 6.7 million


Broadcom - BRCM - close: 17.08 change: -0.00 stop: 16.10 *new*

BRCM was unchanged on the day. Yet the intraday action is showing both a higher low and a lower high, which might signal some indecision. We are going to try and protect ourselves with a new stop loss at $16.10. Currently our target is $18.75 just under the simple 50-dma.

Picked on October 24 at $16.10 *triggered 10/24
Change since picked: + 0.98
Earnings Date 10/21/08 (confirmed)
Average Daily Volume: 14 million


CIENA Corp. - CIEN - close: 8.84 change: -0.77 stop: 7.95

It was a rough day for CIEN. Merrill Lynch downgraded the stock to an "under weight". The stock gave up 8% and hit an intraday low of $8.75. Fortunately, we were suggesting readers buy a dip into the $9.00-8.50 range. Now that the play is open our first target is $11.75. Our secondary target is $13.85. Our stop loss is at $7.95 but more conservative traders may want to use a stop closer to $8.50. Readers might want to wait for a bounce back above $9.00 before initiating new bullish positions. This play might take a few weeks to reach its conclusion. FYI: The P&F chart is bullish with a $15.00 target.

chart:
CIEN

Picked on November 03 at $ 9.00 *triggered 11/03
Change since picked: - 0.16
Earnings Date 12/11/08 (unconfirmed)
Average Daily Volume: 5.9 million


Ingersoll-Rand - IR - close: 17.82 change: -0.63 stop: 16.99

Over the weekend we suggested an alternative entry point to buy IR on a dip into the $18.00-17.50 zone. That entry zone was hit today. We have a stop loss at $16.99 but more conservative traders may want to use a stop closer to $17.50. Our target is the $22.00 mark. More aggressive traders may want to aim higher, say the $25-26 zone. If IR breaks down under $17.00 then it may be facing a retest of its lows near $15.50.

Picked on October 31 at $18.65
Change since picked: - 0.18
Earnings Date 10/24/08 (confirmed)
Average Daily Volume: 4.8 million


Lam-Research - LRCX - close: 22.91 change: +0.55 stop: 19.75

An upgrade to a "buy" this morning helped LRCX spike to $23.47 but the stock pared its gains. We are looking for a dip as the next bullish entry point. We want to jump into LRCX on a dip into the $21.00-20.00 zone with a stop loss at $19.75. If triggered our first target is $23.50. Our second target is $25.50.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/22/08 (confirmed)
Average Daily Volume: 4.0 million


Nucor - NUE - close: 37.83 change: -2.68 stop: 33.75

After a strong performance last week NUE hit some profit taking today with a 6.6% drop. We are suggesting readers buy NUE on a pull back into the $36.50-34.50 zone. If triggered our first target is $41.00. Our second target is $44.75.

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


Ultra(Long) Real Estate - URE - cls: 10.45 change: -0.63 stop: 8.65

The URE suffered a 5.6% pull back on Monday but it wasn't quite enough to hit our entry point. We want to buy a dip in the $10.00-9.75 zone with a stop loss at $8.65. We have to label this a higher-risk, more aggressive play because our stop loss is so wide. More conservative traders could try a stop in the $9.50-9.35 zone. If we are triggered our first target is $12.45. Our second target is $14.75.

FYI: The URE is an exchange-traded fund (ETF) that typically moves twice the daily performance of the Dow Jones Real Estate index.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 33.6 million


Wal-Mart - WMT - close: 55.97 change: +0.16 stop: 53.35

Retail giant Wal-Mart was upgraded this morning, which helped the stock gap open higher and trade above $57.00 but it couldn't hold its gains. Overall the session was bearish in spite of the daily gain. I would expect a dip back toward $55.00-54.50. The stock is encountering resistance at its simple 50-dma and 100-dmal directly overhead. The 100-dma was very strong support for months and now it could be very tough resistance. We're going to keep our stop under the 10-dma for now. In spite of likely resistance at the 100-dma we're aiming for the $59.95 mark. Our secondary target is $63.00 but that may be a little optimistic, especially with our time frame. We don't want to hold over the mid November earnings report.

Picked on October 29 at $56.25 *triggered
Change since picked: - 0.28
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume: 25 million


Premier Investor Play Update Archives