Ameron Intl. Corp. - AMN - close: 47.79 change: -0.76 stop: 44.45
AMN is holding up reasonably well. The S&P 500 lost 2.2% while AMN only lost 1.5%. Shares bounced from an intraday low near $45.00 and its 10 and 20-dma. Yesterday we suggested that readers may want to wait for a dip into the $46-45 zone as a possible entry point. Last week's low was $44.51 so we're reluctant to raise our stop loss but more conservative traders may want to inch their stops toward $45.00. We're not suggesting new positions at this time.
We are setting two targets. Our first target is $54.50. Our second target is $57.50. The stock has an extremely small float and while short interest isn't too big at 5% of the float it could be a catalyst if bears decide to cover.
Anadarko Petroleum - APC - close: 37.80 change: -0.35 stop: 33.99
APC continues to show some relative strength. Once again traders bought the dip and while APC did not close positive it fared better than the market. APC is an oil stock so we need to be concerned by the weakness in oil. These stocks can't trade against the trend in the commodity for very long. At the moment I would not be surprised to see APC test the $36.00-35.50 zone if oil keeps sliding.
We have two targets. Our first target is $39.95. Our second target is $42.50 or the simple 50-dma, whichever one the stock hits first.
FYI: Monday's move over $37.00 produced a brand new Point & Figure chart buy signal with a $54.00 target.
Chesapeake Energy - CHK - close: 22.36 change: -1.31 stop: 21.75
Looks like another sell-the-news move in CHK. Industry experts had been expecting CHK to sell some assets. Today's announcement that CHK would receive $3.3 billion from Norway's StatoilHydro for a 32.5% stake in CHK's natural gas Marcellus Shale assets in the Appalachia area was supposed to be good news. Yet CHK lost 5.5% on the session. Or maybe we could focus the blame to a 6.8% drop in natural gas futures, which outpaced the decline in oil futures. Whatever the case the short-term action in CHK is not looking healthy.
Honestly it would not surprise me to see CHK hit our stop loss at $21.75 tomorrow but after a sharp down day natural gas could bounce.
We are not suggesting new positions in CHK at this time.
Our target is $27.75. More aggressive traders may want to aim for $30.00 or its 50-dma. Traders should take note of the trendline of resistance currently near the simple 40-dma. You may want to tighten up your stop loss as CHK nears that trendline.
Perdigao S.A. - PDA - close: 31.25 change: -2.06 stop: 29.49
Ouch! PDA lost 6% and was down more than 10% at its worst levels of the day. Shares fell to $29.61 before bouncing back. My concern here would be a continued drop in the major market indices will have investors selling PDA to lock in profits from its late October rebound. We are not suggesting new positions at this time.
If PDA trades under $29.50 more nimble traders may want to consider switching to short positions and targeting a drop to the $25-24 zone.
Currently our first bullish target is $36.00. Our second target s $39.50. We'll need to keep an eye on the 50-dma, which may be overhead resistance. FYI: The Point & Figure chart is bullish with a $54 target.
FMC Corp. - FMC - close: 40.44 change: -3.58 stop: 40.85
We now know the answer. Yesterday we put up a chart with two trendlines and pondered which one was going to be resistance. It looked like Monday's failed rally was a bearish reversal at resistance. The stock dropped 8% today as the reversal continued. FMC hit our stop loss at $40.85. The sell-off did stall near round-number support at $40.00. It is possible that FMC is building a bull-flag pattern but at this point it might be better to bet on a drop toward $35 or $30.
Nimble traders may want to use a decline under $39.75 as an entry point for shorts with a target in the $35.00 region.
Corning Inc. - GLW - close: 9.98 change: +0.03 stop: 9.75
GLW actually gained three cents on the day but not before the stock slipped to $9.40. Shares hit our stop loss at $9.75 ending the play. The afternoon rally seemed to stall and readers may want to switch directions open short positions under $9.70 again. I'd use a stop loss above $10.50.