*Currently we don't have any bullish play updates*
Chemed Corp. - CHE - close: 39.99 change: -0.30 stop: 42.55
CHE was actually setting new lows for November before the late afternoon buy program hit the market. We would still consider new positions here. However, readers could choose to wait for a failed rally in the 41.00-42.00 zone or wait for a new relative low under $38.75 as an entry point.
We are suggesting a stop loss at $42.55, just above Friday's high. We have two targets. Our first target is $35.25. Our second target is $31.50.
FYI: It is important for traders to note that CHE's short interest is about 9.5% of the 21.4 million-share float. That is a relatively high amount of interest and a very small float. Together they raise the risk of a short squeeze. Consider this a higher-risk play.
iShares Germany - EWG - close: 16.40 change: +0.05 stop: 18.01
We have nothing new to report on for the EWG. Shares of the German ETF slipped to last week's support near $16.00 and bounced. If the bounce continues we would watch for the momentum to stall near $17.00 or its 10-dma near $17.25. A new lower high could be used as another entry point for shorts.
More conservative traders may want to use a tighter stop. The October low was $14.75. We're aiming for $15.05. More aggressive traders may want to aim lower.
iShares S&P SmallCap 600 - IJR - close: 39.93 chg: -0.07 stop: 43.55
Yesterday the small caps displayed a little bit of relative strength. Today they showed a little bit of relative weakness. Overall we're going nowhere fast. However, we need to point out that the Russell 2000 index (RUT) and thus the IJR rebounded from last week's lows. Bulls may try to seize that and run with it as some sort of mini double bottom. We would wait and watch for the bounce to fail in the $42.00 region for the IJR and use it as a new entry point for bearish positions.
Our target is $35.50. The Point & Figure chart is bearish with a $17.00 target.
J.C.Penney - JCP - close: 16.46 change: -0.26 stop: 20.01
JCP hit new multi-year lows before trying to bounce back this afternoon. The retailers continue to sink and rightly so given the state of the consumer and the economy. However, it's worth noting two things. JCP is looking short-term oversold and that the stock is getting pretty close to its 2003 low near $15.57. We still think the trend is lower but readers may want to watch for a bounce or another failed rally before opening new bearish positions.
We have two targets. Our first target is $15.05 since the $15.00 mark might offer some psychological support. Our second, much more aggressive target is $11.00. Again, the $10.00 level could offer round-number support. The weekly chart suggests some support near $14.00-14.50. The Point & Figure chart is bearish and forecasting an $8.00 target.
Juniper Networks - JNPR - close: 14.66 change: -0.06 stop: 16.15
JNPR briefly traded under last week's lows around $14.20 today. The trend is definitely bearish but the stock might try to stage an oversold bounce from here. Watch for a failed rally under $16.00 as another entry point for shorts.
We're suggesting a stop loss at $16.15, just above Thursday's high. Our target is only $11.00. The P&F chart is forecasting a drop toward $10.00.
Northrop Grumman - NOC - close: 39.11 change: -0.57 stop: 43.01
NOC set another new multi-year closing low today. Should the stock surprise us with a bounce watch for resistance in the $42.00-42.50 zone. We don't see any changes from our previous comments. The Point & Figure chart is forecasting a drop toward $29.00.
We're suggesting a stop loss at $43.01. Our target is $35.50. More aggressive traders may want to aim lower.
Pitney Bowes Inc. - PBI - close: 23.93 change: +0.67 stop: 24.75
PBI managed a pretty good late day bounce and ended the day up 2.8%. Yet the rally struggled near the $24.00 level and its trend of lower highs. Look for the stock to roll over under $24.50 and use it as another entry point for shorts. We don't see any changes from our weekend comments. The Point & Figure chart is extremely bearish with a $6.00 target.
We're suggesting bearish positions now with a stop loss at $24.75. Our first target is $21.00 and we suggest that readers exit the majority of their position here. We are setting an aggressive, secondary target at $18.00.
Market Vectors Steel ETF- SLX - cls: 26.08 change: -0.59 stop: 30.05
The SLX steel sector ETF continues to sink but it also bounced near its lows from last week. If the bounce continues then readers can watch for it to fail in the $28.00-29.00 zone and use it as a new entry point for shorts. More conservative traders may want to wait for the SLX to trade under $25.00 before initiating positions.
We're suggesting a stop loss at $30.05. Our target is $21.00. The P&F chart is bearish with an $18.00 target.
Staples Inc. - SPLS - close: 16.94 change: +0.46 stop: 18.25*new*
It was an interesting day for SPLS. The morning low bounced from the $16.00 level but the midday bounce failed under its trend of lower highs. At the end of the day SPLS had produced a bullish engulfing candlestick pattern. That should bears on the defensive and readers may want to tighten their stops to reduce their risk should the bounce continue. We are moving the stop to $18.25. Overall technicals remain bearish.
More conservative trades may want to try a slightly tighter stop loss. Our target is $14.00. The October lows were near $13.60.
UnitedHealth Group - UNH - close: 19.03 change: +0.14 stop: 21.05
UNH slipped toward last week's low near $18.00 and bounced back this afternoon. If the bounce continues watch for it to fail near $20.00 or under its 10-dma near $20.65 and use it as a new entry point for shorts. We don't see any changes from our new play description on Nov. 17th.
Our target is the $15.15 mark. The October low was $14.51 and the $15.00 level might offer some support.