Option Investor
Play Updates

Slamming the door on Shorts

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Play Editor's Note: We are exiting all of our bearish plays whether they hit our target or not.

BULLISH Play Updates

Molson Coors Brewing - TAP - close: 43.31 change: +0.79 stop: 40.65

We had a couple of close calls on Friday where it looked like TAP was going to hit our stop loss at $40.65. Fortunately, it didn't happen. Most quote services are going to list the intraday low at $40.68. If you drill down in an intraday chart you'll see that TAP bounced twice at $40.74 at its lows. When stocks reversed higher on Friday afternoon TAP surged back above its 50-dma and closed with a 1.8% gain.

We see Friday's bounce as a new bullish entry point to get long the stock. Our target is the $49.50 mark. However, we have to point out that the 100-dma and the exponential 200-dma could be overhead resistance. Currently the Point & Figure chart is bullish with a $56.00 target.

Annotated chart:

Picked on November 19 at $43.55 *triggered       
Change since picked:     - 0.24   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       1.8 million  

BEARISH Play Updates

*We currently do not have any bearish play updates*


Chemed Corp. - CHE - close: 36.97 change: +0.28 stop: 40.10

Target exceeded. CHE fell to an intraday low of $33.89 on Friday. Our target was $35.25. Hopefully you exited with us as the sharp bounce back was all short covering and it may not be over yet. We would keep CHE on your watch list as a failed rally near $40.00 or its 50 and 200-dma may be another bearish entry point.


Picked on November 15 at $39.93 /target hit 35.25
Change since picked:     - 2.96   			
Earnings Date          02/19/09 (unconfirmed)    
Average Daily Volume:       357 thousand    

J.C.Penney - JCP - close: 15.14 change: +0.76 stop: 16.55

We are suggesting an exit of any bearish positions in JCP. The stock hit our first target to exit at $15.05 on Thursday. Shares failed to see any follow through lower and bounced near the $14.00 level multiple times on Friday. Previous updates made a note that the $14.00 level had been support in the past. We would abandon all bearish positions but keep an eye on JCP for a failed rally in the $19.00-20.00 zone, which may prove to be another entry point for shorts.


Picked on November 15 at $17.27 /1st target hit 15.05 on 11/20
Change since picked:     - 2.13   			
Earnings Date          02/13/09 (unconfirmed)    
Average Daily Volume:       7.4 million     

Juniper Networks - JNPR - close: 14.91 change: +1.07 stop: 15.01

We are suggesting readers exit any bearish positions in JNPR. The stock out performed on Friday following some positive analyst comments and shares added 7.7%. The action on Friday showed JNPR bouncing twice near the $13.80 level. You could argue that JNPR still has some resistance near $15.00 but I would expect a bounce back to the $16.50-17.00 zone. If it can make it past there we'll look for resistance again near $20.00.


Picked on November 15 at $15.03 /exiting early
Change since picked:     - 0.12   			
Earnings Date          01/22/09 (unconfirmed)    
Average Daily Volume:      12.9 million     

Pitney Bowes Inc. - PBI - close: 22.65 change: +0.97 stop: 23.15

Target achieved. PBI dipped to the $21.00 level and found support there. Shares saw an intraday low of $20.95. Our target to exit was $21.00. If PBI can get past resistance near $24.00 then it will look like the stock has produced a bullish double-bottom pattern. You may want to keep an eye on it.


Picked on November 15 at $23.37 *target hit $21.00
Change since picked:     - 0.72   			
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       2.1 million     

Staples Inc. - SPLS - close: 15.64 change: +1.48 stop: 15.51*new*

We told readers on Thursday that it was time to exit our SPLS play. We had been aiming for the $14.0 mark and shares hit $14.14 on Thursday and $14.09 on Friday. The afternoon bounce in the market lifted SPLS past our adjusted target at $15.51. Whether you exited near $14.00 or at $15.50 we still came out a winner.


Picked on November 15 at $17.09 /stopped at $15.51
Change since picked:     - 1.45   			
Earnings Date          12/02/08 (unconfirmed)    
Average Daily Volume:      13.4 million     

UnitedHealth Group - UNH - close: 17.15 change: +0.85 stop: 19.01

Is four cents close enough? Our target for UNH was $15.15. The stock fell to $15.19 on Friday before bouncing back. If you did not exit near $15.00 we're suggesting an exit right now. We would keep an eye on UNH to see if shares fail near $20.00 again.


Picked on November 17 at $18.89 /early exit
Change since picked:     - 1.74   			
Earnings Date          01/22/09 (unconfirmed)    
Average Daily Volume:      11.4 million     

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