Option Investor
Play Updates

Another round of raising stops

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Play Editor's Note: The best four days in the stock market since 1932. That's what the financial media is reporting. I don't recall if they're looking at the percentage move in the S&P 500 (+17.9%) or the percentage move in the DJIA (+15.5%). Both moves are impressive for a four-day rally. Friday is a shortened trading session following tomorrow's holiday here in the U.S. Typically the post-Thanksgiving Friday is a bullish one for the stock market but volume is extremely low, which lets stocks get pushed around for big one-day percentage moves. After such a strong four-day bounce I don't want to chase it with new bullish positions but it's not time yet to consider new bearish positions. This will make picking new candidates a challenge this weekend. The best trade here is probably do nothing. Just monitor your current positions, maybe tighten stops, and be prepared to take profits if stocks near your targets or reverse on us. I want to wish everyone a happy Thanksgiving. We're thankful for your continued membership.


BULLISH Play Updates

AptarGroup Inc. - ATR - close: 32.75 change: +1.53 stop: 29.95*new*

ATR continued to show relative strength. The stock added 4.9% and rallied to a new relative high. We were provided a better entry point when shares gapped open lower at $30.84 this morning. We're adjusting our stop loss to $29.95. Our one complaint today would be how ATR's rally stopped dead at technical resistance with the 50-dma. We would expect some profit taking soon. It may not be Friday but probably Monday. Our target is the $34.50 mark.

Picked on November 25 at $30.84 /gap down entry
Change since picked:     + 1.91 /originally listed at $31.22
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       559 thousand    


Broadcom - BRCM - close: 16.01 change: +0.89 stop: 14.24 *new*

Target achieved. BRCM rallied to $16.10 this afternoon. Our first target to take profits was the $16.00 mark. Shares closed on their highs for the day, which is bullish for Friday. The close over $16.00 is also a positive sign but BRCM does have overhead resistance at its 50-dma. We're upping our stop loss to $14.24. We would not suggesting new positions at this time. We do have a secondary, more aggressive target at $17.50.

chart:
BRCM

Picked on November 22 at $14.42 /gap open entry point
Change since picked:     + 1.59 /originally listed at $14.09
Earnings Date          01/20/09 (unconfirmed)    
Average Daily Volume:      15.8 million     


F5 Networks - FFIV - close: 25.55 change: +1.43 stop: 23.49 *new*

Our new play on FFIV is off to a good start. Shares provided us a better entry point with the gap down open at $23.66 this morning. Traders quickly bought the dip and FFIV finished up 5.9% on the day. The stock is nearing resistance at the $26.00 level and its 200-dma. We would expect some profit taking but a dip near $24.00 is probably another entry point. We're raising our stop loss to $23.49. Our target is $27.50

Picked on November 25 at $23.66 /gap down entry
Change since picked:     + 1.89 /originally listed at $24.12
Earnings Date          01/21/09 (unconfirmed)    
Average Daily Volume:       3.1 million     


Marshall & Ilsley - MI - close: 14.32 change: +0.40 stop: 12.95

The action in MI still makes me nervous. The stock has been under performing the financial sector even though shares did gain 2.8% today. More conservative traders may want to raise their stops toward $13.24 near Tuesday's low. I would hesitate to put new money to work here. Our target is $16.00. More aggressive traders may want to aim higher. FYI: The most recent data listed short interest at more than 9% of the 256 million-share float.

Picked on November 22 at $13.34 /gap open entry
Change since picked:     + 0.98 /originally listed at $13.06
Earnings Date          01/14/09 (unconfirmed)    
Average Daily Volume:       5.2 million     


NetApp Inc. - NTAP - close: 13.45 change: +0.42 stop: 11.90

NTAP continues to march higher. The stock has closed above resistance near $13.00 and its 40-dma. We remain bullish but we're not suggesting new positions. We are listing two targets. Our first target is $14.25. Our secondary target is $15.50.

Picked on November 22 at $12.51 
Change since picked:     + 0.94   			
Earnings Date          02/11/09 (unconfirmed)    
Average Daily Volume:      11.4 million     


Molson Coors Brewing - TAP - close: 44.31 change: +0.86 stop: 41.49*new*

I am a little disappointed with TAP's performance. The market turns in the best four days since the 1930s and TAP struggles with resistance near $45.00. We are raising the stop loss to $41.49. If TAP doesn't breakout over $45.00 in the next couple of days we will consider dropping it early. We would not suggest new positions.

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.

Picked on November 19 at $43.55 *triggered       
Change since picked:     + 0.76   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       1.8 million  


BEARISH Play Updates

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