Allegheny Energy - AYE - close: 33.03 change: +0.95 stop: 30.85*new*
Yesterday traders bought the dip near $32.00. This afternoon they did it again. This move might be considered a very short-term bullish double bottom. The fact that AYE did not dip toward its 10-dma or 50-dma is a show of relative strength. I would buy today's bounce but readers may want to raise their stop loss. We're raising our stop loss to $30.85. More conservative traders could try a stop loss under today's low around $31.85.
We have two targets. Our first target is $34.95. Our second target is $38.50. The Point & Figure chart has turned bullish with a $52.00 target.
Emergent BioSolutions - EBS - close: 24.24 change: +1.87 stop: 19.45
EBS continues to shine as a relative strength play. Unfortunately, we are still sitting on the sidelines. Our plan was to buy a dip and the stock just won't dip. EBS is now up five out of the last six days. We do not want to chase it and will wait for our entry point.
We're suggesting readers buy EBS on a pull back into the $20.50-20.00 zone with a stop loss at $19.45. We have two targets. Our first target is $22.50. Our second target is $24.50. FYI: The Point & Figure chart is bullish with a $35 target.
Expedia Inc. - EXPE - close: 7.52 change: -0.33 stop: 6.95 *new*
EXPE seriously under performed the market today with a 4% loss but that could be about to change. Shares fell to $7.37 intraday. Our plan was to buy the stock in the $7.50-7.25 zone. We are going to adjust our stop loss to $6.95. More conservative traders may want to raise their stop towards the $7.25 region. The dip today stalled near its Nov. 25th high and its 10-dma. I strongly suspect that EXPE will bounce tomorrow as long as the major indices are not significantly lower.
We have two targets. Our first target is $8.45. Our second target is $9.75. More aggressive traders may want to aim higher.
*We currently do not have any bearish play updates*
Molson Coors Brewing - TAP - close: 42.19 change: -0.04 stop: 41.90
Shares of TAP broke down under its trendline of higher lows and broke down under its 50-dma to hit our stop loss at $41.90 closing the play. I would keep an eye on TAP for support near $40.00 or a breakout over resistance near $45.00.