Andersons Inc. - ANDE - close: 31.34 change: +1.40 stop: 27.59 ANDE is finally showing some strength with investors buying the dip near $29.50 this morning. The stock closed with a 4.6% gain. Our first target is $34.00. My time frame is less than four weeks.
A.O.Smith Corp. - AOS - close: 34.04 change: +1.47 stop: 30.85 *new* AOS also displayed some very impressive strength with a 4.5% gain. The stock hit new multi-month highs at $34.60. Our first target to take profits is at $34.95 but I am suggesting readers strongly consider taking some money off the table tomorrow with AOS near $34.00. Currently the stock is up 12.5% from our entry point. We're raising our stop loss to $30.85. Broken resistance near $32.00 should be new support. Our second target is $37.00.
Bank of America - BAC - close: 13.05 change: -0.15 stop: 11.85 Banking stocks under performed and we're not the least bit surprised to see BAC pull back after trading to its 200-dma. Watch for a dip near $12.50 as our next entry point. Our first target is $14.50, which is where we want to sell 50% to 75% of our position. Our second target is $16.45. Bear in mind that we probably want to exit ahead of the late July earnings report so those target look optimistic.
Bank of Montreal - BMO - close: 43.03 change: +0.88 stop: 39.90 *new* The bounce today is very encouraging. Lack of follow through on yesterday's bearish reversal candlestick is good news for the bulls. Yet the action today is an "inside day", which suggests indecision. I'm not suggesting new positions at this time. Please note our new stop at $39.90. Our first target to take profits is $44.90. Our second target is $48.00. This could take six to eight weeks.
Bally Tech. - BYI - close: 30.67 change: +0.72 stop: 27.45 BYI erased yesterday's losses and rallied to new multi-month highs. I'm suggesting new positions here. Our first target is $32.90. Our second target is $34.90. My time frame is six to eight weeks.
Dell Inc. - DELL - close: 13.39 change: -0.34 stop: 12.45 The rally in DELL is starting to look a little tired and shares are pulling back. Look for support near $13.00 or its exponential 200-dma around $12.80. Our first target is $14.90. We have a second target at $15.95 but we want to take most of our money off the table at $14.90. My time frame is about eight weeks. FYI: The Point & Figure chart is bullish with a $20 target but it's also showing potential resistance near $14.50. More conservative traders may want to start taking profits near $14.50.
Joy Global - JOYG - close: 36.25 change: +0.53 stop: 28.70 JOYG is still struggling with resistance near $38.00. We might want to change strategies and instead of waiting for a dip near $31.00 readers might want to buy a breakout over $38.00 (with a much higher stop loss). For now the plan is to buy JOYG at $31.00. That may be wishful thinking.
Legg Mason - LM - close: 24.59 change: +0.21 stop: 23.49 LM continues to churn sideways in a narrow range. Our plan is to buy LM at $25.75. If we are triggered at $25.75 our target is $29.75. Currently the Point & Figure chart is bullish with a $39.50 target. We do not want to hold over the late July earnings report.
MEDNAX Inc. - MD - close: 43.39 change: +1.26 stop: 39.85 We did not have to wait very long for MD to hit our trigger. The stock rallied past its mid June high and hit our trigger at $43.01. Volume was pretty decent considering the holiday week. The MACD has produced a new buy signal on the daily chart. Our first target is $47.40.
chart:
Morgan Stanley - MS - close: 28.36 change: -0.15 stop: 26.95 Financials were under performers on Wednesday and MS gave up 0.5%. If we see another bounce from the 50-dma I would buy it. Our first target is $31.75. FYI: The Point & Figure chart is bullish with a $46 target.
Pharma Prod. Dev. - PPDI - close: 22.75 chg: -0.47 stop: 21.95 The action in PPDI today is disappointing. The stock's 2% decline casts an ominous shadow. Instead of breaking out over resistance near $23.50 the stock now looks like it could fail. I would hesitate to buy this dip. More conservative traders may want to consider a stop closer to $22.25. Our first target is $25.90 (or its 200-dma). FYI: The Point & Figure chart is bullish with a $31.00 target.
Vodafone Group - VOD - close: 19.69 change: +0.20 stop: 18.85 European markets were pretty strong with most of the major indices up 2% or more. VOD only managed a 1% gain as it rolled over this afternoon. Look for a dip in the $19.50-19.30 zone as a new entry point. I consider this an aggressive buy under $20.00. More conservative traders may want to wait for the breakout (consider $20.25 as an alternative entry point but you may want to adjust your stop and targets). Our first target is $20.75. Our second target is $21.85. The P&F chart is bullish with a $23 target.
Western Digital - WDC - close: 26.80 chg: +0.30 stop: 23.95 WDC hit new multi-month highs this morning but the stock failed to hold most of its gains. Look for another dip near $26.00 before opening new positions. More conservative traders may want to raise their stops toward $25.00. Our first target is $29.75.
Wellpoint Inc. - WLP - close: 51.25 change: +0.36 stop: 47.85 WLP delivered a temporary breakout over resistance at $52.00 early this afternoon. Shares failed to hold the breakout but it was a decent effort on above average volume. I would still consider opening new bullish positions near the $50.00-49.50 zone. Our first target is $54.00. Our second target is $57.40.
U.S. Steel - X - close: 34.79 change: -0.95 stop: 33.35 Our aggressive bet on X is really not shaping up very well. Today's relative weakness (-2.6%) and close under $35.00 and its 30-dma and 200-dma is a bearish development. Any conservative traders in this trade will want to strongly consider an early exit now. I'm not suggesting new positions at this time. We're using a relatively wide stop loss due to the stocks recent volatility. Because this is an aggressive, higher-risk trade I would only trade half or less than your normal position size. Our first target is $39.95. Our second target is $42.50.
Dentsply Intl. - XRAY - close: 30.48 change: -0.09 stop: 28.95 Nothing has changed for us with XRAY. The stock is still consolidating sideways. Investors are still buying dips in the $30.50-30.00 zone. Our first target to take profits is $33.90. The Point & Figure chart is very bullish with a $47 target.
DuPont - DD - close: 25.80 change: +0.18 stop: 27.05 DD produced another short-term failed rally near $26.20 today. This could be our entry point for new short positions. Our first target $22.25. Our second target is $20.25.
iShares Mexico - EWW - close: 37.19 change: +0.33 stop: 38.05 Shares of EWW rallied higher this morning following strength in the U.S. market. The rally faded and I am still tempted to open new short positions here. Our target is $30.25.
Gamestop - GME - close: 22.46 change: +0.45 stop: 25.05 Nothing has changed for GME. The stock has spent more than a week consolidating sideways. The path of least resistance is down so I'm expecting the next move to be lower. More conservative traders might want to consider a stop loss near $24.50ish. The stock has already hit our first target at $22.05. Our second target to take profits is $20.25. Our third target is $18.15.
Gen-Probe - GPRO - close: 42.92 change: -0.09 stop: 44.05 GPRO is still consolidating under resistance near $44.00. I would consider new positions here. Our first target is $38.05. Our second target is $35.25.
iShares Materials - MXI - close: 47.09 change: +0.56 stop: 48.25 This industry got a bounce this morning but it quickly faded and the MXI closed with a 1.2% gain. This almost looks like a failed rally under the 20 and 30-dma. MXI has already hit our first target at $44.00. Our second target is $41.00.
Raytheon - RTN - close: 44.89 change: +0.46 stop: 46.55 RTN erased about half of yesterday's losses. Use the bounce as a new entry point for bearish positions. Our first target is $40.25. The P&F chart is very bearish with a $13 target.
Homebuilders ETF - XHB - close: 11.77 change: +0.02 stop: 12.55 Volume was very light and the early morning bounce in the XHB faded lower throughout the rest of the session. This can be used as a new entry point for bearish positions. More conservative traders may want to lower their stops. Our target is $10.10. I am tempted to set a longer-term target in the $9.00-8.00 region.
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