Per last night's updates ANDE was closed today for a +5% gain. There were no significant changes to most of our positions on Thursday so I have not provided specific updates as my comments from Wednesday have not changed. The model portfolio snapshot below is current and I have provided a few notes below.
INTU: We could be in trouble in this play as the stock broke its intraday downtrend line. A double top scenario is still in play but broader market strength could hit our stop.
VXX: I am a buyer of more volatility on a breakout and if it happens tomorrow I think new positions in VXX should be considered.
CLOSED BULLISH PLAYS
The Andersons, Inc - ANDE - close 39.00 change +1.75 stop 38.90
Target(s): 38.40 (hit), 38.95 (hit), 39.90, 41.50
Key Support/Resistance Areas: 41.50, 40.50, 39.20, 37.50 to 38.00, 35.50
Final Gain/Loss: +5.08%
Time Frame: 1 to 3 weeks
New Positions: No
9/16: Per last night's updates we are flat ANDE for a +5% gain. The stock came within 15 cents of third target before selling off. I wanted to protect profits with a tight stop in case the broader market sold off today. It looked like it was going happen on a couple of occasions during the session but stocks were saved once again. ANDE still looks great and any pullbacks to its rising moving averages may present more buying opportunities. Intraday support begins at $38.40 and $37.25 so these would be logical areas to consider looser stops. I'm happy with the gain.
9/15: ANDE has surged nearly +10% in about a week and the market is overbought so I suggest we close this position tomorrow and book a nice gain. The stock has rallied into a prior support area that lasted about 6 months from the fall of 2007 into the spring of 2008. It could be tough to break through this level without a pullback and I would rather protect profits here. Let's tighten the stop to $38.90 and if it is not hit exit the position at the close tomorrow if our targets are not reached. For readers who want to give this more time to work, additional intraday support begins at $38.40 and $37.25. These would be logical areas to consider looser stops.
9/14: We got the breakout today but it was short lived as ANDE closed only slightly positive after gaining nearly +3% in morning trading and almost hit our first target. The stock sold off the remainder of the day and printed an ugly topping tail candlestick. The good news is that today's closing price was a new 52-week high close. ANDE has solid support at current levels and below but the broader market looks ready to pullback. Readers may want to consider a tighter stop in $36.45 to $36.90 area.
9/13: ANDE closed right at $37.50 which is where the stock has struggled recently. If price keeps knocking at this level the door should open. Now we need a breakout.
Closed Position: Long ANDE stock at $38.90, entry was at $37.02
Entry on August 19, 2010
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 180,000
Listed on August 18, 2010