Danaher - DHR - close: 55.83 chg: +0.35 stop: 53.99
There are no surprises here. DHR rose and fell with the markets and the session failed to stop was looks like an imminent sell signal in DHR's MACD indicator. We are not suggesting new bullish plays at this time. Instead we're watching to see if DHR bounces from the $54.50 region near its simple 200-dma. More conservative traders may want to exit now and sit back and watch.
Picked on August 03 at $ 56.67
Aetna - AET - close: 78.10 chg: +1.11 stop: 79.01
Traders holding put positions here in AET should be on red alert. AET did breakout over its 21-dma and 100-dma, which should have acted as technical resistance. The move today also produced a new buy signal in the stock's MACD indicator. We are surprised that we were not stopped out today. Our stop loss is 79.01. The high today was $79.00. Yesterday we suggested that more conservative traders may have wanted to consider an early exit if AET traded above the $77.50-77.60 region. That is still a valid suggestion. We are going to keep the play open for now as today's rally did fail at the $79 level and AET and the markets could still turn lower. However, we are not suggesting new positions here. Wait for a move back under $76.00.
Picked on August 07 at $ 75.55
Best Buy Co - BBY - close: 49.23 chg: -0.57 stop: 52.51
The action today in BBY looks like good news. The early morning rally quickly stalled and shares closed near their low for the session. This is a failed rally near the $50.50 region and it looks like a new bearish entry point. Our target is the $45.50-45.00 range but we are watching the simple 50-dma with caution as it could offer some technical support for BBY.
Picked on August 08 at $ 49.31
CR Bard - BCR - close: 63.34 chg: +0.14 stop: 65.51 *new*
There is little to report on for BCR. The stock failed to participate in the market's rally this morning but it also failed to participate in the afternoon sell-off. Shares have been churning between $62.90 and $63.50 for the last few sessions. What we do notice is that volume has been coming in way above average for the last week. We are going to lower the stop loss to $65.51.
Picked on August 03 at $ 64.45
Eastman Chemical - EMN - close: 52.89 chg: -0.56 stop: 56.01
EMN produced a failed rally under new resistance at the $54.00 level. Per our comments yesterday today's action looks like a new bearish entry point to buy puts. Our target is the $50.50-50.00 range.
Picked on August 05 at $ 53.90
Fedex Corp - FDX - close: 84.80 chg: +0.17 stop: 86.01
The action in FDX continues to be interesting. Today the stock shot higher this morning to hit new seven-week highs and breakout over resistance at the $86.00 level and technical resistance at its simple 50-dma. Unfortunately for the bulls the rally quickly failed as oil climbed to new highs. This may have proven to be a bull trap. We are still sitting on the sidelines with a suggested entry point to buy puts at $82.99. More aggressive traders may want to buy puts on a decline under short-term support at the $84.00 level.
Picked on July xx at $ xx.xx <-- see TRIGGER
F5 Networks - FFIV - close: 37.02 chg: -0.98 stop: 40.51*new*
Investor reaction to CSCO's lowered guidance for the company's Q1 undermined the entire networking sector. CSCO lost almost seven percent today and FFIV trailed in CSCO's shadow with a 2.57% decline. Our target is the $35-34 range. We are lowering the stop loss to $40.51.
Picked on August 03 at $ 38.76
Fannie Mae - FNM - close: 52.64 chg: -2.19 stop: 57.01
Bad news sent shares of FNM to their worst decline in weeks with a 3.99% drop on volume way above its average. Investors recoiled at news that FNM would delay its quarterly reports. Wall Street is worried that FNM's restatement will cost more than previously expected and could actually lead to the stock being delisted from the NYSE. There are a ton of funds and pensions that have huge chunks of FNM and a delisting would probably force them to liquidate their holdings. At least one analyst firm reiterated their "sell" rating on the stock. FNM is a bit oversold and extended so we'd probably expect a minor bounce tomorrow but our target remains unchanged at the $51.50-50.00 range.
Picked on July 27 at $ 56.49
Google - GOOG - close: 285.68 chg: -5.89 stop: 300.01
Buckle those seat belts and grab the Malox. GOOG is seeing some profit taking. The stock lost just over two percent today and came within cents of our suggested entry point to buy puts. GOOG hit new eight-week lows at $284.88 and shares look poised to continue trading lower tomorrow. Our suggested entry point to buy puts is at $284.50. If we are triggered we are targeting a decline into the $255.00-250.00 range over the next several weeks. We are suggesting the September puts (your choice: 290, 280, 270, or 260 strikes).
Picked on July xx at $ xx.xx <-- see TRIGGER
Lehman Brothers - LEH - cls: 104.83 chg: +0.87 stop: 107.01
LEH may have out performed the market today but the action still looks like a failed rally near the $106 level. This may prove to be another bearish entry point but bulls aren't giving up LEH without a fight. Our target is the $100.00 region before August option expiration. A new challenge for the bears is the simple 50-dma, which is now trading at 100.61 and could act as technical support.
Picked on July 21 at $105.13
3M Co. - MMM - close: 72.00 change: -0.00 stop: 75.11 *new*
We see no change from our previous update. Our target is the $70-68 range. We are lowering the stop loss to $75.11, just above the simple 50-dma.
Picked on July 19 at $ 74.29
MicroStrategy - MSTR - close: 75.11 chg: +1.75 stop: 77.51
Positive comments regarding MSTR's 10-Q that was filed yesterday evening may have spooked some shorts (and there are a lot of them) into covering some MSTR this morning. That's what we believe accounted for the gap higher. Fortunately, the rally ran out of steam but this remains a very aggressive, high-risk play. We would not consider new positions until MSTR trades back under $75.00 (or even this afternoon's low near $74.66). Our target is the $70.50-70.00 range.
Picked on August 05 at $ 74.95
Neurocrine Bio. - NBIX - cls: 45.44 chg: -0.74 stop: 49.11*new*
NBIX continues to show relative weakness and lost another 1.6% today. Shares are testing the $45.00 level, which could act as round-number, psychological support. We wouldn't be surprised to see an oversold bounce from there but a failed rally under $47.00 could be used as a new bearish entry point. We are lowering the stop loss to $49.11.
Picked on August 07 at $ 47.30