Cigna - CI - close: 139.11 chg: -1.90 stop: 134.35
Healthcare stocks were trading lower on Monday. The HMO index slipped 1.48%. The sector was hit by news that Congress is considering cuts for Medicare plans. Shares of CI slipped 1.3% and closed under the $140 level. The next stop looks like potential support near $135 and its rising 50-dma. Currently the plan is to buy calls on a pull back into the $135.00-137.50 range. Our official trigger to open plays will be $137.49 but we strongly suggest that readers wait for the dip to end and signs of a bounce to begin before opening positions. If triggered our target is the $145.00-146.00 range. We are suggesting a stop loss under the 50-dma.
Picked on February xx at $ xx.xx <-- see TRIGGER
Ashland Inc. - ASH - cls: 62.46 chg: -2.17 stop: 68.25
The sell-off in ASH continued on Monday. Shares plunged right from the opening bell and closed at their lows for the session, which is normally a bearish signal for the next trading day. ASH closed with a 3.3% loss on above average volume. Our target is the $60.50-60.00 range. FYI: More conservative traders may want to consider a tighter stop in the $67.00 or $67.50 region.
Picked on March 04 at $ 65.82
Bausch Lomb - BOL - cls: 50.42 change: -0.21 stop: 52.51
BOL posted another decline and closed under its simple 200-dma but the stock did not break support. Traders bought the morning dip to $50.00 but the rebound struggled and BOL may see another breakdown attempt tomorrow. We are suggesting a trigger to buy puts at $49.49. More aggressive traders may want to jump in early with a drop under $50 while more conservative traders may want to wait for a decline under $49.00 to lessen the risk that we'll be triggered on an intraday spike lower. If we are triggered at $49.49 our target will be the $44.00-42.50 range. FYI: BOL has been extremely late on its SEC filings and recently announced it will file its 2006 10-K on April 30th, 2007. BOL also plans to release news about its preliminary 2006 results in mid-March. This last comment raises the risk level for us since we do not know what's in the announcement or when they will announce it. One might presume that any earnings comments will be negative as the company tries to recover from its eye-infection fiasco last year.
Picked on March xx at $ xx.xx <-- see TRIGGER
Harman Intl - HAR - close: 96.39 change: -1.10 stop: 102.01
Weakness continues to weigh on shares of HAR. The stock lost another 1.1% and closed near its exponential 200-dma. If the stock bounces from here look for a failed rally near $100 or the 10-dma (around 101) as a potential entry point for new puts. Our target is the $92.50-90.00 range near its simple 200-dma. FYI: The P&F chart points to a very bearish $80 target.
Picked on March 04 at $ 97.49
MarineMax - HZO - close: 21.44 change: -0.88 stop: 23.26 *new*
HZO finally succumbed to its bearish trend and broke down under support near $22.00. The breakdown this morning was a new entry point for puts. We are adjusting our stop loss to $23.26. Our target is the $20.25-20.00 range. FYI: It may be worth noting that HZO has a high amount of short interest. The latest data (February) puts short interest at almost 24% of the stock's 16.8 million-share float. That definitely increases the risk of a short squeeze should the stock unexpectedly rally and breakout higher.
Picked on February 11 at $ 22.59
Allegheny Tech. - ATI - cls: 94.44 chg: -2.62 stop: 93.95
Warning! ATI is not bouncing near support like we expected. The market sell-off doesn't appear to be over yet. Shares of ATI lost another 2.69% and broke down under support at both $95.00 and its 50-dma. This now looks like a sell-signal and the next level of support is near $90.00 and its 100-dma. We're suggesting an early exit to cut our losses.
Picked on March 02 at $ 97.49
Freeport McMoran - FCX - cls: 53.09 chg: -1.54 stop: 51.99
We are suggesting an early exit in FCX. Our plan to try and buy a dip near support is not working. Investors are still in a selling mood and gold and metal stocks are not finding any safe haven buying. Today's decline has broken the trend of higher lows (see chart). Furthermore today's action looks pretty bearish with the gap down at the open. The intraday bounce failed near yesterday's lows, which looks like a short-term bearish reversal/failed rally. We will definitely keep an eye on FCX for future entry points!
Picked on March 01 at $ 55.24
Chicago Merc. Exch. - CME - cls: 554.40 chg: +14.15 stop: 554.25
Our new high-risk, aggressive put play on CME did not work out and we would have been stopped out at $554.25. Shares of CME and its takeover target BOT were both upgraded this morning by Credit Suisse. The rebound did stall near overhead resistance around $560 but we're not suggesting new positions with shares above the 10-dma and $550.
Picked on March 04 at $540.25