Baker Hughes - BHI - cls: 83.89 change: -1.59 stop: 79.95
The weekly oil and gas inventory numbers came in a bit higher than expected and this news helped push energy stocks lower, on top of the widespread market correction. Shares of BHI closed under what should have been support near the $84.00 level. We remain very cautious here with BHI under $84.00. More conservative traders may want to raise their stop loss toward $82.00 or $82.50.
Picked on June 04 at $ 84.26
Chaparral Steel - CHAP - cls: 72.80 chg: -0.56 stop: 69.95
Following yesterday's failed rally pattern today's decline in CHAP just adds to the bearishness we're seeing develop in the technicals. The $70.00 mark should still be short-term support but given the market tone today more conservative traders may want to abandon the play early. We do have two targets. Our first target is the $79.50-80.00 range. Our aggressive target is the $84.00-85.00 range. The P&F chart currently points to a $99 target.
Picked on May 30 at $ 73.69
Carpenter Tech - CRS - cls: 133.14 chg: -3.39 stop: 129.90
Wednesday proved to be a rough day for CRS. The stock gapped open lower and traders sold into the afternoon bounce attempt. Shares closed down 2.48% and broke down under its simple 10-dma. The $130 level looks like the next level of support. If you don't want to endure that sort of pull back consider an early exit. Our target is the $147.50-150.00 range although we would expect some resistance near its all-time high around $142.
Picked on June 03 at $135.67
F5 Networks - FFIV - close: 78.59 chg: -1.88 stop: 74.95
Shares of FFIV gapped lower at the open and slipped to a 2.3% decline. Volume came in light. Today's close under the $80 level is bearish but we warned readers to look for a dip toward $78.00. The low today was $78.15. The question is now is where will FFIV bounce? Our target is the $89.00-90.00 range.
Picked on June 03 at $ 81.54
Global SantaFe - GSF - cls: 69.66 chg: -0.69 stop: 65.90
In spite of the energy sector weakness, shares of GSF endured relatively well. The stock traded sideways in the $69.00-70.00 range all day. A bounce from its 10-dma or near $68.00 could be used as a new entry point for calls. Our target is the $74.50-75.00 range. The P&F chart displays a triple-top breakout buy signal with an $87 target.
Picked on June 03 at $ 68.86
Altria Group - MO - cls: 70.81 change: +0.13 stop: 69.90
Traders bought the dip near $70.00 in MO today. We cautioned readers to look for a dip toward $70 and the bounce looks like a new entry point. However, the rebound did struggle near the $71.00 mark so readers may want to wait for a rise past $71 before opening call positions. FYI: It is worth noting that short-term technical indicators are turning bearish. The MACD produced a new sell signal today. More conservative traders may want to wait for a new high over $72 before opening plays.
Picked on June 03 at $ 71.82
Sunoco - SUN - cls: 80.20 chg: -3.17 stop: 79.45
Whoa! The oil service stocks, especially the refining stocks, were hammered today. Shares of SUN plunged 3.8% on above average volume right back toward psychological support near $80.00. The catalyst for the move was this morning's weekly inventory report. Gasoline inventories jumped much more than expected. On a technical basis a bounce from here would be a new bullish entry point but the sell-off was very sharp so readers may be tempted to hesitate. We did notice that SUN appeared to be trading higher in after hours markets but we wouldn't count on that strength holding into tomorrow morning. The stock has already hit our target in the $84.00-85.00 range. Now we're aiming for the $88.00-90.00 range. Watch for a bounce above $80 as a new entry point. The updated P&F chart has seen its buy signal rise from $94 to $109 over the last several days.
Picked on June 01 at $ 80.26
Tesoro - TSO - close: 60.31 change: -2.83 stop: 57.99
TSO, another refining stock, lost 4.4% as investors reacted to the weekly inventory numbers. The plunge through short-term support at $62.00 is bearish but buyers stepped in to defend TSO near round-number support at $60.00. A bounce from here could be used as a new bullish entry point. However, more conservative traders will want to strongly consider a tighter stop just under $60.00. Our target is the $69.00-70.00 range.
Picked on June 03 at $ 63.74
Vangard Emergy Mkts ETF -VWO- cls: 87.07 chg: -1.46 stop: 84.99
The market-wide sell-off hit the emerging markets ETF and shares of VWO lost 1.6%. Technicals are turning bearish with the three-day correction. We're not suggesting new positions at this time. More conservative traders may want to tighten their stops. The ETF is near our target in the $89.85-90.00 range. More aggressive traders may want to aim higher.
Picked on May 16 at $ 86.15
XTO Energy - XTO - cls: 59.80 chg: -1.22 stop: 56.74
XTO also suffered some profit taking. The stock gapped open lower under $60.00 and eventually closed under the $60.00 mark, which is bearish. However, a move to "fill the gap" is not necessarily a bad thing. Readers can watch for support near $59.00 and a bounce near $59.00 would be a new entry point. More conservative traders may want to tighten their stops toward $58.00. Our target is the $62.50-65.00 range. Aggressive traders may want to aim higher.
Picked on May 27 at $ 57.63
Anixter Intl. - AXE - cls: 70.70 chg: -1.07 stop: 71.55*new*
We have been patient with AXE and the stock is once again looking poised to breakdown from its bullish trend. Shares are testing support near $70.00 and its rising 50-dma. More aggressive traders may want to buy puts on a drop below $70.00. We are adjusting our entry point and suggesting that readers use a trigger at $68.99 to open positions. If triggered our target is the $65.25-65.00 range. We are also adjusting the stop loss to $71.55.
Picked on May xx at $ xx.xx <-- see TRIGGER
Gilead Sciences - GILD - cls: 81.41 chg: -1.88 stop: 82.55
GILD slipped 2.2% after an analyst firm downgraded the stock this morning. Shares sank toward the bottom of their trading range on big volume. Aggressive traders may want to consider puts under $81.00. We are suggesting a trigger to buy puts at $79.90. If triggered our target is the $75.25-72.50 range. FYI: Readers should note that after the closing bell tonight GILD announced some positive news for its Phase III study with its chronic Hepatitis B drug Viread. The stock was inching higher near $81.85 in after hours markets. Plus, it's worth noting that the stock is set to split 2-for-1 on June 25th.
Picked on May xx at $ xx.xx <-- see TRIGGER
Vital Images - VTAL - cls: 26.94 chg: -0.28 stop: 29.05
VTAL dipped to an intraday low of $26.09 before paring its losses. The big intraday bounce might be considered bullish but the trend still looks very bearish. We're not suggesting new positions at this time. Our target is the $25.15-25.00 range.
Picked on May 16 at $ 27.99
OM Group - OMG - cls: 59.67 chg: -2.12 stop: 59.85
Shares of OMG hit our stop loss at $59.85 this morning. The market pull back today drug shares of OMG to a 3.4% decline. The move today looks like a potential sell signal with the close under what should have been support near $60.00.
Picked on May 27 at $ 62.44