Baker Hughes - BHI - cls: 83.02 change: +0.19 stop: 79.95
Oil stocks participated in the market-wide bounce on Friday even though crude oil futures plunged over 3%. Traders bought the dip in BHI at $81.81. We were expecting a steeper decline into the $81-80 range. While we are encouraged by the bounce we're concerned that's all it is - a bounce. The bullish breakout over resistance near $84.00 last week has reversed. The P&F chart probably says it best by calling it a "bull trap". We remain fundamentally bullish on the oil stocks but we're wary of new bullish positions in BHI under $84.00. More aggressive traders may want to consider buying a bounce from here. We are suggesting readers wait for a new rise past $84.00. Furthermore we are suggesting that readers consider a tighter stop loss. Currently our target for BHI is the $89.00-90.00 range.
Picked on June 04 at $ 84.26
Global SantaFe - GSF - cls: 67.93 chg: -0.61 stop: 65.90
While most of the market bounced on Friday shares of GSF continued to sink. The stock lost 0.88% but did manage to rebound from its lows around $66.65. At this point we would wait for signs of strength in GSF before considering new positions. A rally past $69.00 or maybe a new high over $70.80 might be used as new entry points for bullish positions. More conservative traders could place their stops under Friday's low.
Picked on June 03 at $ 68.86
Vangard Emergy Mkts ETF -VWO- cls: 87.54 chg: +2.01 stop: 84.99
Friday's bounce in the VWO was impressive. The ETF rose 2.3% and closed near its highs for the session, which should be bullish for next week. If you think the VWO can breakout past the $90 level then this looks like a new entry point for bullish positions. We're not suggesting new plays at this time. Our target is the $89.85-90.00 range.
Picked on May 16 at $ 86.15
XTO Energy - XTO - cls: 60.52 chg: +1.02 stop: 56.74
XTO continues to show relative strength. The stock rose 1.7% and did so on big volume. After the closing bell on Friday Jim Cramer, host of Mad Money on CNBC, gave a long and enthusiastic endorsement of XTO as one of his favorite oil stocks to own, especially after the recent asset acquisition from Dominion. We wouldn't be surprised to see XTO shoot higher on Monday. Please note that we are adjusting our target from $62.50-65.00 to $64.75-67.50. More conservative traders may want to tighten their stops toward $58.00.
Picked on May 27 at $ 57.63
Anixter Intl. - AXE - cls: 69.06 chg: +0.36 stop: 71.55
The last few weeks has seen AXE create a bearish double-top pattern under resistance near $75.00. The recent sell-off broke support at the $70.00 mark and its rising 50-dma. AXE produced an oversold bounce on Friday but the rebound struggled under the $70 level. This looks like another entry point to buy puts. We are aiming for the $65.25-65.00 range. The P&F chart is bearish with a $63.00 target.
BUY PUT JUL 70.00 AXE-SN open interest= 44 current ask $2.95
Picked on June 07 at $ 68.99
Gilead Sciences - GILD - cls: 79.00 chg: +0.42 stop: 82.55
GILD also participated in the market's widespread bounce on Friday. Yet the rebound couldn't make it past round-number resistance at $80.00. We would use this bounce as a new entry point to buy puts. If the stock continues to bounce then look for resistance at $80 and again at $81.00. A failed rally under either level could be used as a new entry point. Our target is the $75.25-72.50 range. FYI: The stock is set to split 2-for-1 on June 25th. The P&F chart shows a new quadruple bottom breakdown sell signal with a $71 target.
BUY PUT AUG 80.00 GDQ-SP open interest=4904 current ask $3.50
Picked on June 07 at $ 79.90
Vital Images - VTAL - cls: 26.20 chg: +0.18 stop: 29.05
VTAL hit another new relative low on Friday (25.73) before bouncing back. The rebound was pretty anemic and we remain bearish although we're not suggesting new positions. If the markets continue to bounce then we could see VTAL make a rally attempt toward the $28 level. More conservative traders may want to tighten their stops a bit. Our target is the $25.15-25.00 range.
Picked on May 16 at $ 27.99