Cleveland Cliffs - CLF - close: 68.25 chg: 1.08 stop: 61.45
Please see tonight's Play Editor's note. CLF opened stronger this morning with a gap open at $69.45. The initial rally failed at resistance near $70.00 and shares drifted lower midday. After CLF filled the initial gap from this morning the stock began to bounce again and shares closed up 1.6%. We remain bullish on the stock but more conservative traders may want to wait for a new relative high over $70.14 (today's high) before initiating positions. Our target is the $74.50-75.00 range. The 50-dma could be another layer of overhead resistance.
Picked on August 12 at $ 67.30
Chevron - CVX - cls: 82.45 change: -0.97 stop: 79.35
Hmm... oil stocks failed to hold any strength today. Crude oil ticked higher but oil stocks rolled over early in the session. The OIX and OSX indices both appear to have produced some short-term failed rallies. That's not good news for the oil stocks. The next couple of days could be bearish. At this point we would expect CVX to dip back toward support in the $80.50-80.00 range. Wait and watch for a bounce before initiating positions. Our target is the $89.00-90.00 range. FYI: The P&F chart is still very bearish with a $68 target.
Picked on August 12 at $ 83.42
Fluor - FLR - clse: 123.57 change: 2.57 stop: 114.99
FLR displayed some relative strength today. The stock rallied sharply higher from the opening bell. The stock hit an intraday high of $128.00. Our suggested trigger to buy calls was at $123.25. Now that the play is open we have two targets. Our first target is the $129.75-130.00 range. Our secondary target is the $134.00-135.00 range. The move over $123.00 has produced a brand new quadruple top bullish breakout buy signal on the P&F chart which already points to a $169 target. In spite of this seemingly good news the move today actually looks somewhat bearish. Yes, FLR has produced a new bullish breakout over resistance. Yet today's session looks more like a big bearish failed rally pattern. The question is where will it bounce? More conservative traders may want to tighten their stops toward the $120 level. FYI: Today's move was fueled by news that ICA Fluor, a joint venture that FLR is a part of, won a $1.4 billion services contract at the Chicontepec oil field in Mexico.
Picked on August 13 at $123.25
Penn National Gaming - PENN - cls: 56.80 chg: 0.75 stop: n/a
PENN received an upgrade this morning. This pushed the stock to gap open higher and hit $57.99 before paring its gains. The analyst raised their price target to $67.00, which is the current buyout price for PENN. Currently we're planning to drop this stock with August expiration but if the markets are going to turn positive on this deal actually getting done then readers may want to reconsider their speculative positions. We don't see any significant changes from our previous comments. We are not suggesting new positions at this time.
Picked on June 17 at $ 62.12
XTO Energy - XTO - cls: 55.81 change: -1.27 stop: 54.45
Warning! XTO has produced a bearish reversal. The stock spiked higher this morning to $59.91 and then quickly reversed course. Shares closed with a 2.2% decline. Not only is this a bearish failed rally under $60.00 but it's also a bearish engulfing candlestick pattern. To make matters worse we were suggesting a trigger to buy calls at $57.61 and XTO gapped open higher at $58.43, giving us a worse starting position. If you did enter positions today you may want to just exit early to cut your losses now or tighten your stops. We're not suggesting new positions at this time. Our target is the $62.00-62.05 range. FYI: We didn't see any specific news to account for the spike this morning.
Picked on August 13 at $ 57.61
(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)
Daimler-Benz AG - DAI - cls: 84.71 chg: 0.87 stop: n/a
Shares of DAI managed a 1% bounce on Monday. Overall we don't see any significant changes from our previous comments. We are not suggesting new strangles on DCX at this time. The options in our suggested strangle were the August $95 calls (DAI-HS) and the August $85 puts (DAI-TQ). Our estimated cost was $3.70. Please note that we're running out of time. August options expire in four trading days. Therefore we're adjusting our target to sell the winning side of this strangle to $5.55, which would be a 50% gain.
Picked on July 22 at $ 89.75
Sears Holding - SHLD - cls: 140.55 chg: 7.45 stop: 127.49
Target achieved and exceeded. The company reaffirmed its Q2 earnings guidance and the numbers were narrowed toward the upper end of guidance. Plus, SHLD announced a $1.5 billion stock buy back program. The news pushed SHLD to gap open higher at $136.00 and hit an intraday high of $141.34. Our target was the $139.50-140.00 range. We have been suggesting that more aggressive traders may want to aim higher. The $145-150 zone looks like a good target for the more adventurous investors out there.
Picked on August 3 at $133.00