L.B.Foster Co. - FSTR - cls: 36.01 chg: -0.84 stop: 33.90
FSTR succumbed to some profit taking this morning but traders bought the dip at $34.60. The rebound looks like a new entry point for bullish positions. However, we have to warn you that the technicals indicators have turned bearish given the two-day weakness. Due to the market's volatility and FSTR's own volatility we are using a wide (aggressive) stop loss. We have two targets. Our first target is the $39.90-40.00 range. Our second target is the $42.00-42.50 zone.
Picked on August 14 at $ 37.33
Penn National Gaming - PENN - cls: 55.49 chg: -0.69 stop: n/a
Support near $54.50 held again but the trend is definitely bearish. The stock should be trading near its $67 buyout price announced in June. Given the current value of PENN's stock the market is telling us they don't believe the deal will get done in its current form or valuation. The last few weeks have seen some analyst firms come out and upgrade the stock with a $67 price target as they, the analysts, express their confidence that the deal will proceed. Aggressive traders may want to stick it out. We're planning to drop this play tomorrow due to August option expiration. This was a very speculative, high-risk play, which is why there is no stop loss listed.
Picked on June 17 at $ 62.12
Intuitive Surgical - ISRG - cls: 189.63 chg: -4.98 stop: 205.51
ISRG continues to dip and shares lost 2.55% by the closing bell. We want to remind readers that this is a high-risk play. ISRG was already a volatile stock and now combined with the market volatility shares could see some big intraday swings. If the markets rebound tomorrow then ISRG could easily challenge the $200 level of resistance. The 10-dma near $201.50 should also be another level of overhead resistance. Our target is the $181.00-180.00 zone.
Picked on August 15 at $194.50
Cleveland Cliffs - CLF - close: 60.63 chg: -2.43 stop: 61.45
Market weakness continued to weigh on CLF and the stock broke down under technical support at its 200-dma. Shares dipped to an intraday low of $56.39 before bouncing back above the $60.00 mark. Our (aggressive) stop loss was at $61.45, which would have been hit early this morning.
Picked on August 12 at $ 67.30
Chevron - CVX - cls: 81.39 change: +0.63 stop: 79.35
CVX dipped to an intraday low of $78.25 before the final hour of trading lifted shares back above the $80.00 level. Today's volatility pushed CVX under the August 6th low of $78.39 so even if we had a more aggressive stop loss under the previous low we would have still been taken out. If CVX can rebound from here it might be a short-term bullish double-bottom pattern. Our stop was $79.35.
Picked on August 12 at $ 83.42
Fluor - FLR - clse: 113.44 change: -3.63 stop: 114.99
FLR has seen some extreme volatility in the last couple of days. Word on the street was that hedge funds, desperate for cash, were selling their winners. This may be what happened to FLR this week. The stock plunged from Tuesday's close of $124.24 to today's intraday low of $104.30. Shares did bounce back but the damage was done. Our stop loss was at $114.99. We've been suggesting that more conservative traders tighten their stops for the last couple of days.
Picked on August 13 at $123.25
Foster Wheeler - FWLT - cls: 89.37 chg: -5.95 stop: 105.05
Target exceeded! Our bearish target on FWLT was exceeded by a big margin. The stock gapped down to open at $93.01 and then dipped to $84.33 before bouncing this afternoon. Shares closed with a 6.2% decline. Our target was the $92.50-90.00 range.
Picked on August 15 at $ 99.50
Millicom - MICC - cls: 74.33 chg: -1.13 stop: 80.05
Targets achieved and exceeded. The exaggerated market volatility today helped MICC hit both of our targets. The stock opened down at $72.30 and dipped to an intraday low of $66.00 before bouncing back to close with a 6% decline. Our first target was the $70.25-70.00 zone. Our secondary target was the $67.50-67.00 range.
Picked on August 15 at $ 74.25
Vulcan Materials - VMC - cls: 86.91 chg: -1.61 stop: 92.55
Targets achieved. Thursday's market weakness also helped VMC hit both of our targets today. Shares gapped down to open at $86.41 and then dipped midday to $80.50 before bouncing back. We had two targets. Our first target was the $85.25-85.00 range. Our second target was the $81.00-80.00 range.
Picked on August 15 at $ 89.75
Daimler-Benz AG - DAI - cls: 79.45 chg: -3.00 stop: n/a
Target achieved. Looks like we did not need to adjust our target after all but there was no way to know that the markets and DAI would be so weak intraday. Shares of DAI dipped to $76.57 midday. This pushed the August $85 put (DAI-TQ) to an intraday high of $7.00. Our original target was to sell if either option hit $6.45. As time ran out we kept adjusting the option lower and last night we adjusted the option target to $4.65. Our estimated cost was $3.70.
Picked on July 22 at $ 89.75