L.B.Foster Co. - FSTR - cls: 37.31 chg: +1.30 stop: 33.90
Friday morning's market gap higher helped push FSTER to a new all-time high at $39.16. Unfortunately, the stock was unable to hold its rally above resistance near $38.00. The stock was still able to close up 3.6% and on strong volume. We remain bullish on FSTR here but it's up to the reader on where they want to initiating new positions. You could wait for a new rise past $38.00 or look for another dip back toward the 10-dma near $36.00. Conservative traders may want to raise their stop loss toward Thursday's low ($34.60). We have two targets. Our first target is the $39.90-40.00 range. Our second target is the $42.00-42.50 zone. Please note that this remains an aggressive, higher-risk play.
BUY CALL SEP 35.00 FQD-IG open interest=148 current ask $3.90
Picked on August 14 at $ 37.33
Intuitive Surgical - ISRG - cls: 199.13 chg: +9.50 stop: 205.51
There are no surprises here. We warned readers that ISRG was very volatile and that if the markets bounced on Friday that ISRG would probably challenge resistance at the $200 level, which is exactly what occurred. This remains a very aggressive, higher-risk play due to both the market volatility and ISRG's volatility. The $200 level and the 10-dma, both overhead, should be resistance. However, if the markets continue to bounce we would expect ISRG to bounce with them and stop us out at $205.51. If you're suddenly feeling conservative then we suggest you strongly consider exiting early now to cut your losses or adjusting your stop loss toward the $200 level. We are not suggesting new positions at this time although a failed rally under $200 would technically be a new entry point for put plays. Our target is the $181.00-180.00 zone.
Picked on August 15 at $194.50
Penn National Gaming - PENN - cls: 56.18 chg: +0.69 stop: n/a
We are giving up on PENN. The stock gapped higher back in June after it was announced that Fortress Investment Group (FIG) and Centerbridge Partners would pay $67.00 a share in an all-cash deal to buy PENN. PENN was given 45 days to solicit higher bids and there was a lot of speculation that multiple bidders might appear driving the stock higher. We suggested an aggressive and very speculative play on a potential bidding war that never appeared. In recent weeks several analysts have upgraded the stock confident that the deal would get done and that PENN would climb to the $67 buyout target price. Yet so far the stock price has continued to languish suggesting that the market does not believe the deal will get done in its current format or price. We are no longer willing to wait and our suggested August options have expired.
Picked on June 17 at $ 62.12