Amazon.com - AMZN - close: 82.70 change: +2.79 stop: 77.45
AMZN continued to rally and broke through resistance at the $80.00 mark pretty early this morning. Our trigger to buy calls was at $80.85 so the play is now open. If you don't want to chase it here then look for a dip back toward the $81.50-80.00 zone as a potential entry point. Our target is the $88.00-89.00 range. The P&F chart is very bullish with a $99 target.
Picked on September 04 at $ 80.85
CanadianPacific Rail - CP - cls: 69.93 chg: -0.55 stop: 66.75
Railroad stocks as a group finished higher today. The DJUSRR railroad index rose 1.5%. CP failed to participate. The stock under performed with a 0.7% decline and a final close under the $70.00 mark, which is short-term bearish. What makes this more surprising is that CP announced what appeared to be good news with a five-year contract settlement with the Teamsters in Canada. If CP continues to dip we'd look for short-term support near the 10-dma around $68.50. A bounce near $68.50 could be used as a new entry point. Another alternative entry point would be a rise past today's high at $70.74. Our target initial target is the $74.75-75.00 range. We do have a wide, aggressive stop due to the stock's recent volatility. If CP tries to fill the gap from Friday morning look for a dip back toward $67.75.
Picked on September 02 at $ 70.48
Ceradyne - CRDN - cls: 73.32 change: +1.04 stop: 68.49
CRDN also continued its rally and shares posted a 1.4% gain. The stock's next challenge is getting past the 50-dma near 74.45 directly overhead. Should CRDN see any profit taking look for a dip back toward the $71.25-70.00 zone as a potential entry point. Our target is the $78.00-80.00 range.
Picked on September 02 at $ 72.27
Eaton Corp. - ETN - cls: 94.64 change: +0.42 stop: 91.99
ETN tried to breakout over resistance near $95.00 and its 50-dma and did so on an intraday basis but failed to hold most of its gains. The intraday high was $95.16. We are suggesting a trigger to buy calls at $95.25. If triggered we will have two targets. Our first target is the $99.75-100.00 range. Our second target is the $103.50-104.00 zone. Aggressive traders may want to put their stop loss under support near $90.00. More conservative traders could put their stop closer toward what should be technical support at the 10-dma around $92.50.
Picked on September xx at $ xx.xx <-- see TRIGGER
Intl. Bus. Mach.- IBM - cls: 118.19 chg: +1.50 stop: 111.59 *new*
Target achieved! Tech stocks were market leaders on Tuesday and IBM hit new multi-year highs at $118.89. Our initial target was the $118.00-120.00 range. The stock closed near its July peak and after the current two-week rally we would be looking for some profit taking here. A dip back into the $116-114 zone would not be out of the question. We are raising our stop loss to $111.59, just under the August 28th low. Our second, more-aggressive target is the $124.00-125.00 zone. FYI: The Point & Figure is very bullish with a $177 target.
Picked on August 26 at $113.24
Millicom - MICC - cls: 85.77 change: +1.44 stop: 79.90
MICC is another tech stock showing a lot of strength today. Shares broke through resistance near $85.00 and closed up with a 1.7% gain. We were suggesting a trigger to buy calls at $85.25 so the play is now open. The next hurdle for the bulls is potential technical resistance at the 50-dma and 100-dma near $86.35. More conservative traders may want to wait for MICC to clear technical resistance at its 100-dma and 50-dma near $86.35 first before starting plays. We have two targets. Our first target is the $89.75-90.00 range. Our second, more-aggressive target is the $94.00-95.00 range.
Picked on September 04 at $ 85.25
Manitowoc - MTW - cls: 79.55 change: +0.06 stop: 73.99
MTW didn't make much progress today. The stock traded lower this morning and had to fight its way back toward resistance at the $80.00 mark. There was a brief rally above $80.00 this afternoon but the high was only $80.08. More aggressive traders may want to buy calls now. We're suggesting a trigger to buy calls at $80.25. If triggered our target is the $88.00-90.00 range. Nimble traders will want to try and be patient and look for a dip back into the $78.00-75.00 zone as a potential entry point. Conservative traders might want to cinch up their stop loss toward $75.00. The Point & Figure chart is very bullish with a triple-top breakout buy signal and a $103 target. FYI: MTW is due to split 2-for-1 on September 11th.
Picked on September xx at $ xx.xx <-- see TRIGGER
Transocean - RIG - cls: 107.96 change: +2.87 stop: 102.49*new*
Oil stocks were mostly higher thanks to a rally in crude oil. Concerns over the hurricane currently south of the Gulf of Mexico and worries that we will still see several more big storms this year are pushing crude futures high. Shares of RIG really move with an intraday high of $109.44. Today's rally is a bullish breakout over $105 and its 50-dma. If RIG dips back toward the $105.50-105.00 zone we'd use it as a new entry point for calls. The $110 region could be short-term support but our target is the $114.00-115.00 range. Please note that we're raising the stop loss to $102.49, which is under the rising 10-dma.
Picked on August 31 at $105.75
Riverbed Tech. - RVBD - cls: 45.92 chg: +1.52 stop: 41.95
Traders bought the dip at RVBD's 10-dma this morning and shares surged to an intraday high of $46.76. The stock closed off its highs but still posted a 3.4% gain. Tech stocks appear to be in favor right now and networking companies are getting a lot of positive press. If there is any profit taking look for a dip or a bounce near $45.00 as a new entry point for bullish positions. Our target is the $49.40-50.00 range. Today's intraday strength produced a brand new "bearish signal reversed" pattern on the P&F chart, which now points to a $65 target.
Picked on September 02 at $ 44.40
Acuity Brands - AYI - cls: 53.55 change: +1.01 stop: 56.01
Warning! AYI has produced a bullish reversal-type of pattern with today's bullish engulfing candlestick. The stock rallied 1.9% but is struggling with short-term resistance at its 10-dma and the $54.00 level. More conservative traders may want to tighten their stops toward the $55.00 level. We're not suggesting new positions at this time. We have two targets. Our first target is the $47.75-47.50 range. Our second target is the $45.25-45.00 zone.
Picked on August 26 at $ 52.80
(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.)
Diamonds - DIA - cls: 134.34 chg: +0.94 stop: n/a
As the DJIA continues to rally the DIA are trekking higher in its shadow. We do not see any changes from our previous comments. We are not suggesting new positions at this time. Our strangle play suggested using the September $137 call (DAZ-IG) and the September $127 put (DAW-UW) with an estimated cost of $2.05. We want to sell if either option rises to $3.10 or more.
Picked on August 30 at $132.57
S&P 100 Index - OEX - cls: 694.23 chg: +6.76 stop: n/a
Today's move in the OEX is bullish with its breakout over potential technical resistance at the 50 and 100-dma. The next hurdle for the bulls is resistance at the 700 mark. We're not suggesting new positions at this time. Our strangle suggested using the September 700 call (OEZ-IT) and the September 660 put (OEY-UL) with an estimated cost of $14.30. We want to sell if either option rises to $21.45 or more. Considering these prices we probably need to see a move into the $705-710 range or the $655-650 zone to be profitable.
Picked on August 30 at $680.46