Broadcom - BRCM - cls: 35.37 change: -0.09 stop: 33.95
Watch out! Our new play in BRCM is now open but some legal news might make our timing dangerous. Shares of BRCM rallied midday and hit $36.03. Our suggested entry point to buy calls was at $35.85 so the play is now open. Unfortunately, BRCM was unable to hold any of its gains and the stock closed in the red with what looks like a failed rally at $36.00. The very short-term technical indicators are suggesting more weakness ahead. On top of this disappointing performance there was an announcement after the closing bell. BRCM and QCOM have been in a patent dispute and months ago the courts announced a ban on importing QCOM phones into the U.S., which was a legal win for BRCM. That has changed. Tonight a federal judge has temporarily reversed or stayed the import ban on Qualcomm phones into the U.S. This sounds bearish for BRCM but the stock was actually edging higher in after hours trading. The combination of the failed rally and the legal news makes us cautious on BRCM. At this time we'd expect a dip toward the 10-dma or lower. Wait and watch for a bounce or a new rally past $36 before considering new positions. Our target is the $39.85-40.00 range. The Point & Figure chart is bullish with a $49 target.
Picked on September 12 at $ 35.85
Intl. Bus. Mach.- IBM - cls: 116.00 chg: -1.35 stop: 113.24*new*
A lack of follow through on yesterday's bounce for IBM is not a good sign. The technical picture is starting to decay. IBM looks poised to retest short-term support near $115. We are adjusting our stop loss to $113.24. We're not suggesting new positions at this time. The stock has already hit our $118-120 target range. 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
Manitowoc - MTW - cls: 39.12 change: -1.36 stop: 37.48
Ouch! MTW is showing a lot of volatility these days. The stock was up big yesterday but today the stock lost 3.3%. Furthermore today's session has produced a bearish reversal in the form of a bearish engulfing candlestick pattern. More conservative traders may want to consider an early exit or raise their stop loss toward $38.00. Our post-split target is the $44.00-45.00 range. Our post-split stop loss is $37.48.
Picked on September 05 at $ 40.13 *split adjusted
Transocean - RIG - cls: 106.69 change: -0.26 stop: 104.85
Hmm... it was not a good day for RIG. Overall the stock didn't move much. However, this morning the stock was upgraded. Plus, crude oil rose to new highs after the surprising inventory report this morning. Yet shares of RIG couldn't build on either. Readers can watch for another bounce near $105 as a potential entry point for bullish positions but RIG is facing short-term resistance in the $109-110 range. Our target is the $114.00-115.00 range.
Picked on August 31 at $105.75
Ashland Inc. - ASH - cls: 58.94 change: +0.38 stop: 61.01
We don't see any changes from our previous comments on ASH. The stock is still trying to bounce but remains under resitsance in the $60-61 zone. The technical indicators are mixed. We would keep an eye open for a failed rally under $60.00 as a new entry point for bearish plays. We have two targets. Our first target is the $55.15-55.00 range. Our second target is the $52.65-52.50 range.
Picked on September 09 at $ 58.84
Acuity Brands - AYI - cls: 49.78 change: +0.12 stop: 53.55*new*
AYI may have posted a gain but the action looks bearish. The intraday chart shows two rally attempts that failed under $50.50. The stock currently looks poised to move lower. We are adjusting our stop loss to $53.55. 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
L-3 Comm. - LLL - cls: 97.74 change: -0.91 stop: 98.55
We don't see any changes from our previous comments on LLL. The stock is still under performing the defense sector and the tech sector. Currently we're waiting for a breakdown under $96.00. Our suggested trigger to buy puts is at $95.90. If triggered at $95.90 our target is the $90.75-90.00 range but we may need to adjust that as the 200-dma continues to rise.
Picked on September xx at $ xx.xx <-- see TRIGGER
Whirlpool - WHR - cls: 90.24 change; -0.16 stop: 95.15 *new*
WHR tried to bounce from the $90 level again but the rally faded under $91.50. The stock is inching closer and closer to a breakdown under the $90 level. We are adjusting our stop loss to $95.15. We have two targets. Our first target is the 87.75-87.50 range. Our second target is the $85.00-84.00 range.
Picked on September 09 at $ 92.77
(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.)
Bear Stearns - BSC - cls: 110.05 chg: +2.41 stop: n/a
We do not see any changes from our Tuesday comments on BSC. The company is now expected to release earnings before the opening bell on Thursday, September 20th. That doesn't give us much time to play September options, which expire after September 21st. We're suggesting the October strikes instead. If BSC dips into the $106.50-103.50 range we would suggest the following: buy the October $115 call (BSC-JC) currently at $5.70 and the October $95 put (BVD-VS) currently at $3.80. Bear in mind that we have over a week and it might pay off to just wait and see where BSC is trading around September 18 or 19th before opening positions, plus we can avoid about a week's worth of time premium erosion. Depending on where BSC is trading next week we may need to use different strikes. This should be considered a more aggressive play.
Picked on September 09 at $105.37
Diamonds - DIA - cls: 133.25 chg: +0.17 stop: n/a
Odds are growing that the markets will just churn sideways as investors await next Tuesday's fed meeting. We are not suggesting new positions in the DIA 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. We have less than two weeks left before September options expire.
Picked on August 30 at $132.57
S&P 100 Index - OEX - cls: 688.42 chg: +0.77 stop: n/a
We're not suggesting new positions in the OEX at this time. Our strangle strategy 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
Amazon.com - AMZN - close: 87.31 change: +1.02 stop: 79.99
Target achieved. AMZN continues to show relative strength. The stock hit an intraday high of $88.89 before paring its gains. Our target was the $88.00-89.00 range. The stock appears to have resistance in the $89-90 zone and shares look ready for a rest. We'd keep an eye on it for a new bullish entry point down the road.
Picked on September 04 at $ 80.85