Broadcom - BRCM - cls: 36.92 change: +0.40 stop: 33.95
BRCM is looking pretty strong today in spite of being downgraded to a "market perform" before the opening bell this morning. Traders bought the dip near $36.00 and the stock rallied toward resistance near $37.00. The $37 level is significant resistance so more conservative readers may want to wait for a breakout over $37 before initiating new positions. Our target is the $39.85-40.00 range. The Point & Figure chart is bullish with a $49 target. Please note that we do not want to hold over the mid October earnings report.
Picked on September 12 at $ 35.85
Citigroup - C - clos: 46.31 change: -0.28 stop: 45.65
Shares of C continued to slide today along with most of the financial stocks. Yet it looks like C might have found some short-term support near the $46.00 level midday. A rebound from here could be used as a new bullish entry point to buy calls. Considering the stock's relative weakness the past few days readers might want to tighten their stops toward $46.00. Our initial target is the $49.85-50.00 range but we might decide later to add a more aggressive target at the 200-dma. Please note that we do not want to hold over the October 19th earnings report.
Picked on September 16 at $ 46.64
Intl. Bus. Mach.- IBM - cls: 116.51 chg: +0.26 stop: 113.90
We're still cautiously optimistic on IBM but today's session is a bit worrisome. Traders did buy the dip near $116 this morning but the rebound struggled all day long near $117.50. Momentum indicators are mixed and the chart is starting to show a pattern of higher lows and lower highs. A rebound near $115 and its rising 50-dma could be used as a new entry point but bear in mind that IBM is finding resistance in the $117.50-119.00($120) range. 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. We do not want to hold over the mid October earnings report.
Picked on August 26 at $113.24
Lockheed - LMT - cls: 104.96 change: +2.61 stop: 98.99 *new*
The DFI Defense index was one of the market's best performing sectors today. Helping lead the charge higher was LMT, which soared 2.5% and closed at a new six-week high. LMT won a couple of new contracts today, one from the Australian navy and one from NASA. Please note that we're inching up our stop loss to $98.99. Our target is the $109.50-110.00 range. More aggressive traders may want to aim higher. The P&F chart points to a $117 target. We do not want to hold over the late October earnings.
Picked on September 24 at $103.81 *gapped higher
Stryker - SYK - cls: 67.67 change: +0.39 stop: 65.90
SYK looks like it's still trying to rebound. More aggressive traders might want to consider new positions if SYK can rise past the 10-dma. We're sticking to our plan which calls for a trigger at $70.65 to open positions. If triggered at $70.65 our target is the $74.90-75.00 range. Given the length of SYK's consolidation we would actually aim higher, maybe the $77.50-80.00 range, but we don't have much time and plan to exit ahead of the mid October earnings report. The P&F chart is bullish with an $83 target.
Picked on September xx at $ xx.xx <-- see TRIGGER
Alexander & Baldwin - ALEX - cls: 48.97 chg: +0.53 stop: 52.01
ALEX recouped half of yesterday's losses with a rebound from the $48 level. The sector got a boost after an analyst firm raised their earnings estimates on another company in this industry. Readers can watch for a failed rally near resistance at the $50 level as a new entry point for puts. The P&F chart is already bearish with a $36 target. There is some support near $47.50 but we're aiming for a decline into the $45.50-45.00 range. We do not want to hold over the late October earnings.
Picked on September 23 at $ 49.50
Cephalon - CEPH - cls: 72.47 chg: -0.96 stop: 74.25
CEPH continues to creep closer and closer to a breakdown under support at the $72.00 level. Shares produced another bearish failed rally near its 50-dma today. We're waiting for a breakdown under short-term support at $72.00. We want to see a new relative low so we're suggesting a trigger to buy puts at $71.70. Please note that any time we trade a biotech stock it should be considered higher-risk. You never know when there is going to be a surprise announcement about an FDA approval or lack thereof or a surprise announcement on some new breakthrough or clinical trial. It's tough to defend against this sort of headline risk that could send a biotech stock gapping one way or the other. If we are triggered at $71.70 our target will be the $68.00-67.00 range. More aggressive traders could aim for the $65 region. The P&F chart is very bearish with a $50 target.
Picked on September xx at $ xx.xx <-- see TRIGGER
(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: 114.24 chg: +1.25 stop: n/a
BSC managed to out perform most of its peers with a 1.1% bounce today. We're not suggesting new positions at this time. Currently our strangle involves the October $115 call (BSC-JC) and the October $95 put (BVD-VS). Our estimated cost was $9.50 and we want to sell if either option hits $14.00 or more. This should be considered a more aggressive play.
Picked on September 09 at $105.37
Dow Jones Industrial Avg. - DJX - cls: 137.79 chg: +0.20 stop: n/a
We have nothing new to report on for the DJX. We are not suggesting new positions on the October version of our strangle. The options listed for our October strangle were the October $137 calls (DJY-JG) and the October $132 puts (DJW-VB) with an estimated cost of $4.75. We want to sell if either option hits $6.75.
Picked on September 16 at $134.43
Trina Solar - TSL - cls: 57.16 chg: +1.00 stop: 47.49
Target achieved. The rally in TSL continues. The stock hit an intraday high of $58.19. Our target was the $58.00-60.00 range. More aggressive traders might want to stay with it since the afternoon rebound today looks like TSL is poised to trade higher tomorrow.
Picked on September 23 at $ 51.89