Amgen Inc. - AMGN - cls: 57.08 change: +0.50 stop: 54.90
AMGN is still edging higher but remains under resistance in the $57.50-58.00 zone. We are waiting on a bullish breakout and suggesting that readers use a trigger to buy calls at $58.01. We do see what could be additional resistance at its 200-dma near $59.40 and again at the $60.00 mark. However, if triggered our target is the $64.00-65.00 range, which might be a little too aggressive given our time frame. AMGN is due to report earnings around October 25th and we don't want to hold over the report. It's also worth noting that AMGN's P&F chart is still bearish and it will take a breakout over $60.00 to change it back into a bullish pattern.
Picked on October xx at $ xx.xx <-- see TRIGGER
Biogen Idec - BIIB - cls: 67.24 chg: +0.82 stop: 64.95
Traders bought the dip in BIIB again and today's move looks like another bullish entry point to buy calls. However, our comments from yesterday still stand. You could wait for another dip and bounce near short-term support at $65.00 or you could wait for a new relative high and another breakout over its short-term trendline of lower highs. There is potential resistance near $70.00 but we're going to aim for the $72.40-72.50 range. The P&F chart points to an $86 target. Part of our challenge is time. We do not want to hold over the October 23rd earnings report.
Picked on October 07 at $ 67.63
Citigroup - C - clos: 47.62 change: -0.18 stop: 45.79
Citigroup under performed the broader market and the rest of the financials on Tuesday. This relative weakness is a warning sign for the bulls. However, on the other side of the coin the stock did bounce (twice) near short-term support around $47 and its 50-dma. Readers might want to inch up their stops toward today's lows (46.80), especially if you choose to buy calls on today's afternoon rebound! Our initial target is the $49.85-50.00 range. Please note that we do not want to hold over the October 19th earnings report.
Picked on September 16 at $ 46.64
Ceradyne - CRDN - cls: 78.19 change: +0.53 stop: 73.95
The intraday dip under its 10-dma was a concern but CRDN managed to recover. The stock is relatively close to our target so we're not suggesting new positions at this time. More conservative traders may want to tighten their stop losses again. Our short-term target is the $79.50-80.00 range. The P&F chart is bullish with a $92 target.
Picked on September 25 at $ 74.61
Deutsche Bank - DB - cls: 134.20 chg: +0.59 stop: 128.99
Financial stocks rallied as investors reacted to the FOMC minutes released today. Shares of DB actually produced a minor bullish engulfing (reversal) candlestick pattern today. We are tempted to raise our stop again closer to the $130 mark. We're not suggesting new positions at current levels. There is potential resistance at the 200-dma near $138.70 so we're targeting a rally into the $138.00-140.00 range. The P&F chart is bullish with a $154 target.
Picked on October 01 at $130.79
Intl. Bus. Mach.- IBM - cls: 118.30 chg: +0.53 stop: 114.49
IBM continues to creep higher following last week's test of support near $115. We don't see any changes from our previous comments. If you think IBM can breakout over resistance in the $119-120 zone then this is a new entry point for calls. The stock has already hit our first target in the $118-120 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
Kohl's - KSS - close: 60.26 change: -0.19 stop: 57.90
Major retailers are expected to release their September same-store sales numbers in the next day or two. According to the Associated Press many are expecting the retail industry to report less than expected sales numbers due to warmer weather slowing the sale of winter clothes. This could be a good reason why KSS has been trading sideways the last couple of days. We're going to stick to our plan, which suggests readers use a trigger to open positions at $62.01. If we are triggered at $62.01 our target is the $67.00-68.00 range. Keep a wary eye on the 100-dma as potential overhead resistance. We do not want to hold over the November earnings report.
Picked on October xx at $ xx.xx <-- see TRIGGER
Martin Marietta - MLM - cls: 138.26 chg: -3.24 stop: 134.85
The relative weakness in MLM is a concern today, especially without any news to account for this morning's sell-off. Fortunately for the bulls the stock held near what should be support around $137. Thus a bounce from here could be used as a new bullish entry point to buy calls. Watch for a move back above $138.60 or $139.00 as a new entry point. More conservative traders might want to consider a tighter stop loss, maybe just under today's lows ($137). The P&F chart now points to a $170 target. We have two targets. Our first target is the $149.00-150.00 range. Our second target is the $157.00-160.00 zone. We do not want to hold over the late October earnings report.
Picked on October 02 at $141.31
Stryker - SYK - cls: 73.47 change: +0.99 stop: 68.49
SYK continues to show relative strength. We were expecting a bit more profit taking after the multi-day rally but traders bought the dip again. SYK's 1.3% gain pushed it back toward record highs. Our biggest concern today would be the lack of volume to validate the move. Our target is the $74.90-75.00 range. It would be tempting to aim higher, maybe the $77.50-80.00 range, but we don't have much time. SYK is due to report earnings on October 17th and we do not want to hold over the report. FYI: The P&F chart is bullish with an $83 target.
Picked on October 02 at $ 70.65
Terex - TEX - cls: 89.73 change: +1.97 stop: 83.75
The rally in TEX continues. The stock added another 2.2% and is nearing potential resistance in the $90-91 zone. The P&F chart is very bullish with a $100 target. Our target is the $94-95 range although more conservative traders may want to exit near $91.00.
Picked on September 25 at $ 86.50
(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.)
Dow Jones Industrial Avg. - DJX - cls: 141.65 chg: +1.21 stop: n/a
Market reaction to the FOMC minutes was positive and the DJIA and DJX rallied to new highs. This lifted the October $137 calls and they are currently trading at $4.80bid/$5.15ask. 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
Broadcom - BRCM - cls: 39.88 change: +0.41 stop: 35.75
Target achieved. It took longer than expected but BRCM finally hit our target in the $39.85-40.00 range. Following up on yesterday's news about BRCM expanding a deal with Samsung, one analyst firm upgraded their price target on BRCM to $45. Shares of BRCM do look short-term overbought but we would keep an eye on it for a pull back toward the $38.00 region as a potential entry point for new bullish positions.
Picked on September 12 at $ 35.85
L-3 Comm. - LLL - cls: 107.65 chg: +1.15 stop: 99.99
Target achieved. LLL continues to rally as traders bought the intraday dip near $106. Our target was the $107.50-110.00 range. Given LLL's relative strength readers might want to try and aim for an exit closer to $110.
Picked on September 25 at $100.96