Aracruz Celulose - ARA - cls: 74.44 chg: -2.45 stop: 72.49
The market-wide sell-off on Thursday pulled ARA to a 3.1% decline and a breakdown under short-term support at its 10-dma and the $75.00 level. Wait for a bounce back above $75.00 or $75.50 before considering new bullish positions. Our short-term target is the $79.90-80.00 range. Our more aggressive target is the $82.50-85.00 range. The P&F chart points to a $93 target.
Picked on October 31 at $ 76.89
Boeing - BA - close: 96.60 change: -1.99 stop: 94.85
The market's weakness also hit shares of BA. The stock lost 2% and now the recent action in the stock looks like a bearish failed rally pattern under its 50-dma. Wait and watch for a potential bounce near $96.00 as a bullish entry point. Conservative traders may want to wait for a breakout over $100. Our target is the $104-105 zone. FYI: The P&F chart is still bearish from the October sell-off.
Picked on October 29 at $ 97.25
BHP Billiton - BHP - cls: 82.43 chg: -4.83 stop: 82.49
The profit taking in BHP was pretty rough. The stock gapped open lower at $83.95 and slipped to $82.11 intraday. Volume was above average on the session, which is bearish. Currently, we're still on the sidelines. Our suggested trigger to buy calls was at $87.55. Given today's turn of events we'd watch for a potential bounce near $80.00 as a entry point (with an adjustment for your stop loss). If triggered our target is the $97.50-100.00 range. The P&F chart points to a $104 target. FYI: More conservative traders could try a higher stop loss near $84.00.
Picked on October xx at $ xx.xx <-- see TRIGGER
Haynes Intl. - HAYN - cls: 84.16 change: -3.36 stop: 82.45
HAYN just erased this week's gains with a 3.8% decline today. The stock's close under $85.00 is bearish but shares may also find support at its 50-dma near 83.35 soon. We're not suggesting new positions at this time. Our conservative target is the $89.90-90.00 range. Our more aggressive target is the $94.50-95.00 range. The Point & Figure chart has broken through resistance and points to a $100 target.
Picked on October 28 at $ 86.49
Kennametal - KMT - close: 88.84 change: -2.37 stop: 86.90
KMT did not escape the market's reversal. The stock lost 2.59% and looks headed back toward short-term support near $88.00. Wait and watch for a bounce near $88 or a new rally past $90.00 before considering new bullish positions. More conservative traders may want to raise their stop toward $88.00. Our target is the $99.00-100.00 range. The P&F chart has a triple-top breakout buy signal with a $102 target. We're suggesting a stop at $86.90 but more conservative traders might try a tighter stop near $87.50 or near $88.00.
Picked on October 31 at $ 91.21
L-3 Comm. - LLL - cls: 107.80 chg: -1.84 stop: 103.90
LLL held up reasonably well. The stock suffered a 1.67% decline versus the 2.6% drop in the S&P 500. Watch for a bounce near $106, which looks like short-term support. More conservative traders may want to tighten their stops. Our target is the $114.00-115.00 range. The P&F chart is bullish with a $133 target. FYI: LLL will webcast its upcoming investor conference on Tuesday, November 6th, 2007 at 8:00 a.m. ET.
Picked on October 29 at $108.10
Siemens - SI - close: 131.15 change: -5.22 stop: 129.75
The rally in SI took a beating today. Shares gapped open lower at $133.62 and sank to its 50-dma before closing with a 3.8% drop. The stock "should" find support at its 50-dma or the $130 level. We would wait and watch for a bounce before considering new positions. Our primary target is the $139.85-140.00 range. More aggressive traders can aim higher. FYI: SI trades as an ADR here in the U.S. and will most likely gap open one way or the other every session as the ADR adjusts to trading in Europe.
Picked on October 29 at $135.54 *gap higher entry
Sina Corp. - SINA - cls: 55.46 change: -1.87 stop: 53.45
Some of the Chinese Internet-related stocks were able to avoid the weakness in U.S. markets. SINA was not one of the lucky ones. SINA dropped 3.2% and looks ready to test round-number support near $55.00 soon. We are not suggesting new positions at this time. SINA is due to report earnings somewhere in the October 29th-November 8th range. Hopefully the closer we get to the end of October we'll find a confirmed date since we do not want to hold over SINA's earnings report.
Picked on October 23 at $ 53.40
(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.)
Borg Warner - BWA - cls: 104.71 change: -1.00 stop: n/a
BWA held up very well on Thursday. The stock only lost 0.9% versus the 2.6% drop in the S&P 500. More conservative traders may want to consider taking some profits now. The company's earnings report is behind it and we're not suggesting new strangles. We have less than three weeks left for our November options. The options we suggested for a strangle were the November $100 calls (BWA-KT) and the November $90 puts (BWA-WR). Our estimated cost was $4.50. We want to sell if either option hits $7.25 or more.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 63.99 chg: +0.89 stop: n/a
ESRX bucked the market's trend today. The stock rose sharply this morning hitting $65.65 before paring its gains. The 1.4% gain is a display of relative strength. We are no longer suggesting new strangle positions on ESRX. The options we suggested for a strangle were the November $65 calls (XTQ-KM) and the November $55 puts (XTQ-WK). Our estimated cost was $1.95. We want to sell if either option hits $3.50 or higher.
Picked on October 21 at $ 59.65
Intl. Bus. Mach. - IBM - cls: 113.65 chg: -2.47 stop: n/a
IBM completely erased yesterday's gains with a 2.1% decline. We are not suggesting new positions at this time and do not see any changes from our previous comments. Our November strangle suggested the November $125 call (IBM-KE) and the November $110 put (IBM-WB). Our estimated cost was $3.00. We wanted to sell if either option hits $6.00.
Picked on October 15 at $118.03
Monster Worldwide - MNST - cls: 38.90 chg: -1.68 stop: n/a
Shares of MNST just cut their post-earnings report gains in half with today's 4.1% sell-off. Broken resistance in the $38.00-37.50 zone should be new support. There are less than three weeks left for the November strikes. We are no longer suggesting new positions. The options we suggested for our strangle were the November $40 calls (BSQ-KH) and the November $35 puts (BSQ-WG). Our estimated cost is $1.75. We want to sell if either option hits $2.95 or higher.
Picked on October 23 at $ 37.22