Aracruz Celulose - ARA - cls: 75.98 chg: -0.19 stop: 72.49
We do not have anything new to report on for ARA. The stock bounced multiple times near $75.00 intraday. We remain bullish on the stock but readers might want to wait for a rally past $76.75 or $77.00 before initiating new plays. The P&F chart is still bullish with a $93 target. We are leaving our stop loss at $72.49 but more conservative traders could inch their stop closer to the $73.75 area (near Friday's low). We have two targets. Our short-term target is the $79.90-80.00 range. Our more aggressive target is the $82.50-85.00 range.
Picked on October 31 at $ 76.89
Boeing - BA - close: 97.97 change: +0.21 stop: 94.85
BA had an intraday range of just over $2.00 and it was a bumpy ride inside that $2.00 spread. The stock gapped open lower but climbed back to retest overhead resistance at its 50-dma. Volume has been sliding over the last couple of sessions. We remain positive here but readers may want to wait for a breakout over the 50-dma before initiating positions. Our target is the $104-105 zone. More aggressive traders could aim for the highs near $107.
Picked on October 29 at $ 97.25
Deere Co. - DE - close: 154.28 change: +1.55 stop: 144.45
DE continued to trade higher. Traders quickly bought the dip this morning near $150. The stock rallied to almost $156 before paring its gains. The MACD is inching closer to a new buy signal. We would still consider new positions here. Our stop loss is at $144.45, just under the rising 50-dma. More conservative traders could put their stop closer to Friday's low (148.50). There is some resistance near $155 and $157 but we have two targets. Our first target is the $159.50-160.00 range. Our second target is the $164.00-165.00 zone.
Picked on November 04 at $152.73
DST Systems - DST - close: 85.33 change: -1.25 stop: 83.45
DST pulled back from resistance near $87 but traders did buy the dip midday as DST filled the gap from November 1st. We are suggesting a trigger to catch the next breakout at $87.25. If triggered our target is the $94.00-95.00 range.
Picked on November xx at $ xx.xx <-- see TRIGGER
Goodrich Corp. - GR - close: 70.71 change: +0.42 stop: 66.90
There was no slow down in GR's rally. The stock continued to march higher and hit an intraday high at $71.13, breaking resistance at $71.00 on an intraday basis. Our suggested trigger to buy calls was at $71.05 so the play is now open. Our conservative target is the $74.90-75.00 range. Our more aggressive target is the $78.00-80.00 range. The P&F chart is bullish and points to a $99 target.
Picked on November 05 at $ 71.05
Kennametal - KMT - close: 88.81 change: -0.36 stop: 86.90
We want to warn readers that the trading in KMT today was bearish. The stock only lost 36 cents but it looks poised for more declines and any sort of pull back will probably dip toward $85.00. Readers will want to consider a tighter stop near $87.75 or just exiting early and waiting for a new relative high (or maybe buying a bounce near $85.00). We're not suggesting new positions at this time. Our target is the $99.00-100.00 range. The P&F chart has a triple-top breakout buy signal with a $102 target. FYI: KMT has a 2-for-1 stock split set for December 19th.
Picked on October 31 at $ 91.21
L-3 Comm. - LLL - cls: 111.06 chg: +1.00 stop: 103.90
LLL continues to show relative strength. The stock confirmed Friday's breakout over resistance near $110 and closed at new highs on strong volume. We have two targets. Our first target is the $114.00-115.00 range. Our second, more aggressive target is the $118.00-120.00 range. More conservative traders may want to tighten their stops. FYI: The P&F chart's bullish target has risen from $133 to $139. Plus, 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
S&P 100 Index - OEX - close: 701.71 chg: -3.24 stop: 694.99
Monday's lack of follow through on Friday's rebound is bearish. The market (and the OEX) bounced again near its Friday lows but the rebound was failing this afternoon. This is not very encouraging and if you opened positions in the OEX today you may want to tighten your stop loss. At this time we would wait for a rally over $706 in the OEX before considering new bullish call positions. More conservative traders may want to see a rally past $710 first. We have two targets. Our first target is the $724-725 range. Our second, more aggressive target is the $734-735 zone. FYI: The options are expensive. We would consider this higher-risk!
Picked on November 04 at $704.95
Petro Canada - PCZ - close: 57.41 change: -0.76 stop: 54.90
Today's dip looks like a new entry point if you're an aggressive and nimble trader. We are sticking to the plan and suggesting that readers wait for a new high. That means we need to wait for a breakout over resistance at $59.00. Our trigger to buy calls on PCZ will be $59.25. If triggered our target is the $64.50-65.00 range.
Picked on November xx at $ xx.xx <-- see TRIGGER
PowerShares NDX ETF - QQQQ - cls: 54.07 chg: -0.35 stop: 52.49
Our play on the Qs is not off to a strong start. We don't see any changes from our weekend comments except that readers might want to wait for a rise past $54.50 or $54.60 before initiating call positions. Our stop loss is at $52.49 but more conservative traders might be able to get away with a tighter stop. Our target is the $58.00-60.00 range.
Picked on November 04 at $ 54.42
Research In Motion - RIMM - cls: 127.97 chg: +1.02 stop: 117.49
Positive analyst comments and a new raised price target to $160 helped push RIMM to an intraday high of $131.47. The stock's relative strength today is encouraging. We do not see any changes from our weekend comments. Our target is the $138.00-140.00 range. More aggressive traders could aim higher. The P&F chart is forecasting a $163 target.
Picked on November 04 at $126.95
Siemens - SI - close: 136.64 change: +1.24 stop: 129.75
SI continued to rally in spite of weakness in overseas markets. The stock spiked to an intraday high of $137.49 and was bouncing again late this afternoon. Technical indicators have improved recently and we remain bullish here. Currently our target is the $139.85-140.00 range but we're thinking about adding a more aggressive target in the $144-145 zone. The P&F chart is pretty bullish with a $182 target. 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: 58.42 change: +0.59 stop: 53.45
Monday proved to be yet another volatile day for SINA. We do not see any changes from our weekend comments. Currently we have two targets. Our first target is the $59.50-60.00 range. Our second, more aggressive target is the $63.00-65.00 range. More conservative traders may want to tighten their stops toward $55.00. Meanwhile it looks like SINA will report earnings in the November 8th - 22nd range but we still don't have a confirmed date yet. We do not want to hold over the 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: 103.50 change: -0.17 stop: n/a
This morning before the opening bell BWA issued a press release and raised their expectations for new business in the power train sales. Unfortunately, the stock didn't move much on the news. We are not suggesting new strangle positions. At this time we have two weeks left on 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.
FYI: Many quote services are listing the intraday low as $95.51. This is a bad tick. The stock didn't trade under $102 today.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 64.83 chg: -0.22 stop: n/a
ESRX traded sideways in the $64-66 range. 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: 113.40 chg: -1.19 stop: n/a
It looks like the rebound in IBM is in trouble. The stock failed near $115 again and painted a bearish engulfing candlestick pattern. The lack of a big move on earnings has doomed this strangle play. Unless IBM sees some really big swings in the next couple of weeks this is a bust. 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: 38.43 chg: -0.44 stop: n/a
MNST continued to slide and tested short-term support near $38.00 this afternoon. We have two weeks left on the November options. 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
BHP Billiton - BHP - cls: 83.73 chg: +1.30 stop: 78.49
Overseas markets were down sharply on Monday as the world reacted to the Citigroup news and the bank's massive write downs. This fanned the flames of fear in the financials. The Australian index plunged and shares of BHP gapped open lower at $79.10 as U.S. shares adjusted to trading overseas. It was rather unlucky timing of us to adjust our suggested entry point from above $87.50 to Friday's close. Technically we would have been triggered this morning on the gap down and the stock would have hit our stop at $78.49. This may just be a temporary decline. Keep an eye on BHP for a rebound.
Picked on November 4 at $ 83.73
Haynes Intl. - HAYN - cls: 83.08 change: -1.04 stop: 81.49
Over the weekend we raised our stop loss to $81.49 to reduce our risk and it worked. HAYN displayed relative weakness with an intraday dip to $81.35 before bouncing back. The stock has broken down under its 50-dma and traded under its trendline of support we outlined in the weekend newsletter.
Picked on October 28 at $ 86.49