Aracruz Celulose - ARA - cls: 77.04 chg: +1.06 stop: 72.49
Our bullish play in ARA has turned positive. Shares gapped higher this morning, consolidated its gains intraday and was rebounding again into the closing bell. This looks like another bullish entry point to buy calls. The P&F chart is 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: 97.70 change: -0.27 stop: 94.85
We were a little surprised by BA's relative weakness but the stock bounced again after testing its 10-dma midday. The afternoon rebound looks like a new entry point to buy calls. More conservative traders may want to wait for a breakout over the 50-dma or the $100 mark. 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: 160.30 change: +6.02 stop: 152.75 *new*
Target achieved. DE surged 3.9% and broke through resistance at the $160.00 mark. The MACD on the daily chart has produced a new buy signal. Our first target was the $159.50-160.00 range. We are adjusting our stop loss to $152.75. Our second target is the $164.00-165.00 zone.
Picked on November 04 at $152.73
DST Systems - DST - close: 87.82 change: +2.49 stop: 83.45
The broad-market rally helped DST produce a 2.9% gain and a bullish breakout over resistance near $87.00. Our suggested entry point to buy calls was at $87.25 so the play is now open. Our target is the $94.00-95.00 range.
Picked on November 06 at $ 87.25
Goodrich Corp. - GR - close: 73.36 change: +2.65 stop: 66.90
Shares of GR continue to show a lot of momentum. The stock rose 3.7% hitting new all-time highs. Volume continues to come in above average, which is bullish. If you don't want to chase the move here then wait for a possible dip back toward $71.00-72.00. 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. FYI: GR is expected to present at the Goldman Sachs Industrials Conference on November 7th around 3:30 PM ET.
Picked on November 05 at $ 71.05
Kennametal - KMT - close: 90.07 change: +1.26 stop: 86.90
The widespread market rally may have saved the bulls in KMT but we remain somewhat defensive here. We suggest that readers wait for a new relative high over $91.00 before considering new positions. Readers will want to consider a tighter stop near $87.75. 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: 113.48 chg: +2.42 stop: 106.90 *new*
It looks like analysts were happy with LLL's comments during their investor conference today. The stock continued to rally and hit new highs and on strong volume. We are adjusting our stop loss to $106.90. 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. FYI: The P&F chart's bullish target has risen from $133 to $139.
Picked on October 29 at $108.10
S&P 100 Index - OEX - close: 709.91 chg: +8.20 stop: 694.99
Today looked like important confirmation of the market's recent attempts at a short-term bottom and a bullish reversal. It is not too late to open new bullish plays on the OEX. Just remember that the index is volatile and the options are expensive. 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: We would consider this higher-risk!
Picked on November 04 at $704.95
Petro Canada - PCZ - close: 59.50 change: +2.09 stop: 54.90
Oil stocks rally on strength in crude again. Shares of PCZ broke through resistance near $59.00 and closed at new all-time highs. Volume came in above average, which is normally bullish. Our suggested trigger to buy calls was at $59.25 so the play is now open. Our target is the $64.50-65.00 range.
Picked on November 06 at $ 59.25
PowerShares NDX ETF - QQQQ - cls: 54.69 chg: +0.62 stop: 52.49
Tech stocks helped lead the market higher. The Qs rallied higher into the afternoon and this looks like another entry point to buy calls. 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: 131.09 chg: +3.12 stop: 117.49
Shares of RIMM were upgraded again. This morning before the bell Credit Suisse raised their rating on RIMM to a "buy" and raised their price target from $100 to $160. RIMM gapped open higher at the open and closed with a 2.4% gain. 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: 139.52 change: +2.88 stop: 129.75
SI is still in rebound mode and the stock added another 2.1%. Shares are very close to our target in the $139.85-140.00 range. SI does have resistance in the 140.50-141.00 zone but we're going to add a second, more aggressive target in the $144.50-145.00 range. 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: 56.05 change: -2.37 stop: 53.45
Ouch! SINA witnessed an intraday drop from $59.00 to $53.83 before bouncing back. Shares still closed with a 4% decline and on strong volume. There were some comments that a rumor was going around that GOOG might buy SINA but that doesn't explain why shares of SINA were trading lower. We couldn't find any specific news to account for the decline. 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. 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: 103.80 change: +0.30 stop: n/a
We are a little disappointed that BWA did not show more strength today during the market's rally. The stock's afternoon surge struggled with the $105 mark. 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.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 64.98 chg: +0.13 stop: n/a
ESRX essentially traded sideways again. 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: 113.17 chg: -0.23 stop: n/a
Today's relative weakness in IBM, considering tech's leadership in the rally, was a surprise. 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: 38.61 chg: +0.17 stop: n/a
MNST broke down under short-term support near $38.00 but managed a nice rebound into the closing bell. We have less than 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