Anadarko Petrol. - APC - cls: 59.10 change: -0.77 stop: 55.99
APC fared better than most during Wednesday's huge market sell-off. The stock traded higher this morning after one analyst firm raised their price target on APC to $75.00. Shares of APC reacted to the broker comments with a rally to $60.95 before reversing lower. Our suggested trigger to buy calls was $60.55 so the play is now open. However, given the market's weakness today we would hesitate to open new bullish positions at this time. Our target is the $64.85-65.00 range. More aggressive traders may want to aim higher. Conservative types might want to place their stop closer to $57.50. The P&F chart points to an $86 target.
Picked on November 07 at $ 60.55
Aracruz Celulose - ARA - cls: 74.30 chg: -2.74 stop: 72.49
Today's market weakness threw a wrench in ARA's bullish pattern. The stock lost 3.5% and is poised to test short-term support near $74.00 soon. More conservative traders might want to tighten their stops toward $73.85, which is November's low. We're not suggesting new positions at this time. 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: 96.89 change: -0.81 stop: 94.85
The bullish bounce in BA is now in trouble. The stock gapped lower and dipped to $96.11 before bouncing back only to see the rally failed near $98.00 this afternoon. Most quote services will tell you that BA only lost 46 cents today. However, that's incorrect. If you check historical prices BA closed at $97.70 yesterday and closed at $96.89 today, which is an 81-cent loss. We're not suggesting new bullish positions at this time. 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: 154.32 change: -5.98 stop: 152.75
Yesterday DE surged $6 and hit our first target in the $159.50-160.00 range. Today shares of DE gave it all back with a 3.7% decline. The close under $155, which should have been short-term support, is bearish. We're not suggesting new positions at this time. Our second target is the $164.00-165.00 zone.
Picked on November 04 at $152.73
DST Systems - DST - close: 85.16 change: -2.66 stop: 83.45
DST is another case where the stock gave back almost all of its prior day's gains. Yesterday the stock broke out over resistance to hit new highs and triggered our play at $87.25. Today's reversal is very discouraging. More conservative traders will want to consider exiting early now or raising their stop loss toward $85.00. We're not suggesting new positions at this time. Our target is the $94.00-95.00 range.
Picked on November 06 at $ 87.25
Goodrich Corp. - GR - close: 71.06 change: -2.30 stop: 66.90
Same story, different stock. GR broke out to new highs on Tuesday. Today GR gave back almost all of its gains. We would wait and watch for a bounce near $71.00 or near $70.00 as a potential bullish entry point to buy calls. However, if the broader market indices are still falling we'd avoid new bullish positions here. 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
Icon Pub. Ltd. - ICLR - close: 57.80 chg: -0.99 stop: 55.90
ICLR's lack of a significant sell-off during today's market-wide plummet could be seen as a sign of relative strength. Look for a bounce near $57.00 or the $56.00 level as a potential new entry point to buy calls. However, we'd avoid new positions if the major indices are still falling. Our target is the $63.50-65.00 range. We would consider this a higher-risk play for the simple reason that volume is so low on both the stock and the options.
Picked on November 06 at $ 58.79
Kennametal - KMT - close: 87.80 change: -2.27 stop: 86.90
This is the fourth time in about a week that shares of KMT have retreated to short-term support near $88.00. Unfortunately, the overall pattern over the last several days is starting to look more like a short-term top. We are not suggesting new positions and more conservative traders will want to strongly consider just exiting early right here. 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: 110.58 chg: -2.90 stop: 106.90
LLL had hit new all-time highs on Tuesday so it was a big target for profit taking today. We're surprised that LLL did not see more selling pressure. We would expect a dip back toward $110 or its 10-dma near $109.00. We're not suggesting new positions at this time. 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
Northrop Gruman - NOC - cls: 84.00 chg: -0.48 stop: 79.99
NOC out performed the broader market with only a minor loss today. Shares were upgraded this morning and the stock spiked to $85.21 before paring its gains. Volume was pretty high on today's session. We would look for a dip back toward $83.00 or the $82.00 region as a potential entry point to buy calls. We're suggesting a stop loss at $79.99 but you might be able to get away with a stop near $80.80. Our target is the $89.00-90.00 range. The P&F chart shows a bullish catapult pattern with a $92 target.
Picked on November 06 at $ 84.48
Petro Canada - PCZ - close: 59.87 change: +0.37 stop: 54.90
Canadian oil company, PCZ, saw its shares out perform most of the market on Wednesday with a new 52-week high. If you're looking for a new bullish entry point we'd watch for a dip back toward the $59.00 or $58.00 levels. Our target is the $64.50-65.00 range.
Picked on November 06 at $ 59.25
PowerShares NDX ETF - QQQQ - cls: 53.35 chg: -1.33 stop: 52.49
The NASDAQ suffered a big one-day loss with a 76-point decline (2.7%) but the NDX index didn't do quite as badly (-2.4%). Of course there is no way to describe today's session as anything but bearish and the QQQQ broke down under short-term support near $53.60-53.50. More conservative traders may want to abandon ship right now (not a bad idea) or tighten their stops toward $53.00. Our target is the $58.00-60.00 range.
Picked on November 04 at $ 54.42
Research In Motion - RIMM - cls: 133.03 chg: +1.99 stop: 117.49
In an amazing show of strength shares of RIMM managed to hit another new all-time high and close up with a 1.5% gain. The stock hit an intraday high of $137.00 as traders reacted to news that one analyst firm raised their price target on RIMM from $120 to $180. We are not suggesting new positions at this time and a correction back toward the 10-dma would not be out of line. 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: 138.09 change: -1.43 stop: 129.75
Target achieved, actually target exceeded. SI gapped open higher at $140.23 and hit $140.66 before succumbing to profit taking. Our initial target was the $139.85-140.00. The stock reversed under resistance near $140.50-141.00, which we outlined earlier. Readers can probably expect more profit taking tomorrow. European markets will probably dive tomorrow in reaction to our weakness today. Then as the U.S. market opens up on Thursday shares of SI will probably gap open lower in response to trading back home. There is the slim chance that SI will not see a lot of profit taking based on news out today that the company has approved a stock buy back program of up to 10 billion euros. We're not suggesting new positions at this time. Our second, more aggressive target is the $144.50-145.00 range. The P&F chart is 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: 54.57 change: -1.47 stop: 53.45
Warning! The action in SINA has turned bearish over the last couple of sessions. The overall trend is still bullish but the stock looks poised to breakdown. Aggressive traders will want to consider adjusting their stop loss lower to $52.90 if you want to give SINA the maximum amount of room to maneuver and still not break its bullish channel higher. More conservative traders will want to consider an early exit now or raising your stop toward $54.00. 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. FYI: In the news today SINA announced it will report earnings on November 14th.
Picked on October 23 at $ 53.40
Semiconductor Holders - SMH - cls: 33.65 chg: -0.76 stop: 33.29
We are not off to a very good start with the semiconductors. There was no follow through on the recent bounce and shares of the SMH holders are poised to test their recent lows. We are not suggesting new positions at this time but a bounce near $33.30 would look like a potentially bullish double-bottom pattern and a new entry point for calls. Readers may want to wait for a new relative high over $34.75 before initiating positions. Our target is the $36.00-36.50 range. More aggressive traders could aim higher. Keep an eye on the SOX index.
Picked on November 06 at $ 34.41
Steel Dynamics - STLD - close: 51.10 chg: -1.83 stop: 49.25
STLD was not immune to the profit taking. Shares lost 3.4% albeit on below average volume. The stock has produced an "inside day". We would wait and watch for a bounce near $50.00 or a new move over the 10-dma near $52.60 as potential entry points for buying calls. However, if the markets are still falling we'd avoid new positions entirely. Our target is the $57.50-60.00 range. The P&F chart is bullish with a $78 target.
Picked on November 06 at $ 52.93
Trina Solar - TSL - close: 62.43 chg: -1.24 stop: 59.85
Our aggressive play in TSL has been opened. Yesterday FSLR led a rally in the industry and helped push TSL higher toward resistance near $65.00. We suggested a trigger to buy calls on a breakout at $65.25. TSL hit $65.90 this morning before reversing lower against the market's overpowering decline. This would normally look like a bearish failed rally pattern. However, the solar stocks are poised to rally again tomorrow. After the closing bell today FSLR reported earnings that were much better than expected. Shares of FSLR closed at $167 but were trading up near $207 in after hours tonight. That sort of pop higher will (and is) pulling shares of TSL higher. We remain bullish but this remains an aggressive, higher-risk play. Our target is the $72.00-72.50 range near its July highs.
Picked on November 07 at $ 65.25
Tesoro - TSO - close: 56.64 change: -2.49 stop: 54.59
After Tuesday's big bounce TSO hit some profit taking today. Shares slipped 4.2% and painted what looks like a potentially bearish "dark cloud cover" candlestick pattern. The trend of higher lows is still in place so readers might want to wait for a dip and bounce near $55 as an entry point to buy calls. Our target is the $64.00-65.00 range.
Picked on November 06 at $ 59.13
(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: 100.81 change: -2.99 stop: n/a
BWA slipped almost 3% toward round-number support at the $100 level. 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: 63.56 chg: -1.42 stop: n/a
ESRX continues to consolidate but could find some short-term technical support at its 10-dma soon. 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: 111.08 chg: -1.69 stop: n/a
IBM slipped lower toward support in the $111-110 zone. We do not see any changes from our previous comments. 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: 37.71 chg: -0.90 stop: n/a
MNST lost 2.3% thanks to the market's big decline. 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
S&P 100 Index - OEX - close: 688.73 chg: -21.18 stop: 694.99
The market indices were hammered hard today. Financials lead the way down with the banking sector indices sliding about 6% each. Given that the financials are such a large part of the S&P 500 and S&P 100 the OEX was unable to avoid big losses. The OEX index closed down almost 3% and broke below what should have been support near $695. The index hit our stop at $694.99 closing the play.
Picked on November 04 at $704.95
Financial Sector SPDR - XLF - cls: 30.06 chg: -1.74 stop: 30.65
Oversold bounce? Where? Short-term bottom? What's that? Remember what we said yesterday that this looks like we were trying to catch the "falling knife"? Here's a good example of what happens when the knife keeps falling. The financials stocks were killed today with the banking sector indices slipping about 6% on another round of serious concerns for the credit market and subprime exposure.
Picked on November 06 at $ 31.80