Express Scripts - ESRX - close: 64.23 chg: -0.44 stop: 61.14
ESRX didn't make much progress today. Traders bought the early dip near $64.00 but the rebound struggled to make it past $65.00. Volume was low for the session, which might suggest indecision or hesitation on the part of investors. Overall we do not see any changes from our Tuesday night comments. Traders have continued to buy the dips and the stock now looks poised to begin another leg higher. We're suggesting a stop loss under Monday's low. While we're suggesting positions now more conservative traders might want to wait for a rise past $65.00 or $66.00 (both potential resistance) before opening call positions. The P&F chart is bullish with a $97 target. Our short-term target is the $69.50-70.00 range. FYI: ESRX is also on the newsletter as a current strangle play.
Picked on November 13 at $ 64.67
Gilead Sciences - GILD - cls: 43.91 change: +0.80 stop: 41.74
Biotech stocks in general out performed the market today albeit by a relatively low margin. Shares of GILD out performed its peers with a 1.8% gain. The stock got a boost from some positive analyst comments and a raised price target to $52. Readers can choose to buy the bounce here or, considering the afternoon dip, wait for a pull back into the $43.00 region. Our target is the $47.00-48.00 range. There might be some resistance near $44.00 and its 10-dma near $45.00.
Picked on November 13 at $ 43.11
GGoodrich Corp. - GR - close: 71.52 change: -0.41 stop: 67.90*new*
GR rallied toward its highs this morning but the rally ran out of steam. Defense stocks were unable to build on yesterday's bounce. We remain bullish on GR but readers might want to wait for a dip back toward $70.50-70.00 before considering new positions. We are adjusting our stop loss to $67.90, which is about 45 cents under the rising 50-dma. 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 due to present at the Aerospace and Defense conference on Thursday, November 29th, 2007 at 11:30 a.m. ET.
Picked on November 05 at $ 71.05
L-3 Comm. - LLL - cls: 110.65 chg: -2.15 stop: 107.99
Warning! LLL's lack of follow through on yesterday's strong bounce is bearish. The technical indicators don't look healthy and given the market's roll over today LLL could be a target for more profit taking. More conservative traders will want to consider an early exit now! We're not suggesting new positions at this time. LLL has already hit our first target in the $114-115 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
Las Vegas Sands - LVS - cls: 113.72 chg: -4.43 stop: 108.89*new*
We have to issue a Bearish Reversal Warning on LVS. The stock traded to a new two-week high at $120.00 and then promptly sold off. Shares lost more than $6.00 from its intraday high and the move produced a bearish engulfing candlestick pattern. Readers will want to seriously consider abandoning ship right now and exiting. We are not suggesting new bullish positions and we're raising the stop loss to $108.89. The only reason we do not exit now is because the $110 level might still hold up as support. LVS has already hit our initial target near $117. Our secondary, aggressive target is the $121.00-122.50 zone.
Picked on November 08 at $111.60
Northrop Gruman - NOC - cls: 83.08 chg: -0.68 stop: 79.99
NOC spiked higher this morning and hit $84.76 before giving it all back and closing with a loss. The action looks bearish and readers should be on the defensive here after the late afternoon decline. More conservative traders might want to raise their stops a bit. 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
ExxonMobil - XOM - close: 86.31 chg: -0.57 stop: 82.99
XOM did see some early morning follow through on yesterday's bounce. The bad news is that the rally failed near its 100-dma and near what appears to be the top edge of its bearish channel. This not a good sign for the bulls and we would expect another dip back toward the $85.00-84.00 region. Wait for the dip and signs of a bounce before considering new call positions. Our target is the $92.50-95.00 range. More conservative traders may want to lock in some gains near $90.00.
Picked on November 13 at $ 86.75
(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: 99.55 change: -0.45 stop: n/a
It was a quiet day for BWA as the stock continued to churn sideways near $100. Odds are growing that BWA might continue to move sideways near the $100 strike price into option expiration this Friday. However, after the closing bell today the company announced a 2-for-1 stock split so shares might see a pop higher tomorrow. We have two days left before November strikes expire. 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. Due to our lack of time we are adjusting our target to breakeven at $4.50.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 64.23 chg: -0.44 stop: n/a
We do not see any changes from our previous comments on ESRX. There are two days left for November options. 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 $2.50 or higher.
Picked on October 21 at $ 59.65
Monster Worldwide - MNST - cls: 37.68 chg: +1.17 stop: n/a
Takeover rumors sent MNST spiking higher to $39.16 but the stock pared its gains by the closing bell. The move is not enough to help our strangle play. We only have two days left on 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 are adjusting our exit to breakeven at $1.75.
Picked on October 23 at $ 37.22
Icon Pub. Ltd. - ICLR - close: 55.01 chg: -1.05 stop: 55.90
ICLR continued to show relative weakness following yesterday's unexpected decline. The stock quickly broke down under support near $56.00 and closed with a 1.8% lost on above average volume. We still cannot find any specific news to account for the sudden drop. Shares hit our stop loss at $55.90 closing the play. The recent action has produced what appears to be a bearish double-top pattern.
Picked on November 06 at $ 58.79
Dryships - DRYS - cls: 92.42 change: - 6.00 stop: 100.75
Volatility continues to reign supreme in shares of DRYS. The stock gapped open higher at $103.50, which was above our suggested stop loss at $100.75. The sad news is that the rally quickly crumbled into a bearish reversal and DRYS now looks poised to make another run at the $80.00 level and its 100-dma.
Picked on November 11 at $ 97.13