Express Scripts - ESRX - close: 64.82 chg: +0.59 stop: 61.14
ESRX continues to show relative strength. The stock posted a 0.9% gain in the face of a widespread market sell-off. While the stock's trend remains bullish we would be hesitant to open bullish positions in anything at the moment. 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: 43.65 change: -0.26 stop: 41.74
Biotech stocks managed to out perform the markets largely thanks to gains in GENZ and AMGN. Shares of GILD spent the session trading sideways. We would not be surprised to see another test of support near $42.00 and its 50-dma. 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
Goodrich Corp. - GR - close: 71.81 change: +0.29 stop: 67.90
GR out performed the markets today with a minor gain. Today is the second day in a row that traders bought the dip near $71.30. The intraday "low" of $71.16 looks like a bad tick somewhere. 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: 111.20 chg: +0.55 stop: 107.99
Good news! LLL did not see much follow through on yesterday's reversal. Taking a step back the trading over the last several days is starting to look like another bull flag pattern. Don't be surprised to see another pull back into the $109-108 zone. The new trend of lower highs (top of the flag) is near $113. 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: 114.55 chg: +0.83 stop: 108.89
LVS popped higher this morning and then spent the rest of the day digesting those gains. More importantly there was no follow through on yesterday's bearish reversal pattern, which is a good sign for the bulls. We remain wary and would hesitate to open new positions. 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: 81.76 chg: -1.32 stop: 79.99
The trading in NOC continues to turn more bearish. A breakdown under $81.50-81.00 would look pretty negative even though NOC looks like it should have significant support at the $80.00 level. Watch for signs of a bounce before considering bullish positions. 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: 84.49 chg: -1.82 stop: 82.99
XOM has been kind enough to give us another chance to buy the dip near technical support at the 200-dma. Of course the stock's failure to fully rebound off its first bounce from the 200-dma is bearish. Readers will definitely want to wait for signs of a bounce first (like a bounce over $86 again) before considering new positions. However, keep in mind that the stock is in a short-term bearish channel. 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: 99.98 change: +0.43 stop: n/a
BWA popped higher this morning on its announcement last night that the company would provide a 2-for-1 stock split. Unfortunately for shareholders the rally faded quickly. Tomorrow is our last day and we're not expecting any miracles. The intraday high for the November $100 calls was about $3.20. 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: 64.82 chg: +0.59 stop: n/a
Tomorrow is our last day for this strangle on ESRX. We're adjusting our exit price to $1.00. That way a decent rally past $65.00 could help us salvage some capital. Nimble traders will want to play it by ear tomorrow. 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.
Picked on October 21 at $ 59.65
Monster Worldwide - MNST - cls: 36.80 chg: -0.88 stop: n/a
Tomorrow is our last day for this strangle on MNST. The options we suggested for our strangle were the November $40 calls (BSQ-KH) and the November $35 puts (BSQ-WG). Our estimated cost was $1.75.
Picked on October 23 at $ 37.22