Express Scripts - ESRX - close: 65.38 chg: +0.56 stop: 61.14
Shares of ESRX are still showing relative strength. The stock is inching closer to a bullish breakout over resistance near $66.00. Short-term technical indicators continue to improve. While we are cautious on the market as a whole we would still consider new call positions in ESRX. Readers can choose to buy a dip in the $64.00-64.75 region or wait for a new relative high over $66.00, which might be the safer entry point just to confirm the bullish momentum. The P&F chart is bullish with a $97 target. Our short-term target is the $69.50-70.00 range.
Picked on November 13 at $ 64.67
Gilead Sciences - GILD - cls: 44.64 change: +0.99 stop: 41.74
GILD is another stock that continues to show some relative strength. The stock added 2.2% on Friday after traders bought the early dip near $43.50. We remain wary of the wider markets but readers may want to gamble on GILD managing to buck the trend and continue higher. Our target is the $47.00-48.00 range. There might be some resistance its 10-dma near $45.00.
Picked on November 13 at $ 43.11
Goodrich Corp. - GR - close: 71.93 change: +0.12 stop: 67.90
GR garnered some positive analyst comments from Friedman, Billings and Ramsey on Friday. The analyst firm also raised their price target on GR from $69 to $83. This gave GR an early morning spike higher but shares consolidated sideways most of the day. The larger trend in GR is still bullish and the defense-sector stocks should be somewhat insulated from the broader-market and economic weakness. We would still consider new bullish call positions here or on a dip near the $70.00 level. More conservative traders might want to ratchet up their stop loss toward to 50-dma near $68.65. We have two targets. 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.
BUY CALL DEC 70.00 GR-LN open interest=228 current ask $3.80
BUY CALL FEB 70.00 GR-BN open interest=5324 current ask $5.90
Picked on November 05 at $ 71.05
L-3 Comm. - LLL - cls: 111.50 chg: +0.30 stop: 107.99
Some of LLL's short-term technicals have turned negative during the recent two-week sideways consolidation. Overall the trend in LLL remains bullish and traders have been buying dips in the $109-110 region. Friday's late day bounce looks like a potential entry point for new call positions although readers might want to consider a tighter stop loss near $109 around last week's low. The current consolidation looks similar to the bull flag pattern in mid October. If you don't want to buy calls here then wait for a new rally through the short-term trend of lower highs. 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 and now to $145.
Picked on October 29 at $108.10
Las Vegas Sands - LVS - cls: 118.76 chg: +4.21 stop: 109.90 *new*
Traders continue to buy the dip in LVS. The stock rose more than 3.6% on Friday albeit on relatively low volume. Technical indicators are mixed and not much help but the stock's relative strength is encouraging. Shares look poised to breakout over resistance near $120 soon. We suspect that LVS may continue to see buying interest as we near its December 20th opening of the Palazzo Hotel and Casino in Vegas. The place is supposed to rival the most glamorous destinations in Vegas. LVS has already hit our initial target near $117. Our secondary, aggressive target is the $121.00-122.50 zone. We are actually considering a third, higher target in the $127-130 zone. Please note that we're adjusting the stop loss to $109.90. Some of our more conservative readers might want to place their stop near $111.75 under last week's low.
Picked on November 08 at $111.60
ExxonMobil - XOM - close: 85.10 chg: +0.61 stop: 82.99
The tug-of-war in XOM continues as the stock traded sideways Friday above support at its rising 200-dma. Shares are in a multi-week bearish trend but XOM is looking a little oversold and investors have a consistent trend of buying dips at the 200-dma. XOM tested its 200-dma last week and the first test did see a bounce. Unfortunately, bulls have encountered stiff resistance and Friday's rise in crude oil was not enough to launch a new breakout rally in XOM. We would still consider bullish positions in the $84-86 zone but readers might want to wait for a breakout over its 10-dma before initiating anything. Currently the 10-dma is near $86.85. 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
PACCAR - PCAR - close: 47.07 change: -0.60 stop: 50.81
PCAR continued to sell-off. The stock broke down under the $47.00 level and hit our suggested trigger to buy puts at $46.99. Volume on the session was really strong at almost three times the norm. Now that the play is open our target is the $42.50-42.00 range. The Point & Figure chart is forecasting at $38 target. If PCAR bounces look for short-term resistance near $48.00 and then again near $50.00 and its 10-dma.
BUY PUT DEC 45.00 PAQ-XI open interest=461 current ask $2.15
BUY PUT JAN 45.00 PAQ-MI open interest=291 current ask $3.30
Picked on November 16 at $ 46.99 *triggered
Northrop Gruman - NOC - cls: 80.45 chg: -1.31 stop: 79.99
NOC continued to see profit taking on Friday. The stock broke down under short-term support near $81.75, near $80.80, at its 50-dma and again at the $80.00 mark. Volume was pretty strong on the sell-off, which is bearish. The intraday low was $79.76 so NOC hit our stop at $79.99 late Friday afternoon.
Picked on November 06 at $ 84.48
Borg Warner - BWA - cls: 99.15 change: -0.83 stop: n/a
Friday failed to see any fireworks in shares of BWA. The stock closed near the $100 level probably due to options expiration. Our strangle has expired. 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.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 65.38 chg: +0.56 stop: n/a
ESRX closed near the $65.00 strike price most likely due to option expiration. It's common practice to see stocks gravitate toward a strike price as option expiration week ends and a listless market just makes it easier. Our strangle on ESRX has expired. 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: 36.42 chg: -0.38 stop: n/a
In spite of all the post-earnings volatility shares of MNST closed almost unchanged from our entry price. This strangle has expired. 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