Express Scripts - ESRX - close: 65.91 chg: +0.53 stop: 61.14
Once again ESRX displayed relative strength. The stock rose to another new high, this time breaking out past resistance near $66.00 on an intraday basis. We remain bullish here but given the market's weakness we'd still hesitate to launch new positions. 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: 43.28 change: -1.36 stop: 41.74
Monday proved to be a day of broad-based selling. The biotech stocks turned lower as the BTK index lost 1.6%. Shares of GILD under performed its peers with a 3% sell-off. We continue to suggest caution here. Wait for a bounce near the rising 50-dma or the $42.00 level before considering new bullish positions. 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: 70.02 change: -1.91 stop: 67.90
GR finally succumbed to profit taking. The stock lost 2.6% and dipped to (and under) round-number support at the $70.00 level. The stock should find support here and at its rising 50-dma (near $68.80) but given the market weakness we would hesitate to bet on support these days. Wait for signs of a bounce before considering new bullish positions. More conservative traders might want to ratchet up their stop loss toward to 50-dma. 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.
Picked on November 05 at $ 71.05
L-3 Comm. - LLL - cls: 108.58 chg: -2.92 stop: 107.99
Fear in the markets is finally starting to spread to stocks like LLL. Shares traded lower all day long and closed near its lows for the session, which is usually a bearish signal for tomorrow. The breakdown under $109 is another negative signal. Odds are good that if the markets show any weakness tomorrow morning that LLL will hit our stop loss at $107.99. 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: 110.49 chg: -8.27 stop: 109.90
A negative story in Barron's over the weekend yanked the carpet out from under shares of LVS. The market's widespread weakness only exacerbated the sell-off. Shares of LVS lost almost 7% and will test support near $110 and its 100-dma soon. A bounce from here could be used as a new bullish entry point but odds are pretty good that any market weakness tomorrow morning will push LVS to our stop loss at $109.90 and close the play. 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
ExxonMobil - XOM - close: 84.11 chg: -0.99 stop: 82.99
Investors failed to find any safe haven in oil stocks on Monday during the market-wide sell-off. The OIX oil index lost 1.1% and XOM mirrored the move. Shares of XOM continue to trade in a bearish trend (as previously discussed) and the stock is nearing support at its rising 200-dma. Wait for signs of a bounce or a breakout over its 10-dma before considering new bullish 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
Canadian Pacific - CP - cls: 62.68 change: -1.61 stop: 66.26
Weakness in shares of CP continued on Monday. The stock hit a new relative low and shares hit our suggested trigger to buy puts at $62.85. The play is now open and our target is the $57.50-57.00 range. The Point & Figure chart is bearish and points to a $51 target
Picked on November 19 at $ 62.85
ESSEX Property - ESS - close: 103.56 change: -0.61 stop: 107.31
Bulls bought the initial dip in ESS near $105 but the midday bounce faded into the closing bell. We are still waiting for a breakdown under support at $102. We are suggesting a trigger to buy puts at $101.75. We'll suggest a stop above Friday's high at $107.31. If triggered our target is support in the $94.00-93.00 range. The P&F chart is much more bearish with a $78 target. FYI: Do not be surprised if ESS produces an initial bounce from the $100 mark.
Picked on November xx at $ xx.xx <-- see TRIGGER
J.B.Hunt - JBHT - close: 25.34 change: -0.44 stop: 27.05
JBHT lost another 1.7% and shares hit a new relative low but the stock did not breakdown under round-number support at the $25.00 mark. We want to see a breakdown under $25.00. We are suggesting a trigger to buy puts at $24.95. More aggressive traders may want to jump in early at $25.25. If we are triggered at $24.95 our target is the $22.50-22.00 range. If JBHT trades under $25.00 it will produce a new triple-bottom breakdown sell signal on the P&F chart.
Picked on November xx at $ xx.xx <-- see TRIGGER
PACCAR - PCAR - close: 46.74 change: -0.33 stop: 50.81
Monday's trading in PCAR should send up warning flags for the bears. The stock failed to truly participate in the market's weakness. Shares just traded sideways all day long. That's not a good sign for the bears. We would not be surprised to see a bounce back toward $48.00 or even the 10-dma just under $50.00. Double check your stop loss placement. Our target is the $42.50-42.00 range. The Point & Figure chart is forecasting at $38 target.
Picked on November 16 at $ 46.99 *triggered
Regency Centers - REG - cls: 66.73 chg: -0.83 stop: 72.01
REG tried to bounce this afternoon but struggled under the $68.00 level, which as broken support should be new resistance. We do not see any changes from our weekend comments. We are suggesting put positions now or on a failed rally under $70.00. More conservative traders may want to use a tighter stop near $70. Our suggested stop is above resistance near $72.00. Our target is the $62.50-62.00 range near the August 2007 lows.
Picked on November 18 at $ 67.56