Harsco - HSC - close: 63.32 change: +0.68 stop: 60.45
HSC actually turned in a decent week. The stock rebounded from the $60.50 zone and is back to challenging the May highs. The question now is whether or not HSC can breakout past those May highs. If the major market averages continue to rally then HSC has a good chance it will hit new relative highs too. However, we're not suggesting new bullish positions in HSC at this time. Our target is the $64.50-65.00 range but more aggressive traders may want to aim higher.
Picked on May 01 at $ 60.38
iShares Russ.2000 - IWM - cls: 74.67 chg: +0.26 stop: 71.70 *new*
The small caps are actually out performing. The Russell 2000 set a new five-month closing high. The IWM still has resistance near $75.00 but the trend is bullish. We had been suggesting that more conservative traders may want to exit or take profits in the $74.50-75.00 zone. Right now our target is the $77.50-80.00 zone. We're not suggesting new positions at this time. We are inching up our stop loss toward last week's low. FYI: The Point & Figure chart's bullish price target has moved from $87 to $96.
Picked on April 28 at $ 72.55 *triggered
Martin Marietta - MLM - cls: 116.69 chg: -0.35 stop: 114.95
We want to reiterate our cautious comments on MLM. The stock has gone nowhere the last few days. Short-term technicals continue to worsen. Yet support at the $115 level is holding. We suggest more conservative traders just cut their losses now and exit early. We would not suggest new short-term bullish plays until MLM broke out over its 10-dma in the $118.80-119.00 range. We are close to pulling the plug and dropping this stock. Nimble traders could try and buy another dip or bounce near $115.00 but use a tight stop! Our target is the $123.50-124.00 zone. The P&F chart is bullish with a $158 target.
FYI: If you like MLM, another stock you may want to check out is VMC.
Picked on May 27 at $118.15
Natl. Oilwell Varco - NOV - cls: 83.32 chg: +2.44 stop: 78.69
NOV out performed the market and its peers in the oil sector on Friday. The stock posted a 3% gain by the closing bell. If we get the chance another dip in the $82-81 zone could be used as a new entry point. More conservative traders might want to tighten their stops closer to $80.00. Our target is the $88.50-90.00 zone. The P&F chart is bullish with a $105 target.
Picked on May 28 at $ 83.15
Oceaneering Intl. - OII - cls: 71.36 chg: +0.09 stop: 69.95
We have to remain cautious on OII. The oil service stocks did not bounce much on Friday. Shares of OII under performed the market and its peers. The stock looks poised to retest support near $70.00 soon. We would buy a bounce from $70.00 but use a tight stop loss. We have two targets. Our first target is $78.50. Our second target is $83.00.
Picked on May 28 at $ 73.36
Priceline.com - PCLN - close: 134.53 chg: +2.59 stop: 127.99 *new*
Last week was kind of a bumpy ride but the general trend in PCLN is still up. The stock added 1.9% on Friday and still looks set to run toward its highs. We would consider new positions here or on a dip near $132.50. We are inching up our stop loss to $127.99. Our target is the $139.50-140.00 zone.
Picked on May 27 at $132.75 *triggered
POSCO - PKX - close: 136.65 change: +1.56 stop: 129.75
PKX delivered a 5% gain last week. We remain bullish but if you're looking for a new entry point consider waiting for a dip in the $135-134 zone. Our target is the $143.00-145.00 range. This is an aggressive higher-risk play. PKX tends to gap open every morning as it adjusts to trade in Korea. Plus, the option spreads tend to be a little wide. FYI: The Point & Figure chart is bullish with a $212 target.
Picked on May 27 at $133.26
Molson-Coors Brewing - TAP - cls: 58.00 chg: +0.12 stop: 55.95 *new*
TAP has been coiling sideways all week so we're ready to see some upward momentum. We would consider buying dips to the $57.00-56.75 zone. However, we are adjusting our stop loss to $55.95. If you prefer to buy on momentum then wait for a new relative high (above 59.51). Our target is the $64.00-65.00 range. FYI: The P&F chart is bullish with a $69 target.
Picked on May 23 at $ 58.51 *triggered
3M Co. - MMM - close: 77.56 chg: -0.20 stop: 77.01
We are still waiting for MMM to breakdown under support near $75.00. Shares have a bearish trend of lower highs and many of the technical indicators are decaying. More aggressive traders might want to buy puts now with a stop loss above Thursday's high (78.20). We are going to wait. Our suggested trigger to buy puts is at $74.95. If triggered our first target is the $70.25-70.00 zone. Our secondary target is the $66.00-65.00 range. The P&F chart is bearish with a $69 target."
Picked on May xx at $ xx.xx <-- see TRIGGER
(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.)
Amgen Inc. - AMGN - close: 44.03 chg: +0.61 stop: n/a
AMGN has produced a minor rally heading into the ASCO conference this weekend. Shares seemed to stall just under technical resistance at the 100-dma near $44.25 on Friday. We are not suggesting new strangle positions at this time. We have suggested a July strangle and a slightly more aggressive June strangle. The options in the July strangle are the July $45 calls (AMQ-GI) and the July $40 puts (AMQ-SH). Our estimated cost for the July strangle was $1.65. We want to sell if either option hits $3.50. The options in the June strangle are the June $45.00 calls (AMQ-FI) and the June $40.00 puts (AMQ-RH). Our estimated cost on the June strangle was $0.56. We want to sell if either option hits $1.10 or more. June options expire in three weeks.
Picked on May 22 at $ 42.77
McDonald's - MCD - close: 59.32 chg: -0.16 stop: n/a
It looks like the oversold bounce in MCD is failing at the $60.00 level. This may actually be a spot to consider directional put plays with a stop above $60.00. However, for this strangle play, we are not suggesting new positions. Monday might bring some stock movement as MCD presents at a Goldman Sachs conference. The options we suggested were the June $62.50 calls (MCD-FZ) and the June $57.50 puts (MCD-RY). Our estimated cost was $1.10. We want to sell if either option hits $1.65 or higher. More aggressive traders may want to raise their target. Keep in mind that June options expire in less than four weeks and will see their premium erode more quickly.
Picked on May 18 at $ 60.53
Murphy Oil - MUR - close: 92.65 change: +0.50 stop: 91.85
Oil stocks continued to see volatility even though crude oil bounced on Friday. Shares of MUR dipped to $91.33 before bouncing. That was enough to hit our stop loss at $91.85. We would keep an eye on MUR for a pull back near $90.00 or its 50-dma as a potential entry point. Short-term the technicals are definitely suggesting more weakness ahead.
Picked on May 28 at $ 95.28 *stopped out 91.85
Exxon Mobil - XOM - close: 88.76 chg: -0.59 stop: 88.79
It's not looking good for XOM. The Wednesday bounce has failed and shares have broken down under its 200-dma. There is potential support at $88.00 and like we said earlier nimble traders may want to consider buying puts on a move under $88.00 or the exponential 200-dma near $87.50. XOM hit our stop loss on Friday at $88.79.
Picked on May 28 at $ 90.43