Peabody Energy - BTU - close: 77.00 change: 2.95 stop: 72.89
It has been a rocky week for coal. BTU rebounded with the market as traders bought the dip at its rising 21dma. Shares closed up almost 4%. More conservative traders might want to raise their stop toward yesterday's low (73.41). BTU has already exceeded our first target near $80.00. We're now aiming for the $84.00-85.00 zone. Today's bounce could be used as a new entry point, especially if you use a tight stop.
FYI: BTU was trading higher afterhours around $78.15.
Picked on June 01 at $ 73.92 /1st target exceeded 79.75
iShares Russ.2000 - IWM - cls: 76.20 chg: 1.90 stop: 72.95 *new*
Small caps out performed their peers yet again. The IWM rallied 2.5% and broke through resistance near $75.00. The intraday high was $76.29. We're adjusting our stop loss to $72.95. Please note that we're also adjusting the target to $77.00. More aggressive traders may want to aim for $80.00. FYI: The Point & Figure chart's bullish price target has moved to $99.
Picked on April 28 at $ 72.55 *triggered
Priceline.com - PCLN - close: 137.34 chg: 2.51 stop: 129.90
PCLN posted another gain. This time shares hit an intraday high of $139.16. That was almost enough to hit our target in the $139.50-140.00 zone. More aggressive traders may want to aim higher. We're not suggesting new positions at this time.
Picked on May 27 at $132.75 *triggered
Molson-Coors Brewing - TAP - cls: 59.26 chg: 0.93 stop: 55.95
It was a positive day for TAP. The U.S. antitrust division approved the SABMiller-Coors joint venture after an eight-month investigation. SABMiller's U.S. operations combined with Molson-Coors will have annual sales of $6.6 billion and would compete more strongly with Anheuser-Busch (BUD). Shares of TAP rallied 1.49 but failed to breakout over its recent highs. We remain bullish here but readers may want to wait for a new relative high before buying calls. 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
Emerging Markets 50 ADR - ADRE - cls: 55.79 chg: 1.92 stop: 56.85
The massive market rally on Thursday prompted a sharp 3.5% bounce in ADRE. Volume was below average on the rebound, which is not bullish. The ADRE still has a short-term trendline of lower highs. More conservative traders might want to inch their stop down a little (maybe 56.50 or near 56.35). A failed rally near $56.00 could be used as a new entry point for puts. We are aiming for the $51.00-50.00 zone. FYI: The P&F chart is still bullish.
Picked on June 03 at $ 54.69
Electronic Arts - ERTS - close: 49.54 chg: 0.61 stop: 50.25
ERTS continues to bounce. Since we are sitting on the sidelines it's safe to leave it on the play list. The mini, inverse head-and-shoulders pattern in the intraday chart is suggesting a rebound back toward $51.00 and at least the late May highs around $50.60. More aggressive traders could try a bearish position on a failed rally there but use an extremely tight stop and we would not buy puts if the major averages are in rally mode. Currently we're suggesting readers use a trigger to buy puts at $47.75. If triggered our target is the February lows in the $44.50-44.00 zone. We do consider this a more aggressive trade because ERTS still has a trendline of support it could bounce from. The P&F chart is still bullish.
Picked on June xx at $ xx.xx <-- see TRIGGER
3M Co. - MMM - close: 77.50 chg: 1.14 stop: 77.01
MMM added almost 1.5% but remains in a bearish pattern of lower highs and under its 50 and 100-dma. We don't see any changes from our prior comments. We are still waiting for MMM to breakdown under support near $75.00. 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 June 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: 44.93 chg: 0.43 stop: n/a
The market rally didn't hurt the biotechs. The BTK added 2.4%. AMGN only added 0.9% as it nears the $45.00 mark. The June $45 calls hit an intraday high of $0.90 and are currently trading at $0.81bid/0.85ask. That's a 44% jump in value above our estimated cost for the June strangle. 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 less than three weeks.
Picked on May 22 at $ 42.77
McDonald's - MCD - close: 58.05 chg: 0.45 stop: n/a
Dow-component MCD under performed the broader market with a 0.7% gain versus the S&P 500's rally of 1.9%. The stock was struggling under its trend of lower highs. We are not suggesting new positions. 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 three weeks and will see their premium erode more quickly.
Picked on May 18 at $ 60.53
Tyco Intl. - TYC - close: 45.26 change: 0.41 stop: n/a
TYC still isn't moving much. If you are considering a new strangle position we would narrow the entry range to $45.25-44.75 and the closer to $45.00 the better. After tonight's closing bell TYC announced it would buy its franchisee of its Sensormatic anth-theft division for $90 million. Our biggest risk is that TYC just bounces sides in a $5.00 range the next several weeks. The options we suggested were the July $47.50 calls (TYC-GW) and the July $42.50 puts (TYC-SV). Our estimated cost was $1.30. We want to sell if either option hits $1.95 (50% gain).
Picked on June 03 at $ 44.89
Avalonbay - AVB - close: 105.09 change: 4.87 stop: 102.85
The almost always volatile shares of AVB exploded higher today. The stock rallied more than 4% and broke through multiple levels of resistance. When you catch a move in AVB it can be great and when it moves against it can move big. The stock hit our stop loss at $102.85 about 10:30 this morning.
Picked on June 01 at $101.20 /stopped out 102.85