ITT Educational Servc - ESI - cls: 68.73 chg: -3.26 stop: 75.05*new*
Another market sell-off pushes ESI to a 4.5% decline and its first close under $70.00 since May 2008. We are adjusting our stop loss to $75.05. More conservative traders may want to use a tighter stop loss. We are not suggesting new positions at this time. The market is so oversold it is rife for a relief rally. ESI has already hit our target at $67.50. Our secondary target is $61.00 but that might be overly aggressive on a short-term time frame.
Picked on October 06 at $ 73.30 *triggered/gap down
Hasbro Inc. - HAS - close: 30.15 change: -1.21 stop: 33.85 *new*
HAS continues to sink with another failed rally under its 200-dma near the $32 level. We are adjusting our stop loss to $33.85 around its 10-dma. More conservative traders may want to use a tighter stop since we are worried about an oversold rebound rally. Our target is the $27.65 mark. Don't be surprised to see a temporary bounce near $30.00. More aggressive traders may want to aim lower but we don't want to hold over the late October earnings report. FYI: The P&F chart is bearish with a $24 target.
Picked on October 06 at $ 32.25 *triggered 10/06/08
Sears Holding - SHLD - cls: 78.79 chg: -6.95 stop: 89.05 *new*
Target achieved. Both SHLD and JCP were hammered for 7% declines on Tuesday. SHLD almost lost 8%. The stock plunged through the $80.00 level and yet volume was only half the norm. This doesn't look like capitulation in SHLD. Our first target was the $81.00 mark. Traders should have taken some money off the table if not all of their position. We're adjusting our stop loss to $89.05. We're not suggesting new positions at this time. More conservative traders, if you haven't exited yet, may want to use a tighter stop loss. Our second target is $76.00. The Point & Figure chart is bearish with a $77 target.
Picked on October 01 at $ 89.04 /1st target hit 81.00
Volatility Index - VIX - cls: 53.68 chg: + 1.63 stop: n/a
The markets plunged another 5% and the VIX closed at another record high. We
don't see any changes from our previous comments.
Picked on September 16 at = 30.30 first position
Financial Sector SPDR - XLF - cls: 15.92 chg: -1.88 stop: n/a
Target achieved. The financial sector continues to collapse as investors have no confidence in a solution for unfreezing the credit crisis. The XLF crashed through the bottom of its trading range and sank to new lows. This move lower in the XLF pushed the October $18.00 put (XLF-VR) to an intraday high of $2.54. Our suggested target to exit was $2.25. The options in our play were the October $22.00 call (XLF-JV) and the October $18.00 put (XLF-VR). Our estimated cost was $1.54. The hypothetical gain was +46% at $2.25.
Picked on October 02 at $ 19.64