Axsys Tech. - AXYS - close: 66.45 change: +1.40 stop: 61.83*new*
Yesterday we suggested buying a dip and today was another entry point. AXYS hit some profit taking this morning but traders stepped in to buy the dip near $62.50. The strong close near its highs is bullish for tomorrow. If the market is positive on Wednesday I think AXYS will do well. We are upping our stop loss to breakeven at $61.83. Our exit target is $69.50.
Entergy Corp. - ETR - close: 83.99 change: -0.96 stop: 79.65
I am on the edge about whether to keep ETR as a bullish candidate or not. Yesterday I said that if ETR didn't bounce we might drop it. Shares closed lower but they bounced from a dip near $82.00 and its 50-dma. Is this just another entry point? If we look at the intraday chart it almost appears like a short-term bull-flag pattern. We currently have a stop loss under round-number, psychological support near $80.00. More conservative traders may want to just exit early due to lack of follow through higher or raise your stop loss toward today's low around $82.00. We're going to keep it on the play list but I would hesitate to open new positions.
The P&F chart is bullish with a $104 target. We're setting two targets. Our first target to take profits is $92.50. Our secondary target is $97.50. Keep a wary eye on possible resistance at the 100-dma and exponential 200-dma overhead.
Sears Holding - SHLD - close: 33.39 change: -1.94 stop: 29.99*new*
Investors were quick to take profits in SHLD. The stock has been incredibly volatile with a rally from $30.00 to $36.22 yesterday and a drop back to $30.33 intraday on Tuesday. Today's afternoon bounce might be a new bullish entry point but you'd need to keep an aggressive stop under $30.00. We're inching up our stop loss to $29.99.
The stock hit our first target at $34.90 yesterday. We're currently aiming for $39.50.
*Currently we do not have any put play updates*
SPDR GOLD Trust - GLD - close: 80.87 change: -0.04 stop: n/a
Gold suffered some profit taking today even though the U.S. dollar continued to fall. The GLD hit $79.28 intraday before bouncing back to almost unchanged. Resistance at the 100-dma and exponential 200-dma remains directly overhead.
We are not suggesting new strangle positions at this time. Our remaining strangle involves December options.
What is a strangle?
Ultra S&P500 ProShares - SSO - close: 24.37 change: +0.72 stop: n/a
There are definitely a lot of opinions out there. Some are suggesting traders short the S&P here with a tight stop. Others are suggesting investors buy the market with both hands. This play is neutral. We really don't care what direction the market goes but we do need it to move!
We're not suggesting new positions at this time.
Note: The SSO is an ultra-long ETF that typically moves twice the daily performance of the S&P 500 index.
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.
-December Strangle Details-
Ball Corp. - BLL - close: 33.80 change: +1.33 stop: 29.75
Target achieved. BLL rallied over the $34.00 level this morning. The intraday high was $34.27. Our suggested exit to take profits was the $34.00-34.50 range. Our play is closed but we would keep BLL on the watch list. A breakout over the 50-dma or $35.00 might be an entry point for a new bullish run.
Fluor Corp. - FLR - close: 39.07 change: +1.89 stop: 33.45
Target exceeded! FLR rallied to an intraday high of $40.78. Our secondary target to take profits and close this play was $39.50. FLR ended the day up 5% following yesterday's huge move. FLR has rallied from $29 to almost $41 in two days. It's probably time for a little correction. We'd keep it on our watch list.
Research In Motion - RIMM - close: 41.50 change: -3.76 stop: 41.25
RIMM has been incredibly volatile. In three days the stock has moved from $41.50 to over $48.00 and back to $40.26. RIMM hit our first target to take profits yesterday at $48.00. Unfortunately, the stock hit our stop loss at $41.25 this morning. Evidently there were some negative analyst comments out today forecasting lower cell phone sales in 2009.
More aggressive traders might be tempted to buy today's bounce from $40.00 with a stop loss around $39.90 and a target at $47.00.