Amazon.com - AMZN - close: 85.52 change: -0.16 stop: 76.35 AMZN is holding on to its gains but shares do look a little short-term overbought. I am going to go ahead and raise our trigger to buy calls from $80.50 to $81.50. I'm also raising the stop loss to $77.45. Our first target is $89.00. Our second target is $97.50. The P&F chart has produced a new buy signal with a $101 target. My time frame is about seven to eight weeks.
Flowserve - FLS - close: 79.54 change: +3.58 stop: 73.75 *new* FLS turned in a very strong session with a 4.7% gain. The stock is soaring towards resistance at $80.00. If the market can stay positive FLS has a very good chance of breaking out soon. Please note that we're raising our stop loss to $73.75. FLS has already hit our first target at $79.90. We're now aiming for $84.40.
iShares China ETF - FXI - close: 38.75 change: +0.73 stop: 35.75 FXI is bouncing again. If you consider the strength in the Chinese markets right now more aggressive traders might want to raise their exit target in the FXI toward the $44.00-45.00 zone. I'm going to stick with our final exit at $39.90 but the FXI may be another bullish candidate on a correction.
SPDR Gold Trust - GLD - close: 96.23 change: +1.82 stop: 92.40 *new* The bounce in the U.S. dollar proved to be a one-day move and gold was back in rally mode today. The GLD almost erased yesterday's losses. Please note that I'm raising our stop loss to $92.40. I am not suggesting new bullish positions at this time. The GLD has already exceeded our first target to take profits at $94.75. We're currently aiming for $97.45 as our final exit.
Intl.Bus.Mach. - IBM - close: 106.33 change: -0.16 stop: 101.90 The action in IBM today was a little disappointing. The rest of the tech sector performed pretty well. One possible idea that could explain IBM's sideways trading was the Intel news that it was making a bid for Wind River Systems (WIND). Some speculate that IBM might try to come in an offer a higher price tag but I really don't see why that would impede shares of IBM today. I remain bullish with the bounce from $105.00 yesterday. There is potential resistance near $110 but I'm setting our first target at $113.50. Our second target is $118.50. My time frame is seven to eight weeks.
iShares Fincl.Srvcs - IYF - close: 44.29 change: +1.20 stop: 41.20 Banking stocks got a boost today after one analyst firm issued a positive note on the sector. The BKX and BIX banking indices both rose more than 4.4%. Shares of the IYF only gained 2.7%. We'll take some money off the table at $45.50 but we'll also have a second target at $49.85. I want to repeat this is an aggressive trade and I'm suggesting readers only trade half (or less) than their normal option position.
Mastercard - MA - close: 168.40 change: +0.89 stop: 158.90 MA continues to show some volatility with nearly a $7.00 range today. Traders bought the dip near $165.00 again. Volume picked up on the bounce this afternoon. That's a little encouraging. We have two targets. We want to take some money off the table at $198.50 since the $200.00 mark could be round-number resistance. Our second target is $218.50. The Point & Figure chart is bullish with a $218 target. I want to remind traders that this is an aggressive trade. MA can be very volatile and the technical picture right here isn't very bullish.
Mobile Telesys - MBT - close: 40.72 change: +0.65 stop: 37.40 MBT rallied toward $42.50 by lunchtime and then spent the rest of the day giving most of its gains back. The relative weakness should throw up a caution flag for traders. For the moment I remain bullish with MBT above $38.50. Our first target to take profits is $44.95. We do have a second target at $49.00 but that could take a while to reach. Broken resistance in the $39-40 zone should offer new support.
Millicom - MICC - close: 60.87 change: +0.99 stop: 54.95 MICC only dipped to $58.78. I was hoping for a pull back to $57.50. I'm inching up our entry point to $58.00. I'm setting our stop loss at $54.95. If we are triggered at $57.50 our first target is $64.85.
Middleby Corp. - MIDD - close: 49.56 change: -0.19 stop: 44.95 MIDD is still consolidating under the $50.00 level. I don't see any changes from my Wednesday night play description. I'm suggesting readers buy calls on a dip into the 47.50-45.00 zone. Our first target is $54.00. Our second target is $59.00. The P&F chart is bullish with a $64 target. My time frame on the first target less than four weeks. Time frame for the second is less than eight.
Precision CastParts - PCP - close: 85.30 change: +1.88 stop: 79.85 PCP out performed the S&P 500 with a 2.2% gain on Thursday. My only complaint would be the below average volume. Our first target to take profits is $89.90. Our second target is $97.50. Currently the P&F chart is bullish with a $104 target.
Research In Motion - RIMM - close: 82.01 chg +1.53 stop: 74.85 RIMM erased most of yesterday's losses with a 1.9% gain today. Volume was pretty light for shares of RIMM too. Investors might be hesitant to open positions ahead of tomorrow's non-farm payroll number. Buy calls on a dip at $78.00. We'll use a stop loss at $74.85. Our first target is $86.90. We want to exit ahead of the June 18th (unconfirmed) earnings report.
Reliance Steel - RS - close: 38.88 change: +0.94 stop: 35.75 Commodity, metal and steel stocks were back in play on Thursday. RS gained 2.4%. I would still buy calls here in the $38-40 zone. My first target is $44.75. My second target is $49.00. My time frame is about eight weeks. FYI: The P&F chart is bullish with a $53 target.
Teva Pharma. - TEVA - close: 47.88 change: +1.29 stop: 45.40 TEVA displayed some relative strength today with a 2.7% rally. The stock shot straight to its next level of resistance near $48.00. Don't be surprised to see some profit taking here. Our exit target is $49.85. My time frame is very late July.
Visa - V - close: 69.52 change: +1.29 stop: 65.45 It's taken weeks but Visa has finally broken out of its trading range. The stock hit our trigger to buy calls at $69.00 this morning. If you missed the entry point I would take advantage of the late afternoon bounce today. Our first target is $74.00. Our second target is $79.00. The P&F chart is very bullish with a $92 target. NOTE: We want to buy the July or September calls. I prefer the $70 or $75 strikes.
Chart:
MDC Holdings - MDC - close: 29.60 change: -0.22 stop: 33.55 MDC continued to under perform the market but shares found some support at last week's lows. The next move might be another bounce toward $31.00 again. Our first target is $27.75. Our second target is $25.15.
Northrop Grumman - NOC - close: 48.18 change: +0.61 stop: 49.65 The pattern of higher lows and lower highs is getting tighter for NOC. A breakout should be imminent. I'm not suggesting new put plays here. Our first bearish target is $45.51. Our second target is $42.75.
Toll Brothers - TOL - close: 17.80 change: -0.44 stop: 20.21 TOL continues to sink following yesterday's earnings report. The stock gave up another 2.4%. Our target is $16.25.
(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.) Gold ETF - GLD - close: 96.23 change: +1.82 stop: n/a The June $95 calls are back in the money again with today's 1.9% gain in the GLD. These calls are trading around $2.60. We only have two weeks left before June options expire. More conservative traders may want to exit early on Friday to avoid any premium decay over the weekend. Given the current trend in gold and the dollar I'm keeping the play open but I'm lowering our exit price to $4.25. I am not suggesting new positions at this time. We only have three weeks left before June options expire. The options we suggested were the June $95 calls (GLD-FQ) and the June $80.00 puts (GLD-RB). Our estimated cost was $1.95. We want to sell if either option hits $4.25 or higher.
BHP Billiton Plc - BBL - close: 48.70 change: -2.82 stop: 46.40 Some of the metal stocks hit some profit taking early this morning, especially in Europe. BBL is an English company. When trading opened in the U.S. the ADR shares gapped down to $46.76 and quickly hit our stop loss at $46.40. Investors did buy the bounce though. Nimble traders might want to reconsider bullish positions on this bounce. BBL had already exceeded our first target at $49.90. We had been aiming for $54.00.
Chart:
Regional Bank HOLDRs - RKH - close: 67.67 chg: +2.23 stop: 70.16 The regional banks have been generally weaker or seen as having more risk than the larger banks. Yet the RKH continues to hold at support near $64.00. Shares of this ETF still have a bearish pattern of lower highs following the early May peak but I'm going to suggest an early exit now. We don't need to fight the market if stocks are going to keep climbing.
Chart:
 |
