Amazon.com - AMZN - close: 87.56 change: +2.04 stop: 77.45 *new* AMZN has been very strong this past week. Monday's rally was a breakout from its consolidation and the stock never looked back. I believe AMZN will hit the $90.00 level soon. $90 was resistance back in August 2008 and we can expect it to be resistance now. We still don't want to chase it but we will raise our entry point to buy calls on it to $82.50. I'm upping 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.
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Allegheny Tech. - ATI - close: 40.91 change: +0.55 stop: 35.70 ATI is a new play from our Thursday night newsletter I don't see any changes except for our entry point. ATI gapped higher on Friday morning at $40.83. Here's a repost of my Thursday comments: With metal stocks on the rise ATI looks like a bullish candidate. The stock is closing above round-number resistance at $40.00 and setting new multi-month highs. The technical picture has turned positive again and volume has been very strong on the recent rally. I'm suggesting bullish positions now with a stop loss at $35.70. More conservative traders might want to consider a tighter stop loss at $37.40. My first target is $44.85. Our second target is $49.45.
Suggested Options: BUY CALL JUL 40.00 AAS-GH open interest=4158 current ask $4.40 BUY CALL JUL 45.00 ATI-GI open interest=3092 current ask $2.20 BUY CALL JUL 50.00 ATI-GJ open interest=1896 current ask $1.00
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Peabody Energy - BTU - close: 35.36 change: +0.05 stop: 32.99 BTU is another new candidate from the Thursday night newsletter. It too gapped higher on Friday morning so we've adjusted our entry point. I would buy calls now or on a dip near the rising 10-dma. . Our first target is $39.45. FYI: The P&F chart is very bullish with a $55 target.
Suggested Options: BUY CALL JUL 35.00 BTU-GG open interest=3170 current ask $3.10 BUY CALL JUL 40.00 BTU-GH open interest=1163 current ask $1.15
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Flowserve - FLS - close: 82.14 change: +2.60 stop: 74.60 *new* FLS continues to show a lot of relative strength. The close above the $80.00 level is definitely bullish. I am raising our target from $84.40 to $87.40. Exit completely at $87.40 and then we'll step back and look for another entry point. The stop loss has been raised to $74.60. FYI: FLS has already hit our first target at $79.90.
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iShares China ETF - FXI - close: 39.04 change: +0.29 stop: 35.75 I don't see any changes from my previous comments. The plan is to exit completely at $39.90. However, more aggressive traders may want to try and just let it run or raise their targets toward $44.00. I'm not suggesting new positions at this time but a dip toward its rising trendline of higher lows would work as an entry point.
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SPDR Gold Trust - GLD - close: 93.71 change: -2.52 stop: 92.40 The U.S. dollar bounced again and this time investors really started taking some profit out of gold. The dollar's move was pretty strong last week but I think the bounce is temporary. If we get stopped out of GLD at $92.40 I consider new positions again on a dip or bounce near $90.00. 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.
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Intl.Bus.Mach. - IBM - close: 107.24 change: +0.91 stop: 101.90 IBM continues to look bullish. I would buy calls on dips near $106 or $105. 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.
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iShares Fincl.Srvcs - IYF - close: 44.04 change: -0.25 stop: 41.20 After a four-week consolidation the financial stocks look rested and ready to resume their leadership role in the market. Of course the IYF needs to breakout over resistance near $45.00 and its simple 200-dma first. We'll take some money off the table at $45.50 but we 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.
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Mastercard - MA - close: 167.68 change: -0.72 stop: 158.90 Shares of MA are still under performing. I'm not suggesting new positions at this time and honestly more conservative traders may want to abandon ship. More aggressive traders can stick with it since MA is still inside its bullish channel for now. 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.
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Mobile Telesys - MBT - close: 42.58 change: +1.86 stop: 37.40 So far so good. MBT is bouncing right where it's supposed to. Shares gained 4.5% on Friday. If you're looking for an entry point wait for dips near the 10-dma. 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.
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Millicom - MICC - close: 59.38 change: -1.49 stop: 54.95 We are still waiting for a dip to $58.00, our trigger to buy calls. MICC lost 2.4% on Friday so it's moving the right direction. If we are triggered at $58.00 our first target is $64.85. I would sell the majority of your position near $65.00. We're setting a second target at $69.00.
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Middleby Corp. - MIDD - close: 48.12 change: -1.44 stop: 44.95 MIDD slipped to $47.60 on Friday. Our entry point was $47.50 so we're still on the sidelines. Odds are pretty good that MIDD will hit our trigger on Monday but more aggressive traders may want to go ahead and jump in now. 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.
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Precision CastParts - PCP - close: 87.68 change: +2.38 stop: 81.90 *new* PCP almost hit our first target on Friday. The intraday high was $89.39. Shares ended up paring their gains by the close. I'm raising the stop loss to $81.90. Look for dips near $85 as possible entry points. 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.
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Research In Motion - RIMM - close: 82.70 chg +0.69 stop: 74.85 There are no changes from my previous comments. The plan is to buy calls on a dip at $78.00. More aggressive traders could jump in on a dip near the 10-dma around $79.50. Our first target is $86.90. We want to exit ahead of the June 18th (unconfirmed) earnings report.
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Reliance Steel - RS - close: 39.92 change: +1.04 stop: 35.75 Steel and metal stocks continue to look strong. I would still buy calls here on RS. 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.
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Teva Pharma. - TEVA - close: 47.77 change: -0.11 stop: 45.40 There wasn't much follow through on Thursday's rally. I suspect that TEVA will pull back and retest the $46.50-46.00 zone. Use that dip as an entry point to buy calls. Our exit target is $49.85. My time frame is very late July.
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Visa - V - close: 69.28 change: -0.24 stop: 65.45 Visa's pull back on Friday is a gift. If you missed the entry point on Thursday this is a new one. We've been waiting weeks for a breakout and finally got it. The MACD indicator and the P&F chart are both bullish. Our first target is $74.00. Our second target is $79.00. The P&F chart is very bullish with a $92 target.
Suggested Options: BUY CALL JUL 70.00 V-GN open interest=4407 current ask $3.20 BUY CALL JUL 75.00 V-GO open interest=2910 current ask $1.40 BUY CALL JUL 80.00 V-GP open interest=2497 current ask $0.55 BUY CALL SEP 75.00 V-IO open interest=4313 current ask $3.50 BUY CALL SEP 80.00 V-IP open interest=4456 current ask $2.05
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MDC Holdings - MDC - close: 29.13 change: -0.47 stop: 33.55 More conservative traders may want to start taking profits in your put position now. MDC is down almost 10% from our entry point. Shares continue to under perform thanks to weakness in the homebuilders. Our first target is $27.75. Our second target is $25.15.
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Northrop Grumman - NOC - close: 48.38 change: +0.20 stop: 49.65 Shares of NOC continue to get squeezed by the 50-dma below and the 200-dma above. Yet Friday's minor gain almost looks like a breakout above its 200-dma. We're not suggesting new positions at this time. More conservative traders may want to tighten their stop even further. Our first bearish target is $45.51. Our second target is $42.75.
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Toll Brothers - TOL - close: 17.32 change: -0.48 stop: 19.66 *new* TOL is still sinking. Shares lost another 2.6% on Friday. It might see a bounce from the late May lows near $17.00. We're not suggesting new positions at this time. Please note that I'm lowering the stop loss to $19.66. Our target is $16.25.
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(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: 93.71 change: -2.52 stop: n/a Ouch! Friday's decline is really going to hurt. Our June $95 calls are back out of the money and the premium will decay quickly with just two weeks left. If this profit taking continues our GLD strangle could be dead. Keep an eye on the U.S. dollar, which is affecting the price of gold. I am not suggesting new positions at this time. We only have two weeks left before June options expire so I'm adjusting our target. 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 $3.75 or higher.
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