Amazon.com - AMZN - close: 86.36 change: -1.20 stop: 77.45 We are still waiting for a correction in AMZN. Our entry point to buy calls is at $82.50. 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.
Allegheny Tech. - ATI - close: 39.88 change: -1.03 stop: 35.70 Almost anything related to commodities hit some profit taking today. ATI slipped to $38.67 before paring its losses. Titanium producers like ATI were hobbled by concerns about the ailing airline industry. The Air Transport Association warned that the sector would lose $9 billion this year. I suspect that investors will look past this news an pin their hopes on the economic recovery. I remain bullish here but more conservative traders might want to wait for dips near $38.00 before launching new positions. Our first target is $44.85. Our second target is $49.45.
Peabody Energy - BTU - close: 34.22 change: -1.14 stop: 32.99 Crude oil managed a gain but natural gas was crushed again. Sliding natural gas prices influenced the coal sector. BTU slipped past its 10-dma and traded beneath its exponential 200-dma before bouncing this afternoon. If you didn't buy the dip near the 10-dma then look for a bounce over $34.50 or $35.00 before initiating positions. Our first target is $39.45. FYI: The P&F chart is very bullish with a $55 target.
Flowserve - FLS - close: 80.90 change: -1.24 stop: 74.60 FLS gapped down this morning but traders bought the dip near $78.50. The afternoon rally was just enough to fill the gap, which is a little ominous. The profit taking may not be over yet. I wouldn't be surprised to see a dip toward the rising 10-dma. FLS has already exceeded our first target. We're currently aiming for $87.40.
iShares China ETF - FXI - close: 38.55 change: -0.49 stop: 35.75 The Chinese markets were mixed on Monday with the Shanghai higher and the Hong Kong Hang Seng lower. FXI gapped down and traded under $38.00 but losses were minor. 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. We're planning to exit at $39.90.
SPDR Gold Trust - GLD - close: 93.56 change: -0.15 stop: 92.40 The U.S. dollar continued to bounce this morning but was fading lower by 10:30 a.m. Gold prices were relatively unchanged. The GLD dipped to $92.58 before bouncing. Technical traders will want to note that the daily chart's MACD indicator has produced a new sell signal. 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: 107.49 change: +0.25 stop: 101.90 IBM provided readers with another entry point this morning with the dip to $105.50. When the market began to rally IBM actually made it into positive territory. 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: 44.23 change: +0.19 stop: 41.20 The financials were some of the best performers on Monday. The IYF is still consolidating under the 200-dma. I have been worried that the 200-dma would be too strong, which was why our first target to take profits was $45.50 but the 200-dma is already down to 45.05. I'm raising our first target back to $46.00. Speaking of moving averages the 30-dma is up to $42.30. The IYF found support near its 30-dma two weeks ago. I'm raising our stop loss to $41.90. We 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: 165.97 change: -1.71 stop: 158.90 MA is still slipping lower. The early June failed rally under $180 is looking more and more like a lower high but for now MA is still inside its bullish channel. I would expect a dip toward the 200-dma again and the $160 level. 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: 41.18 change: -1.40 stop: 37.40 European markets were down on profit taking almost across the board. Shares of MBT gapped down when U.S. markets opened but traders bought the dip at $40.50. I remain bullish with the stock above $40.00. 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: 57.04 change: -2.34 stop: 54.95 MICC has hit our trigger to buy calls. Actually the stock gapped down under it this morning at $57.87. Our trigger was at $58.00. I am still bullish here but chart readers will want to note that the MACD just turned negative with today's decline. You might want to raise your stop loss toward today's low (56.27). Our stop is at $54.95. An alternative entry would be to wait for a new rise over $58.50 again. 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: 48.54 change: +0.42 stop: 44.95 MIDD also hit our trigger to buy calls. The stock gapped open lower at $47.50, which happened to be our planned entry point. The stock found support near its rising 10-dma and closed higher on the session. 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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Vail Resorts - MTN - close: 30.57 chg: +0.57 stop: 27.40 MTN was showing some relative strength today. The market's morning weakness didn't hurt MTN that bad and when stocks began to rally this afternoon MTN hit new relative highs over $31.00. This stock hit our entry point to buy calls at $31.00 so the play is open. Our first target to take profits is $34.95. Our second target is $39.75.
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Precision CastParts - PCP - close: 86.88 change: -0.80 stop: 81.90 PCP is holding up pretty well. The stock did not even hit its 10-dma on today's dip. 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.
Research In Motion - RIMM - close: 81.95 chg -0.75 stop: 74.85 Once again I'm faced with the temptation to buy RIMM here with the stock bouncing from the $80 level and its 10-dma. More aggressive traders might want to launch positions now. We're going to wait. The plan is to buy calls on a dip at $78.00. Our first target is $86.90. We want to exit ahead of the June 18th (unconfirmed) earnings report.
Reliance Steel - RS - close: 38.62 change: -1.30 stop: 35.75 Commodity-related stocks were hit pretty hard this morning. RS slipped to $37.47 before trimming its losses to just -3.2%. Volume was pretty light, which is a good sign. I would buy this dip or you can wait for a new relative high over $40.00. 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.
SunPower - SPWRA - close: 29.89 change: -1.68 stop: 27.75 Ouch! SPWRA completely erased Friday's gains and the bullish breakout to new highs. Volume was just as strong today as it was on Friday. This sort of indecision is a caution sign for the bulls. The short-term trend of higher lows is still in place but I would wait for a new bounce over $30.50 or $31.00 before launching new call positions. Negative analyst comments were to plan for today's weakness. Currently the Point & Figure chart is bullish with a $48 target. I'm setting our first target for $37.40. The 200-dma near $40.00 looks like possible resistance.
Teva Pharma. - TEVA - close: 47.78 change: +0.01 stop: 45.40 Shares of TEVA are also holding up pretty well considering the market weakness on Monday. I would wait for a dip near the $46.50-46.00 zone before launching new call positions. Our exit target is $49.85. My time frame is very late July.
Visa - V - close: 69.80 change: +0.52 stop: 65.45 Visa is out performing its rival MA and looks poised to surge if the market can stay positive. Our first target is $74.00. Our second target is $79.00. The P&F chart is very bullish with a $92 target.
MDC Holdings - MDC - close: 29.60 change: +0.47 stop: 33.55 Homebuilders delivered an oversold bounce. MDC under performed its peers with a 1.6% gain. A failed rally near $31.00 can be used as a new entry point. Our first target is $27.75. Our second target is $25.15.
Toll Brothers - TOL - close: 17.60 change: +0.28 stop: 19.66 TOL, another homebuilder, produced an oversold bounce. I don't see any changes from my previous comments. We're not suggesting new positions at this time. 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: 93.56 change: -0.15 stop: n/a The dollar continued to bounce this morning but the rebound might be running out of steam. The GLD slipped toward $92.50 and bounced. 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.
Northrop Grumman - NOC - close: 48.70 change: +0.32 stop: 49.65 I am giving up on NOC as a put play. Shares almost broke out over the $49.00 level. Some of the momentum indicators are hinting at bullish turnaround. I want to exit early now.
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