Amazon.com - AMZN - close: 87.08 change: +0.72 stop: 77.45 AMZN is still floating in the high 80s but has not yet tested resistance at $90.00. 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.
Apollo Group - APOL - close: 64.75 change: -0.43 stop: 60.99 APOL did manage to hit a new relative high but it did not tag the $66.00 level. We are waiting for a bullish breakout. Our trigger to buy calls is at $66.10. If triggered our first target to take profits is $69.95. Our second target is $74.00. I consider this somewhat aggressive because APOL has technical resistance at its 200-dma and 100-dma. The Point & Figure chart is forecasting an $82 target. We do not want to hold over the late June earnings report. We will plan to exit on Friday, June 26th or Monday, June 29th.
Allegheny Tech. - ATI - close: 41.97 change: +2.09 stop: 35.70 ATI showed some relative strength today. The stock rallied to new multi-month highs and closed up with a 5.2% gain. Our first target is $44.85. Our second target is $49.45.
Peabody Energy - BTU - close: 35.68 change: +1.46 stop: 32.99 BTU rallied more than 4%. If you were looking for some confirmation of yesterday's bounce you got it. Our first target is $39.45. FYI: The P&F chart is very bullish with a $55 target.
Flowserve - FLS - close: 82.27 change: +1.37 stop: 74.60 FLS slowly drifted higher and did manage a new high over $82.75 but volume was pretty light today. FLS has already exceeded our first target. We're currently aiming for $87.40.
iShares China ETF - FXI - close: 38.07 change: -0.48 stop: 35.75 The FXI is consolidating sideways near its 10-dma. If this Chinese ETF continues to sink we can expect a pull back toward the $36.00 level. 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: 93.83 change: +0.27 stop: 92.40 The bounce in the dollar is rolling over but gold didn't react much. Oil and copper futures were the commodity leaders today. I'm 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: 108.14 change: +0.65 stop: 101.90 IBM hit new highs for 2009 but eventually pared its gains. 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: 44.43 change: +0.20 stop: 41.90 *new* Financial stocks didn't react much when the Treasury department announced approvals for ten banks to repay the TARP money. The IYF is still struggling with technical resistance at its 200-dma directly overhead. Our first target is $46.00. Our second target is $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: 168.18 change: +2.21 stop: 158.90 MA began to bounce sharply midday but the rally failed under $170 late this afternoon. The short-term trend is still lower. There is no change from my previous comments. 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: 40.66 change: -0.52 stop: 37.40 MBT is still trending lower toward $40.00. Look for a bounce in the $40-38 zone or at its exponential 200-dma (at 39.40). 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: 57.59 change: +0.55 stop: 54.95 The bounce in MICC today was pretty anemic but it was better than the major averages. Shares struggled with the $58 level all day long. The action in MICC isn't playing out the way I expected so readers might want to wait for a new rise over $59.00 before initiating positions. You might want to raise your stop loss toward Monday's low (56.27). Our stop is at $54.95. 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.
Middleby Corp. - MIDD - close: 49.28 change: +0.74 stop: 44.95 MIDD bounced back toward resistance at $50.00. Shares might trade sideways under $50 if the market continues to drift sideways. 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.
Vail Resorts - MTN - close: 30.08 chg: -0.49 stop: 27.40 MTN gave back most of yesterday's gains, which is not a good sign but volume was very light today so it's hard to draw any conclusions. Readers might want to consider buying dips in the $29.00-28.50 zone or wait for a new relative high (over 31.10). Our first target to take profits is $34.95. Our second target is $39.75.
Precision CastParts - PCP - close: 86.51 change: -0.37 stop: 81.90 PCP spent the day drifting sideways. 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: 82.02 chg +0.07 stop: 74.85 RIMM acts like the path of least resistance is up but shares didn't make it very far today. 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: 42.77 change: +4.15 stop: 37.25 *new* It was a big day for shares of RS. The stock was upgraded to a buy this morning. RS popped higher opening at $40.04 and surging past $42.50 for a 10.7% gain. Volume came in pretty strong, which is a bullish clue. If you have been waiting for a show of strength you got it but readers looking for a new entry point might want to wait for a dip back toward $41 or $40. I am raising our stop loss to $37.25. 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: 30.55 change: +0.66 stop: 27.75 SPWRA showed some decent strength today with a 2.2% gain on above average volume. Not bad for a slow summer day on Wall Street. Yesterday I suggested buying a bounce over $30.50 or $31.00 and we got it. If you prefer to buy dips then look for dips near the rising 10-dma (currently near $29.50). 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: 48.20 change: +0.42 stop: 45.40 TEVA is still inching higher. I don't see any changes from my previous comments. 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: 68.63 change: -1.17 stop: 65.45 Shares of V under performed with a 1.6% loss. I would still buy calls on dips in the $68-66 zone but readers may want to wait for signs of a bounce first. 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: 30.18 change: +0.58 stop: 33.55 MDC bounced and closed over $30.00 and its 10-dma. Both are short-term bullish moves but the larger trend is down. 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: 18.03 change: +0.43 stop: 19.66 The homebuilder sector index produced another oversold bounce today and TOL followed it higher with 2.4% gain. The trend is lower. The only question is where will the bounce roll over? 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: 93.83 change: +0.27 stop: n/a The rebound in the U.S. dollar is already beginning to fade but gold prices didn't really react to dollar weakness today. I am not suggesting new positions at this time. We have less than 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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