Amazon.com - AMZN - close: 87.08 change: +0.72 stop: 77.45 AMZN started to see some profit taking this morning but it didn't get very far. Traders bought the dip at $84.83. 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: 64.56 change: -0.19 stop: 60.99 APOL is still churning sideways under resistance near $66.00. The intraday bounce from $63.73 looks like a new entry point but we're going to stick to our plan. 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: 42.25 change: +0.28 stop: 35.70 ATI is still looking strong with traders jumping in near $41 today. Our first target is $44.85. Our second target is $49.45.
Peabody Energy - BTU - close: 35.67 change: -0.01 stop: 32.99 BTU didn't make it very far but the trend of higher lows is still intact. Traders bought the dip near its rising 10-dma today. I see this as a new bullish entry point to buy calls. Our first target is $39.45. FYI: The P&F chart is very bullish with a $55 target.
Flowserve - FLS - close: 82.21 change: -0.06 stop: 74.60 It was kind of a volatile day for FLS. The stock spiked to $84.00 this morning and then dipped under $80.00 before rebounding to almost unchanged. More conservative traders may want to raise their stops. FLS has already exceeded our first target. We're currently aiming for $87.40.
iShares China ETF - FXI - close: 39.17 change: +1.10 stop: 35.75 The Chinese markets were higher on preliminary news that the country's industrial production numbers would be stronger than expected. The FXI spiked to $39.71 before paring its gains. 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: 93.86 change: +0.03 stop: 92.40 Today was a little odd in that commodities and the dollar both posted gains. Usually these two move in opposite directions. Gains in gold were mild but if you look hard enough the GLD produced a higher low. 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: 108.35 change: +0.21 stop: 101.90 IBM continues to look strong. Shares produced a higher low as trades bought the dip near its rising 10-dma. 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: 43.92 change: -0.51 stop: 42.40 *new* Financial stocks were under performers even though the sector was showing strength in Europe today. The IYF is facing resistance at its 200-dma. I am raising our stop loss to $42.40. 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: 173.60 change: +5.42 stop: 158.90 MA displayed some impressive relative strength. Shares gained more than 3.2% on above average volume. The rally stalled at $176 this afternoon but I'm not complaining. I'm not suggesting new positions at this time. 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: 40.00 change: -0.66 stop: 37.40 Trading in MBT has taken a little turn for the worse. Today's action produced a bearish engulfing candlestick and the MACD on the daily chart is nearing a new sell signal. The selling did pause at the exponential 200-dma. A bounce from here would be a new bullish entry point but given the recent action readers may want to wait for a dip or a bounce near $38.00 instead. 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: 57.65 change: +0.06 stop: 54.95 MICC spiked higher this morning but the rally was just enough to fill the gap from Monday. That's a bearish development. I am suggesting readers wait for a new rise over today's high (59.35) or the $60.00 mark before launching new 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: 49.06 change: -0.22 stop: 44.95 MIDD is still consolidating under resistance at $50.00 but traders are still buying dips at the rising 10-dma. I would open positions now but more conservative traders may want to wait for the breakout. 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: 28.99 chg: -1.09 stop: 27.40 MTN under performed today on no news. The stock spiked lower at the open. There are a lot of moving averages directly underneath MTN, which should offer some support. I would still be tempted to buy calls on a dip near $28.00 but in this market readers may want to wait for a new relative high over $31.10. Our first target to take profits is $34.95. Our second target is $39.75.
Occidental Petrol. - OXY - close: 69.27 change: +0.23 stop: 66.45 We didn't have to wait long for OXY to hit an entry point. The stock spiked over $70.00 this morning and hit $70.35. Our trigger to buy calls was at $70.25. Our stop loss is at $66.45. Traders were buying the dip near its rising 10-dma so I'd still consider new positions now at $69.27. Otherwise wait for a new relative high. Our first target is $74.50. Our second target is $79.50. The Point & Figure chart is bullish with an $88 target.
Chart:
Precision CastParts - PCP - close: 85.85 change: -0.66 stop: 81.90 Entry point - PCP provided one this afternoon with another dip near $85.00. I would still consider new positions now. More conservative traders might want to inch up their stop loss. 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: 83.45 chg +1.42 stop: 79.40 *new* I don't want RIMM to get away from us so I'm adjusting our strategy. The stock is coiling and shares are prepping for a breakout higher. I'm suggesting a trigger to buy calls at $84.01. More nimble traders could try buying calls on a dip near the 10-dma. We'll set our stop loss at $79.40, which is relatively tight for a volatile stock like RIMM. Our new first target is $89.85. We want to exit ahead of the June 18th (confirmed) earnings report.
Reliance Steel - RS - close: 42.53 change: -0.24 stop: 37.25 After yesterday's +10% move a little profit taking is to be expected. RS held up pretty well. 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: 32.22 change: +1.67 stop: 27.75 Our call play on SPWRA is in positive territory. Shares rallied more than 5.4% and set a new three-month closing high. 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: 47.96 change: -0.24 stop: 45.40 TEVA is still building a trend of higher lows. Our exit target is $49.85. My time frame is very late July.
Visa - V - close: 69.27 change: +0.64 stop: 65.45 Visa bounced from $68.00, which wasn't a surprise. The $68.00 level had been resistance so it's natural to act as new support. The stock has been consolidating sideways along with the major market indices. 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: 29.50 change: -0.68 stop: 33.55 Perfect! MDC produced another failed rally under $31.00. I am lowering our stop loss to $32.05. More conservative traders can probably use a tighter stop loss. Our first target is $27.75. Our second target is $25.15.
Toll Brothers - TOL - close: 17.91 change: -0.12 stop: 19.66 I remain somewhat cautious on TOL. The trend in TOL and the DJUSHB home construction index is down but the index is starting to see some indicators starting to turn bullish. 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: 93.86 change: +0.03 stop: n/a We're running out of time so I'm adjusting our exit target to $3.25. 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 $3.25 or higher.
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