Amazon.com - AMZN - close: 85.69 change: -0.90 stop: 77.45 AMZN spent another day consolidating sideways and testing the 10-dma. We are still waiting for a minor 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: 64.10 change: -0.46 stop: 60.99 APOL remains under resistance at the $66.00 level. Volume has been very light the last few days as shares consolidate sideways. 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: 43.26 change: +1.01 stop: 35.70 Steel and metal stocks were out performers today starting in Asia this morning. ATI hit new relative highs over $44.00. More conservative traders might want to raise their stop loss. Our first target is $44.85. Our second target is $49.45.
Alliant Tech - ATK - close: 90.06 change: -0.33 stop: 87.75 ATK didn't make much progress today. The stock hovered around the $90.00 level and closed right on this level of round-number support and resistance. If we get a chance I would buy calls on a dip near the 10-dma in the 88.50-88.40 zone. Otherwise open positions now. Our first target is $94.90. Our second target is $99.85.
Peabody Energy - BTU - close: 36.78 change: +1.11 stop: 32.99 BTU rallied to new multi-month highs over $37.00 this afternoon. I don't see any changes from my prior comments. Our first target is $39.45. FYI: The P&F chart is very bullish with a $55 target.
EOG Resources - EOG - close: 77.09 change: +1.84 stop: 70.95 Oil stocks were strong thanks to another rise in crude oil futures. Shares of EOG added 2.4%. If you missed the entry this morning you might want to wait for a dip near $75.50-75.00. Our first target is $79.95. Our second target is $84.80.
Flowserve - FLS - close: 83.77 change: +1.56 stop: 74.60 FLS tagged round-number resistance at $85.00 this afternoon. I wouldn't be surprised to see a little profit taking tomorrow. More conservative traders may want to raise their stops. FLS has already exceeded our first target. We're currently aiming for $87.40.
SPDR Gold Trust - GLD - close: 93.70 change: -0.16 stop: 92.40 The action in gold and the GLD was a little odd. The U.S. dollar was plunging lower today and gold should have been out performing. Instead the GLD failed near $94.50. This ETF has found resistance in the $94.50-95.00 zone the last few days. 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: 109.40 change: +1.05 stop: 103.90 *new* IBM managed to breakout over round-number resistance at $110 intraday. The rally didn't hold and I wouldn't be surprised to see a dip back toward the 10-dma at $107.50 or even the $106 level. I am raising our stop loss to $103.90. I've been warning readers that 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: +0.00 stop: 42.40 Hmm... the action in the IYF was also a little odd. Banking stocks were out performers today with the BKX and BIX banking indices up 2.5% and 1.2%, respectively. Yet the IYF closed unchanged after another failed rally near its descending 200-dma. More conservative traders might want to raise their stops toward $43.00. I'm not suggesting new positions at this time. 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: 169.95 change: -3.65 stop: 158.90 MA gave back more than half of yesterday's big gain. The stock even garnered a new "buy" rating this morning but it wasn't enough to spur any new buying efforts. Shares have pulled back toward round-number support/resistance at $170. 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: 41.00 change: +1.00 stop: 37.40 MBT managed another bounce off the $40.00 level. The lack of follow through lower after yesterday's bearish engulfing candlestick is good news for the bulls. I don't see any changes from my previous comments. 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: 58.56 change: +0.91 stop: 54.95 The good news is that MICC gained 1.5% on Thursday. The bad news is that the action today looks like a little failed rally at the $60.00 mark. I remain somewhat cautious here. 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: 49.53 change: +0.47 stop: 44.95 MIDD, much like the major averages, broke out over resistance intraday only to roll over. Volume continues to be very low as shares consolidate under resistance. 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: 28.51 chg: -0.48 stop: 27.40 MTN under performed on Thursday with a 1.6% decline. The recent failed rally near $31.00 combined with what appears to be a lower high forming on the daily chart's MACD indicator is worrisome. The only positive here is that volume has been pretty low on this correction. More conservative traders might want to inch their stops toward $28.00. I don't see any changes from my prior comments. Our first target to take profits is $34.95. Our second target is $39.75.
Occidental Petrol. - OXY - close: 70.63 change: +1.36 stop: 66.45 OXY looks strong here with a breakout over resistance at $70.00 and a close above that level. Our first target is $74.50. Our second target is $79.50. The Point & Figure chart is bullish with an $88 target.
Precision CastParts - PCP - close: 83.80 change: -2.05 stop: 82.40 *new* Uh-oh! Traders need to be on alert here. The mild pull back in PCP just got worse with a close under the rising 10-dma. You can either choose to widen your stop and give PCP room to move (probably down to $80 but there's no guarantee it will stop) or you can up your stop loss. I am raising our stop loss to $82.40, which is just under the June 3rd low. I'm not suggesting new positions. 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: 85.44 chg +1.99 stop: 79.40 As I thought, RIMM did look poised to breakout yesterday. The stock popped open at $84.21. We had a trigger to buy calls at $84.01. After a quick dip under $84.00 the stock rallied toward $86.00. Our new first target is $89.85. We want to exit ahead of the June 18th (confirmed) earnings report.
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Reliance Steel - RS - close: 43.10 change: +0.57 stop: 37.25 RS is another steel stock showing some relative strength. Shares hit $43.80 intraday. Our first target is $44.75. Our 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: 32.34 change: +0.12 stop: 27.75 SPWRA didn't rally much but the intraday consolidation had a bullish tilt to it. 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: 48.73 change: +0.77 stop: 45.40 TEVA is moving faster than I expected. Shares hit new relative highs at $49.09 this afternoon. I'm not suggesting new positions at this time. Our exit target is $49.85. My time frame is very late July.
Visa - V - close: 66.72 change: -2.55 stop: 65.45 Visa showed relative weakness with a 3.6% sell-off on no news. The close under $68.00, which was short-term support, is naturally bearish. I could see more conservative traders cutting their losses early right here. The next test is possible support in the $66.00-65.50 zone. I'm not suggesting new positions at this time. 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: 28.60 change: -0.90 stop: 31.55 *new* Homebuilders under performed. MDC lost 3% and set new relative lows. More conservative traders may want to start taking profits now. I am adjusting our stop loss to $31.55. Our first target is $27.75. Our second target is $25.15.
Toll Brothers - TOL - close: 17.47 change: -0.44 stop: 19.66 Shares of TOL lost 2.4% following yesterday's failed rally. 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: 93.70 change: -0.16 stop: n/a Today was very disappointing for this trade. The U.S. dollar, having seen the bounce roll over, began to slide again in earnest. Yet gold prices, which normally move higher on dollar weakness, did not rally today. Instead the GLD failed at short-term resistance in the $94.50-95.00 zone. We are running low on time. 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.
iShares China ETF - FXI - close: 40.12 change: +0.95 stop: 35.75 Target achieved. The FXI opened at $39.79 and rallied to $40.76 before trimming its gains. Our second and final exit was $39.90. The trend in FXI is still up and you could argue this is a bullish breakout from its two-week trading range. I suggested more aggressive traders aim for the $44-45 zone. Our play is closed. At this time I would look for a dip back toward the 20 or 30-dma before considering new positions. We'll have to see how the FXI progresses over the next few weeks. Keep it on your watch list.
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