Amazon.com - AMZN - close: 84.08 change: -1.61 stop: 77.45 Short-term profit taking on Friday brought AMZN to an intraday low of $82.01. Our trigger to buy calls was at $82.50 so our play is now open. Bulls rushed in to buy the dip and the stock pared most of its losses. Keep an eye on the $85.00 level. If we don't see AMZN quickly reclaim the $85.00 mark it could be cause for worry. 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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Apollo Group - APOL - close: 64.41 change: +0.31 stop: 60.99 APOL's intraday bounce on Friday might be a good bullish entry point. Shares tested the simple 50-dma again and produced another higher low. Unfortunately volume has been light all week including Friday. I'm suggesting readers stick to our original plan and wait for a breakout over $66.00. 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.
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Allegheny Tech. - ATI - close: 41.88 change: -1.38 stop: 35.70 Commodity-related stocks started to see some profit taking on Friday. It may not be over yet. Look for a bounce in the $40-38 zone as a possible entry point. More conservative traders might want to raise their stop loss. Our first target is $44.85. Our second target is $49.45.
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Alliant Tech - ATK - close: 90.67 change: +0.61 stop: 87.75 ATK provided a nice entry point on Friday. Shares dipped to the $89.00 level and quickly bounced. I suggested readers look for a pull back near the 10-dma. If you missed it I would still open positions now. The MACD is about to produce a new buy signal. The P&F chart produced a new triple-top breakout buy signal with a $143 target. Our first target is $94.90. Our second target is $99.85.
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Peabody Energy - BTU - close: 35.66 change: -1.12 stop: 32.99 BTU did erase Thursday's gains but traders were buying the dip on Friday afternoon near $35.00. This looks like 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.
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Core Labs - CLB - close: 91.84 change: -1.90 stop: 89.49 Our bullish play on CLB is open. The plan was to buy calls on a dip at $92.60. I could have said $91.00 instead. The stock dipped toward the 20-dma before traders started buying the pull back. Volume was pretty light on the session. If you haven't opened positions yet I would still do so now. Our first target is $99.00. I would exit the majority of your position there at $99.00. We're setting a secondary target for $107.00 but CLB will have to breakout past what could be very tough resistance at $100. FYI: The Point & Figure chart is bullish with a $125 target.
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BUY CALL JUL 90.00 CLB-GR open interest= 38 current ask $5.70 BUY CALL JUL 95.00 CLB-GS open interest=2123 current ask $3.10 BUY CALL JUL 100.0 CLB-GT open interest= 396 current ask $1.65
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EOG Resources - EOG - close: 77.62 change: +0.53 stop: 70.95 EOG continues to look very strong. This stock looks poised to breakout over resistance near $79-80 soon. I suggested looking for a dip near $75.50 and EOG hit $75.59 on Friday morning. I would still buy calls now but if you think the oil sector is due for a correction you might want to wait. I would expect EOG to have stronger support in the $74-72 zone. Our first target is $79.95. Our second target is $84.80.
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Flowserve - FLS - close: 84.41 change: +0.64 stop: 74.60 FLS continues to show relative strength. Traders bought the dip near $81.80 on Friday. The stock is already coiling for a breakout over the $85.00 level. Our secondary target is $87.40 but more aggressive traders may want to aim for the $90.00 region. More conservative traders may want to raise their stops. FLS has already exceeded our first target.
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Intl.Bus.Mach. - IBM - close: 108.21 change: -1.19 stop: 103.90 Friday was a quiet day for IBM. The stock drifted toward its short-term trend of higher lows near its 10-dma. 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.
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iShares Fincl.Srvcs - IYF - close: 44.34 change: +0.42 stop: 42.40 The action in the IYF and the financials looks like a coiled spring ready to shoot higher. What's holding it back is some resistance near $45.00 and the simple 200-dma. This has always been an aggressive trade. I'm going to turn more aggressive with our exit strategy. I'm adjusting our first target to take profits to $49.50. Our second target to take profits and exit completely will be $54.00. More conservative traders may want to go ahead and take some money off the table near $46.00, which could be additional resistance. I am suggesting that readers only trade half or less than your normal position sizes.
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Mastercard - MA - close: 167.06 change: -2.89 stop: 158.90 The early rally last week in MA has completely vanished and shares have now produced another lower high. I didn't see any specific news on MA's relative weakness but rival Visa was really under performing on Friday. The new lower high in MA is a warning and more conservative traders may want to exit early now. 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.
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Mobile Telesys - MBT - close: 41.72 change: +0.72 stop: 37.40 MBT out performed on Friday with a nice rebound in the morning. The stock closed up 1.75% unfortunately volume was pretty light. It's tough to put a lot of significant behind a move with any volume. The lack of follow through on Wednesday's bearish reversal is still good news and thus far MBT is holding support near $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.
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Millicom - MICC - close: 58.15 change: -0.41 stop: 56.20 *new* The action on Thursday looked like a failed rally but traders were buying the dip on Friday. I would be very tempted to buy the afternoon bounce. The safer play would be to wait for a new move over $60.00. I am raising our stop loss to $56.20. 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: 49.11 change: -0.42 stop: 44.95 MIDD also looks like a coiled spring ready to burst higher over resistance at $50.00. Friday's dip to $47.85 and its bounce looks like a new entry point but readers may want to wait for a new relative high over $50.00 to buy calls. Our first target is $54.00. Our second target is $59.00. The P&F chart is bullish with a $64 target.
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Vail Resorts - MTN - close: 28.92 chg: +0.41 stop: 27.40 The intraday bounce on Friday is a new bullish entry point to buy calls on MTN. The stock dipped toward $27.50 but didn't quite make it before traders started jumping in. The candlestick on Friday looks like a bullish reversal but I will point out that the MACD on the daily chart is actually about to turn bearish. Our first target to take profits is $34.95. Our second target is $39.75.
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Occidental Petrol. - OXY - close: 68.97 change: -1.66 stop: 66.45 OXY is still trying to breakout over resistance at $70.00. It had done so on Thursday but profit taking brought shares back to the short-term bullish trend of higher lows. I see Friday's late afternoon bounce as a new bullish entry point but readers may want to wait for a new rise over $70.25 to initiate positions. More conservative traders may want to raise their stop toward $67.50 or even $68.00. Our first target is $74.50. Our second target is $79.50. The Point & Figure chart is bullish with an $88 target.
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Research In Motion - RIMM - close: 83.02 chg -2.42 stop: 79.40 RIMM is a volatile stock and shares hit some profit taking after surging to new multi-month highs on Thursday. Time is running out but nimble traders could use dips near $80 as a new entry point. Our 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: 42.48 change: -0.62 stop: 37.25 RS still looks strong above $40.00 but readers may want to wait for a dip near $40.00 before considering new bullish positions. More conservative traders may want to raise their stops toward $39.00. 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.
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SunPower - SPWRA - close: 31.90 change: -0.44 stop: 27.75 The solar energy stocks should remain bullish with oil at elevated levels and with congress close to passing a new energy bill with a big boost for solar energy. I would look for a dip near $30.00 as a new entry point to buy calls on SPWRA. Currently the Point & Figure chart is bullish with a $48 target. Our first target is $37.40. The 200-dma near $40.00 looks like possible resistance.
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Teva Pharma. - TEVA - close: 48.74 change: +0.01 stop: 45.40 TEVA has rallied toward potential resistance at its August 2008 highs. I would expect a mild pull back here. Dips near $46.50-46.00 can be used as a new bullish entry point. Our exit target is $49.85. My time frame is very late July.
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MDC Holdings - MDC - close: 28.59 change: -0.01 stop: 31.55 Homebuilder MDC hit new relative lows on Friday near $28.00. Shares eventually trimmed their losses. I would not be surprised to see a bounce back toward $30 this week. More conservative traders may want to start taking profits now. Our first target is $27.75. Our second target is $25.15.
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Toll Brothers - TOL - close: 17.25 change: -0.22 stop: 19.11 *new* TOL sank toward its late May lows before trying to bounce on Friday afternoon. We can probably expect an oversold bounce toward $18.00. I am adjusting our stop loss to $19.11. More conservative traders may want to take some profits now. We're not suggesting new positions at this time. 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: 92.17 change: -1.53 stop: n/a The situation does not look good for our GLD strangle play. We're down to our last five trading days before June options expire and gold prices decide to turn lower. I am adjusting our exit target to breakeven at $1.95. GLD will need to trade near $97 for us to recoup our capital. More conservative traders may want to lower their exit target even further. I am not suggesting new positions at this time. 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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SPDR Gold Trust - GLD - close: 92.17 change: -1.53 stop: 92.40 The rally in gold had been waning the last few days even as the bounce in the U.S. dollar began to fade. The dollar bounced again on Friday and that was enough to spark some profit taking. The GLD gapped open lower at $92.41 and quickly hit our stop loss at $92.40. The GLD had already hit our first target and we've been aiming for $97.45 but shares topped out near $97.00.
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Precision CastParts - PCP - close: 84.73 change: +0.93 stop: 82.40 PCP looked like it was showing a little too much weakness on Thursday so we raised our stop loss. Shares dipped low enough on Friday to hit our stop loss and close the play. Unfortunately, the stock eventually bounced back into positive territory. I would keep PCP on your watch list.
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Visa - V - close: 64.36 change: -2.36 stop: 65.45 We were so patient and waited for the bullish breakout in Visa. Yet the rally turned out to be a bull trap. On Thursday V broke short-term support at $68.00. Friday saw a lot of follow through and shares gave up another 3.5%. The stock broke support and hit our stop loss at $65.45.
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