Amazon.com - AMZN - close: 83.18 change: -0.90 stop: 79.75 *new* Once again AMZN is giving us a chance to buy the dip. Shares slipped to $81.00 and their rising 50-dma. I see this as a new bullish entry point but readers may want to wait for the NASDAQ to find support again. I am raising our stop loss to $79.75. 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: 63.62 change: -0.79 stop: 60.99 We are still waiting for a breakout over resistance at $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.
Allegheny Tech. - ATI - close: 39.43 change: -2.45 stop: 35.70 I cautioned readers over the weekend that the profit taking in commodities may not be over. ATI's close under $40.00 and its 10-dma is short-term bearish but I would watch for a dip or a bounce near the $38.00 level as a new bullish entry point. More conservative traders might want to raise their stops toward $38.00. Our first target is $44.85. Our second target is $49.45.
Alliant Tech - ATK - close: 88.11 change: -2.56 stop: 87.75 ATK is displaying a similar situation. The close under $90.00 and its 10-dma is short-term bearish but the stock is now testing broken resistance and what should be support at $88.00. I see this as a new bullish entry point. If the market continues lower we'll be stopped out pretty fast. Our first target is $94.90. Our second target is $99.85.
Salesforce.com - CRM - close: 40.63 change: -0.97 stop: 39.95 CRM is still holding above support at the $40.00 level. The market weakness did spark a gap down. Shares opened at $41.00 and we've adjusted our entry point. Traders bought the dip near $40.00, which is where they should. The question is tomorrow. If the market, especially technology stocks, continues lower tomorrow then CRM has a strong chance of breaking support at $40.00. I see today's dip toward support as a new entry point but the play could be over tomorrow. Our first target is $44.90. Our second target is $49.00.
EOG Resources - EOG - close: 76.25 change: -1.37 stop: 70.95 EOG is still holding up pretty well. The stock slipped toward its bullish trend of higher lows and has already started bouncing. The afternoon rebound today looks like a new entry point but readers might want to turn very cautious and place their stop loss under today's low. Currently our stop is at $70.95. Our first target is $79.95. Our second target is $84.80.
Flowserve - FLS - close: 80.98 change: -3.43 stop: 74.60 FLS was not immune to the profit taking and shares gave up 4% to rest the $80.50 region. If this market continues to correct then I would not be surprised to see FLS pull back toward the $76-75 zone. If you don't want to endure that kind of correction then more conservative traders may want to raise their stop loss near the $80.00 level. FLS has already hit our first target. We're currently aiming for $87.40.
Intl.Bus.Mach. - IBM - close: 107.62 change: -0.59 stop: 103.90 IBM held up well. The stock only pulled back to its short-term trend of higher lows. I don't see any changes from my weekend comments but more conservative traders might want to raise their stops toward $106. Our first target is $113.50. Our second target is $118.50.
iShares Fincl.Srvcs - IYF - close: 43.20 change: -1.14 stop: 42.40 Uh-oh! Financials bulls may want to move to red-alert! Last week it looked like the consolidation was coiling for a breakout over resistance. Today the IYF is failing. Shares are on the verge of breaking their bullish trend of higher lows. More conservative traders might want to raise their stop toward $43.00. I'm not suggesting new positions at this time. I cautioned traders that this was an aggressive bet and to only trade half or less than your normal position size.
Mastercard - MA - close: 166.47 change: -0.59 stop: 158.90 MA does not carry any consumer credit risk. They make money on transactions. Yet the rise in consumer credit card defaults announced today could spook investors in MA. The midday bounce has failed under $168.50 and MA looks poised to test its 200-dma and 100-dma near $160 soon. 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: 40.78 change: -0.94 stop: 37.40 European markets were hammered lower due to negative comments from the IMF about the recession not being over, negative comments from the ECB about the billions of bank loans yet to be written off, and a record-breaking number of jobless for Europe in the first quarter of 2009. I'd say MBT held up pretty well with traders buying the dip near its 20-dma and exponential 200-dma. 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.
Middleby Corp. - MIDD - close: 48.03 change: -1.08 stop: 45.90 *new* MIDD slipped toward last week's lows and tried to bounce. Overall the stock held up okay. I'm not suggesting new positions at this time. We are raising our stop loss to $45.90. More conservative traders may want to consider a stop under today's low (46.84). Our first target is $54.00. Our second target is $59.00. The P&F chart is bullish with a $64 target.
Research In Motion - RIMM - close: 80.38 chg -2.64 stop: 79.40 RIMM pulled back toward round-number support at $80.00. Shares did hit $79.90 but spent most of the day consolidation sideways above $80.00. If the market continues lower tomorrow I wouldn't be surprised to see RIMM hit our stop loss at $79.40. More aggressive traders might want to adjust their stops under $78.00, since the $78.00 level also looks like potential support. Our first target is $89.85. We want to exit ahead of the June 18th (confirmed) earnings report.
Reliance Steel - RS - close: 40.57 change: -1.91 stop: 38.75 *new* As a steel maker RS sold off with the rest of the material stocks. Shares hit $39.76 but closed above round-number support at $40.00. I see this as a new bullish entry point to buy calls. However, if the market continues lower tomorrow we could easily get stopped out, especially since we're raising our stop loss to $38.75. 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.
Schlumberger - SLB - close: 58.59 chg: -1.68 stop: 57.75 The sell-off in crude oil sparked profit taking in the oil services. SLB gapped open lower at $59.25 and hit $57.30 before bouncing. This actually looks like another bullish entry point but the stock hit our stop loss at $57.75. I'm recording the loss but I'm re-listing SLB as a bullish candidate with two different entry points. If SLB rallies from here we want to buy calls again at $60.55 with a stop loss at $57.25 (under today's low). If SLB continues to slip then we want to buy calls at $56.05 with a stop loss at $54.85. Our first target is $64.90. Our second target is $68.40.
Chart:
SunPower - SPWRA - close: 30.30 change: -1.60 stop: 27.75 SPWRA has pulled back toward $30.00. Readers can use this as a new bullish entry point but with the market looking a little fragile right now you might want to wait. We might get a better entry point near $28.00 soon. More cautious traders may want to raise their stops near $30.00 instead. 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.
Teva Pharma. - TEVA - close: 47.86 change: -0.88 stop: 45.40 Profit taking in TEVA was mild. 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.
MDC Holdings - MDC - close: 28.77 change: +0.18 stop: 31.55 Homebuilders were lower thanks to a negative reading for the latest homebuilder confidence survey. Yet shares of MDC edged higher after being upgraded to a "neutral" this morning. I'm not suggesting new positions at this time. More conservative traders may want to start taking profits now. Our first target is $27.75. Our second target is $25.15.
Toll Brothers - TOL - close: 17.26 change: +0.01 stop: 19.11 Somehow TOL also managed to bounce back from new lows under $17.00 into positive territory. I'm not suggesting new positions at this time. More conservative traders may want to take some profits now. 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: 91.10 change: -1.07 stop: n/a The strength in the U.S. dollar and resulting sell-off in gold is really bad news and bad timing for our strangle. We only have four days left before June options expire. 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 $1.95 (breakeven) or higher.
Peabody Energy - BTU - close: 33.49 change: -2.17 stop: 32.99 Material and commodity stocks bore the brunt of the selling on Monday. BTU lost 6% and hit $32.95 intraday. This move broke the short-term trend of higher lows and hit our stop loss at $32.99. Short-term technicals have turned negative and the MACD has produced a new sell signal. I would keep BTU on your watch list for a dip near $30.00.
Chart:
Core Labs - CLB - close: 90.79 change: -1.05 stop: 89.49 Dollar strength fueled a very sharp sell-off in commodities. Oil was included and oil service stocks, which had been leading the market were hammered lower. CLB traded to $88.64 before bouncing back. While I could see more aggressive traders tempted to buy this bounce our play has been stopped out at $89.49.
Chart:
Millicom - MICC - close: 55.59 change: -2.56 stop: 56.20 Over the weekend we raised our stop loss on MICC. My concern was that the action in this stock over the last couple of days looked like a failed rally under $60 and its 10-dma. Today's market weakness sparked a 4.4% sell-off in MICC. Our stop loss was hit at $56.20.
Chart:
Mosaic - MOS - close: 53.12 change: -2.36 stop: 53.45 Our new play on MOS didn't last very long. The bull-flag breakout pattern has now broke down. The stock gapped open lower at $54.40 and eventually hit our stop loss at $53.45. I've adjusted our entry point. Volume was pretty light so you may want to keep MOS on your watch list.
Annotated Chart:
Vail Resorts - MTN - close: 26.97 chg: -1.95 stop: 27.40 A rough day in the markets re-ignited the profit taking in MTN. Friday's action, which looked like a new entry point, was quickly reversed and shares plunged to new three week lows under the 50-dma. Short-term technicals are definitely bearish now and the MACD has produced a new sell signal.
Annotated Chart:
Occidental Petrol. - OXY - close: 67.08 change: -1.89 stop: 66.45 OXY is another casualty of the sell-off in commodities, oil, and thus the oil services. The stock immediately broke down under its trendline of higher lows and eventually hit our stop loss at $66.45. I would keep OXY on your watch list should the stock recover quickly.
Annotated Chart:
 |
