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PLAY >New Updates Tuesday, March 13, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates
None

New Candidate Updates

AYE – Allegheny Energy Incorporated $46.13 –0.60 (-1.39)

We we thought that a recent "buy" rating from a Lehman Brothers would turn the recent tide of selling in AYE , but it just wasn't so. Instead, AYE shares continued to tread lower on the day, losing $0.60 to close at $46.13. Still, this late in the day announcement may gather some buying interest in tomorrow's trading. Furthermore, the intra-day chart suggests that a surplus of buyers are picking up shares just above the $46 mark. So, should a reversal from current levels unfold, we’ll look for initial resistance to now crop up at the 10-dma of $47.12, trailed by a tougher challenge at the $48 mark. Recent highs near $48 will also put forth resistance. As far as entry points are concerned, we’ll look for AYE shares to move through these points, when volume of 250,000 shares is traded by midday. Continue to hold firm stops at $45.94.


Picked on February 22nd @ $48.22
Change since picked –2.09
Stop Loss @ $45.94
 
Interactive Chart Quote News First Call on AYE
 


OAT – Quaker Oats Company $97.78 –0.22 (-1.02)

On the day, shares of the Chicago-based OAT continued to consolidate near the $98 mark. During today’s trading, the stock gave a sharp intra-day bounce off the 50-dma ($96.44) and formed a bullish hammer candlestick formation. As many of our readers might already know, hammer formations can sometimes signal an impending reversal of a stock. Still, what has really captured our attention has been the lightness in volume over the past three trading days. The stock's three-month average volume is 704,000 shares per day. However, over the past three sessions, OAT has logged an average of just 520,000 shares. We feel this is a good indication of a lack of sellers in the stock. Bearing these indications in mind, we’ll look for an upside move to encounter resistance at the 5-dma of $98.41 and then at the $99.33 mark (all-time high). Support comes in at the 50-dma of $96.44. Look for entries to come when the stock breaks above resistance or bounces from support on strong volume of 350,000 shares traded by noon. We’ll continue to hold a firm stop at the $96.00 mark.


Picked on March 8th @ $99.33
Change since picked –1.55
Stop Loss @ $96.00
 
Interactive Chart Quote News First Call on OAT
 


PFGC – Performance Food Group $47.75 +0.19 (-1.13)

Food product manufacturer Performance Food Group Company has been struggling after hitting an all-time high of $54.50 on March 2nd. On Tuesday, shares of PFGC traded to an intra-day high of $48.13 before pulling back to close at $47.75 on light volume of 54,100 shares. The stock has made seven consecutive lower highs and four consecutive lower lows on weak volume. PFGC fell below the 50-dma on Monday, so it could remain in a downward trend until the volume returns. Until then, support is Tuesday’s intra-day low of $47.25 with additional support at the 100-dma, currently at $46. However, we plan to exit if the stock traded below $47. Resistance is the 20-dma at $49.16 and then $50.38, the 10-dma. Traders may consider entry points on a bounce off of $47.25 or a move above $49.16 on volume greater than 70,000 shares by noon. We are leaving our stops at $47 to limit potential losses.


Picked on February 25th @ $50.13
Change since picked –2.38
Stop Loss @ $47.00
 
Interactive Chart Quote News First Call on PFGC
 


New Momentum Updates

BDX - Becton, Dickinson and Co. $34.98 -0.53 (-1.02)

BDX has been relatively ignored the past two days during the market's wild gyrations. Health care stocks have been generally outperforming the market this year due to their recession resistant nature. They've also been attractive because of their relatively low valuations. As for BDX, we are a little bit concerned because the stock closed just slightly below its 50-DMA of $35.06 today. What's more, the OBV and Money Flow are still strong but appear to be moving sideways after a long-term ascent. The bottom line is that BDX needs to make a positive move, perhaps as soon as tomorrow morning, or else our stop at $34.50 will be executed. A reversal of the stock's mild pullback will likely be over if BDX can rally above its 50-DMA and its 10-DMA of $35.53. If this occurs tomorrow, we will become more comfortable with this position.


Picked on February 11th @ $37.03
Change since picked -2.05
Stop Loss @ $34.50

 
Interactive Chart Quote News First Call on BDX
 


LMT – Lockheed Martin Corp. $38.34 –0.65 (-0.22)

Lockheed Martin has been consolidating for the past three sessions. On Tuesday, J.P. Morgan (JPM) initiated coverage of eight aerospace and defense companies. Lockheed Martin was given a “market performer” rating and a $38 price target, 99 cents below Monday’s closing price. Shares of LMT fell to an intra-day low of $37.55 before bouncing off of the 20-dma to a close of $38.34 on volume of 1.61 million shares. LMT has lost some of its momentum, but its upward trend is still healthy after a successful test of major support at the 20-dma on Tuesday. For now, support is the 10-dma at $38.18 with stronger support at $37.58, the 20-dma. Resistance has fallen to Tuesday’s intra-day high of $38.90 and then Monday’s intra-day high of $39.41. Look for bounce off of $38.18 or a move above $38.90 on midday volume of at least 800,000 shares before opening new positions. We are keeping our stops at $35 as downside protection.


Picked on February 4th @ $36.40
Change since picked +1.94
Stop Loss @ $35.00
 
Interactive Chart Quote News First Call on LMT
 


UVV - Universal Corporation $38.68 -0.14 (-0.31)

UVV suffered through a somewhat volatile day, at least by its usually nonvolatile standards. The drop to $37.80 early in the trading session may have afforded some of you the opportunity to pick up the stock at a more favorable price. The drop to this price and the subsequent rally has established a nice support price just below $38.00. If UVV can move above the 5-DMA of $38.72 in the early going tomorrow, the stock could well be on its way to testing the resistance offered by the recently established high of $39.20. One note of caution, though, the MACD did issue a sell signal today. Therefore, we would be cautious about adding positions if UVV drops below today's low of $37.80.


Picked on March 11th @ $38.99
Change since picked -0.31
Stop Loss @ $37.00
 
Interactive Chart Quote News First Call on UVV
 

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